09.14.06

Tracy Young
Kennedy Space Center, Fla.
321-867-2468

Allard Beutel
Headquarters, Washington
202-358-4769

CONTRACT RELEASE: C06-046

NASA EXERCISES PAYLOAD PROCESSING SERVICES CONTRACT OPTION

NASA's Kennedy Space Center, Fla., will extend its Checkout, Assembly,
and Payload Processing Services contract for three years with Boeing
Space Operations Company of Titusville, Fla., a wholly owned
subsidiary of The Boeing Company, Chicago.

The contract extension and modification, valued at $278.5 million,
covers Oct. 1, 2006, through Sept. 30, 2009. The total contract value
including exercised and unexercised options is approximately $846
million.

The contract is a performance-based, cost-plus award fee contract to
provide checkout, assembly, and payload processing services at
Kennedy Space Center, Fla.; Cape Canaveral Air Force Station, Fla.;
and Vandenberg Air Force Base, Calif.

Under the contract, Boeing provides management and technical support
of payload processing for the space shuttle, International Space
Station and expendable launch vehicle programs. Services and support
include the planning for and receiving of payloads, maintenance of
associated ground support systems, integration of payloads with the
space shuttle, launch support, and space shuttle post-landing payload
activities.

For more information about NASA and agency programs, visit:

http://www.nasa.gov/home