Aug. 31, 2006

Michael Braukus/Beth Dickey
Headquarters, Washington
202-358-1979/2087

Kelly Humphries
Johnson Space Center, Houston
281-483-5111

RELEASE: 06-305

NASA SELECTS ORION CREW EXPLORATION VEHICLE PRIME CONTRACTOR

NASA selected Wednesday Lockheed Martin Corp., based in Bethesda, Md.,
as the prime contractor to design, develop, and build Orion,
America's spacecraft for a new generation of explorers.

Orion will be capable of transporting four crewmembers for lunar
missions and later supporting crew transfers for Mars missions. Orion
could also carry up to six crew members to and from the International
Space Station.

The first Orion launch with humans onboard is planned for no later
than 2014, and for a human moon landing no later than 2020. Orion
will form a key element of extending a sustained human presence
beyond low-Earth orbit to advance commerce, science and national
leadership.

The contract with Lockheed Martin is the conclusion of a two-phase
selection process. NASA began working with the two contractor teams,
Northrop Grumman/Boeing and Lockheed Martin, in July 2005 to perform
concept refinement, trade studies, analysis of requirements and
preliminary design options. Lockheed Martin will be responsible for
the design, development, testing, and evaluation (DDT&E) of the new
spacecraft.

Manufacturing and integration of the vehicle components will take
place at contractor facilities across the country. Lockheed Martin
will perform the majority of the Orion vehicle engineering work at
NASA's Johnson Space Center, Houston, and complete final assembly of
the vehicle at the Kennedy Space Center, Fla. All 10 NASA centers
will provide technical and engineering support to the Orion project.

The contract is structured into separate schedules for DDT&E with
options for production of additional spacecraft and sustaining
engineering. During DDT&E, NASA will use an end-item
cost-plus-award-fee incentive contract. This makes the award fee
subject to final determination after the contractor has demonstrated
that it meets the technical, cost, and schedule requirements of the
contract.

DDT&E work is estimated to occur from Sept. 8, 2006, through Sept. 7,
2013. The estimated value is $3.9 billion.

Production and sustaining engineering activities are contract options
that will allow NASA to obtain additional vehicles as needed.
Delivery orders over and above those in the DDT&E portion will
specify the number of spacecraft to be produced and the schedule on
which they should be delivered.

Post-development spacecraft delivery orders may begin as early as
Sept. 8, 2009, through Sept. 7, 2019, if all options are exercised.
The estimated value of these orders is negotiated based on future
manifest requirements and knowledge gained through the DDT&E process
and is estimated not to exceed $3.5 billion.

Sustaining engineering work will be assigned through task orders. The
work is expected to occur from Sept. 8, 2009, through Sept. 7, 2019,
with an estimated value of $750 million, if all options are
exercised.

For information about Orion, visit:

http://www.nasa.gov/orion

For information about NASA and agency programs, visit:

http://www.nasa.gov/home