Private Industry Will Handle Some Shuttle Operations

In the biggest change in the history of the space shuttle program, NASA is turning over day-to-day operations to private industry beginning today to save money.

“Today is the first day of a new space program in America,” NASA Administrator Daniel S. Goldin said Monday in announcing the $7-billion, six-year contract with United Space Alliance, a joint venture of Rockwell International Corp. and Lockheed Martin Corp.

Officials promise the shift will be gradual, with shuttle flight safety the priority.

In the short term, not even NASA and its contract employees will see much difference. The National Aeronautics and Space Administration still will give the final “go” for launch and make the important decisions during a shuttle flight, as it has for the last 15 years. It will retain ultimate responsibility for shuttle safety and hire the astronauts. And it will still own the four space shuttles.

But it will ease itself out of the day-to-day work, such as preparing the shuttles for flight, training the astronauts and operating Mission Control. Those duties will belong to United Space Alliance.

The contract, announced Monday but signed late week, designates United Space Alliance as the single prime contractor for shuttle operations. It includes two two-year extension options that could bring the contract’s value to $12 billion over 10 years.

USA officials expect to save at least $400 million over the six-year contract.