Kirsten Larson
Headquarters, Washington                    Nov. 14, 2001
(Phone: 202/358-0243)

James Hartsfield
Johnson Space Center, Houston
(Phone: 281/483-5111)

RELEASE: c01-x

NASA MODIFIES SPACE FLIGHT OPERATIONS CONTRACT

     NASA recently negotiated two modifications to the Space 
Flight Operations Contract with United Space Alliance, 
adjusting costs, resolving open issues related to work done 
last year and providing for a variety of tasks planned during 
2002. Together, the modifications have a total value of $189 
million.

The first modification bundles several different credits and 
costs incurred in the Space Flight Operations Contract during 
fiscal year 2001 and results in a net increase to the 
contract value of $95 million. The largest task involved and 
the majority of incurred costs are related to work on Space 
Shuttle Columbia as part of a maintenance period that was 
completed earlier this year.

The second modification enhances the fiscal year 2002 Program 
Provisioning Task List, providing sustaining engineering for 
the Space Shuttle Program, adding $94 million to the contract 
value.

The program-provisioning tasks involve work on the shuttle 
orbiters, ground operations, program integration, program 
reimbursables, flight operations and solid rocket boosters. 
The Space Flight Operations Contract allows program 
provisioning to be assessed on an annual basis.

Work under the two modifications will be performed in 
Houston; Huntington Beach, Calif.; Palmdale, Calif.; 
Huntsville, Ala.; and at the Kennedy Space Center, Fla.

                        -end-