United Space Alliance (USA), the Boeing-Lockheed Martin joint venture created in 1995 to operate NASA's now-retired space shuttle, has been barred by its corporate parents from pursuing any new business, according to industry sources.The move raises new questions about the future of the Houston-based company, a major NASA contractor that has struggled to carve out a prominent new role for itself in the post-shuttle era. USA's current shuttle operations contract is set to expire in September.
"I have been told by folks who work at senior levels directly at USA that they have been told they can't go after any new [contracts] -- that they are basically standing down," one industry source said. "Does that mean Boeing and Lockheed plan to totally dismantle the company? I can't go that far, but if you are not allowed to go after any new work, that certainly says something."
NASA is gearing up for a new human spaceflight support contract intended to bridge the gap between shuttle and a follow-on system. Yates declined to say whether the company had intended to pursue the Test and Operations Support Contract (TOSC), citing company rules barring her from commenting on prospective new business.
Boeing, for its part, does intend to bid for the work, expected to be awarded in October, Paula Korn, a company spokeswoman, said. Korn said Boeing views it as a follow on to work the company performs at Kennedy under its Checkout, Assembly and Payload Processing Services contract originally awarded in 2002. NASA has twice extended that contract, which currently runs through September, for a total maximum value of $825 million.