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James Hartsfield
Johnson Space Center, Houston	       Jan. 31, 2003
(Phone: 281/483-5111)

Allard Beutel
Headquarters, Washington
(Phone: 202/358-0951)

RELEASE: C03-001

NASA FINALIZES CONTRACT WITH UNITED SPACE ALLIANCE

     NASA has settled negotiations that increase the value of a 
two-year extension of the Space Flight Operations Contract (SFOC) held 
by United Space Alliance, LLC, in Houston, by $59.91 million.

NASA's exercising of the two-year SFOC extension, which supports the 
Space Shuttle Program, was previously announced in August 2002 with 
negotiations continuing. This final agreement on price, terms, 
conditions and scope of work for the contract, through Sept. 30, 2004, 
brings the total value of the two-year contract extension to $2.90 
billion. 

The SFOC is NASA's prime contract for support of the Space Shuttle and 
provides operations services for the International Space Station. The 
effort under this contract entails the provision of space flight 
operations including all work necessary and appropriate to support 
scheduled space flight missions through the two-year period. This is a 
cost reimbursement contract with award fee, incentive fee and
performance fees.

The principal places of performance of work under this contract are 
United Space Alliance facilities in Houston, Huntsville, Ala., the 
Kennedy Space Center, Fla.; and major subcontractor facilities in 
Huntington Beach, Calif., Houston, and Cape Canaveral, Fla.

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