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NASA’s new plan for a lunar mission intensifies the competition between two teams angling to build the next-generation spaceship – one led by Lockheed Martin Space Systems in Jefferson County and the other by Northrop Grumman Corp. in Los Angeles.

The teams were selected this year to compete for a contract to be awarded in the spring and expected to be worth several hundred million dollars.

The National Aeronautics and Space Administration’s decision Monday to develop a capsule-shaped return vessel was in line with Northrop Grumman’s draft proposal submitted this year.

Lockheed’s initial design was a winged vehicle similar in shape to the space shuttle, said John Karas, the company’s vice president for space exploration.

Even so, industry analysts said Lockheed ‘t likely to probably won’t suffer serious setbacks.

Lockheed will be able to draw on general industry expertise and the company’s own experience in redesigning its space vehicle, said Max Engel, a space-industry analyst for Frost & Sullivan, based in Palo Alto, Calif.

Lockheed has more than 10,000 employees in Colorado, including 5,000 in its space-Ssystems unit.

“Where it really gets to how smart you are is how you pack the inside,” Engel said.

that Northrop Grumman’s team has no clear advantage over Lockheed in that arena.

Keith Reiley, a Northrop Grumman manager team, said he does not consider his company to be a step ahead of Lockheed, although he said he was gratified with NASA’s decision, believing capsules are safer, simpler and more affordable than winged shapesthan lifting bodies.

” he said. “We’ll have to work hard to be competitive.”

Staff writer Katy Human can be reached at 303-820-1910 or khuman@denverpost.com.