NASA officials Thursday defended the $3.9 billion contract given to Lockheed Martin Space Systems Co. against criticism from federal watchdogs that the award was too large and open- ended.
The National Aeronautics and Space Administration last month selected the Lockheed Martin team, based in Jefferson County, to build the next-generation space shuttle.
It is to be a spacecraft that can ferry astronauts to the moon and, eventually, to Mars.
A report by the General Accountability Office, Congress’ investigative arm, in the summer criticized NASA for committing the government to the project – dubbed Orion – before establishing clear design requirements and firm cost estimates.
NASA’s mission strategy put the project “at risk for cost overruns, schedule delays and performance shortfalls,” Allen Li, a GAO director, told members of the House Science Committee on Thursday.
Scott Horowitz, NASA’s associate administrator for exploration systems, told lawmakers that the space agency disagreed with the GAO’s findings.
Nevertheless, NASA made changes to the Lockheed contract based on some of the report’s critiques, Horowitz said.
The contract is divided into three phases, said NASA spokesman Kelly Humphries at the Johnson Space Center in Houston.
There are initial design and production of a vehicle; long- term production of many vehicles; and ongoing maintenance.
The revised contract with Lockheed includes only the first phase and makes the next two optional, he said.
The GAO report is a “political document,” representing concerns of lawmakers whose districts don’t benefit from the big contract, said Paul Nisbet, an aerospace analyst at JSA Research in Newport, R.I.
“It’s just the nature of the beast,” Nisbet said. “You win one of these big contracts, you’re going to be under fire from all of those that would like to see it cut down.”
Staff writer Kelly Yamanouchi contributed to this report.
Staff writer Katy Human can be reached at 303-954-1910 or khuman@denverpost.com.



