NASA Selects Companies to Develop Commercial Destinations in Space

NASA has signed agreements with three U.S. companies to develop designs of space stations and other commercial destinations in space. The agreements are part of the agency’s efforts to enable a robust, U.S.-led commercial economy in low-Earth orbit.

The total estimated award amount for all three funded Space Act Agreements is $415.6 million. The companies that received awards are:

  • Blue Origin of Kent, Washington, for $130 million
  • Nanoracks LLC of Houston, Texas, for $160 million
  • Northrop Grumman Systems Corporation of Dulles, Virginia, for $125.6 million

NASA seeks to maintain an uninterrupted U.S. presence in low-Earth orbit by transitioning from the International Space Station to other platforms. These awards will stimulate U.S. private sector development of commercial, independent space stations that will be available to both government and private-sector customers.

“Building on our successful initiatives to partner with private industry to deliver cargo, and now our NASA astronauts, to the International Space Station, NASA is once again leading the way to commercialize space activities,” said NASA Administrator Bill Nelson. “With commercial companies now providing transportation to low-Earth orbit in place, we are partnering with U.S. companies to develop the space destinations where people can visit, live, and work, enabling NASA to continue forging a path in space for the benefit of humanity while fostering commercial activity in space.”

The awards are the first in a two-phase approach to ensure a seamless transition of activity from the International Space Station to commercial destinations. During this first phase, private industry, in coordination with NASA, will formulate and design commercial low-Earth orbit destination capabilities suitable for potential government and private sector needs. The first phase is expected to continue through 2025.

For the second phase of NASA’s approach to a transition toward commercial low-Earth orbit destinations, the agency intends to certify for NASA crew member use commercial low-Earth orbit destinations from these and potential other entrants and ultimately purchase services from destination providers for crew to use when available. This strategy will provide services the government needs at a lower cost, enabling NASA to focus on its Artemis missions to the Moon and on to Mars while continuing to use low-Earth orbit as a training and proving ground.

NASA estimates the agency’s future needs in low-Earth orbit will require continuous accommodations and training for at least two crew members, as well as the ability to support a national orbiting laboratory and the performance of approximately 200 investigations annually to support human research, technology demonstrations, and biological and physical science.

Developing commercial destinations in low-Earth orbit is part of NASA’s broader efforts to build a robust low-Earth orbit economy, including supporting commercial activity and enabling the first private astronaut mission to the space station. In addition to these new awards, NASA selected Axiom Space in January 2020 to design and develop commercial modules to attach to the station. NASA and Axiom recently completed the preliminary design review of two modules as well as the critical design review of the module’s primary structure.

By transitioning to a model where commercial industry owns and operates the assets in low-Earth orbit and where NASA is one of many customers, the agency can save on costs to live and work in low-Earth orbit and focus on pushing innovation and exploration of the Moon and Mars through NASA’s Artemis missions.

Find more information about NASA’s efforts to bolster a low-Earth orbit economy at https://www.nasa.gov/leo-economy.