Fwd: SNC challenges NASA's award of contracts to Boeing & SpaceX

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Begin forwarded message:

From: "Robert Hooi" <rwlh21@sbcglobal.net>
Date: September 28, 2014 8:17:46 AM CDT
To: <Undisclosed-Recipient:;>
Subject: FW: SNC challenges NASA's award of contracts to Boeing & SpaceX

SNC challenges NASA's award of contracts to Boeing & SpaceX

Sierra Nevada Corp (SNC) has challenged NASA's decision to award contracts totaling $6.8 billion to Boeing and SpaceX for commercially building and operating "space taxis" to fly astronauts to the International Space Station.

A few days back, NASA officials announced that space agency had decided to award long-time aerospace contract to Boeing and SpaceX. Under the multi-billion contracts, the two companies will be responsible for developing, certifying and flying their seven-person capsules to the ISS.

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SNC argued that there were serious inconsistencies in the American space agency's source selection process, and claimed that its bid could have saved nearly $900 million.

Challenging the decision, SNC said, "With the current awards, the U.S. government would spend up to $900 million more… for a space program equivalent to the program that SNC proposed. There is no alternative but to institute a legal challenge."

Boeing and SpaceX were awarded $4.2-billion and $2.6-billion contracts. It may be noted here that SpaceX is headed by famed technology entrepreneur Elon Musk, who is also the CEO of electric car maker Tesla Motors Inc.

The so-called space taxis would end the United States' dependence on Russia for delivering astronauts and equipment to the ISS.