NASA HAS DROPPED the competition to privatise the Space Shuttle programme, saying that it will negotiate solely with a joint venture of Rockwell International and Lockheed Martin called United Space Alliance.

The space agency hopes to complete contract talks by September 1996 to transfer the running of the $3 billion-a-year Shuttle programme.

United Space Alliance has always been considered the front-runner in winning the contract over competitors Boeing and McDonnell Douglas.

Together, Lockheed Martin and Rockwell already hold 69% of the dollar value of Shuttle-support contracts. Boeing's loss was cushioned by the fact that it holds the prime contract for the International Space Station.

NASA is consolidating overall Shuttle operations under a single prime contractor, including responsibility for all certificated hardware and software and all mission and flight operations.

Source: Flight International

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