Boeing and SpaceX Win Major NASA Space Taxi Contract

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Updated at 5:26 p.m.

NASA awarded Tuesday aeronautical firms Boeing and SpaceX with contracts totaling $6.8 billion to launch astronauts into low Earth orbit under its Commercial Crew Program.

Proposals by Boeing and NASA were selected by NASA to ferry astronauts to the International Space Station (ISS), with the goal of certifying crew transportation capability by 2017, NASA Administrator Charles Bolden said in a news conference.

Boeing was awarded a $4.2 billion contract, while SpaceX was awarded a $2.6 billion contract, said Kathryn Lueders, Program Manager of NASA’s Commercial Crew Program.

“These contracts highlight what commercial companies can accomplish and we are counting on them to deliver our most precious cargo: the crew who will perform vital science research on the ISS,” Lueders said. “Two contracts give us the necessary mechanisms to assure we’re on the right track.”

The contracts are subject to the completion of safety certifications and development efforts for Boeing’s CST-100 capsule and SpaceX’s Dragon capsule, according to Lueders. Specifically, both Boeing and SpaceX will conduct five certification milestones: a baseline review, a design review, a flight test readiness review, an operational readiness review, and certification review.

Once NASA approves that Boeing’s and SpaceX’s systems meet its requirements, the systems will be certified for two to six human missions to deliver cargo and a crew of up to four to the ISS. The missions will enable NASA to nearly double today’s scientific research potential, Lueders said. The capsules will also serve as a “life boat,” capable of holding crew members safe up to 210 days in the event of an emergency.

Bolden emphasized that the contracts are intended to end by 2017 America’s sole reliance on Russia, whose government charges the U.S. $71 million a seat for rides to the ISS. NASA had previously been able to transport crew to the ISS with its Space Shuttle, but retired the vehicle in 2011. Its replacement craft, the Orion, isn’t set for manned missions until after 2020.

A third contender in the space race, Sierra Nevada, did not secure a piece of the deal with its winged spacecraft, the Dream Chaser. Boeing, with its decades of experience supplying parts and expertise to NASA, was widely considered a favorite among the three companies vying for the NASA contract. SpaceX founder and billionaire Elon Musk had previously criticized Boeing for being too close to NASA.

PHOTOS: See SpaceX's Biggest Milestones

SpaceX embarked on its first deep space mission with the launch of this Falcon 9 SpaceX rocket on Feb. 11, 2015 at Cape Canaveral, Fla., after two previous failed attempts.
SpaceX embarked on its first deep space mission with the launch of this Falcon 9 rocket on Feb. 11, 2015 at Cape Canaveral, Fla., after two previous failed attempts. Onboard is the Deep Space Climate Observatory, which will head 1 million miles from Earth to watch for incoming geomagnetic storms that could trigger power outages on our planet.John Raoux—AP
On May 29, 2014, SpaceX's CEO Elon Musk (not pictured) unveiled the company's first manned spacecraft, Dragon V2, at a press conference in Hawthorne, Calif., on May 29, 2014.
On May 29, 2014, SpaceX's CEO Elon Musk (not pictured) unveiled the company's first manned spacecraft, Dragon V2, at a press conference in Hawthorne, Calif., on May 29, 2014.SpaceX
A rocket carrying the SpaceX Dragon ship lifts off from launch complex 40 at the Cape Canaveral Air Force Station in Cape Canaveral, Fla. on April 18, 2014.
A rocket carrying the SpaceX Dragon ship lifts off from launch complex 40 at the Cape Canaveral Air Force Station in Cape Canaveral, Fla. on April 18, 2014.John Raoux—AP
Falcon 9 awaits its upcoming launch in SpaceX's hangar with landing legs attached on March 12, 2014.
Falcon 9 awaits its upcoming launch in SpaceX's hangar with landing legs attached on March 12, 2014.SpaceX
SpaceX's Falcon 9 launches with Thailand’s Thaicom 6 satellite on Jan. 6, 2014 from Cape Canaveral’s Space Launch Complex-40 in Cape Canaveral, Fla.
SpaceX's Falcon 9 launches with Thailand’s Thaicom 6 satellite aboard, on Jan. 6, 2014 from Cape CanaveralSpaceX
SpaceX's Falcon 9 and SES 8 launch from SpaceX's launch pad at Cape Canaveral, Fla., on Nov. 28, 2013.
SpaceX's Falcon 9 launches from Cape Canaveral, on Nov. 28, 2013.SpaceX
SpaceX's Falcon 9 rolls out of the hangar for SES 8 on Nov. 28, 2013.
SpaceX's Falcon 9 rolls out of the hangar on Nov. 28, 2013.SpaceX
A Falcon 9 rocket carrying a small science satellite for Canada is launched from a newly refurbished launch pad in Vandenberg Air Force Station in California, on Sept. 29, 2013.
A Falcon 9 rocket carrying a small science satellite for Canada is launched from a newly refurbished launch pad in Vandenberg Air Force Station in California, on Sept. 29, 2013. Gene Blevins—Reuters
SpaceX's reusable rocket prototype, Grasshopper, completes a 325 meter hop on June 14, 2013 before smoothly landing back on the pad.
SpaceX's reusable rocket prototype, Grasshopper, completes a 1,066-ft. (325 meter) hop on June 14, 2013 before landing back on the pad.SpaceX
SpaceX's fairing on May 27, 2013.
A SpaceX component preparing for testing in the world's largest vacuum chamber at NASA Glenn Research Center in Cleveland.SpaceX
SpaceX's Dragon on the recovery boat on April 13, 2013.
SpaceX's Dragon on the recovery boat on April 13, 2013.NASA
SpaceX's Dragon is grappled by the International Space Station on April 13, 2013.
SpaceX's Dragon is grappled by the International Space Station on April 13, 2013.NASA
SpaceX's F9 rocket leaves the hangar at Cape Canaveral, Fla., on March 8, 2013.
SpaceX's Falcon 9 rocket leaves the hangar at Cape Canaveral, Fla., on March 8, 2013.SpaceX
Nine Merlin engines for the inaugural Falcon 9 flight, ready for integration onto the thrust structure, on March 8, 2013.
Nine Merlin engines for the inaugural Falcon 9 flight, ready to be installed in the booster, on March 8, 2013.SpaceX
From left: NASA Administrator Charles Bolden and SpaceX CEO and Chief Designer Elon Musk view the historic Dragon capsule
From left: NASA Administrator Charles Bolden and SpaceX CEO and Chief Designer Elon Musk view the Dragon capsule that returned to Earth on May 31, 2012 following the first successful mission by a private company to carry supplies to the International Space Station, at the SpaceX facility in McGregor, Texas, on June 13, 2012.Bill Ingalls—NASA/Reuters
SpaceX's unmanned Dragon capsule floats in the Pacific Ocean off of Baja California on May 31, 2012.
SpaceX's unmanned Dragon capsule floats in the Pacific Ocean off of Baja California on May 31, 2012. SpaceX/Reuters
SpaceX's Dragon commercial cargo craft is berthed to the International Space Station on May 25, 2012.
SpaceX's Dragon commercial cargo craft is berthed to the International Space Station on May 25, 2012. NASA/Reuters
A Falcon 9 rocket carrying the Dragon spacecraft blasts off from Complex 40 at Cape Canaveral Air Force Station, in Cape Canaveral, Fla., on May 22, 2012.
A Falcon 9 rocket carrying the Dragon spacecraft blasts off from Complex 40 at Cape Canaveral, on May 22, 2012.Red Huber—MCT/Getty Images
The SpaceX Falcon 9 test rocket lifts off from Space Launch Complex 40 at the Cape Canaveral Air Force Station in Cape Canaveral, Fla., on May 22, 2012.
The SpaceX Falcon 9 test rocket lifts off from Space Launch Complex 40 at Cape Canaveral on May 22, 2012.Pierre Ducharme—Reuters
SpaceX'S Falcon 9 rocket and Dragon spacecraft lift off from Launch Complex-40 at Cape Canaveral Air Force Station in Cape Canaveral, Fla., on Dec. 8, 2010.
SpaceX'S Falcon 9 rocket and Dragon spacecraft lift off from Launch Complex-40 at Cape Canaveral, on Dec. 8, 2010.NASA—Gamma-Rapho/Getty Images
From left: U.S. President Barack Obama and Head of SpaceX Elon Musk tour Cape Canaveral Air Force Station in Cape Canaveral, Fla., on April 15, 2010.
From left: President Barack Obama and Head of SpaceX Elon Musk tour Cape Canaveral, on April 15, 2010.Jim Young—Reuters
On April 22, 2008, Musk's company landed NASA's launch services contract for Falcon 1 and 9 rockets. Here, the SpaceX factory in Los Angeles is shown on Nov. 21, 2008.
On April 22, 2008, Musk's company landed NASA's launch services contract for Falcon 1 and 9 rockets. Here, the SpaceX factory in Los Angeles is shown on Nov. 21, 2008.Dan Tuffs—Getty Images

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