04.23.

07

Kelly Humphries
Johnson Space Center, Houston
281-483-5111

Beth Dickey/J.D. Harrington

Headquarters, Washington
202-358-2087/5241

RELEASE: C07-021

NASA MODIFIES ORION CREW EXPLORATION VEHICLE CONTRACT

WASHINGTON - NASA has modified its contract with Lockheed Martin Corp.
of Littleton, Colo., to design, test and build the Orion crew
exploration vehicle.

The updated contract contains three significant changes. Two years

have been added to the design phase. Two test flights of Orion's
launch abort system have been added. And production of a pressurized
cargo carrier for the International Space Station has been deleted
from the initial design phase.

NASA continues work to ensure a smooth transition from the Space

Shuttle Program to the Constellation Program. This is demonstrated in
a fourth element of the contract modification that provides for use
of surplus raw materials, such as aluminum-lithium ingots now used in
the construction of space shuttle fuel tanks, for Orion.

"NASA and Lockheed have been working together as a team during

the past six months to iron out many critical design and schedule
details," said Skip Hatfield, manager of the Orion Project at
NASA's Johnson Space Center in Houston. "This contract update
will synchronize our spending plan with the rest of the Constellation
Program."

NASA awarded the Orion prime contract to Lockheed Martin Corp. on Aug.
31, 2006. At that time, the development portion of the contract was
valued at $3.9 billion with a period of performance through December
2011. This contract modification, in the amount of $385 million,
brings the total value to approximately $4.3 billion and adjusts the
development period of performance through December 2013.

This update is the result of a NASA request for engineering change

proposal issued on Dec. 15, 2006. Lockheed Martin's proposal was
received March 7, 2007. The contract modification was signed April
20.

The modification reflects continuing progress on Orion's development,

including program formulation and systems assessments addressing the
rocket, ground infrastructure and all other elements necessary for a
successful first launch. The period of performance now matches the
evolving NASA budget landscape.

"The Orion team has made some critical decisions that will
maximize the performance and flexibility of this spacecraft,"
said Jeff Hanley, manager of the Constellation Program at Johnson.
"This spacecraft will be a cornerstone of America's human
exploration of the solar system by a new generation of explorers, and
these changes and additional tests will ensure that it is robust
enough to accomplish its missions."

Meanwhile, work progresses as planned on the contract. NASA and

Lockheed Martin have completed Orion's systems requirements review
and are moving toward a systems design review scheduled in August.

For information about NASA's Constellation Program and Orion Project,

visit:

http://www.nasa.gov/constellation/

-end-