NASA Solicits Replacements for $24B SLS and Orion Capsule
NASA has solicited rival bids to replace the $24 billion Space Launch System and Lockheed Martin-built Orion capsule, putting tens of billions in future contracts at risk. Administrator Jared Isaacman canceled Boeing’s multi-billion-dollar SLS upper-stage contract and paused the Gateway lunar station plan.
1. Commercial Replacement Solicitation
NASA issued requests to competitors for alternative lunar transportation solutions to succeed the $24 billion Space Launch System and the Lockheed Martin-built Orion capsule, citing goals of reduced cost and increased operational speed.
2. Risks to Lockheed Martin Contract
The Orion crew capsule, developed by Lockheed Martin with program value amounting to tens of billions over its lifespan, now faces potential cancellation or contract reductions if commercial providers meet NASA’s requirements.
3. Efficiency-Driven Program Changes
Administrator Jared Isaacman has already canceled Boeing’s multi-billion-dollar contract for an upgraded SLS upper stage and suspended plans for the lunar Gateway station to drive cost efficiencies and accelerate mission cadence.
4. Future Funding Uncertainty
Congress previously restored funding for SLS and Orion after cost overruns and delays, but renewed budget proposals under the current administration threaten to shift tens of billions in future spending toward commercial alternatives ahead of a 2028 lunar landing target.