The Boeing International
Space Station team began work Oct. 1 on a contract that consolidates
previous NASA payload integration contracts.

NASA awarded Boeing [NYSE: BA] the noncompetitive International Space
Station Payload Integration Contract (IPIC) in September. It is a
three-year contract worth about $200 million. NASA Systems, a Houston-based
business unit of Boeing Integrated Defense Systems, holds the contract
designed to cut costs and reduce payload processing time by optimizing
payload engineering and operations and streamlining the team structure.
Of the three previous contracts, Boeing held two and United Space
Alliance held one.

About 400 people in Houston and Huntsville, Ala., will work on the
contract. Boeing’s partners and subcontractors include Teledyne Brown
Engineering, United Space Alliance, and several small and minority-owned
businesses.

"With the consolidation into IPIC, the Boeing team will further
develop the payload processing tasks required by our customer,"
said Rick Golden, Boeing IPIC program manager. "Our focus will
be to provide better value and service to the NASA customer, improve
the interfaces with the payload developers and owners, and enhance
science and technology research efforts aboard the International Space
Station."

Payload processing is the technique of preparing items such as spacecraft,
scientific experiments, supplies and equipment for space flight. Specific
tasks for IPIC include integrating science and technology research
experiment racks, providing engineering analysis, developing payload-related
software, and providing operations support to payloads once on orbit.
Many of the items built for the International Space Station are unique
and require special handling and processes.

The IPIC team works with Boeing specialists at Kennedy Space Center,
Fla., who physically prepare the payloads for space flight as part
of the Checkout, Assembly and Payload Processing Services contract
awarded to Boeing in August. In addition, Boeing will work with NASA
to ensure payloads meet the customers’ technical, safety and operational
requirements.

Boeing is NASA’s prime contractor for the International Space Station
and responsible for designing, constructing and integrating the components.
The company, through its NASA Systems division, also supports the
space agency in operating the ISS. Additionally, the NASA Systems
division is a major subcontractor to United Space Alliance for space
shuttle engineering support. Boeing also plays a key role in developing
the future of human space flight to include designing new spacecraft
and propulsion systems.

A unit of The Boeing Company, Boeing Integrated Defense Systems is
one of the world’s largest space and defense businesses. Headquartered
in St. Louis, Boeing Integrated Defense Systems is a $23 billion business.
It provides systems solutions to its global military, government and
commercial customers. It is a leading provider of intelligence, surveillance
and reconnaissance; the world’s largest military aircraft manufacturer;
the world’s largest satellite manufacturer and a leading provider
of space-based communications; the primary systems integrator for
U.S. missile defense; NASA’s largest contractor; and a global leader
in launch services.

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Glen Golightly
714-372-4742
robert.g.golightly@boeing.com

Ann Beach
(562) 797-4222
ann.m.beach@boeing.com