Kyle Herring
Johnson Space Center, Houston, TX
(281) 483-5111
Release: J99-52


NASA and the Boeing Co., Houston, TX, today announced a modification to
the existing contract for the International Space Station that will
focus the remaining contract work on the upcoming assembly and early
operations tasks for the orbiting complex.

The modification completes a number of planned improvements to the
contract. Specifically, it reorganizes the statement of work to focus
the assembly and operations tasks and establishes a means to track new
content; it also successfully settles a number of existing contractual
issues; and finally, it revises the fee structure from the original
Cost-Plus-Award Fee/Incentive Fee/Fixed Fee to a Cost-Plus-Award
Fee/Fixed Fee structure. These changes will significantly facilitate
efficient, high quality performance for the remaining work under this

Boeing was awarded the eight-year prime contract for the construction
and integration of the ISS in 1995 and the Design, Development, Test and
Evaluation of the US On-Orbit Segment hardware is nearing completion.
The modification, effective today, valued at $536,999,404, captures
currently budgeted work and will bring the current contract value to

Work on the contract is being performed at various Boeing facilities
located in Huntington Beach and Canoga Park, CA; Huntsville, AL;
Orlando, FL; Houston, TX; and at various subcontract facilities located
throughout the U.S.