NASA recently negotiated two modifications to the Space
Flight Operations Contract with United Space Alliance,
adjusting costs, resolving open issues related to work done
last year and providing for a variety of tasks planned during
2002. Together, the modifications have a total value of $189

The first modification bundles several different credits and
costs incurred in the Space Flight Operations Contract during
fiscal year 2001 and results in a net increase to the
contract value of $95 million. The largest task involved and
the majority of incurred costs are related to work on Space
Shuttle Columbia as part of a maintenance period that was
completed earlier this year.

The second modification enhances the fiscal year 2002 Program
Provisioning Task List, providing sustaining engineering for
the Space Shuttle Program, adding $94 million to the contract

The program-provisioning tasks involve work on the shuttle
orbiters, ground operations, program integration, program
reimbursables, flight operations and solid rocket boosters.
The Space Flight Operations Contract allows program
provisioning to be assessed on an annual basis.

Work under the two modifications will be performed in
Houston; Huntington Beach, Calif.; Palmdale, Calif.;
Huntsville, Ala.; and at the Kennedy Space Center, Fla.