SPACEHAB, Incorporated (Nasdaq: SPAB – News), a leading provider of commercial space services, today announced that the Company will capitalize on its existing International Space Station (ISS) business base to compete for new opportunities in this arena.
SPACEHAB, through its unique space access business model and cadre of flight hardware assets, has pioneered the commercial support of astronauts living and working in space. Over the last several years, the Company has expanded this capability to support ISS assembly, research, and logistics resupply. When the Space Shuttle returns to flight, SPACEHAB assets are slated for use on three of the first five missions as listed on the current manifest.
Since 1997, SPACEHAB has provided ISS configuration management services to NASA. Following a competitive award to SPACEHAB in 2001, the contract has realized a 20% increase in value, bringing the total value from $10 million to $12 million. As an extension of SPACEHAB’s Space Shuttle Orbiter crew station operations, the Company provides mission-unique stowage integration services that optimize the usable volume of the Mini Pressurized Logistics Module (MPLM) and ISS internal environment. Based on the Company’s combined expertise in ISS program support, as well as its space research and logistics services, SPACEHAB is positioned to continue and expand its support to the ISS as it transitions from its current assembly phase to operations and space utilization.
The ISS Program is in the process of consolidating 26 current contracts into seven in an effort to optimize synergies within the ISS Program, encourage competitive sourcing, and improve program accountability. Of the seven procurement opportunities outlined by NASA, the Company will compete on at least three of the ISS Program Management and Implementation contracts classified as ‘A’ through ‘G.’ Contracts targeted by SPACEHAB include Program Integration and Control, ISS Mission Integration, and ISS Cargo Mission.
“We have a proven track record of success in support of our customer in the International Space Station Program Office,” said SPACEHAB President and Chief Operating Officer, Michael E. Kearney. “We’re optimistic about these opportunities and we believe we have the right partners to support our customer in this important consolidation effort.”
Configuration management is a critical element of the ISS Program Integration and Control, or ‘A’ contract, and SPACEHAB is vying to capture $30 million of this $155 million effort as a subcontractor to the ARES Corporation Team that includes Booz Allen Hamilton. Given the strong core competencies of SPACEHAB and this Team, the Company is confident that it will win this five- year contract and continue to provide configuration management services to the ISS Program.
As an incumbent prime contractor in crew station operations providing ISS stowage integration services, SPACEHAB is also proposing to be NASA’s prime contractor for ISS Mission Integration under the ‘B’ contract. As prime contractor, supported by major subcontractor and teammate United Space Alliance, the Company will propose to perform program management, ISS stowage integration, Russian Language and Logistics Services (RL&LS), and other portions of the Statement of Work depending on additional teaming arrangements currently in discussion. This contract is valued at approximately $140 million over a five-year period.
For Cargo Mission, the ISS ‘C’ contract, SPACEHAB plans to compete as a subcontractor in one or more of the following areas: stowage integration, International Partner integration, sustaining engineering of pressurized payload accommodations for the MPLM, and program integration support. The Company is currently in negotiations with potential prime contractors in support of this solicitation valued at approximately $200 million over a five- year period.
The competition schedule timeline is the same for all three solicitations with draft Requests For Proposals (RFPs) released in February, final RFPs due out in May, and proposals due from prospective bidders in June of 2003. NASA tentatively expects to announce contract awards in October 2003 with all contract starts anticipated in January 2004.
With more than $100 million in annual revenue, SPACEHAB, Incorporated is a leading provider of commercial space services. The Company develops, owns, and operates habitat and laboratory modules and cargo carriers aboard NASA’s Space Shuttles. Its Johnson Engineering subsidiary provides orbiter crew compartment integration, ISS stowage and configuration management, supports astronaut training, and builds space-flight mockup trainers at NASA’s Johnson Space Center in Houston. SPACEHAB’s Astrotech subsidiary provides commercial satellite processing services at facilities in California and Florida. Additionally, through The Space Store, Space Media provides space merchandise to the public and space enthusiasts worldwide (www.thespacestore.com).
This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Such risks and uncertainties include, but are not limited to, whether the Company will fully realize the economic benefits under its NASA and other customer contracts, the timing and mix of Space Shuttle missions, the successful development and commercialization of new space assets, technological difficulties, product demand, timing of new contracts, launches and business, market acceptance risks, the effect of economic conditions, uncertainty in government funding, the impact of competition, and other risks detailed in the Company’s Securities and Exchange Commission filings.
