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NASA Restructures Commercial LEO Station Program

Acting Administrator Sean Duffy’s directive lowers crew requirements to four-person, monthlong missions, replaces fixed-price contracts with multiple Space Act Agreements, defers formal certification until after in-space demonstrations, withholds 25 percent of milestone funding.

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Overview

  • NASA has formally implemented Duffy’s August 4 directive, replacing planned fixed-price contracts in phase 2 with multiple Space Act Agreements.
  • Budget constraints driven by a projected $4 billion shortfall prompted NASA to increase flexibility through extended Space Act Agreements.
  • The minimum station capability has been lowered to four crew members for one-month increments to align with realistic development goals.
  • Formal design acceptance and certification will occur only after successful in-space crewed demonstrations, with at least 25 percent of milestone payments withheld until completion.
  • Companies such as Vast, whose Haven-1 design meets the new minimum requirements, are now best positioned to meet NASA’s revised 2030 timeline for commercial stations.