NASA declares to Award its Huge Contract to Boeing (NYSE:BA) and SpaceX


NASA was scheduled to award a contract of lucrative commercial squad program; three companies were known officially to be the frontrunners for the contract. On the 16th of September, Boeing (NYSE:BA) and SpaceX were selected for the contract worth $6.8 billion.

Boeing (NYSE:BA) was founded in 1916 in Washington; its headquarters is located in Chicago, USA. It is one of the most dominant aerospace companies in the world. Its network spreads widely across the globe – with more than 150,000 employees in 70 different countries of the world. Its achievements include developing the first guided missile; making the USA’s first ever jet airline; providing commercial air-crafts; computer services and commercial airlines. This aerospace organization is sub-divided into further smaller units. Geography is the major tool of segmentation used by Boeing (NYSE:BA); South Asia and India are known to have emerged as the main market for military aircrafts services.

On the other hand, the headquarters of SpaceX is in Hawthorne, California; the company provides services related to space transport. SpaceX was founded in the year 2002; it is a privately funded company. Its achievements include launching the first funded rocket which used liquid fuel; inventing dragon space-craft; it was also the first company to send a dragon space-craft to international space station; as well as the first company to launch a satellite in geosynchronous orbit.

The NASA contract is not the only significant contract in SpaceX’s portfolio. Apart from the contract with NASA, SpaceX has also signed contracts with other American companies in the past. It has also signed important contracts with the American military to provide them with its launch services. This was a very significant move by SpaceX; it not only allowed the company to earn billions of dollars through this victory, but this contract also earned them a place in the spaceflight’s history.

According to Casey Dreier who belongs to the planetary society, both the parties that have landed the NASA contract have gained a lot from it. Boeing (NYSE:BA) was awarded with $4.2 billion and SpaceX was able to earn $2.6 billion through this contract.

Early in this week, The Wall Street Journal favored Boeing’s (NYSE:BA) smooth CST-100 capsule which was designed to take a squad of seven to the international space. This was according to a government name – un-specified – and officials of aerospace-industry, who viewed Boeing (NYSE:BA) as the least risky option of the three.

Cristian Davenport of Washington Post today, reported about NASA’s plan to award the contract to both Boeing (NYSE:BA) and SpaceX; effectively splitting the difference between aerospace jumbo and enthusiastic upstart.

Kathy Lueders, the manager of the commercial squad program while declaring the contracts at a live press conference held in Florida at Kennedy space center, said that this contract highlighted what commercial companies would be able to achieve. Moreover, she explained that they were expecting their qualified squad to be delivered by them – the crew that would be able to work on the International space station.