Posted: Thu, Jun 24, 2004, 1:11 PM ET (1711 GMT)
NASA has withdrawn a contract with Kistler Aerospace to purchase flight data from that company's RLV under development because the agency was expected to lose a protest on that contract, Space News reported Wednesday. NASA had awarded Kistler a $227.4 million contract to purchase flight data from the company's K-1 RLV, using a contract originally awarded in 2001 under the Space Launch Initiative program. That contract was protested by SpaceX, which argued that NASA should have sought competing bids for the contract. On June 17 a GAO attorney reviewing the protest told NASA, Kistler, and SpaceX officials that NASA would most likely lose the protest. Afterwards, NASA decided to withdraw the contract rather than have the protest officially upheld. The agency gave no indication whether it would proceed with alternate plans to purchase flight data, and if so, how. The decision is a blow to Kistler, which has been in Chapter 11 reorganization since last July. The company has been seeking additional investment to complete development of the K-1.

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