Posted: Thu, Nov 9, 2006, 8:12 AM ET (1312 GMT)

Alliant Techsystems (ATK) announced Wednesday that it has signed an agreement with Rocketplane Kistler (RpK) to help develop RpK's K-1 reusable launch vehicle. Under the agreement ATK will become the lead contractor for the K-1, responsible for vehicle development, assembly, integration, and testing. ATK will also provide composite structures and subsystems for the K-1's payload module. ATK will make a cash investment of $2.5 million into RpK to restart development of the K-1. ATK takes the role in the K-1 project previously held by Orbital Sciences Corporation, which backed out of a previous agreement with RpK back in September. RpK shortly thereafter signed an agreement with a smaller company, Andrews Space, although company officials said that Andrews was not to completely replace Orbital. RpK revived the long-dormant K-1 program this year, winning a $207-million award from NASA in August as part of the agency's Commercial Orbital Transportation Services (COTS) demonstration program to develop commercial alternatives to sending cargo and crews to the ISS.