Last week's incident involving Space Shuttle Atlantis and its cross-country ferry flight to California is being cited by critics of NASA's Shuttle privatization initiative as proof that the space agency is moving too quickly to consolidate manned space operations around a single contractor. But others are saying that too much is being made of the event.

Workers apparently installed Atlantis atop its 747 carrier aircraft

improperly, omitting a set of washers from bolts used to fasten the orbiter

to the airplane. Critics contend – and officials of the United Space

Alliance contractor firm confirmed – that under a worse case scenario the

100,000 pound Shuttle could have separated from the moorings atop the

Boeing plane and fallen off. The incident would have destroyed a $2 billion

spacecraft and possibly resulted in destruction of the carrier plane as well.

USA is conducting an investigation into the event, which occurred at its

Kennedy Space Center hangar before departing for Palmdale, California Nov.

11th. Atlantis is to undergo months of modifications and inspections while

at its Boeing manufacturing plant.

The most serious lingering consequence of the incident is that paperwork

and certifications were signed off by senior workers testifying that all of

the mounting hardware had in fact been installed. If certification

documents are faked, the entire Space Shuttle certification process could

be called into question.

NASA and USA, a combine formed by Boeing and Lockheed Martin, signed a 1996

agreement to begin transfer of Shuttle operations from the federal

government to the new contractor. The consolidation and privatization

effort has lead to reduction in force at Kennedy Space Center, NASA's

Shuttle launch base. Critics of the move have accused USA of damaging

worker morale and lessening safety in its move to put space flight on a

profit basis, charges that USA officials have denied. NASA has also pointed

to improved launch times and smoother pre-launch preparations as

indications that the privatization program was on track.

NASA administrator Daniel Goldin is believed to be planning to move the

privatization initiative to its next level in 1998 by considering a USA

proposal to allow the return of commercial payloads to the Shuttle fleet.

Commercial satellites and cargoes were banned from the Shuttle following

the 1986 Challenger accident. Sources say USA believes that by allowing

true commercial Shuttle operations, the fleet of winged craft could

actually turn a profit. Others say the spaceships are too fragile and

unreliable to accelerate its launching operations, and that such a move

could lead to another space disaster. Providers of existing launch services

using expendable rockets are also believed less that happy with the

prospect of competing for business against the taxpayer-built and funded

Shuttle fleet. Although it might make for interesting competition: the

largest U.S. expendable rocket makers against which USA would compete the

Shuttles are- Boeing and Lockheed Martin.