– The Boeing Company today announced the formation

of a wholly-owned subsidiary dedicated to providing cost-efficient space

operations mission and data services to government and commercial space

customers.

The Houston-based Boeing Space Operations (BSO) will be home to the

Company's work on NASA's multibillion-dollar Consolidated Space Operations

Contract (CSOC), for which a Boeing-led industry team is currently in competition.

CSOC consolidates mission and data services for more than 100 existing

and planned NASA spacecraft supporting manned, deep space and Earth remote

sensing space activities. NASA is expected to award the 10-year (5 years

with a 5-year priced option) CSOC contract on July 1.

BSO will also support the ground operations for the U.S. Air Force's

Navstar Global Positioning System (GPS) at Falcon Air Force Base, Colo.;

offer its capabilities to provide mission and data services to Motorola-based

communications satellite programs; and pursue other opportunities in the

burgeoning government and commercial space operations markets, both in

the U.S. and abroad.

In addition, BSO will work closely with Boeing Information and Communications

Systems, Boeing Expendable Launch Systems and the Sea Launch joint venture

to assess and recommend actions to improve customer service and reduce

costs for those businesses. The goal, says BSO president Rick Stephens,

is for Boeing to become the global provider of choice for low-cost, reliable,

commercially-based space operations services.

"The formation of BSO creates a market-focused organization and aligns

the company's businesses to efficiently pursue and support both NASA's

CSOC and other external space operations customers, as well as internal

Boeing customers such as Delta IV, Sea Launch, Resource 21, DigitalXpress

and Aviation Information Services," said Stephens. "Expansion of our customer

base will, in turn, result in lower space operations service unit costs

for all customers." In his new position, Stephens will report to Jim Albaugh,

president, Boeing Space Transportation. He will also continue as vice president

and general manager, Boeing Reusable Space Systems, and will chair the

CSOC Senior Advisory Board, which acts as the NASA CSOC executive leadership

council for integrating Boeing CSOC team member companies and senior leadership.

The company today also announced that former astronaut Dick Covey has

been appointed vice president, BSO and CSOC program director, reporting

to Stephens. Covey was previously the Boeing CSOC Team's deputy program

director for Operations. In his new position, Covey will be responsible

for day-to-day CSOC operations, ensuring that customer requirements are

met cost effectively and responsively and that missions are safely and

successfully executed.

Through CSOC, NASA hopes to cut in half the roughly $600 million a year

it currently spends on mission and data services by moving end-to-end responsibility

and accountability to industry and streamlining and adapting private-sector

commercial practices and services. These savings would then be redirected

to science, development and exploration.

CSOC encompasses NASA's total space operations infrastructure, including

all elements currently managed autonomously under 15 separate contracts

by nearly 6,000 people at numerous private contractors and five major NASA

centers (Johnson Space Center, Houston; Goddard Space Flight Center, Greenbelt,

Md.; Kennedy Space Center, Fla.; Marshall Space Flight Center, Ala.; and

Jet Propulsion Laboratory, Pasadena, Calif.).

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