NASA Revises Contract Strategy for ISS Deorbit Vehicle

NASA is expanding options for companies involved in the development and production of the U.S. Deorbit Vehicle (USDV) for the International Space Station (ISS). In a recent procurement notice, NASA revealed that companies can now choose between firm fixed price or cost-plus incentive fee contract structures for both the design and production phases of the USDV.

Originally, when NASA issued the request for proposals (RFP) in September, bidders were given the flexibility to propose a "hybrid" approach, opting for a cost-plus contract for development and a fixed-price contract for production. Alternatively, they could propose an entirely fixed-price contract for both development and production. The recent update introduces a new option, allowing companies to perform both the development and production phases under cost-plus contracts. The rationale behind this change was not disclosed in NASA procurement notice or accompanying blog post.

In addition to the contract structure modifications, NASA has extended the deadline for proposal submissions. Initially set for November 17, the deadline was extended to December 14 and has now been further postponed to February 12. The agency anticipates making the award announcement in late May or early June, shifting from the originally expected award date in April 2024.

The USDV serves a critical role in the controlled reentry of the ISS at the end of its operational life. NASA fiscal year 2024 budget proposal included a request for $180 million for the vehicle, estimating its total cost to be around $1 billion. The revised RFP outlines both "desired" and "required" delivery dates for the USDV. The desired delivery date is set for August 1, 2028, with a launch planned four months later. The required delivery date is May 1, 2029, also with a launch four months later. Proposals failing to meet the required delivery date will be deemed nonresponsive and rejected.

The proposed delivery schedule aligns with NASA and its Western partners plan to retire the ISS in 2030. While Russia has committed to ISS operations only until 2028, the RFP accommodates pricing options for storing the USDV on the ground in a "Dwell facility" through 2035.