t/Space doesn’t get NASA contract, but state could still benefit from space station project

A company in which the state was considering investing $20 million was unsuccessful in its bid for a lucrative NASA contract, but that doesn’t mean the news is all bad for Spaceport America and New Mexico.

t/Space was not selected as one of two finalists Friday to receive NASA funding for its attempt to develop a vehicle that could eventually be used to transport crew and cargo to the International Space Station. (Click here to view NASA’s home page for the project.)

Picked instead were the El-Segundo, Calif.-based SpaceX and Rocketplane-Kistler of Oklahoma City. SpaceX will receive $278 million from NASA, according to Space.com, and Rocketplane-Kistler will receive $207 million.

Both companies will be expected to conduct three flights before 2010 to prove they can deliver pressurized and unpressurized cargo to the space station, according to Space.com. Then, NASA will hold a second competition for the contract to supply the space station.

All companies, including t/Space, will be able to bid on that contract, but the massive amount of federal funding gives SpaceX and Rocketplane-Kistler an advantage.

The space shuttle is scheduled to retire in 2010. Its work will be replaced by the winner of the competition.

Here’s what this means for New Mexico:

• The state cannot invest in t/Space because the investment was dependent on the company winning the NASA contract. The company is still developing its own vehicle that could eventually win the NASA contract, and t/Space had committed to building its vehicle in New Mexico. Whether it still plans a facility here is unknown.

• Rocketplane-Kistler has said publicly that it is interested in launching its vehicle from Spaceport America, which Economic Development Department spokeswoman Katie Roberts called “a great opportunity for us. … We hope, as they move forward with this project, that we have more serious discussions with them.”

• The commercial space industry is small, and companies developing vehicles will likely seek specialized subcontractors to help, Roberts said. There’s a good chance some of those companies will be located in New Mexico.

Most negotiations and plans were on hold until the NASA contract was awarded. Now, the state and its competitors will begin the process of wooing the winners and trying to get in on the action.

Though Rocketplane-Kistler has expressed interest in New Mexico, its home state of Oklahoma is also competing to complete the first purpose-built commercial spaceport.

Click here to view an artist’s concept of the SpaceX vehicle. Click here to view an artist’s concept of the Rocketplane-Kistler vehicle.

A prior version of this posting incorrectly stated that the state could still invest in t/Space.