
Alliant Techsystems Cries Foul as NASA Moves To Curb Constellation
Space News
Alliant Techsystems (ATK) says NASA is selectively applying a rarely used contracting rule in an effort to halt work on key elements of the agency’s Constellation program, a 5-year-old effort to replace the space shuttle with new hardware optimized for lunar missions that the White House has proposed canceling next year.
NASA asserts the Constellation program is facing a potential $1 billion funding shortfall in the remaining four months of the current budget year because contractors have not accurately accounted for termination liability costs they could incur as a result of having to cancel orders, vacate leases and pink-slip employees if the program is shut down. But Magna, Utah-based ATK Aerospace, prime contractor on the first stage of the Ares 1 rocket — a key Constellation program element — says that historically, termination liability funds have not been included in contractor costs.
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