Sierra Space's spaceplane faces a reinvention after NASA contract change | TechCrunch

"When Sierra Space won a contract to deliver cargo to the International Space Station nearly a decade ago, the company promised a first for the commercial space market: a privately built, rapid reuse and cargo return spaceplane capable of landing on commercial runways. That dream has changed. In a modification to the contract announced earlier this week, NASA and Sierra Space agreed to remove the agency's guarantee to purchase cargo flights to the ISS."

"NASA said it will provide "minimal support" for that test, and only afterward decide whether to order ISS resupply missions at all. The contract change is a blow to the Dream Chaser program. Typically, such programs rely heavily, if not entirely, on government support, as the up-front development costs for a crewed or cargo spacecraft are so high that commercial customers are rarely able to provide enough demand to close the business case."

"NASA has obligated roughly $1.43 billion to Sierra Space so far, but now that may be as far as the commitment goes. With that guaranteed income gone, Sierra Space now faces the challenge of repositioning itself as a dual-use platform useful to commercial space stations or defense customers. Company executives are pushing hard on the defense angle, according to a press release issued on Thursday."

NASA and Sierra Space modified their cargo-delivery contract to remove NASA's guarantee to purchase Dream Chaser cargo flights to the ISS. The Dream Chaser will instead perform a free-flying demonstration in late 2026 without docking, with NASA offering minimal support and reserving judgment on future resupply purchases. The loss of guaranteed missions threatens the program's business case because commercial demand rarely covers high up-front development costs. NASA had obligated about $1.43 billion to Sierra Space so far. Sierra Space must reposition the vehicle as a dual-use platform for commercial stations or defense customers, and executives are promoting defense applications.

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