NASA evaluating private space station proposals for ISS replacement

NASA plans to retire the International Space Station by the end of this decade, so the U.S. space agency is turning to private companies to build new space stations in orbit – and expects to save more than $1 billion annually as a result.

NASA earlier this year unveiled the Commercial LEO Destinations project, with plans to award up to $400 million in total contracts to as many as four companies to begin development of private space stations.

In response to NASA’s request, its director of commercial spaceflight, Phil McAlister, told CNBC that the agency “received roughly about a dozen proposals” from a variety of companies for contracts under the project.

“We got an incredibly strong response from industry to our announcement for proposals for commercial, free fliers that go directly to orbit,” McAlister said. “I can’t remember the last time we got that many proposals [in response] to a [human spaceflight] contract announcement.”

The ISS is more than 20 years old and costs NASA about $4 billion a year to operate. The space station is approved to operate through the end of 2024, with a likely lifespan extension to the end of 2028. But, moving forward, McAlister says NASA wants “to be just one of many users instead of the primary sponsor and infrastructure supporter” for stations in low Earth orbit.

“This strong industry response shows that our plan to retire the International Space Station in the latter part of this decade and transition to commercial space destinations is a viable, strong plan,” McAlister said.

“We are making tangible progress on developing commercial space destinations where people can work, play and live,” McAlister added.

NASA is now evaluating the proposals, and McAlister said the agency hopes to announce the contract winners “before the end of the year,” although he is “pushing for earlier.” McAlister noted that the dozen or so proposals came from a “diverse group of companies,” ranging from start-ups to large aerospace corporations. When NASA hosted an industry briefing for company officials in March, interested parties included recognizable names like Elon Musk’s SpaceX, Jeff Bezos‘ Blue Origin, Airbus, Boeing and Lockheed Martin.

In addition to cost savings, McAlister emphasized NASA “will not need anything near as big and as capable” as the ISS moving forward. He said the private space stations “could be very large, but NASA will only be paying for the part that we need.”

“We need to right-size our [low Earth orbit] infrastructure,” McAlister said.