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NASA has launched a major procurement competition for commercial space stations, inviting private companies to develop and operate orbital facilities that could replace the International Space Station (ISS) as the principal destination for US astronauts in low Earth orbit.
The agency released its final Request for Proposals (RFP), setting a December 8 deadline for industry submissions. Initial contract awards are expected in spring 2027.
- NASA has issued its final request for proposals for privately operated space stations, with bids due December 8, 2026, and initial awards expected in spring 2027.
- The procurement has a maximum potential value of approximately $34.06 bn, but actual spending will depend on subsequent task orders, development milestones and mission requirements.
- Axiom Space, Blue Origin’s Orbital Reef, Starlab and Vast are among the commercial projects competing to serve NASA after the International Space Station retires.
The solicitation marks a significant step in NASA’s strategy to shift from operating a government-owned orbital laboratory to purchasing research, crew accommodation and other services from commercially owned space stations.
NASA plans to select at least two contractors for initial development work before holding further competitions for detailed design, testing, certification and operational services.
The procurement uses firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contracts, allowing NASA to place orders for specific development activities and services rather than committing the full program value upfront.
Contract documents identify a guaranteed minimum of $100 mn per awarded contract and an overall ceiling of approximately $34.06 bn. The ceiling represents the maximum potential value of orders under the contracting framework, not funding already awarded or guaranteed to participating companies.
NASA Administrator Jared Isaacman said maintaining a continuous US presence in low Earth orbit remains a central objective even as the agency directs more resources toward lunar exploration and future missions to Mars.
“We’ve made it clear that NASA will never give up its presence in low Earth orbit,” Isaacman said.
The opportunity is significant, but the economics ultimately have to work. We want to see credible plans, strong technical execution, and companies prepared to invest in destinations that can serve NASA while developing additional customers and markets of their own.
The proposed commercial stations would support scientific research, technology development, astronaut training and preparations for deep-space exploration. Companies will be responsible for developing facilities that meet NASA’s safety, operational and certification requirements while establishing commercial businesses capable of serving other customers.
NASA plans phased contracts and operational services
The competition is structured around successive stages of development and commercialization. The initial phase will fund early engineering, design and technical development, with NASA planning to advance two or more contractors.
Later stages will cover final design, construction, testing, deployment and certification. NASA may then select one or more providers to deliver operational services, including accommodation for astronauts and support for research activities.
The contractual framework also includes provisions for additional services and special studies, creating opportunities for further orders beyond the primary development and operational requirements.
NASA has outlined plans to purchase at least four crewed missions during the initial operational period, alongside cargo resupply requirements.
To reduce risks associated with obtaining transportation, the agency intends to provide transportation arrangements for its first four service missions to commercial stations.
That provision could ease the burden on operators that otherwise would need to secure suitable crew and cargo spacecraft as part of their bids. The requirements nevertheless leave substantial engineering, financial and operational responsibilities with private contractors.
Crew transportation costs could reach billions
Transportation is expected to be a major cost in operating the next generation of space stations.
NASA’s solicitation includes indicative 2030 prices of approximately $325 mn for a four-person crewed flight and $300 mn for a cargo mission, with rates varying by year and mission requirements.
At those reference prices, an operating schedule involving two crewed missions and four cargo deliveries annually would imply approximately $1.85 bn in yearly transportation costs alone.
That figure is not a guaranteed annual revenue commitment to any individual station operator. Actual payments would depend on the number of flights ordered, the terms of transportation arrangements and the services provided under future contracts.
For commercial station developers, the distinction matters. Transporting astronauts and supplies represents both a critical operational requirement and a significant factor in the economics of running an orbital facility.
NASA’s willingness to arrange transportation for its initial missions could help companies concentrate early capital and development resources on their stations, although sustained operations will still depend on affordable and reliable access to orbit.
Axiom Space, Starlab, Vast and Blue Origin pursue contracts
Several commercial groups have been developing competing station concepts as NASA prepares to retire the ISS. Axiom Space is pursuing its own orbital station, building on its experience organizing private astronaut missions and developing hardware intended for future commercial operations.
Starlab, backed by a consortium including Voyager Technologies, is being developed as another potential destination for government and commercial research.
Vast is advancing its Haven station program, with plans to develop larger orbital facilities capable of supporting a continuous human presence.
Blue Origin has also participated in commercial station development through its Orbital Reef project, although the extent of its participation in the latest procurement competition remains uncertain.
The companies are pursuing a market in which NASA would serve as a major customer rather than the sole owner and operator of the facilities.
The commercial model is intended to attract additional demand from international partners, research institutions and private businesses, reducing dependence on government funding over time.
Whether that market can generate sufficient revenue to support multiple stations remains a central commercial question.
ISS retirement creates a deadline for commercial operators
Construction of the International Space Station began in 1998, and the orbiting laboratory has supported a continuous human presence since November 2000.
NASA is planning its retirement around the end of the decade, with a controlled deorbiting operation intended to bring the aging station safely back into Earth’s atmosphere over a remote ocean area.
SpaceX has been selected to develop the specialized spacecraft needed for the operation, under a contract worth approximately $850 mn.
The planned retirement increases pressure on NASA and its commercial partners to develop replacement facilities that can sustain human spaceflight and research in low Earth orbit without a prolonged interruption.
NASA’s latest procurement follows consultations with industry, including requests for information issued in March 2026, a draft solicitation released in July and meetings with prospective contractors.
The December bidding deadline and spring 2027 contract decisions will establish which commercial station developers receive initial NASA support and move into the next stage of competition.
However, winning an early development award will not automatically secure a contract to build or operate a station. Subsequent selections will depend on technical progress, certification requirements, commercial viability and NASA’s future procurement decisions.
