Concept art of Dragon docking with the space station. (Credit: SpaceX)

NASA officially announced today that both Boeing and SpaceX have been awarded Commercial Crew Transportation Capability contracts. These contracts are for the development of spacecraft that will be able to take astronauts to the International Space Station, with a target start date of 2017. The third company in the running for a contract, Sierra Nevada Corporation, did not receive an award.

This announcement from NASA partially contradicts earlier reports that Boeing was to be the primary winner of the contract, with SpaceX only receiving a secondary award. Instead, NASA doesnt appear to be distinguishing between the two companies as a primary or secondary provider, although there is a difference in the financial value of the two contracts.

Both companies are developing manned capsules which will ferry up to seven passengers and payloads to the International Space Station. Boeings CST-100 is planned to be launched by Atlas 5 rockets, which are built and operated by United Launch Alliance, a joint venture between Boeing and Lockheed. The SpaceX Dragon capsule will be launched by SpaceXs own Falcon 9 rocket.

Artist conception of Boeing CST-100 approaching the ISS. (Credit: Boeing)

According to Commercial Crew Program Manager Kathy Lueders, both companies will have to meet five separate certification milestones, and will receive payment upon completion of each one. That certification process will include a flight with one astronaut on board. Once the spacecraft are certified for delivery, each company will be contracted to conduct at least two and up to six spaceflights to the ISS with four crew members and cargo payloads.

This will enable NASA and its international partners to perform more research on the international laboratory, nearly doubling its research potential, Lueders said.

The spacecraft will also have the capability to serve as a lifeboat for up to 210 days in the event of an emergency, she added.

According to NASA Administrator Charles Bolden, the total value of the contracts to the two companies will be worth up to $6.8 billion over the life of the contract. Boeings potential award is $4.2 billion and SpaceXs potential award is for $2.6 billion.

According to Lueders, both contracts have the same goals and requirements. The values of the contracts are based on the proposals submitted by the companies themselves and the amount of money the companies believed they would need to meet the contract requirements.

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NASA Awards Boeing And SpaceX Contracts To Deliver Astronauts To The Space Station