In a significant shift, Sierra Space and NASA have revised their contract regarding the use of the Dream Chaser vehicle for cargo delivery to the International Space Station (ISS). This change reflects Sierra Space's pivot towards defense applications and was announced on September 25, 2023. The original Commercial Resupply Services 2 (CRS-2) contract included plans for seven cargo missions, but now it has been adjusted to a single "free flight demonstration" mission scheduled for late 2026, which will not dock with the ISS.
The modified contract no longer specifies a fixed number of cargo missions to the ISS. However, NASA retains the option to order additional missions as needed. Dana Weigel, NASA's ISS program manager, commented on the complexities involved in developing new space transportation systems, stating, “Development of new space transportation systems is difficult and can take longer than what’s originally planned.” This decision allows both NASA and Sierra Space to continue testing and verifying the Dream Chaser's capabilities, ensuring its readiness for future resupply missions in low Earth orbit.
This adjustment in the Dream Chaser contract comes after NASA faced a shortage in cargo capacity, a situation that has since improved with the return of Cygnus missions, which now utilize a new XL version that boasts greater payload capabilities. Additionally, Japan's first HTV-X cargo spacecraft is set to launch to the ISS in October, further alleviating NASA's cargo delivery concerns.
Sierra Space, which was formerly part of Sierra Nevada Corp., was one of three companies awarded CRS-2 contracts in 2016 to transport cargo to the ISS, alongside Orbital ATK (now part of Northrop Grumman) and SpaceX. After losing out to Boeing and SpaceX for commercial crew contracts in 2014, Sierra Nevada proposed a cargo variant of the Dream Chaser. The company was spun out from Sierra Nevada in 2021 and recently shipped its first Dream Chaser spacecraft, named Tenacity, to Florida for final testing and integration in preparation for a launch on the second United Launch Alliance Vulcan Centaur.
In June, Sierra Space relinquished its launch slot for the Vulcan Centaur mission to allow ULA to proceed with a launch critical for securing Space Force certification for national security missions. Despite this setback, Sierra Space claimed to be making "excellent progress" on the Dream Chaser and anticipated a launch before the end of 2024. However, as the year progressed, updates regarding Dream Chaser became infrequent, and NASA officials indicated that delays might push the timeline further into 2026.
Sierra Space is now placing a stronger emphasis on national security applications for the Dream Chaser. Fatih Ozmen, executive chair of Sierra Space, stated, “This transition provides unique capabilities to meet the needs of diverse mission profiles, including emerging and existential threats and national security priorities that align with our acceleration into the defense tech market.” The company has recently launched Sierra Space Defense, a division dedicated to national security programs, including satellite development for the Space Development Agency.
The total combined maximum value of the CRS-2 contracts across all providers is $14 billion. However, a NASA spokesperson did not disclose the current value of Sierra Space’s contract following the revision due to competition-sensitive information. According to federal procurement records, NASA has obligated approximately $1.43 billion to Sierra Space under CRS-2 to date, whereas Northrop Grumman and SpaceX have received $3.21 billion and $3.37 billion, respectively.
