NASA's John F. Kennedy Space Center in Florida has chosen Boeing Space Operations Co., Titusville, Fla., for the Checkout, Assembly and Payload Processing Services (CAPPS) contract. CAPPS is the follow-on contract to the Payload Ground Operations Contract that has been performed by the Boeing Company since 1987.

CAPPS has a four-year basic period of performance with a potential total contract period of 10 years if NASA exercises all options for extensions. The value of the contract for the initial four-year period is $332 million. There are two three- year priced options for a potential ten-year contract value of $810 million.

The contract provides for management and technical support of payload processing for the Space Shuttle, International Space Station, expendable launch vehicles and other payload programs. Boeing will perform all aspects of payload support, including the planning and receiving of payloads, payload processing, maintenance of associated payload ground systems, integration of payloads with the space shuttle, launch support and space shuttle post-landing payload activities.

CAPPS is a cost-plus-performance and award-fee contract with 75 percent of the available fee consisting of a performance award, tied to contractor achievement of performance goals. The remaining 25 percent of available fee is a basic award fee. The contract contains the flexibility to obtain additional labor skills on a task order "indefinite delivery, indefinite quantity" basis to meet short-term needs for government-led studies, analyses and new technology development projects to support future programs and initiatives not on the manifest.

The work is to be performed at Kennedy; Cape Canaveral Air Force Station, Fla.; Vandenberg Air Force Base, Calif.; space shuttle landing sites; and at various payload-associated work locations within and outside the United States. The Boeing Space Operations Co. is a wholly owned subsidiary of The Boeing Company.