perfidy

Space.com is reporting that NASA plans to give $227.4 million to Kistler Aerospace for a test launch of the company's K-1 reusable launch vehicle. NASA is looking (finally) to the private sector to provide launch services for support of the ISS. Given that the Shuttle is out of service, they really don't have much choice - but this is still a positive development. Kistler originally began development of the K-1 to meet an anticipated large demand for satellite launches to low Earth Orbit. When that never quite happened, the company hit a bad stretch, and filed for Chapter 11 reorganization last summer. So, their lobbying efforts have probably paid off just in the nick of time.

The K-1 is designed to be a fully reusable, two-stage liquid-fueled rocket.
NASA expects to get flight data from the test launch for its money, and expects that if the K-1 pans out, it could have applications beyond Space Station resupply missions.

I'm not sure how much a vehicle like this will actually lower launch costs - much will depend on how expensive and difficult it is to prepare the vehicle for subsequant launches. (That's a major problem for the "reusable" shuttle orbiter, which costs millions of dollars to recondition after every flight.) There are two very good things about this news - it may set a precedent for going to private space companies for launch services; and it will give us good feedback for developing new launch vehicles. The United States has not introduced a new launch vehicle since the Shuttle, and we need to get moving.