Blue Origin is walking away from its NASA contract to build a commercial space station in low Earth orbit.
The aerospace company, founded by Jeff Bezos, announced the shift to redirect its engineering teams and funding toward lunar transport infrastructure.
The company won a Commercial LEO Destinations Phase 1 contract in 2021 alongside Sierra Space to develop the Orbital Reef station. That program aimed to supply a commercial successor to the International Space Station before its scheduled 2030 retirement. Aviation Week reported the departure from the program.
“Blue Origin’s mission is to build a road to space for the benefit of Earth so that millions of people can live and work in space. Establishing a sustained human presence on the Moon is a critical step toward that future,” the company said in a statement emailed to Aviation Week.
Shifting Resources to Artemis and Moon Base Missions
Management decided to cut ties with the orbital outpost project to prioritize contracts supporting NASA’s Artemis program. Blue Origin currently serves as a primary contractor for lunar landing systems and heavy transportation architecture.
“As our role supporting NASA’s Artemis and Moon Base missions continues to grow, we’re focusing resources on capabilities that directly advance our lunar projects. By sharpening that focus, we can move faster on the technologies and infrastructure needed to make lunar permanence a reality,” the company said.
Aside from its unfulfilled station obligations, the manufacturer holds an unfunded Space Act Agreement to mature human-rated vehicle technologies. Engineers will now channel those development hours strictly into lunar hardware.
Commercial Space Station Competition After Orbital Reef
Northrop Grumman exited a competing station proposal in October 2023 to join the Starlab joint venture with Airbus and Voyager Technologies. Axiom Space remains active in the market, holding a separate agreement to attach commercial modules directly to the International Space Station before eventually uncoupling.
Meanwhile, startup Vast operates under an unfunded Space Act Agreement with NASA. That firm plans to launch a test station named Haven-1 during the first quarter of 2027.
NASA released its Commercial LEO Destinations Phase 2 solicitation on October 9. The agency intends to award firm-fixed-price, indefinite-delivery/indefinite-quantity contracts to support multiple contractors through early development phases.
NASA expects to award commercial outpost contracts by April 2027
Companies wishing to participate in the second phase of NASA’s commercial outpost initiative must submit their bids by December 8. Agency officials expect to announce winning bidders around April 2027.
Proposals are due Dec. 8, with awards expected around April 2027.
Frequently Asked Questions About the Station Withdrawal
What happens to Sierra Space after the departure?
Sierra Space has not publicly detailed its standalone strategy for the Orbital Reef architecture following the announcement.
When must Phase 2 proposals be submitted?
Interested contractors must submit their bids to NASA by December 8.
When will NASA announce the next station contracts?
Agency officials expect to announce the Phase 2 contract awards around April 2027.
Which station concept did Northrop Grumman join?
Northrop Grumman withdrew from its independent station proposal in October 2023 and joined the Starlab team.
When is the International Space Station scheduled for retirement?
NASA currently plans to decommission the International Space Station in 2030.