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. Spacehab Appeals Decision For Losses On Space Shuttle Mission

File image of Spacehab's Research Double Module.
Houston TX (SPX) Jan 06, 2005
Spacehab announced Wednesday that it filed an appeal last week with the Armed Services Board of Contract Appeals regarding NASA's limited response to the Company's claim for the February 2003 loss of its Research Double Module (RDM) in the Space Shuttle Columbia tragedy.

In January 2004 Spacehab filed a formal proceeding with NASA seeking indemnification under the Company's contract with the Agency in the amount of $87.7 million for the value of the Company's RDM and related equipment that was destroyed during the shuttle mission.

NASA responded to this contract claim in October 2004 determining that its liability is limited under the contract to $8.0 million.

Spacehab received payment of $8.2 million, which included $0.2 million of interest, from NASA in October 2004. As previously announced the Company maintained the right to appeal NASA's decision to deny its claim for indemnification in excess of $8.0 million and has now officially exercised this right.

Simultaneous with the appeal of the contract claim, the Company is pursuing a formal claim filed against NASA under the Federal Tort Claims Act seeking restitution of losses totaling in excess of $79.7 million asserting NASA's negligence that led to the space shuttle accident and the destruction of the RDM.

Since the filing and announcement of this tort claim in November 2004, the Company has not received a response from NASA. In the event that this administrative tort claim is denied, Spacehab has the right to pursue the claim further in Federal district court.

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