NASA Releases Draft RFP for Second Phase of Commercial Space Stations, Seeks Industry Input by July 27
NASA took a significant step toward securing the International Space Station’s commercial successor on July 6, releasing a draft Request for Proposals for Phase 2 of its Commercial LEO Destinations (CLD) program. The solicitation seeks contractors to design, build, certify, and operate private space stations that would replace the ISS when it is deorbited around 2030 to 2032.
The draft RFP, published on SAM.gov, represents the formal procurement mechanism for transitioning U.S. human spaceflight from government-owned infrastructure to commercially owned and operated stations. Industry feedback is due by July 27.
“Industry believes it can meet the timelines and that a viable commercial marketplace exists where NASA is one customer among many,” said NASA Administrator Jared Isaacman. “We’re focused on supporting those efforts, enabling the capabilities that make this transition possible, and doing all we can to ensure the United States maintains a continuous human presence in low Earth orbit.”
What Phase 2 covers
The Phase 2 procurement is structured as a firm-fixed-price, multi-award indefinite-delivery/indefinite-quantity (IDIQ) contract. NASA plans to select two or more contractors for early development work, followed by a competitive task order for final design, test, evaluation, certification, and services from one or more providers.
The scope includes end-to-end mission services: crew training, payload processing, in-flight support, and the infrastructure to support at least four crew members for 30-day increments. This is a relaxation from NASA’s earlier requirement for continuous six-month crew rotations, reflecting industry feedback on achievable early capabilities.
Timeline and budget
NASA’s target milestones call for an initial operating capability with minimum crew support by December 2029, continuous crew capability by December 2030, and full operating capability by December 2031. The ISS itself has been authorized to operate through 2032 under the NASA Authorization Act of 2026, providing a critical overlap window.
The program’s fiscal year 2026 budget request stands at $272.3 million, with a projected five-year total between $1 billion and $1.5 billion. At least 25 percent of Phase 2 funding is contingent on successful in-space crewed demonstrations.
An informational industry briefing will be held at Johnson Space Center in Houston on July 9. The final RFP is expected later this year, with contract awards targeted for late 2026 or early 2027.
The state of the commercial station race
Several companies are already developing commercial stations that could compete for Phase 2 awards:
Vast is targeting a Q1 2027 launch of Haven-1, a single-module station on Falcon 9, followed by the multi-module Haven-2 beginning construction in 2028. The company raised $500 million in March 2026, part of over $1 billion total funding.
Axiom Space plans to attach its first module to the ISS around 2027 before detaching into a free-flying configuration. The company raised $350 million in February 2026 and has completed multiple private astronaut missions to the ISS.
Starlab Space, a joint venture between Voyager Space and Airbus, is developing an 8-meter-diameter station designed for single-launch deployment on SpaceX’s Starship, targeting 2029. Northrop Grumman has joined the project to provide Cygnus cargo services.
Blue Origin and Sierra Space continue development of Orbital Reef, described as a “mixed-use business park in orbit” with inflatable module technology, though no firm launch date has been set.
A hard-won strategy
The draft RFP represents the culmination of a year-long policy debate. In early 2025, NASA officials questioned whether a viable commercial LEO market existed and proposed pivoting to a government-owned core module that would attach to the ISS. Industry pushed back aggressively, arguing that the government-attached model would undermine the commercial value proposition.
In June 2026, NASA reversed course, committing to its original strategy of supporting independent free-flying commercial stations. The July 6 draft RFP formalizes that commitment into a procurement vehicle.
The stakes are high. The ISS has supported continuous U.S. crewed presence in orbit since 2000 and generated over 3,300 research publications. And China’s Tiangong space station has achieved continuous occupancy. A gap in U.S. LEO capability, whether from delayed commercial stations or an accelerated ISS retirement, would end an unbroken 30-year run of American presence in orbit.