Sierra Space’s spaceplane faces a reinvention after NASA contract change | TechCrunch

When Sierra Space won a contract to deliver cargo to the International Space Station nearly a decade ago, the company promised a first for the commercial space market: a privately built, rapid reuse and cargo return spaceplane capable of landing on commercial runways.

That dream has changed. In a modification to the contract announced earlier this week, NASA and Sierra Space agreed to remove the agency’s guarantee to purchase cargo flights to the ISS. Instead, the Dream Chaser spaceplane will debut in a free-flying demonstration in late 2026, and will not dock with the station.

NASA said it will provide “minimal support” for that test, and only afterward decide whether to order ISS resupply missions at all.

The contract change is a blow to the Dream Chaser program. Typically, such programs rely heavily, if not entirely, on government support, as the up-front development costs for a crewed or cargo spacecraft are so high that commercial customers are rarely able to provide enough demand to close the business case.

SpaceX, for example, received billions from NASA through the Commercial Orbital Transportation Services and Commercial Crew programs to develop its Dragon capsule and Falcon 9 rocket.

So this change also means that Dream Chaser will need to undergo a major rebranding. The mission was always to resupply the ISS under NASA’s Commercial Resupply Services program, alongside SpaceX’s Dragon and Northrop Grumman’s Cygnus. Those contracts have a combined ceiling of $14 billion across the three providers; NASA has obligated roughly $1.43 billion to Sierra Space so far, but now that may be as far as the commitment goes.

With that guaranteed income gone, Sierra Space now faces the challenge of repositioning itself as a dual-use platform useful to commercial space stations or defense customers.

Company executives are pushing hard on the defense angle, according to a press release issued on Thursday. Its executive chair Fatih Ozmen said the transition will allow Sierra to provide “unique capabilities to meet the needs of diverse mission profiles, including emerging and existential threats and national security priorities that align with our acceleration into the Defense Tech market.”

Mid-program pivots are relatively rare in aerospace, but they’ve become more common as space startups contend with shifting government priorities and the need to prove out commercial markets before they exist. Historically, aerospace systems were designed around highly specific mission profiles, but Sierra is arguing that Dream Chaser’s reusability and runway capability make it flexible.

The free-flying demo could help Sierra showcase Dream Chaser’s flexibility — it could host different payloads and demonstrate other capabilities, without having to dock with the ISS.

Time is running out. The ISS is slated for deorbit around 2030, which leaves Dream Chaser just a few short years to demonstrate cargo delivery in orbit. But if Dream Chaser can prove itself, it can credibly go on to serve multiple customers and carve out a valuable niche as the only winged spacecraft on the market.