The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, April 24, 1996              TAG: 9604240529
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY KAREN JOLLY DAVIS, STAFF WRITER 
DATELINE: WALLOPS ISLAND                     LENGTH: Medium:   58 lines

SPACEPORT VIRGINIA WINS BIG CONTRACT AIR FORCE TO PAY UP TO $6 MILLION FOR ROCKET LAUNCHES FROM NASA BASEON THE EASTERN SHORE.

Spaceport Virginia has won a contract for up to $6 million to help launch several Air Force rockets from NASA's Wallops Flight Facility on Virginia's Eastern Shore.

``It represents one of our first paying customers, and that's good news,'' Billie Reed, executive director of the authority, said Tuesday. ``We're really excited about it.''

The Air Force will be converting Minuteman ballistic missiles into rockets to carry scientific experiments into space. Virginia's fledgling spaceport authority would use NASA's equipment and expertise to get the rockets off the ground.

Three other commercial spaceports received similar contracts, Reed said. They are: Spaceport Systems International in California; Spaceport Florida Authority; and the Alaska Aerospace Development Corp.

Reed works for the Center for Commercial Space Infrastructure at Old Dominion University, where he teaches engineering management. He and Wayne Woodhams, also a teacher at ODU, wrote the contract proposal.

Reed said he hopes the Wallops facility would be ready for the Air Force rockets within two years. No target dates for up to six launches have been set.

Aerospace is one of Virginia's hottest industries, according to the governor's plan for economic development. But satellite builders and scientists need a way to get projects and products into orbit. So far, foreign rocket companies have dominated the commercial launch market.

The Virginia Commercial Space Flight Authority was created by Gov. George F. Allen in July 1995 to capture part of that market. The spaceport would provide a launch site for aerospace enterprises already in Virginia, and would attempt to attract business from other states.

The commercial space business, proponents say, should ensure the viability of the NASA base at Wallops Island - one of the foundations of economic stability in Accomack County.

Spaceport officials are considering leasing the launch tower built by EER Systems Inc. for its Conestoga rocket, which exploded when launched last year. A large part of the Conestoga program was federally funded.

``This is so new, we have not discussed this in detail with EER,'' said Woodhams, although there have been preliminary discussions about the lease.

EER officials said earlier they would cooperate with Spaceport missions, and would lease the launch tower facilities when they aren't using them.

As a prelude to the $6 million launch contract, the Space Flight Authority will receive $85,000 from the Air Force to document how it will process the Minuteman missiles for launching.

KEYWORDS: NASA CONTRACT U.S. AIR FORCE by CNB