Lockheed Martin and Alliant Techsystems are competing for a $900 million contract to build the upper stage rockets for the Ares 1 crew launch vehicle, which will be the expendable rocket system for the Orion vehicle. Alliant already has the contract to build the main stage rocket for the Orion Crew Exploration Vehicle project. The Ares 1 is expected to have a test launch in 2009.

NASA is testing landing capsule cushions for the Orion crew vehicle. Lockheed Martin is the prime contractor for the Orion crew vehicle. The Orion craft will take over the role of the current shuttle fleet. It is currently estimated that the Orion will begin missions in 2015, leaving a 5 year gap when there will be no US manned flights into orbit. Budget problems are to blame for the delay (although a small gap was originally planned). The current shuttles will be retired in 2010.

Sources inside the development of the Ares 1 launch vehicle (aka Crew Launch Vehicle or "The Stick") have reported that the current design is underpowered to the tune of a metric ton or more. As currently designed, Ares 1 would not be able to put the present Orion spacecraft design (Crew Exploration Vehicle) into the orbit NASA desires for missions to the ISS. This issue is more pronounced for CEV missions to the moon.