Boeing [NYSE: BA] announced that its engineers are designing an orbital space plane (OSP) for the National Aeronautics and Space Administration. Boeing is one of three contractor teams developing proposals for the program that includes the spacecraft, ground operations and all supporting technologies needed to conduct missions to and from the International Space Station.

Chicago-based Boeing was awarded a $45 million contract modification on the NASA Space Launch Initiative program for work on the OSP. The modification extends the current contract through July 2004.

The OSP was designed as a multipurpose spacecraft that can perform crew-rescue and -transfer missions for the space station. It will be compatible with current expendable rockets and future reusable launch vehicles and will seat four to six people.