It hurts to lose a big government contract, but that's the nature of the contractor business. We live by the contract and die by the contract. Regardless, the work performed under the contract will continue but under Raytheon instead of SpaceHab. It would've been worse had the work itself been cancelled. Most likely, most of the current employees will switch over to Raytheon and continue with their jobs. That's the way it works in the contracting business. Losing this contract, especially right after losing their partially insured SpaceHab module, could possibly doom the company. I wonder, how many more flights were expected for the module? I though Raoul posted that this was the last flight for it.

NASA notified Webster, Tex.-based Spacehab Feb.7 that it was not renewing its contract for building and maintaining International Space Station mockups at Johnson Space Center and operating the giant indoor swimming pool facility there where NASA's astronauts practice simulated space walks.

Instead, NASA awarded a two-year, $32.9 million contract to Raytheon Technical Services of Houston to support activities at the Neutral Buoyancy Laboratory (NBL) and the Space Vehicle Mockup Facility. If NASA exercises all three one-year options, the contract could be worth up to$78.9 million to Raytheon.

BTW: NASA doesn't make or use cruise missiles.