DesScorp writes "In a blow against the commercial space industry, a federal panel warned NASA not to use private companies to ferry astronauts into space. While the Obama Administration wants to outsource some NASA activities, insiders at the space agency are resisting any moves to use commercial alternatives. The Wall Street Journal reports that the Aerospace Safety Advisory Panel 'cautioned that the private space companies rely on "unsubstantiated claims" and need to overcome major technical hurdles before they can safely carry astronauts into orbit. The report urged NASA to stick with its current government-run manned space ventures, and said that switching to private alternatives now would be "unwise and probably not cost-effective." The findings are likely to provide a boost to NASA officials who want to keep nearly all manned space programs in house.' Private companies such as Lockheed Martin and Boeing argue that they're capable of human transport in space safely and at competitive costs."