Agencies Awarded Satellite Deorbit Service Contracts
The Space Development Agency and Defense Innovation Unit have initiated a program to clear orbital debris by 2028.
Updated on Oct. 7, 2026 in Space
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The Space Development Agency and the Defense Innovation Unit have awarded contracts totaling $8.4 million to Firefly Aerospace, D-Orbit Space, and Katalyst Space Technologies for satellite deorbiting services. Separately, Starfish Space received a contract worth up to $52.5 million to provide end-of-life disposal for seven spacecraft.
Why it matters
This initiative aims to mitigate the growing volume of orbital debris in low Earth orbit, which threatens to disrupt satellite constellations through potential collision hazards. The effort shifts the responsibility of decommissioning defunct assets to specialized commercial providers.
The program targets up to seven spacecraft for end-of-life disposal using autonomous docking and deorbit propulsion. Starfish Space will utilize its Otter vehicle architecture to execute these capture and reentry maneuvers.
The players
Space Development Agency
A component of the U.S. Space Force that designs and fields resilient space-based capabilities and constellations.
Defense Innovation Unit
A Department of Defense organization tasked with accelerating the adoption of commercial technology for national security.
Starfish Space
An aerospace startup developing autonomous satellite servicing technology, including docking and proximity operations.
The details
Contractors are developing vehicle architectures and mission concepts for the Deorbit-as-a-Service (DaaS) program. The process involves in-orbit testing of capture mechanisms—hardware designed to latch onto and stabilize a dead satellite—alongside guidance systems that coordinate approach trajectories. These components are critical for controlled reentry, which uses propulsion to force a satellite into the atmosphere to burn up upon descent.
Timeline
October 7, 2026: Contracts for satellite deorbiting services were announced.
End of 2026: Firefly Aerospace, D-Orbit Space, and Katalyst Space Technologies must complete Preliminary Design Reviews.
Mid-2028: The agencies intend to launch a selected flight prototype vehicle.
The Tech Race
This move represents a departure from relying on satellite operators to handle their own decommissioning, establishing a new commercial category for cleanup in low Earth orbit. By formalizing these contracts, the U.S. government is attempting to set a standard for debris mitigation that competing nations and private entities may eventually mirror.
While this service primarily targets the sustainability of commercial and defense satellite constellations, it aims to preserve the utility of low Earth orbit for global telecommunications and Earth-observing infrastructure. Users of space-based services will not see direct changes, but the initiative seeks to ensure long-term network reliability against collision risks.
The takeaway
The move signals a hardening of U.S. policy toward mandatory orbital debris mitigation through the commissioning of external disposal services. Observers should track the mid-2028 milestone, when the agencies plan to launch the first flight-ready prototype for testing.
What happens next
Contractors are scheduled to complete their Preliminary Design Reviews by the end of 2026, which will precede the selection of a single company for the flight prototype phase.
Further reading
For broader trends in orbital operations and satellite maintenance, explore the Space section.
Source note: This article includes information reported by Satnews.
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