On October 7, 2026, the Space Development Agency (SDA) and the Defense Innovation Unit (DIU) announced contract awards to advance space debris mitigation and active satellite deorbiting capabilities for national security space architectures.

The joint initiative, structured under the Deorbit-as-a-Service (DaaS) program, allocated a combined $8.4 million to Firefly Aerospace, D-Orbit Space, and Katalyst Space Technologies for an initial mission design phase, while the SDA separately awarded Starfish Space a standalone contract valued at up to $52.5 million.

Joint Deorbit-as-a-Service Architecture

The DaaS initiative represents a joint procurement framework managed by DIU and SDA to develop commercial, on-demand spacecraft capable of rendezvousing with, capturing, and deorbiting non-operational satellites from low Earth orbit (LEO). Under the $8.4 million initial phase, Firefly Aerospace, D-Orbit Space, and Katalyst Space Technologies will produce preliminary vehicle architectures and mission execution concepts.

The dual-agency program is designed to protect low Earth orbit constellations—including the Department of Defense’s Proliferated Warfighter Space Architecture (PWSA)—from orbital collision hazards posed by defunct spacecraft or maneuvering anomalies.

Standalone SDA Contract for Starfish Space

Separate from the DIU joint procurement, the SDA issued an independent contract to Starfish Space valued at up to $52.5 million. Under the agreement, Starfish Space will deploy its Otter servicing vehicle architecture to perform end-of-life disposal for as many as seven SDA spacecraft.

The standalone contract expands upon broader Pentagon procurements for active satellite removal and in-space servicing, positioning Starfish Space to conduct autonomous proximity operations, docking, and controlled atmospheric reentries for retiring government satellites.

Flight Prototype Schedule and Operational Milestones

All three DaaS design phase vendors—Firefly Aerospace, D-Orbit Space, and Katalyst Space Technologies—are scheduled to complete Preliminary Design Reviews (PDR) by the end of 2026.

Following PDR evaluations, the SDA and DIU intend to select a single contractor to construct and launch a flight prototype vehicle by mid-2028. The selected prototype will conduct in-orbit demonstration tests to validate capture mechanisms, guidance systems, and deorbit propulsion before transitioning into operational service for defense constellations.