Pentagon Accelerates 'Deorbit-as-a-Service' with New Space Contracts
The Space Development Agency and Defense Innovation Unit awarded contracts to Firefly Aerospace, Katalyst Space, and D-Orbit to advance commercial deorbiting capabilities. The managed services model aims to clear space debris and ensure mission assurance as military low-Earth orbit constellations rapidly expand.
The Department of Defense is doubling down on commercial space capabilities, shifting from government-owned hardware to a "Deorbit-as-a-Service" model to manage low-Earth orbit (LEO) congestion. The Space Development Agency (SDA) and the Defense Innovation Unit (DIU) have awarded preliminary design and risk-reduction contracts to Firefly Aerospace, Katalyst Space, and D-Orbit. These deals expand upon earlier efforts—including a $52.5 million proof-of-concept contract awarded to Starfish Space—aimed at executing commercial orbital cleanup as the U.S. military deploys large-scale satellite constellations.
Under the new awards, vendors will develop maneuverable craft capable of rendezvous, proximity operations, and docking with decommissioned satellites. Firefly Aerospace is advancing its Elytra spacecraft, leveraging high-thrust maneuverability and fuel capacity to drag targeted assets into rapid atmospheric re-entry profiles before repositioning for subsequent targets. D-Orbit announced a $24 million contract in partnership with TransAstra and Falcon Exodynamics to demonstrate LEO managed logistics, while Katalyst Space brings ongoing NASA satellite-servicing experience to the effort. Following design reviews, SDA and DIU will select one contractor for a full on-orbit demonstration.
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