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Home - NEWS - SDA’s First Contract: Deorbiting the Space Graveyard
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SDA’s First Contract: Deorbiting the Space Graveyard

By Admin22/01/2026No Comments5 Mins Read
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SDA Awards First Contract to Take Old Satellites out of Orbit
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The cosmos is getting crowded, especially in low-Earth orbit (LEO). As countless new satellites prepare for launch, ensuring a clear path for future missions – and a responsible exit for aging ones – has become paramount. Enter Starfish Space, a pioneering startup that recently secured a pivotal $52.5 million contract with the Space Development Agency (SDA). Their mission? To provide “disposal as a service,” tackling the growing challenge of space debris head-on.

## A Cosmic Cleanup Crew Takes Shape

Starfish Space’s innovative approach centers around its ‘Otter’ spacecraft, slated for launch in 2027. This isn’t just a one-off mission; it’s a dedicated service designed to meticulously clear out defunct orbital assets.

### How Otter Clears the Skies

Trevor Bennett, co-founder of Starfish, shed light on the intricate process: “Our Otter spacecraft will ascend into the active operational orbits, rendezvous, and then physically attach itself to a designated client satellite. Together, we’ll initiate a controlled descent to a lower altitude. Once that critical point is reached, Otter will detach, allowing the client spacecraft to accelerate its natural de-orbiting process.”

Traditionally, retired satellites either disintegrate upon atmospheric re-entry or are precisely guided to a remote “satellite graveyard” in the Pacific Ocean. What sets Otter apart is its ingenious reusability. Unlike a single-use tow, Otter doesn’t accompany its charge all the way down. Instead, it reascends into LEO, poised to repeat its retrieval mission. While Bennett remained tight-lipped on the exact number, he hinted at Otter’s impressive capacity: “It’s not one, it’s not two; it’s actually much more than that and gets closer to 10.” This multi-mission capability makes Otter a highly efficient solution for orbital debris management.

## The Urgency of Orbital Housekeeping

This contract marks a significant step, not just for Starfish Space, but for the future of sustainable space operations. As LEO becomes increasingly congested, proactive debris removal is shifting from a theoretical ideal to an operational necessity.

### SDA’s Strategic Move

The initial Starfish contract guarantees the launch of Otter and the disposal of at least one SDA satellite, with provisions for additional missions. While specific numbers remain undisclosed, the 2027 timeline strongly suggests that the target spacecraft will be from the SDA’s “Tranche 0” demonstration layer, a foundational constellation comprising 27 satellites. This move follows a rigorous selection process, where SDA initially engaged six companies, including Starfish, for feasibility studies in September 2024. Starfish’s successful transition from study to operational contract underscores the viability and critical need for such services.

### A Growing Market for Debris Management

The demand for satellite disposal services is exploding across the space sector. Historically, operators might shunt end-of-life spacecraft into “graveyard orbits” – remote zones far from active satellites. However, with plans for tens of thousands of new satellites, particularly in the already bustling LEO, this solution is no longer sustainable. The natural decay of a satellite’s orbit, pulled by Earth’s gravity, can take decades or even longer, posing an unacceptable risk of collision and generating hazardous space junk.

U.S. Space Command’s 2023 commitment to “limiting the generation of long-lived debris” highlights a global consensus on responsible space behavior. Yet, as Trevor Bennett emphasizes, the motivations extend beyond environmental stewardship. “The SDA possesses valuable orbital real estate,” Bennett explained, “and they are determined to keep these paths clear for continuous operations.” An inactive satellite can create multiple headaches: forcing constant collision avoidance maneuvers for active spacecraft, occupying a vital slot needed for a new asset, or simply becoming an undesirable object for external observation.

Furthermore, the inherent uncertainty surrounding a satellite’s precise operational lifespan often prompts operators to prematurely de-orbit a spacecraft to avoid it becoming uncontrolled debris. Disposal services like Otter’s provide a crucial safety net, allowing agencies like the SDA to push their initial constellations to their absolute functional limits, gathering invaluable data that will refine the design and operational strategies for future, larger constellations.

## Beyond Decommissioning: A Vision for Dynamic Space Operations

While orbital cleanup is a critical immediate need, Starfish Space envisions a broader role for its technology in shaping the future of space logistics and mobility.

### Otter’s Multi-faceted Future

The Otter spacecraft isn’t solely designed for disposal. Starfish is also developing its capabilities to serve as an “orbital jetpack,” docking with aging satellites to provide propulsion and extend their operational lives. This forward-thinking application garnered a Space Force contract in May 2024, with a launch planned for 2026. While details on this specific mission remain under wraps, it signifies a growing interest in on-orbit servicing.

The broader space industry, and particularly the Space Force, is actively exploring a range of space mobility and logistics solutions. This includes not only life extension modules but also in-orbit refueling stations and spacecraft equipped with robotic arms for intricate repairs.

“Our ultimate goal is to cultivate an industry that deeply integrates on-orbit servicing and intricate spacecraft-to-spacecraft interactions,” Bennett articulated. “These initial disposal missions, alongside life extension ‘jetpack’ operations in geosynchronous orbit, are crucial foundational steps toward enabling a new era of dynamic and sustainable space operations.”

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