The U.S. Space Force is actively pursuing solutions for the growing issue of orbital debris, initiating a new phase in its “Deorbit-as-a-Service” project. This initiative involves contracting private industry to remove defunct satellites from orbit once their operational lives conclude. The Space Development Agency (SDA) and the Defense Innovation Unit (DIU) jointly announced on August 14 the awarding of contracts to three companies: Firefly Aerospace, Katalyst Space, and D-Orbit, marking a significant step in developing a commercial market for space sustainability.
Historically, satellite operators managed end-of-life spacecraft by maneuvering them into “graveyard orbits” – higher, less utilized regions of space where they were intended to remain for extended periods without posing a collision risk to active satellites. In these orbits, satellites would slowly succumb to the forces of orbital decay, eventually being drawn into Earth’s atmosphere to burn up. However, this natural process can take decades or even centuries, making it an unsustainable solution given the rapid proliferation of satellites in Low-Earth Orbit (LEO).
The increasing number of satellites, particularly the burgeoning constellations projected to include tens of thousands of spacecraft in LEO, has amplified concerns about space debris. Experts warn that even small pieces of debris, traveling at speeds exceeding 14,000 miles per hour, can cause catastrophic damage upon impact with operational satellites. Such collisions not only destroy valuable assets but also generate more debris, potentially triggering a cascading effect known as the Kessler Syndrome, where an uncontrolled chain reaction of collisions could render certain orbital altitudes unusable for generations. The urgency for effective debris removal solutions has therefore become paramount.
Deorbiting services offer a proactive solution to this challenge. These services typically involve a specialized servicing spacecraft rendezvousing and then either grappling or docking with a decommissioned satellite. Once secured, the servicing spacecraft would utilize its propulsion systems to guide the defunct satellite into a lower orbit, accelerating its re-entry into Earth’s atmosphere where it would safely disintegrate. After completing the deorbiting task, the servicing spacecraft would return to a designated operational orbit, ready to address its next target, thereby providing an on-demand, reusable capability for space clean-up.
The Space Development Agency, which is developing the Proliferated Warfighter Space Architecture (PWSA) – a resilient LEO constellation designed to support military communications and missile tracking with approximately 450 satellites – has been exploring deorbiting solutions for several years. Recognizing that its constellation would require regular replenishment and, consequently, efficient end-of-life disposal, the SDA has progressively engaged with commercial partners. In 2024, the agency initiated feasibility studies with six companies, culminating in a $52.5 million proof-of-concept contract with Starfish Space in January 2026. Starfish Space is scheduled to launch its Otter spacecraft for this demonstration mission in 2027, with the contract including options for additional missions.
The new agreements announced by the SDA and DIU broaden the scope of this effort, bringing in new commercial partners. Notably, none of the three firms recently awarded contracts were involved in the previous deorbiting awards, indicating an expansion of the industrial base contributing to this emerging market. The DIU, a Pentagon organization tasked with accelerating commercial technology adoption for national security, emphasized in a social media statement that the U.S. government views deorbiting as a service to be procured, rather than a capability to be developed and operated internally. This “managed service” approach is expected to provide “the government flexible, on-demand access to orbital logistics without the cost and schedule of owning and operating the mission spacecraft,” fostering innovation and efficiency through commercial competition.
The contracts awarded to Firefly Aerospace, Katalyst Space, and D-Orbit will fund preliminary design reviews and risk-reduction activities. Following these initial phases, the SDA and DIU intend to select one of these companies for a comprehensive “full on-orbit demonstration” mission, which will involve the physical deorbiting of a test satellite.
**Firefly Aerospace** stated its contract specifically supports the preliminary design review for its Elytra spacecraft. Firefly highlighted Elytra’s suitability for deorbiting missions, citing its “high-thrust maneuverability, ample fuel reserves, and payload capacity,” which are critical attributes for successfully intercepting, securing, and deorbiting space objects.
**Katalyst Space** brings relevant experience to the project, as the company is currently conducting a satellite servicing mission for NASA. In that ongoing mission, Katalyst aims to boost the orbit of a NASA observatory, thereby extending its operational service life – a task that requires similar rendezvous, proximity operations, and orbital maneuvering capabilities essential for deorbiting.
**D-Orbit**, announcing its $24 million contract with SDA and DIU, detailed plans to partner with TransAstra and Falcon Exodynamics. Together, they aim to “demonstrate LEO logistics as a managed service for the U.S. government.” Successful execution of this demonstration, which will involve proving rendezvous, docking, and maneuvering capabilities, is anticipated to open avenues for D-Orbit Space to offer a wider array of in-orbit logistics support services. These could include satellite refueling, repair, inspection, and repositioning, establishing a comprehensive orbital servicing ecosystem.
Why This Matters
The U.S. Space Force’s investment in “Deorbit-as-a-Service” holds significant implications across multiple domains:
**Ensuring Space Sustainability:** The most immediate and critical impact is on mitigating the growing threat of space debris. By actively removing defunct satellites, this initiative helps to preserve the long-term usability and safety of vital orbital environments, particularly Low-Earth Orbit, for future space missions and generations. It represents a proactive approach to managing a shared global resource.
**Protecting Critical Infrastructure:** Satellites underpin numerous aspects of modern life, from global communications and navigation to weather forecasting and environmental monitoring. For the U.S. Space Force, operational satellite constellations like the PWSA are indispensable for national security, intelligence gathering, and military operations. Deorbiting services protect these multi-billion dollar assets from potentially devastating collisions, safeguarding their continuous operation and the vast economic and security benefits they provide.
**Fostering a New Commercial Space Sector:** By procuring deorbiting capabilities as a service rather than developing them in-house, the U.S. government is actively stimulating the growth of a new commercial space industry. This approach encourages private sector innovation, investment, and competition, leading to more efficient and cost-effective solutions for orbital logistics. This, in turn, creates new jobs and economic opportunities within the burgeoning space economy.
**Advancing In-Orbit Servicing Technologies:** The technical challenges of deorbiting – including precise rendezvous, autonomous docking or grappling, and controlled orbital maneuvers – are at the forefront of space technology. The development and demonstration of these capabilities will drive significant advancements in robotic servicing, orbital mechanics, and spacecraft autonomy. These technologies have broader applications, such as in-orbit assembly, manufacturing, inspection, and refueling, paving the way for a more dynamic and flexible space architecture.
**Setting International Norms and Standards:** As a leading spacefaring nation, the U.S. Space Force’s commitment to active debris removal sets a precedent for responsible space operations. This initiative can influence the development of international norms, best practices, and regulatory frameworks for space traffic management and debris mitigation, encouraging other nations and commercial entities to adopt similar sustainable practices.