Pentagon Expands Satellite Deorbiting Contracts: D-Orbit, Firefly and Katalyst Space Selected

The US Defense Innovation Unit (DIU) and Space Development Agency (SDA) awarded contracts on August 14, 2026, to D-Orbit, Firefly Aerospace, and Katalyst Space to design systems for deorbiting expired satellites under the “Deorbit-as-a-Service” (DaaS) initiative. The initial awards total $8.4 million for preliminary design work.

At a Glance

The contracts were awarded on August 14, 2026, by DIU and SDA.
Selected companies: D-Orbit (contract with a potential value of up to $24 million), Firefly Aerospace, and Katalyst Space.
The initial awards total $8.4 million; preliminary designs are due by year-end.
The goal is to launch prototype spacecraft and begin operations in 2028.
The aim is a flexible, on-demand orbital logistics service to clear obsolete satellites from low Earth orbit without government ownership costs.
SDA separately awarded Starfish Space a $52.5 million contract for similar deorbiting services in January 2026.

Background

DIU’s original solicitation for DaaS was issued in February 2026. The program is driven by the fact that proliferated satellite constellations — supporting missions like internet connectivity, remote sensing, and missile tracking — typically operate for only about five years, while low Earth orbit becomes increasingly crowded with defunct satellites. The DaaS model envisions the Pentagon leasing deorbiting capability from commercial providers on demand, rather than purchasing and operating the spacecraft itself, lowering costs while increasing flexibility. The selected spacecraft are being designed not only for deorbiting but also for refueling, repair, inspection, and repositioning of satellites. However, officials have flagged the dual-use potential of such highly maneuverable platforms: the same technology could be used to push adversary satellites into non-functional orbits or disable them. Officials point to China’s SJ-21 satellite, launched in 2022 and notable for its maneuverability, as a precedent for this concern.

Regional Impact

Turkey’s space program continues to grow, with the renewal of the TÜRKSAT communications satellite fleet and new indigenous satellite projects planned by the Turkish Space Agency. The Pentagon’s DaaS initiative is an early indicator of a new global market forming around space sustainability and orbital traffic management; in the coming years, Turkey may similarly need comparable service models or domestic capabilities to protect its growing satellite assets and manage orbital debris risk. The dual-use debate also makes the US regulatory approach in this field a reference point as Turkey shapes its own space security doctrine.

FAQ

What exactly does Deorbit-as-a-Service provide? A model under which the Pentagon buys on-demand deorbiting services from commercial companies for expired satellites, rather than purchasing and operating the spacecraft itself.

What is the total contract value? The initial preliminary-design awards total $8.4 million; D-Orbit’s contract could reach up to $24 million with future options.

When will the prototype fly? The goal is to launch prototype spacecraft and begin operations in 2028.