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Four Companies Win US Contracts for Satellite Deorbiting

The Space Development Agency and the Defense Innovation Unit awarded satellite deorbit vehicle contracts to Firefly, D-Orbit, Katalyst, and Starfish Space without disclosing the contract values.

October 9, 2026
Four Companies Win US Contracts for Satellite Deorbiting

The US Space Development Agency and the Defense Innovation Unit awarded satellite deorbit vehicle contracts to four companies: Firefly, D-Orbit, Katalyst, and Starfish Space, according to the SpaceNexus morning brief.

This step treats satellite disposal as a funded government service, rather than leaving it as the sole responsibility of the satellite operator.

The brief notes that these contracts indicate that addressing space debris has become an operational requirement for the Space Development Agency's constellation operating in low Earth orbit.

The values of the four contracts were not disclosed. This development concerns space companies, insurance firms, and satellite operators, as the accumulation of debris in low Earth orbit raises collision risks and increases mission insurance costs.

What do these terms mean?

Satellite deorbiting: Removing a satellite from its orbit at the end of its lifespan and bringing it down to burn up in the atmosphere or guiding it to a safe location.

Space debris: Remnants of satellites, spacecraft, and rockets that remain in orbit and increase the risk of collision with active spacecraft.

Low Earth orbit: A region close to Earth in which the International Space Station and most satellite constellations orbit.

Space Development Agency: A US agency responsible for building and deploying military infrastructure in space, including satellite constellations.

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