The U.S. Department of Defense is shifting its strategy for managing aging spacecraft in low-Earth orbit. The Defense Innovation Unit and the Space Development Agency recently awarded contracts to D-Orbit, Firefly Aerospace, and Katalyst Space to study the feasibility of purchasing satellite deorbiting services from commercial providers. This initiative aims to address the challenge of removing non-cooperative satellites that were never designed for docking or life-extension services.

These contracts represent a push by the Pentagon to rely on the private sector for orbital cleanup rather than building and operating a proprietary government system. The chosen companies are tasked with demonstrating their ability to rendezvous with and capture defunct hardware safely. This process is complex, as it requires autonomous approach capabilities, precise motion tracking, and the propulsion necessary to move a combined mass out of its current orbit.

Each company approaches this problem with different experience levels. Firefly Aerospace proposes using its Elytra maneuvering vehicle, which leverages technology from its lunar programs. Katalyst Space is currently testing robotic capture techniques through its Link mission, which recently successfully recovered from attitude-control issues during early operations. D-Orbit brings a history of orbital transportation missions and is actively developing its GEA vehicle for future autonomous docking and inspection work.

This current study phase focuses on risk reduction and preliminary design. Following these initial investigations, the agencies will assess technical maturity, mission logistics, and cost-effectiveness. This is an extension of earlier feasibility efforts started in 2024, which have already seen companies like Starfish Space move toward active missions. The goal is to establish a repeatable, cost-effective market for debris removal, ensuring that low-Earth orbit remains viable for future operations without accumulating unmanaged hazards.