Starfish Space has secured a $52.5 million contract from the U.S. Space Force’s Space Development Agency to dispose of military satellites at the end of their operational lives.
The Tukwila, Wash.-based startup says it’s the first commercial deal ever struck to provide “deorbit-as-a-service,” or DaaS, for a satellite constellation in low Earth orbit. In this case, the constellation is the Pentagon’s Proliferated Warfighter Space Architecture, which provides global communications access and encrypted connectivity for military missions.
The contract calls for Starfish Space to launch the satellite disposal service in 2027.
“This is not research and development. This is an actual service, in a structure that allows that service to scale for this constellation, for an entire industry,” Starfish Space co-founder Trevor Bennett told GeekWire. He said the arrangement validates the Space Development Agency’s approach to building and maintaining its constellation, and also validates “the path that we can take with the industry at large.”
Starfish is developing a spacecraft called Otter that would be able to capture other satellites, maneuver them into different orbits, release them and then move on. In a deorbiting scenario, Otter would send the target satellite into a trajectory for atmospheric re-entry that wouldn’t pose a risk to other orbital assets. Starfish’s system doesn’t require the target satellite to be pre-outfitted with specialized hardware — which is a significant selling point.
The system provides an alternative to what typically happens to satellites toward the end of their lives. Today, most satellite operators either have to execute a deorbiting maneuver while they’re sure that the propulsion system still works, or risk having their spacecraft turn into unmanageable space junk.
Bennett compared Otter to a tow truck that can be brought in to carry away an old vehicle when it really needs to be scrapped.
“With the tow truck kind of capability, we can provide that service as needed, but we are not trying to replace normal operation,” he said. “We are augmenting it and extending it so the satellites that are being flown in that constellation can go fly longer. … Once it’s done operating and it’s time to dispose, we can provide that transit to the right disposable altitude.”
Starfish’s deal with the Space Development Agency builds on a previously awarded mission study contract that supported work on the concept in 2024 and 2025. The $52.5 million won’t be paid out all at once. An initial payment will cover costs leading up to the first deorbiting operation, and from then on, the agency will pay Starfish for services rendered. Bennett declined to provide further financial details, citing confidentiality.
Otter’s capabilities aren’t limited to deorbiting satellites. The oven-sized spacecraft could also be used to change a satellite’s orbital path, or bring it in for servicing. “With Otter, we’ve dramatically reduced the cost and complexity of satellite servicing across orbits,” Austin Link, Starfish Space’s other co-founder, said in a news release. “This contract reflects both the value of affordable servicing missions and the technical readiness of the Otter.”
Starfish conducted a partial test of its first Otter prototype, known as Otter Pup, in 2024. A second prototype, Otter Pup 2, launched in mid-2025 and is currently undergoing tests that could include a satellite docking attempt. “That vehicle remains healthy and operational, and is actually progressing through some additional mission milestones,” Bennett said.
Three other projects are in the works:
- Starfish is due to send an Otter spacecraft to hook up with a retired SES satellite in geostationary Earth orbit, or GEO, and maneuver it into a graveyard orbit. The Otter would then dock with a different SES satellite and use its onboard propulsion system to keep that satellite in an operational orbit for additional years of life. (The deal was originally struck with Intelsat, but that company was acquired by SES last year.)
- The Space Force’s Space Systems Command awarded Starfish Space a $37.5 million contract that calls for a different Otter spacecraft to dock with and maneuver national security assets in GEO.
- Yet another Otter is due to conduct up-close inspections of defunct satellites in low Earth orbit under the terms of a three-year, $15 million contract awarded by NASA in 2024.
“Those Otters are all under construction and in testing,” Bennett said. “Actually, we’ll see a couple of those launched this year. And so this is an exciting time, where Otters are about to go to space and start operating as commercial vehicles.”
Read the full article here
