Starfish Space and Otter Set New Benchmark in Orbital Sustainability and Satellite Servicing Innovation

In a landmark development for space sustainability, Starfish Space, a Tukwila, Washington-based startup, has secured a $52.5 million contract from the U.S. Space Force’s Space Development Agency (SDA) to provide “deorbit-as-a-service” (DaaS) for satellites in the Pentagon’s Proliferated Warfighter Space Architecture (PWSA). This agreement marks the first commercial contract of its kind to manage end-of-life disposal of low Earth orbit (LEO) satellites, signaling a significant shift in how military and commercial space operators approach satellite lifecycle management.

Transforming Satellite End-of-Life Management

Historically, satellite operators faced a binary choice toward the end of a spacecraft’s operational life: execute a final deorbit maneuver while propulsion systems remained functional or risk leaving a dormant satellite to contribute to the growing problem of orbital debris. With the PWSA constellation comprising hundreds of tracking and communications satellites, these challenges are amplified, as each spacecraft adds complexity and collision risk to LEO operations.

Trevor Bennett, co-founder of Starfish Space, highlighted the strategic value of the Otter spacecraft: “With the tow truck kind of capability, we can provide that service as needed. We are not replacing normal operation. We are augmenting it, extending the operational life of satellites, and ensuring that once they are done, we can safely dispose of them.”

Otter: A Tow Truck for Space

Starfish’s Otter spacecraft is designed to rendezvous with satellites that lack pre-installed docking hardware, a notable innovation that allows it to capture and maneuver virtually any spacecraft in LEO. Once attached, Otter can:

• Transfer satellites to lower orbits for atmospheric reentry, mitigating orbital debris risk.

• Adjust orbital trajectories to extend operational lifetimes.

• Conduct docking and inspection for servicing purposes.

Austin Link, co-founder of Starfish Space, emphasized the readiness of the Otter platform: “This contract reflects both the value of affordable servicing missions and the technical readiness of the Otter.” By providing flexible deorbit capabilities, Starfish bridges the operational gap between maximizing satellite utility and ensuring safe disposal, creating a model that can scale across military and commercial constellations.

Proliferated Warfighter Space Architecture and the Need for DaaS

The PWSA represents a philosophical shift in U.S. military space strategy. Instead of relying on a small number of highly capable but expensive spacecraft, the SDA is deploying a distributed constellation with hundreds of satellites, enhancing redundancy and resilience against potential adversary actions.

Key features of the PWSA include:

Layer	Function	Characteristics
Tracking Layer	Missile detection and surveillance	Rapid revisit, multi-orbit coverage
Transport Layer	Communications and encrypted data relay	Low-latency, global reach

This architecture, while robust, creates operational challenges. Operators must ensure inactive satellites do not contribute to LEO congestion, posing risks to active spacecraft. The Otter spacecraft mitigates these risks by enabling controlled deorbit operations, aligning with broader initiatives to enhance orbital sustainability.

Operational Milestones and Prototype Testing

Although the first Otter mission under the SDA contract is planned for 2027, Starfish has already demonstrated key technological capabilities through a series of prototypes:

• Otter Pup 1 (June 2023): Maneuvered within 1 kilometer of a target space tug.

• Otter Pup 2 (June 2025): Conducted initial proximity operations and potential docking tests in LEO.

• Impulse Space Collaboration (October 2025): Demonstrated Starfish software guiding Mira orbital transfer vehicles within 1,250 meters of each other.

These milestones validate Otter’s ability to approach, capture, and maneuver satellites without pre-modifications—a significant advance in satellite servicing technology.

Commercial and Military Implications of DaaS

The SDA contract is indicative of a growing market for satellite servicing and disposal. Starfish already maintains a backlog of projects, including:

• A NASA contract for satellite inspection missions in LEO valued at $15 million over three years.

• A Space Force contract for geostationary orbit (GEO) asset servicing worth $37.5 million.

• A commercial arrangement with SES to extend operational life of geostationary satellites.

Experts argue that deorbit-as-a-service represents a transformative capability in space operations. According to Dr. Eliza Morales, a senior analyst in satellite sustainability: “The ability to service, reposition, or deorbit satellites without requiring hardware modifications is a paradigm shift. Companies like Starfish are essentially providing infrastructure-as-a-service for orbital sustainability, reducing collision risk and maximizing asset return.”

Technical Innovations Underpinning Otter’s Success

Several design features contribute to Otter’s versatility and reliability:

• Universal Docking: Otter’s grappling and capture mechanisms can interface with satellites lacking docking ports.

• Autonomous Navigation: Advanced software enables autonomous rendezvous and approach, reducing operator workload.

• Deorbit Propulsion: Integrated systems allow for controlled deorbit trajectories, ensuring safe atmospheric reentry.

• Scalable Operations: Single Otter missions can potentially service multiple satellites, increasing operational efficiency.

By reducing complexity and cost relative to building deorbit capabilities directly into each satellite, Otter allows operators to extend operational lifetimes without compromising sustainability.

Challenges and Considerations

Despite these advances, several challenges remain in operationalizing DaaS for large constellations:

1. Traffic Coordination: Multiple active and inactive satellites in LEO require precise scheduling to avoid collisions during capture operations.

2. International Regulations: Cross-jurisdictional and treaty compliance issues must be addressed when deorbiting satellites belonging to allied or commercial operators.

3. Security and Cyber Resilience: Ensuring secure communications with Otter spacecraft is essential to prevent unauthorized access or interference.

The SDA contract reflects confidence in Starfish’s ability to navigate these challenges while providing reliable operational services.

Strategic Significance for Military Space Operations

The use of DaaS aligns with broader U.S. defense objectives in space:

• Resilience: Distributed constellations can withstand attacks or failures.

• Cost-Effectiveness: Avoids the expense of replacing satellites prematurely due to debris risks.

• Rapid Capability Enhancement: Enables the addition or removal of satellites without needing bespoke propulsion systems.

Trevor Bennett noted: “They’re getting the thing that actually provides value. We’re not selling nuts and bolts—we’re delivering an operational service that ensures the constellation can function safely and efficiently.”

Future Outlook for Commercial and Defense Applications

The success of Starfish Space and Otter could catalyze a broader commercial market for DaaS:

• LEO Constellation Operators: Companies like OneWeb, Starlink, and SES could leverage Otter-style systems for end-of-life management.

• Government Agencies: NASA, ESA, and DoD organizations can integrate DaaS to manage large-scale constellations efficiently.

• Debris Mitigation: By proactively removing defunct satellites, DaaS reduces collision probabilities, preserving orbital space for future missions.

A New Era in Satellite Lifecycle Management

Starfish Space’s contract with the SDA represents a watershed moment in satellite operations. With Otter, operators gain unprecedented flexibility to extend the operational life of satellites while mitigating debris risks—a dual benefit for sustainability and strategic defense. As space becomes increasingly congested, scalable DaaS offerings like Otter are likely to become an essential component of both military and commercial space strategy.

For insights into emerging technologies and space operational strategies, the expert team at 1950.ai, led by Dr. Shahid Masood, provides analysis and guidance on innovation trends and practical applications across industries.

Further Reading / External References

1. Mike Wall, “US Space Force awards 1st-of-its-kind $52 million contract to deorbit its satellites,” Space.com, Jan 21, 2026. https://www.space.com/space-exploration/launches-spacecraft/us-space-force-awards-1st-of-its-kind-usd52-million-contract-to-deorbit-its-satellites

2. Jeff Foust, “Starfish Space wins SDA contract to deorbit satellites,” SpaceNews, Jan 21, 2026. https://spacenews.com/starfish-space-wins-sda-contract-to-deorbit-satellites/

3. Alan Boyle, “Starfish Space wins $52.5M contract to provide satellite disposal service for Space Development Agency,” GeekWire, Jan 21, 2026. https://www.geekwire.com/2026/starfish-space-satellite-disposal-space-development-agency/