# DIU and SDA to Select Deorbit Contractor

The Defense Innovation Unit (DIU) and Space Development Agency (SDA) expect to select a company for an orbital deorbit demonstration contract in December 2026. The decision follows **$8.4 million in August 2026 awards** to D-Orbit, Firefly Aerospace, and Katalyst Space for preliminary development; a preliminary design review is scheduled for November 16, 2026, and the program aims to demonstrate a prototype deorbiting system in space by mid-2028.

- The November 16 design review and expected December downselect are near-term procurement milestones for companies pursuing orbital debris-removal and deorbit capabilities.
- D-Orbit, Firefly Aerospace, and Katalyst Space hold the initial awards; the forthcoming selection will identify the company advancing to the demonstration contract.
- Contractors should follow DIU and SDA announcements for the downselect and any follow-on requirements, and use the mid-2028 demonstration target when assessing relevant capability and delivery plans.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Published:** November 03, 2026

### Government Entities
- Defense Innovation Unit (DIU)
- Space Development Agency (SDA)

### Vendors
- D-Orbit (awardee)
- Firefly Aerospace (awardee)
- Katalyst Space (awardee)

### Sources
- [DIU Looks to Award Deorbit Demonstration Contract Next Month - Defense Daily](https://www.defensedaily.com/diu-looks-to-award-deorbit-demonstration-contract-next-month/space) - Defense Daily