IMPORTANT UPDATE: Effective 1 October 2025, SBIR/STTR program authorization has expired. New activity is paused; ongoing awards remain valid. Awardees are encouraged to contact their TPOCs and contracting officers with questions regarding active awards.
News and Success Stories

AFWERX, SpaceWERX SBIR/STTR Program Spearheads Space Mobility for Enhanced Logistics and Debris Management
EL SEGUNDO, Calif. — Starfish Space, with support from SpaceWERX, has developed a revolutionary space vehicle designed to service or remove satellites from orbit. The Tukwila, Washington-based aerospace firm’s Otter spacecraft, combined with its advanced software and docking device, enables satellite maneuverability, lifespan extension, and debris mitigation.
Since 2021, AFWERX has awarded Starfish Space 10 SBIR contracts and three STTR contracts, demonstrating the DAF’s commitment to innovative technologies. These contracts have supported the development of Starfish’s Otter spacecraft and its various components, including the Cetacean computer vision navigation software and the Nautilus docking device.
The DAF benefits significantly from Starfish Space’s technology, which enhances satellite-servicing capabilities, improves satellite maneuverability and resilience, and advances space-sustainability efforts. This aligns with the DAF’s goals of maintaining a technological advantage in space and ensuring the long-term viability of space operations.

Looking ahead, Starfish Space is advancing its technology and operational capabilities, securing significant contracts with the Space Force and NASA. A $37.5 million STRATFI contract will deploy the Otter spacecraft in geostationary orbit by 2026, while a $15 million NASA contract will utilize Otter for a debris inspection mission.
In May 2024, Space Systems Command (SSC) in partnership with SpaceWERX awarded Starfish Space a $37.5 million STRATFI contract. That agreement calls for Starfish to build, launch and operate an Otter satellite vehicle designed to conduct a docking mission to provide “augmented maneuver” capability for national security space assets. The effort is part of a strategic collaboration that also includes Space Safari, SSC’s Commercial Space Office as well as its Assured Access to Space organization.
With private funding exceeding $50 million, Starfish Space is poised to launch its first three Otter servicing vehicles in 2026, providing critical services to client satellites for Intelsat, the U.S. Space Force, and NASA.
In addition to its SBIR/STTR work, Starfish Space has also secured Phase III contracts with other government agencies and private companies.
In January 2026, Starfish in a news release stated it has received a $52.5 million contract from the Space Development Agency, part of Space Force, to dispose of satellites at the end of their operational lives. Under the agreement, Starfish will build, launch and operate an Otter spacecraft tasked with deorbiting satellites in the SDA’s Proliferated Warfighter Space Architecture (PWSA) network, a Low Earth Orbit (LEO) constellation, according to the company news release. The LEO, extends from 100 to 1,200 miles above Earth’s surface. SDA plans to place hundreds of satellites in this orbital region over the next few years.
The DAF’s partnership with Starfish Space is a key step towards maintaining its superiority in space and addressing the challenges of space resilience. Space superiority and orbital debris mitigation are priorities of both the Trump Administration and the Department of War (DOW).
*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.
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AFWERX, SpaceWERX SBIR/STTR Program Supports Counter Threats and Superior ISR Capability
EL SEGUNDO, Calif. — The Challenge:
Today’s modern warfighter requires tactical visual advantages that transcend the capabilities of the human eye and traditional camera images; from patrols aiming to prevent an ambush under dense jungle canopies, to command centers looking to regain sight of isolated friendly personnel, Hyperspectral Imaging (HSI) capability provides the perfect edge for the warfighter to see what others cannot see in real time. While the National Security Strategy (NSS) emphasizes the imperative of maintaining technological superiority, Secretary Pete Hegseth– in his confirmation hearings and public statements– has underscored the focus on “lethality and innovation” and the necessity of rapidly fielding emerging technologies like HSI to counter threats and provide superior ISR capability.

Hyperspectral Imaging, by Orbital Sidekick:
HSI captures and processes information across a wide range of the electromagnetic spectrum, measuring hundreds of narrow spectral bands to provide precise visual identification and analysis of materials, and offering insights beyond the human eye and traditional photography.
HSI provides detailed spectral information and precise identification and analysis of materials, offering a significant advantage in reconnaissance, surveillance, and target identification, while also enhancing operational effectiveness and safety. This capability directly improves the warfighter’s ability to identify threats in a timely, precise, and comprehensive manner from space, such as through counter-concealment and denial, the detection of fabrics or materials beneath camouflage, change detection in the signature of the earth for mine location, and identification of regions of earth capable of successfully sustaining an airstrip without the need for on-ground inspection.

Orbital Sidekick & AFWERX:
In 2018, Orbital Sidekick applied for the AFWERX open call for innovative defense-related dual-purpose technologies/solutions with a clear Air Force stakeholder need, introducing their Spectral Intelligence analytics platform, a low-cost space-based hyperspectral data infrastructure that would allow for a constellation of small satellites to provide real-time data across the planet. In November 2018, AFWERX awarded Orbital Sidekick with a Phase 1 SBIR award totaling $75,000 to provide support for research in space-based tasking, ground-truthing and validation testing for specific Areas of Interest (AOI) within the Air Force and Space Force.
In March 2019, AFWERX awarded Orbital Sidekick with an additional STRATFI SBIR award totaling nearly $17,000,000 to further their research and development of the HSI technology. The STRATFI award, a key AFWERX mechanism, represented a major investment by Space Systems Command (SSC), a strategic decision to co-invest with private capital to accelerate the deployment of a constellation of satellites, recognizing that a small business alone could not bear the cost of this infrastructure.
In March 2023, OSK launched the GHOSt-1 and GHOSt-2 satellites into orbit. In April 2023, the GHOSt-3 was launched into orbit. All three satellites were commissioned, leading to the launch of GHOSt-4 and GHOSt-5 in March 2024. This growing constellation of satellites enables faster, more informed decisions and supports rapid threat detection, including the identification of chemical weapons, troop movements, and isolated personnel in near-real-time. The satellites also demonstrate critical support capabilities in search and rescue, combat operations, and disaster relief. Current key end-users include AFRL and NASIC.
As a result of AFWERX and SpaceWERX bringing HSI into the defensive industrial base via SBIRs, OSK has gained exposure to additional customers and facilitated further connection within the technological ecosystem. SpaceWERX facilitated the acceptance of HSI as a supported image format in the Global Data Marketplace (GDM), making OSK a successful distributor of imagery and data for any military end-user that utilizes the GDM.

Additional Applications for Orbital Sidekick’s HSI Technology:
Orbital Sidekick’s technology can also be utilized across additional sectors including energy and utilities, where HSI can monitor pipelines for leaks and damage, inspect powerlines for vegetation encroachment and faults, or assist in solar farm performance analysis. HSI can support environmental monitoring through water quality assessment, forest health monitoring, and pollution detection. In the agriculture sector, HSI can assess crop health, analyze soil, and predict crop yield. This dual-use versatility fulfills a key SBIR objective: ensuring that defense-funded innovations achieve commercial scale, thereby strengthening the industrial base and reducing long-term costs for the warfighter.

*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.
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AFWERX, SpaceWERX SBIR/STTR Program Supports Rapid-launch Spacecraft to Deter On-orbit Threats
EL SEGUNDO, Calif. — As on-orbit threats proliferate, the United States Space Force is working with the private sector to secure cutting-edge systems capable of deterring or countering adversaries’ aggressive or irresponsible actions in space.
The VICTUS HAZE program, launched in 2024, has engaged two space companies, True Anomaly and Rocket Lab USA, to provide the Space Force with tactically responsive space (TacRS) mission capabilities.
This success story, which was first published in the AFWERX and SpaceWERX FY 2024 Annual Report, has been updated since its initial release.

In April, Space Systems Command’s Space Safari Program Office, with funding from SpaceWERX and the Defense Innovation Unit (DIU), awarded contracts to the two companies.
Under the Emergent Need Small Business Innovation Research (SBIR) award, made by SSC’s Space Safari Program Office in partnership with SpaceWERX, the Space Force funded $30 million of the total $60 million effort. True Anomaly will leverage the remaining $30 million of private capital.
The second participating company, Rocket Lab, based in Long Beach, California, received $32 million in funding from DIU. The comceWERX and the Defense Innovation Unit (DIU), awarded contracts to the two companies.
Under the Emergent Need Small Business Innovation Research (SBIR) award, made by SSC’s Space Safari Program Office in partnership with SpaceWERX, the Space Force funded $30 million of the total $60 million effort. True Anomaly will leverage the remaining $30 million of private capital.
The second participating company, Rocket Lab, based in Long Beach, California, received $32 million in funding from DIU. The companies were each slated to demonstrate their ability to build rendezvous and proximity operation (RPO)-capable space vehicles and command and control centers, with a delivery target of fall 2025.
Once the build phase is complete, the mission will enter several successive phases, including “hot standby”—awaiting a rapid manifest and launch request.
The TacRS systems developed by these companies will position the Space Force to provide future capabilities to Combatant Commands, equipping them to conduct rapid operations in response to adversary on-orbit aggression.
The demonstration will also enable development of TacRS tactics, techniques and procedures when responding to adversary aggression on orbit.

Space Safari partnered with SpaceWERX for assistance in the technical and commercial evaluation of True Anomaly and the push for an emergent SBIR selection by Space Force leadership. Space Safari is leading the contract administration, providing programmatic oversight and will execute the mission using capabilities provided by True Anomaly.
The VICTUS HAZE program underscores the DAF’s commitment to leveraging private-sector innovation to address critical space challenges. By fostering collaboration among government organizations, industry and startups, the initiative supports the Space Force’s ability to maintain freedom of action in space.
True Anomaly began working with SpaceWERX in 2023 through the SpaceWERX TacRS Challenge, a program focused on gaining new technologies that will enable the Space Force to more rapidly and flexibly respond to emerging on-orbit threats by 2026.
*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.
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AFWERX, SpaceWERX SBIR/STTR Program Supports Satellites Built for Large Payloads, Orbital Versatility
EL SEGUNDO, Calif. — The DAF must respond rapidly and flexibly to threats in an increasingly congested and contested space domain, a mission that requires innovative and cost-effective solutions for developing and deploying advanced space capabilities. K2 Space, a Torrance, California company, is developing a low-cost, high-capability satellite platform capable of carrying large payloads and operating in various orbits, including low Earth orbit (LEO), medium Earth orbit (MEO), geosynchronous orbit (GEO) and cislunar space.

The K2 satellite bus delivers 10 times more power than other low-cost buses in its class and boasts a large payload deck. Its multi-orbit capability and high launch density, with up to 10 satellites per launch, support diverse missions and rapid constellation deployment. With the advent of more powerful launch vehicles, K2 went against the grain, using heavier, inexpensive materials that could reduce costs by 90 percent.
This Success Story, which was first published in the AFWERX-SpaceWERX FY2024 Annual Report, has been updated since its initial release.
K2 Space’s SBIR/STTR Journey

In 2023, K2 Space participated in the Tactically Responsive Space Challenge, an initiative by SpaceWERX and Space Safari aimed at accelerating the development of space technologies. The company successfully competed and was awarded a SBIR contract, demonstrating its innovative approach.
Recognizing the potential of K2 Space’s technology, the DAF also awarded the company multiple Small Business Innovation Research and Small Business Technology Transfer contracts in FY23-24, meant to support its initial early work on its satellite technology.
Then, as FY24 drew to a close, K2 Space was awarded a $60 million STRATFI contract by SpaceWERX and Space Force, Air Force Research Laboratory and the Pentagon’s Space Test Program, reaching this milestone at blazing speed, just halfway through their period of performance.
The Gravitas mission has also received support from the Department of War’s Space Development Agency, Space Force’s Space Domain Awareness and Combat Power Program Executive Office, Space Warfighting Acquisition Delta and National Space Test and Training Complex.
The Gravitas flight is slated for March 2026, marking the first launch of the company’s mega-class satellite, powered by a 20-kilowatt Hall-effect thruster, into medium orbit. K2 tested its electric propulsion system at its Torrance facility earlier this year.
Consisting of SBIR and other government funds, as well as private capital, the STRATFI will support the completion of K2’s mega-class satellite bus. The project will include designing and building payload interfaces, integrating payloads, launch, and operation for a minimum of 18 months after launch.

In July, K2 announced it had successfully demonstrated several of its in-house satellite components in space. These critical components included a flight computer, microcontroller core board, motor controller and reaction wheel. Successful validation of these components should reduce the technical risks for the DAF-supported Gravitas mission, K2 officials said.
In October, K2 Space said it plans to launch three satellites into orbit in 2027 using a SpaceX Falcon 9 rocket. Dubbed Trinity, the launch will include multiple deployments in which the satellites will operate at low, medium and geostationary transfer orbits.
*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.
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AFWERX, SpaceWERX SBIR/STTR Program Revolutionizes Hypersonic Testing with Commercial Re-entry Capsules
EL SEGUNDO, Calif. — Hypersonic flight, with its extreme speeds and heat, poses significant testing challenges due to the high costs and logistical difficulties of ground-based facilities. This lack of real-world data can cause design uncertainties, higher development costs and potential vehicle failures. SpaceWERX, the innovation arm of the U.S. Space Force and a unique division within AFWERX, found a solution in technology wielded by Varda Space Industries, a California-based startup.
Varda manufactures pharmaceuticals and optical fibers in Low Earth Orbit (LEO) in compact satellites and returns them to Earth in reentry capsules. The capsules are outfitted with advanced thermal protection materials developed by NASA to withstand reentry. Recognizing the potential of these capsules for hypersonic testing, Varda partnered with the DAF to adapt them into a Mach 25-plus hypersonic flight testbed. This provides a more affordable alternative to traditional programs with test flights costing more than $100 million.
This Success Story, which was first published in the AFWERX-SpaceWERX FY2024 Annual Report, has been updated since its initial release.

Since 2021, AFWERX has awarded Varda four SBIR contracts. Those agreements focused on developing thermal protection systems for Varda’s reentry capsule, crucial for both its commercial mission and future hypersonic testing.
In May 2023, SpaceWERX awarded Varda a $60 million STRATFI contract to create a dedicated hypersonic flight testbed. This contract included payload integration, user guide development, and two orbital reentry missions. The STRATFI included $15 million in SBIR funds, $15 million in government matching funds from AFRL Space Vehicles Directorate, and $30 million from private venture capital investors.
Expanded testing cadence and data collection
In December 2024, AFRL awarded Varda a four-year, $48 million contract to further develop and use its reentry capsules for hypersonic payload testing. This Phase III award marked another step in the technology’s successful transition.
Over the course of 2025, Varda has launched four space capsules into orbit, three of which carried scientific equipment to collect critical reentry data for the DAF.

In January, Varda flew its first mission under the AFRL contract, and its second for the DAF. Dubbed the Winnebago-2, or W-2, the capsule carried the OSPREE (Optical Sensing of Plasmas in the Reentry Environment) spectrometer, which collects atmospheric information during a craft’s rapid descent to Earth.
The company’s third and fifth missions (launched in March and November, respectively) also carried government payloads for data collection.
Varda says its W-series hypersonic reentry capsule is the lowest cost, most rapid, recoverable option to reproduce the most challenging hypersonic and reentry flight environments. The capsule, manufactured by Varda in El Segundo, enters the atmosphere at 18,000 miles per hour and hits Mach 25+ on every mission before landing by parachute on Earth.
Disclaimer: The content in this article does not constitute or imply endorsement by the Department of the Air Force of the provider or producer of the technology, product, process, or services mentioned.
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