News & Success Stories

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.

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.

WRIGHT-PATTERSON AIR FORCE BASE, Ohio — AFWERX, the Department of the Air Force’s innovation organization, accelerates the transition of commercial technologies into operational capability by supercharging the defense industrial base. Through the Small Business Innovation Research (SBIR) program, AFWERX provides small businesses with funding to advance high-risk, high-reward concepts from feasibility studies to fielded systems aligned with Department of the Air Force operational requirements.

Castelion Corporation, a Torrance, California-based nontraditional defense contractor founded in 2022, entered the SBIR program in 2023 with two Direct-to-Phase II awards from the Air Force Research Laboratory. The first, a $1.73 million contract awarded Sept. 11 for the Remote Sensing in a TEU (RESINATE) project, is developing deployable sensing capabilities that fit within a standard 20-foot shipping container, and the second, a $16.97 million award later that month under the Future Operational Capabilities for the U.S. program, is focused on maturing a low-cost missile concept.

In March 2024, Castelion received a Phase III SBIR in partnership with the U.S. Navy to mature a highly manufacturable hypersonic strike weapon. Phase III SBIR contracts allow companies to transition prototypes into products, services or processes for military or commercial use and may be awarded sole-source to the original SBIR developer. In October 2024, AFRL awarded an additional $55.8 million Phase III contract to continue development of low-cost, highly manufacturable long-range strike weapons.

On April 5, 2025, Castelion received a $1.39 million Phase II award for an advanced radar system. In May 2025, the company was selected for an AFWERX Strategic Funding Increase, aligning approximately $15 million in Air Force SBIR funding with $30 million in private investment and additional government funding to support transition from prototype to operational use. Across the STRATFI portfolio, 63.5% of supported companies have transitioned to Phase III.

Capabilities developed through these efforts informed the design and manufacturability of Castelion’s hypersonic missile system, which is undergoing integration with Army and Navy platforms. Government-coordinated testing included prototype vehicle launches at Dugway Proving Grounds, Utah, on Nov. 6, 2025, and at San Nicolas Island within the Point Mugu Sea Range, California, on Dec. 5, 2025, to collect performance data under operationally relevant conditions.

Castelion operates under firm, fixed-price contracts with milestone-based payments and has raised more than $450 million in private capital to expand manufacturing capacity and product development alongside government efforts.

As part of AFRL’s Deliver mission area, AFWERX structures each SBIR investment with defined transition pathways and award timelines averaging three to nine months to support delivery of operational capability across air, space and information domains while strengthening the defense industrial base.

*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.

WRIGHT-PATTERSON AIR FORCE BASE, Ohio – Aerospace firm Electra has developed a hybrid-electric Ultra Short Takeoff and Landing (eSTOL) aircraft with support from AFWERX.

In June 2025, President Trump issued an executive order, “Unleashing American Drone Dominance,” to accelerate domestic drone production, secure U.S. airspace and position the nation as a leader in supersonic technology. Additionally,  The order also emphasized advanced air mobility by establishing a pilot program to test electric vertical takeoff and landing aircraft for cargo, defense logistics and related applications.

At the same time, the U.S. military is evaluating runway-independent aircraft capable of operating in austere and contested environments, including the Indo-Pacific. Hybrid-powered aircraft may support logistics, ship-to-shore transport, personnel recovery and other missions.

Since December 2020, Electra has received nine contracts from AFWERX. In 2023, AFWERX awarded the company a Strategic Funding Increase (STRATFI) of up to $85 million to develop a full-scale pre-production prototype eSTOL aircraft. The three-year contract – consisting of $30 million in Air Force SBIR and other funds as well as $55 million in private investment – supports flight testing that provides data for future military and commercial applications.

In September FY24, the Manassas, Virginia-based company successfully showcased its EL2 Goldfinch, a two-seater prototype, for AFWERX and other military stakeholders. The demonstrations at Marine Corps Air Facility Quantico and Felker Army Airfield at Joint Base Langley-Eustis, both in Virginia, highlighted the aircraft’s dual-use capabilities for logistics operations in austere environments. The flights included takeoffs and landings from grass fields, showcasing operations off-runway without the need for ground-support infrastructure. The pilot also displayed the aircraft’s low-altitude, low-speed maneuverability, further emphasizing its survivability in complex military scenarios.

This success story, which was first published in the AFWERX-SpaceWERX FY2024 Annual Report, has been updated since its initial release.

Electra is now developing the EL9, a nine-passenger aircraft. This version would be capable of carrying 1,000 lbs. over 1,000 nautical miles, and generating 600 kW of expeditionary power.

In December 2025, the company introduced Electra Defense, a business unit aimed at meeting defense mission needs with the EL9 aircraft. This aircraft can take off and land in spaces as short as 150 feet, enabling it to access helicopter-sized areas in austere or remote environments.

In September 2025, Electra participated in the at the Air Force Research Laboratory’’s Future Flag 25-3 exercise where it completed a series of government-directed tests, a milestone under its STRATFI contract with AFWERX and the Air Force. Additionally, in July,  the aerospace firm was awarded a research and development contract with the U.S. Army’s SBIR program to advance the research and development of hybrid-electric powertrain, power, and propulsion systems.

This year, Electra will continue fine tuning its EL9 for the commercial and defense markets and start flight testing in 2027. In addition to establishing its defense business, the company also has 2,200 provisional orders from more than 60 commercial customers worldwide. Providing support to the small businesses developing cutting-edge, dual-use technologies for the warfighter remains core to the AFWERX SBIR/STTR mission.

*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.

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 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.

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.

WRIGHT-PATTERSON AIR FORCE BASE, Ohio — The development of electric vertical takeoff and landing, or eVTOL, vehicles has required significant advancements in various technologies, including powertrains, batteries, and navigation software. AFWERX has played a crucial role in supporting the development of these technologies through funding, testing, and certification. One company that has benefited from AFWERX’s support is Archer Aviation, a California-based manufacturer of eVTOL aircraft.

Archer’s Midnight eVTOL features a unique “12-tilt-six” configuration, with 12 propellers fixed to six booms attached to fixed wings. The aircraft is powered by six independent lithium-ion battery packs, which eliminates emissions during flight and simplifies the engine’s design. This configuration also allows the aircraft to safely complete a flight even if one engine or battery pack fails.

In 2021, Archer received two STTR contracts totaling $298,221 to investigate precision landing and localization systems and to research and develop innovative propulsion system arrangements. In 2022, Archer received a STTR Phase II contract for $744,796 to refine its vision-based navigation concept and conduct flight tests.

In 2023, AFWERX awarded Archer a $32 million Strategic Funding Increase contract to develop a mobile flight simulator and conduct government-directed flight tests. Archer has also delivered a Midnight eVTOL to the DAF under its contract with Agility Prime, which will be used for experimental testing and evaluation. The company plans to pursue additional defense work, including a strategic partnership with Anduril to develop a hybrid VTOL aircraft for critical defense applications.

The partnership between AFWERX and Archer demonstrates the importance of collaboration between the public and private sectors in advancing innovative technologies. AFWERX’s support has enabled Archer to accelerate the development of its eVTOL technology, which has the potential to transform military logistics and operations. The delivery of the Midnight eVTOL to the DAF marks a significant milestone in the transition of eVTOL technology from the private sector to military use.

This Success Story, which was first published in the AFWERX-SpaceWERX FY2024 Annual Report, has been updated since its initial release.

In August 2024, Archer reached a critical milestone by delivering its first Midnight aircraft to the U.S. Air Force for evaluation under a contract with AFWERX’s Agility Prime program valued at up to $142 million. This delivery followed the Department of Defense’s acceptance of Midnight’s military airworthiness assessment, allowing AFWERX to begin government-directed testing to validate the aircraft’s potential for rapid response, personnel transport, and logistics.

Throughout 2025, Archer’s flight test program reached new heights, with Midnight successfully completing its longest piloted flight to date of 55 miles in August and reaching a record altitude of 10,000 feet in October. These operational milestones paved the way for international expansion, including a partnership with Anduril and GKN Aerospace to establish a new engineering hub in the UK to support the British Army’s Project NYX.

As of late 2025, Archer remains on track for commercialization as it continues manufacturing its production aircraft at its facility in Georgia, while also commemorating the recent completion of the first phase of its $126 million acquisition of Hawthorne Airport in Los Angeles– a site designated to serve as the operational hub for Archer’s planned L.A. air taxi network, as well as a primary testbed for AI-powered aviation technologies. By leveraging AFWERX contracts to de-risk high-performance electric flight and validating military use cases, Archer is proving that SBIR/STTR-backed innovation is a vital strategic asset that enhances military agility while simultaneously accelerating the commercial revolution in urban mobility.

*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.

WRIGHT-PATTERSON AIR FORCE BASE, Ohio — The Department of the Air Force (DAF) procures bombers, cargo planes, drones, fighter jets and other aircraft warfighters need to deter conflict and win decisively. The department also acquires, maintains and operates aircraft used to move government and military leaders. Acquiring executive aircraft capable of supersonic speeds could halve travel time, allowing U.S. leaders to meet with foreign counterparts more often.

Boom Supersonic is developing Overture, a commercial airliner capable of carrying 80 passengers at Mach 1.7. On Jan. 28, 2025, Boom’s demonstrator aircraft, the XB-1, broke the sound barrier during a test flight near Mojave, California. The jet climbed above 35,000 feet and accelerated above Mach 1. The flight was the first time an independently developed aircraft flew supersonically, proving the company’s technology.

The XB-1 flight proved key technologies, including augmented reality vision systems, carbon-fiber composite materials, digitally-optimized aerodynamics and supersonic inlets, can be used in Overture. The test jet’s inaugural flight was in March 2024. It completed 11 test flights before this year’s flight.

AFWERX began working with Boom several years ago. In September 2020, it awarded Boom a Small Business Innovation Research (SBIR) contract to investigate Overture for executive airlift. The following year, AFWERX awarded Boom a three-year, $60 million Strategic Funding Contract (STRATFI) contract to explore Overture for Air Force executive airlift. This included $15 million in SBIR funding. Pacific Air Forces and the Presidential and Executive Airpower Directorate provided $15 million, while private investors contributed $30 million. Boom expects Overture flight testing to begin in 2026, with passenger flights planned for 2029.

Boom has also partnered with Northrop Grumman Corp. to provide the government with aircraft for special missions, including surveillance, reconnaissance, command and control, and mobility and logistics.  In September 2023, Boom created a Defense Advisory Group of military and defense experts to assess Overture for national security missions.

Boom also broke the sound barrier three times without a sonic boom reaching the ground, which executives attributed to its propulsion technology and autopilot system. With support from AFWERX STRATFI funding, Boom Supersonic is developing Overture, described as the world’s fastest airliner, optimized for speed, safety and sustainability. Overture will fly at about twice the speed of today’s airliners and is designed to operate on up to 100% sustainable aviation fuel.

This Success Story, which was first published in the AFWERX-SpaceWERX FY2024 Annual Report, has been updated since its initial release.

In February 2025, the XB-1 completed its 13th and final test flight, exceeding Mach 1 for the second time and reaching a top speed of Mach 1.18. During these final flights, Boom refined its “Boomless Cruise” technology, using predictive algorithms to fly at supersonic speeds without generating an audible sonic boom on the ground.

Boom remains focused on the Overture airliner, which currently has an order book of 130 aircraft from carriers including United Airlines, American Airlines and Japan Airlines. The company expects to roll out the first Overture prototype in 2026, with the first flight anticipated in 2027. By bridging the “valley of death” between prototype and production, SBIR and Small Business Technology Transfer funding delivered through AFWERX programs is demonstrating the value of dual-use capabilities by helping advance supersonic technology for both military and commercial use.

*Disclaimer: References to non-federal entities do not constitute or imply Department of War or Air Force endorsement of any company or organization.