News & Success Stories

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.

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.