U.S. Space Force Selects 12 Firms for $237 Million Small Satellite Initiative
Washington, D.C. — May 1, 2025 — The U.S. Space Force has awarded a $237 million contract to 12 companies to support the development and deployment of small satellites, aiming to accelerate innovation in defense space capabilities through commercial partnerships.
The program, dubbed STEP 2.0 (Space Test Experiments Platform), falls under the Department of Defense’s broader Space Test Program (STP) and is managed by the Space Systems Command. Structured as an indefinite delivery/indefinite quantity (IDIQ) contract, it spans 10 years and enables the selected vendors to compete for individual task orders to deliver modular satellite buses.
Firms Selected for STEP 2.0
The Space Force announced the awardees on May 1. Leading aerospace and defense players such as Lockheed Martin and General Atomics made the list, along with emerging space tech companies like Blue Canyon Technologies, Loft Orbital Federal, Spire Global, Terran Orbital, and York Space Systems. Additional recipients include Axient, Lynk Global, Orbit Systems, Turion Space, and Space Dynamics Lab, which is affiliated with Utah State University.
“By leveraging commercial expertise, the DoD gains proven spacecraft platforms to host the next generation of space technologies,” said Lt. Col. Brian Shimek, director of the DoD Space Test Program.
A Boost for Experimental Space Missions
STEP 2.0 aims to streamline how experimental payloads are tested in orbit. The small satellite buses—comparable in size to a microwave or mini-fridge—can carry multiple defense and scientific payloads, making it easier to evaluate new technologies before they are widely deployed.
Historically, the Space Test Program has faced scheduling issues, often struggling to align payload readiness with launch availability. This new initiative intends to address those challenges by ensuring a reliable supply of commercial satellite platforms and utilizing rideshare launches to deploy multiple experiments at once.
The program also opens up more opportunities for research aboard the International Space Station, leveraging its microgravity environment for both scientific discovery and military use cases.
Outlook
This latest move by the U.S. Space Force signals a strong push toward commercial collaboration in space defense. With STEP 2.0, the Pentagon hopes to reduce delays, increase flexibility, and fast-track technological advancement for the nation’s growing portfolio of space missions.
