Firefly Aerospace (Nasdaq: FLY) announced a contract with the Defense Innovation Unit and Space Development Agency to complete a preliminary design review for a satellite deorbit mission using its Elytra spacecraft.

Under the contract, Firefly will design a system for the Elytra vehicle to rendezvous with satellites nearing end of life in low Earth orbit, conduct proximity operations, and perform deorbit services. The company said its deorbit system is capable of operating in low Earth orbit, medium Earth orbit, and geostationary Earth orbit, and can handle satellites of varying sizes and configurations.

Upon completing the preliminary design review, Firefly will be eligible to compete for the next phase of the program, which would include launch and spacecraft operations.

"In alignment with the White House order to prioritize orbital debris mitigation, our team designed a highly efficient, cost-effective solution for our Elytra vehicles to deorbit satellites nearing end of life," said Jason Kim, CEO of Firefly Aerospace.

Firefly holds a separate contract with the Defense Innovation Unit for a space domain awareness mission using the Elytra spacecraft, targeted for no earlier than 2027. The company said core flight structures for that mission are complete and the spacecraft has entered integration and testing.

The Cedar Park, Texas-based company was founded in 2017 and went public on the Nasdaq exchange under the ticker FLY.