In-Orbit Manufacturing (IOM) Maturation Research & Development Projects

**This planned procurement follows earlier market engagement undertaken by UK Space Agency (UKSA) through the Request for Information (RFI) published under Find a Tender Notice 2026/S 000-035409. Overall responses to the RFI demonstrated market interest and a range of potential approaches, while also identifying areas where further technical, commercial, cost and delivery evidence is required before UKSA could consider progressing to a full demonstration mission. UKSA has therefore decided to adopt a staged approach, commissioning multiple R&D projects across RPOD and IOM to explore differing approaches, reduce uncertainty and strengthen the evidence base for future investment decisions.

This is one of two concurrent procurements being progressed following consideration of the outputs from that RFI exercise, the other being for Mission Feasibility Studies – Spacecraft Life Extension Service Demonstration. Please see respective notices on Find a Tender.**

Procurement Description:

The UK Space Agency (UKSA) intends, subject to final approvals, to launch a competitive procurement that will support research and development (R&D) projects to mature In-Orbit Manufacturing (IOM) payload concepts for high-value Earth applications, generating evidence to support consideration of potential future in-orbit demonstration activities.

The work is intended to mature the technical, delivery considerations, risks, indicative cost and commercial evidential base required to inform the UKSA’s ISAM In-Orbit Demonstration Programme, and the development of a Green Book-compliant business case.

The requirement concerns applied research directed at developing technical knowledge for the particular objective of informing decisions on potential future UK IOM demonstration activities, rather than commercial industrialisation.

The competition is intended to support payload maturation and R&D activity only. Appointment under this competition does not commit UKSA to proceed with, fund or procure a subsequent IOM demonstration mission or further payload maturation activities. Any future phases or follow-on activity would be subject to separate consideration, funding approval and, where appropriate, further competition.

It is UKSA's intention, subject to final approvals, to launch the competition on or around 23 October 2026. Suppliers are expected to have approximately four weeks from the date the competition is formally launched to submit proposals.

Projects are currently anticipated to commence in January 2027 and have a duration of up to 6 months.

This planned procurement notice is intended to provide early visibility of the opportunity and UKSA reserves the right to vary the scope, timetable, funding and other terms described in this notice prior to the formal launch of the competition.

Estimated Contract Value and Funding Position:

The procurement will seek to appoint multiple suppliers to undertake separate IOM payload maturation projects. The estimated total funding available across the projects is £1,400,000 excluding VAT. UKSA currently anticipates awarding a minimum of two contracts, with individual contract values determined through competition and any submission capped at £700,000 excluding VAT per contract. The number of contracts awarded and individual contract values will be managed to remain within these budget constraints.

These figures are indicative only at this stage and remain subject to:

• Internal due diligence;
• Confirmation of final scope;
• Availability of programme funding;
• Required UK Government approvals.

This funding is provided solely by the UKSA and applicants should note this competition is wholly run and administered by the UKSA.

This notice relates to the intended procurement of contracts which are exempted contracts under section 3(6) and Schedule 2, Part 2 (Subject-matter exempted contracts), paragraph 22 (Research and Development Services) of the Procurement Act 2023 (the 'Act'). Exempted contracts are not public contracts as defined in section 3 of the Act and therefore are not required to be procured in accordance with the provisions of the Act that relate to a covered procurement.

UKSA intends to use Innovate UK Contracts for Innovation to deliver the funding competition.

Indicative competition details

• Total funding available: £1,400,000 exclusive of VAT
• Maximum value per contract: £700,000 exclusive of VAT
• Anticipated minimum number of contracts: 2
• Delivery model: preference is for each project to be led by a single lead organisation. The lead organisation may subcontract or collaborate elements of the work with other organisations.
• The Authority may apply a limitation on an organisation to lead only one project.

Further information, including the final scope, eligibility requirements, evaluation methodology, submission deadline and contractual terms, will be provided when the competition is formally launched.