For a small business, stepping into the defense supply chain can feel overwhelming. The acronyms never end, the rules around cybersecurity change fast, and the contracts are packed with fine print. Yet the opportunity is real.
In 2024, small firms won more than $183 billion in federal prime contracts, almost a third of all federal spending. That’s a huge market waiting for capable suppliers. The question is how a smaller company goes from being curious about this space to winning work.
Before chasing contracts, it helps to know the landscape. The defense industrial base employs over a million people and includes more than 60,000 companies. Many of them are small firms just like yours. The Department of Defense and the Defense Logistics Agency (DLA) rely on these suppliers for everything from spare parts to cybersecurity solutions.
Why does that matter for you? Because defense buyers are actively looking for small partners. In fact, the DoD increased its small-business spending by nearly $5 billion between 2023 and 2024. Agencies track participation and set-asides through the SBA, so if you’re registered as a small business, you’re already on their radar. Just as businesses have had to capitalize on the cashless revolution to stay competitive, entering the defense market requires adapting to new systems and expectations.
However, registration is the first gate. To get started, you’ll need a Unique Entity Identifier (UEI), a CAGE code from the Defense Logistics Agency, and a current SAM.gov profile. From there, build a presence in the SBA’s Small Business Search database so contracting officers can find you.
Do not overlook the free resources either. APEX Accelerators (formerly PTACs) exist in nearly every state and will walk you through registrations, proposal prep, and even compliance. Think of them as your built-in guides.
Breaking into the defense supply chain is not just about sending quotes. It’s about showing that you’re a reliable, secure, and compliant partner. Here’s how to approach it step by step.
Start with the fundamentals:
Having these ready makes it easier to respond quickly when opportunities appear.
Compliance is not optional. With the Cybersecurity Maturity Model Certification (CMMC) rolling out, small businesses must prove they can safeguard sensitive data. Level 1 covers basic cyber hygiene, while Level 2 requires alignment with NIST SP 800-171, that’s 110 controls for protecting Controlled Unclassified Information (CUI).
Do you know your current score in the Supplier Performance Risk System (SPRS)? Posting a score there is already required under certain DFARS clauses, and buyers check it. The good news is you can start with a self-assessment and build a plan of action.
If you plan to access drawings or technical packages, you’ll likely need approval through the Joint Certification Program (DD 2345). This protects export-controlled data and ensures only cleared businesses see it. Depending on your work, you may also need to comply with International Traffic in Arms Regulations (ITAR) or Export Administration Regulations (EAR).
Ask yourself: Are you prepared to manage data that cannot legally leave the United States? Building that discipline early can prevent costly mistakes later.
Where should you look for actual opportunities?
However, direct contracts are not the only route. Many small businesses start by subcontracting with primes. This approach lets you learn the ropes, absorb compliance practices, and build past performance.
There are also innovation pathways. If you’re developing new technology, explore the SBIR/STTR programs or “other transaction agreements” that fast-track prototypes.
Supplying defense contracts is also about where your materials come from and how you ensure quality. Rules like the Berry Amendment require that certain textiles, food, and clothing be sourced in the U.S. Specialty metals rules restrict foreign content in certain alloys.
Defense also takes counterfeit risks seriously. If you provide electronics, expect requirements for a counterfeit detection and avoidance system. Many primes expect small suppliers to hold certifications like ISO 9001 or even AS9100 if aerospace components are involved.
Even after you win a contract, you must know how to perform under government rules. Two areas often surprise small businesses:
And yes, invoicing is electronic. Set up iRAPT/WAWF in PIEE early so payments don’t get stuck.
The defense supply chain might look like a maze, but every big contractor started with the same first steps: registrations, compliance, and relationship building. For small businesses, the real advantage is agility. You can move faster, specialize more narrowly, and deliver with focus.
Remember the key points:
The opportunity is there, and it is growing. The DoD continues to raise its small-business participation, with more set-asides and higher contracting goals for veteran-owned companies. The only question left is whether you’re ready to take the first step.
At Vudu Consulting, we help small businesses turn this roadmap into reality. From securing your IT systems for CMMC compliance to building infrastructure that meets government standards, we provide the technical backbone you need to succeed. If you’re ready to pursue opportunities in the defense supply chain, contact us today, and let’s build your pathway together.
