A New Frontier in Defense Contracting

From resilient satellite communications to real-time space domain awareness, the United States Space Force (USSF) is reshaping how America secures and sustains its presence in orbit. As the newest branch of the United States Armed Forces, the USSF relies on a fast-growing ecosystem of innovative companies to design, build, and maintain critical space systems.

For North Carolina firms, this expansion represents a high-potential entry point into one of the nation’s most dynamic and well-funded defense markets. With established strengths in aerospace manufacturing, defense electronics, software, advanced materials, and secure communications, the Tar Heel State is well-positioned to play a major role in supplying the technologies and capabilities needed for the Space Force’s next generation of missions.

Shifting the Acquisition Model: From Monoliths to Modules

Traditionally, the military awarded massive, monolithic contracts for entire spacecraft or systems to a small group of large prime contractors. But the Space Systems Command (SSC)—the USSF’s acquisition arm—is actively breaking that model apart.

Instead, SSC is emphasizing modular architectures, faster prototyping, and increased subcontracting to integrate innovation more rapidly. In practical terms, that means more opportunities for smaller and mid-sized companies to provide specialized technologies—everything from sensors and data links to cybersecurity software and propulsion components.

According to SSC’s Small Business Office, the shift toward agility and diversity in sourcing is deliberate:

We are introducing agile, innovative small businesses to our supply chain via subcontracting opportunities—broadening our access to cutting-edge technologies and working faster on behalf of our warfighters.

This transformation has opened the door to new procurement mechanisms, including Other Transaction Authorities (OTAs) and specialized industry consortia such as the Space Enterprise Consortium (SpEC), where many small businesses and nontraditional defense contractors (NTDCs) now compete for prototype work.

SSC’s “Pathways to Primes” Initiative

A flagship example of this change is SSC’s new Pathways to Primes initiative, launched through the command’s first-ever Subcontracting Forum earlier this year in El Segundo, California.

The event drew nearly 200 participants, including representatives from over 150 small businesses and large defense primes. The goal: to help emerging space companies understand how to navigate subcontracting, identify teaming opportunities, and build the relationships necessary to enter the Space Force industrial base.

SSC officials emphasized that many of today’s most promising space innovations—particularly in software, communications, and data analytics—come from firms outside the traditional defense ecosystem. By connecting those companies with established primes, SSC hopes to accelerate technology adoption and expand the supply chain’s resilience.

The Space Enterprise Consortium (SpEC): A Bridge for Innovators

Another major entry point for smaller firms is the Space Enterprise Consortium, known as SpEC. Operated under an OTA framework, SpEC streamlines contracting and encourages collaboration between government, primes, startups, and research organizations.

Since its inception, SpEC has grown to include more than 650 member companies, the majority of them nontraditional defense contractors. Through SpEC, SSC can move from solicitation to award in a fraction of the time required under standard federal acquisition regulations—sometimes in as little as 70 days.

The result: faster prototyping cycles and expanded opportunities for small firms to contribute specialized technologies.

For example, in SSC’s Resilient GPS (R-GPS) project, the command leveraged SpEC to award contracts to 16 small business subcontractors, five times the typical participation rate for traditional contracts. This approach showcases SSC’s commitment to integrating new players into critical programs.

Why North Carolina Is Ready for Space

North Carolina already possesses the industrial depth, research infrastructure, and workforce to compete in this emerging market.

• Aerospace and Defense Base: The state is home to hundreds of companies supporting aircraft manufacturing, avionics, and defense electronics.
• Research Powerhouses: Universities in the Research Triangle and across the state drive innovation in data science, materials, and propulsion.
• Strategic Location: With proximity to the East Coast space corridor and a robust logistics network, North Carolina firms can easily connect to programs run from SSC headquarters in California or launch operations in Florida.
• Experienced Contractors: Many local firms already serve as suppliers to all branches of the US Armed services—experience that translates directly to USSF subcontracting.  In fact, North Carolina also has businesses already engaged in the satellite and space market.

The convergence of these strengths makes North Carolina a compelling contender for roles across the Space Force supply chain, from prototype design and software development to subsystem manufacturing and integration.

Pathways for North Carolina Firms

For companies ready to engage, the key is understanding where to start. Below are six pathways for North Carolina businesses to enter the Space Force supply chain:

1. Partner with Prime Contractors
   Form teaming agreements or mentor-protégé relationships with major aerospace primes such as Lockheed Martin, Northrop Grumman, or L3Harris. These partnerships provide a low-risk entry point and immediate access to active programs.
2. Engage Through SSC’s Front Door
   The SSC Front Door portal is a central hub for companies to connect with program offices, submit capability statements, and explore collaboration opportunities. It’s a must-visit resource for newcomers.
3. Join the Space Enterprise Consortium (SpEC)
   Membership grants access to prototype solicitations under the OTA framework—ideal for innovative firms with emerging technologies.  Annual membership dues are inexpensive and depend on the firm’s annual revenues – as low as $250 for companies with annual revenues under $10 million.  
4. Participate in Industry Forums and Matchmaking Events
   SSC’s Subcontracting Forum and Pathways to Primes events are powerful networking venues.  In North Carolina, the North Carolina Military Business Center hosts several industry-related events around the year.  The NCMBC’s Defense Industrial Sustainment of Combat Systems (DISC) Summit will be a great forum to engage (MAR 18-19, 2026).  
5. Focus on Specialized Capabilities
   Niche technologies—such as AI-driven analytics, secure satellite networking, radiation-hardened electronics, and edge computing—are in high demand. Specialization increases competitiveness.
6. Strengthen Compliance and Proposal Capabilities
   Mastering cybersecurity, export controls (ITAR/EAR), and quality systems is essential. Firms that demonstrate compliance readiness stand out to both primes and the government.

State and regional organizations—including the NCMBC, economic development offices, and university research parks—play an important supporting role by: 

• Hosting industry-related in-person and virtual education and networking events
• Providing proposal-writing and compliance training
• Facilitating connections with SpaceWERX, SSC, and other innovation hubs
• Creating flight qualification or testing partnerships to help local firms validate space-grade components

These steps can help North Carolina companies compete not only for subcontracts, but also for future prime roles as their experience grows.

Conclusion: Turning Potential into Orbit

The USSF’s evolving acquisition landscape is redefining how America builds and defends its space infrastructure. By embracing modular architectures, accelerating prototype programs, and prioritizing subcontractor diversity, SSC is creating an unprecedented opening for regional firms.

For North Carolina, the message is clear: the next frontier of defense contracting is in space—and the time to engage is now.

With focused strategy, partnership, and state-level support, Tar Heel companies can move from the factory floor and research lab to the global stage of the space economy—fueling innovation, driving growth, and helping secure America’s future above the atmosphere.

For more information, visit the Space Systems Command “Front Door” portal and the Space Enterprise Consortium at space-enterprise.org.

For more information on the North Carolina Military Business Center or for assistance connecting with USSF and other federal agencies visit 

www.ncmbc.us

 or contact Joe Tew, 

tewj@ncmbc.us

.