Space Industry Procurement: How to Win Government Contracts

Government contracts are the backbone of the space industry. The U.S. government spent $78.3 billion on space in 2025, according to the Space Foundation, through NASA, the Department of Defense, NOAA and other agencies, buying everything from satellite systems to launch services to research. For space companies, especially small businesses and startups, winning government contracts can be transformational.

Here's a practical guide to finding, competing for, and winning government space contracts.

Getting Started: Registration and Prerequisites

1. Register on SAM.gov

The System for Award Management (SAM.gov) is the gateway to all federal contracting. You must have an active SAM registration to receive any federal contract or grant. Registration is free:

• Obtain a UEI (Unique Entity Identifier); it replaces the old DUNS number
• Complete the entity registration on SAM.gov
• Designate NAICS codes relevant to your work (e.g., 336414 Guided Missile and Space Vehicle Manufacturing, 517410 Satellite Telecommunications)
• Renew annually

2. Small Business Certifications

If your company qualifies, obtaining SBA certifications dramatically improves your competitiveness:

• Small Business: most common; agencies have small business set-aside requirements
• 8(a) Business Development: for socially and economically disadvantaged businesses
• HUBZone: for businesses in historically underutilized business zones
• WOSB/SDVOSB: women-owned and service-disabled veteran-owned

Finding Opportunities

SAM.gov Contract Opportunities

All federal contracts over $25,000 must be posted on SAM.gov. Key search strategies:

• Search by NAICS code for your industry
• Filter by agency (NASA, DoD, NOAA)
• Set up saved searches with email alerts
• Look for Sources Sought notices: agencies testing the market before issuing an RFP

SBIR/STTR Programs

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are excellent entry points for startups:

• Phase I: feasibility studies, typically 6-12 months; SBA's guideline cap is $323,090 as of April 2026 (agencies can exceed it with SBA approval)
• Phase II: prototype development, typically about 24 months; SBA's guideline cap is $2,153,927 as of April 2026
• Phase III: Commercialization (no set limit, uses non-SBIR funds)

NASA, DoD, DOE, and NSF all have space-relevant SBIR topics. Check SBIR.gov for open solicitations. (Note: SBIR and STTR authority lapsed on October 1, 2025; a law signed on April 13, 2026 restored both programs through September 30, 2031.)

Agency-Specific Programs

• NASA: NSPIRES for research grants, CLPS for lunar payloads, Tipping Point for technology demonstrations
• Space Force / AFRL: SpaceWERX (accelerator), STRATFI/TACTFI (strategic funding increases)
• DARPA: Broad Agency Announcements (BAAs) for advanced research
• NRO: Commercial Systems Program Office for commercial satellite services

Proposal Tips

• Follow the instructions exactly. Government proposals are scored by evaluation criteria listed in the solicitation. Address every criterion explicitly.
• Lead with the problem, not your solution. Show you understand the agency's mission need before describing your approach.
• Quantify everything. TRL levels, performance metrics, cost savings, schedule milestones: specific numbers win over vague claims.
• Budget realistically. Lowballing raises red flags. Use GSA rates for labor categories.
• Team strategically. For larger contracts, teaming with established primes (Lockheed Martin, Northrop Grumman, L3Harris) as a subcontractor can provide past performance you don't have yet.

Compliance Considerations

Space companies face additional regulatory requirements:

• ITAR: International Traffic in Arms Regulations restrict export of defense-related space technology. If your product is on the USML, you need State Department licenses for foreign partners.
• CMMC: Cybersecurity Maturity Model Certification is increasingly required for DoD contracts. Level 2 (110 NIST 800-171 controls) is typical for space programs.
• FAR/DFARS: Federal and Defense Acquisition Regulations govern contract terms, IP rights, and reporting requirements.

Track Opportunities with SpaceNexus

SpaceNexus's Procurement Intelligence module aggregates contract opportunities from SAM.gov, SBIR.gov, and agency portals into a single searchable interface. Filter by agency, NAICS code, contract value, and deadline, and set up alerts so you never miss a relevant opportunity.

Combined with our company profiles (which include government contract history for 200+ space companies) and regulatory compliance module, SpaceNexus gives you the full picture of the government space market.

Start tracking procurement opportunities for free.