Government Contracts for Space Companies: Where to Start
TL;DR: Government contracts can anchor a space company, but they reward preparation. Register in SAM.gov, learn your NAICS codes and size status, then choose one entry path: SBIR or STTR, a DIU prototype, subcontracting to a prime, or a NASA or Space Force program. Research what agencies already buy, build buyer-ready proof and plan cash flow for a long first win.
Key takeaways
- Registration comes first: a SAM.gov registration gives you a Unique Entity ID and lets you bid as a prime.
- Pick one or two entry paths that fit your stage instead of chasing every solicitation.
- Use public spending data and agency forecasts to find buyers who already purchase what you sell.
- Plan for a long first win; SBA warns it can take up to two years to see a return.
Why do space companies pursue government contracts?
Government agencies are among the largest buyers of space technology and services. NASA, the U.S. Space Force and other defense organizations buy launch, satellites, data, ground systems, software and engineering support. For a startup, a government contract can validate the technology, fund development without dilution and create a reference customer that commercial buyers respect.
It is also a different kind of sale. Rules, timelines and proof requirements are set by law and regulation, not just by the buyer's preference. This guide is our hub for government sales. It gives you the starting sequence and points to deeper guides on each path.
Step 1: Get registered and know your identifiers
Before you can bid on federal work, you need the basics in place. The SBA's guide to getting started with contracting lists them:
- SAM.gov registration. Registration on SAM.gov is free, assigns your Unique Entity ID (a 12-character alphanumeric value) and lets you bid on contracts as a prime. It must be renewed every 365 days. If you only report as a subcontractor, you may need just the Unique Entity ID.
- NAICS codes. Match what you sell to one or more North American Industry Classification System codes. Agencies search by these codes, and they drive your size status.
- Size standards. SBA size standards decide whether you count as small for a given NAICS code, which affects access to contracts reserved for small businesses.
The GSA's registration page adds practical tips: start early, because registration can take several days to complete and validate; keep your legal name, address and ownership details consistent across IRS, SAM.gov and SBA records; and you do not need to pay a third party to register.
Step 2: Choose your entry path
Most space startups enter government work through one of five doors. Pick the one that matches your stage and technology.
| Path | Best for | Where to learn more |
|---|---|---|
| SBIR or STTR | Early-stage R&D with a defense or civil mission | SBIR Phase 1 for space startups |
| DIU prototype (Other Transaction) | Commercial products that solve a defense problem now | DIU Work With Us |
| Subcontracting to a prime | Components, subsystems, software and services | Selling to prime contractors |
| NASA | Civil science, exploration and technology | How to sell to NASA |
| U.S. Space Force | National security space capabilities | How to sell to the Space Force |
SBIR and STTR
These programs fund research and development by U.S. small businesses in phases, from feasibility to prototype. They are non-dilutive and are often the first government contract a space startup wins. On the defense side, proposals go through the Defense SBIR/STTR Innovation Portal (DSIP), and the programs do not accept unsolicited proposals.
DIU and Other Transactions
The Defense Innovation Unit runs a Commercial Solutions Opening process and uses Other Transaction authority to award prototype agreements. DIU says any individual or commercial entity can respond to its solicitations and that it has introduced more than 100 first-time vendors to the Department of War, as the department is now also styled. After a successful prototype, DoW entities can enter into non-competitive follow-on production agreements.
Subcontracting to primes
Large primes often have to plan work for small businesses. The SBA's prime and subcontracting page explains that primes on larger contracts submit subcontracting plans with goals for small, small disadvantaged, women-owned, HUBZone and veteran-owned businesses, under FAR 52.219-9. SBA also keeps a directory of primes with subcontracting plans. For many startups, subcontracting is the fastest route to real program experience.
NASA and the Space Force
Each has its own small business office, programs and culture. NASA's Office of Small Business Programs runs outreach, a mentor-protégé program and resources for new suppliers. The Space Force works with startups through SpaceWERX and its acquisition organizations. Our NASA and Space Force guides cover each buyer in detail, and our SpaceWERX SBIR guide covers Space Force R&D funding.
Step 3: Research what agencies already buy
Government buying is public. Use it. SBA points founders to three sources:
- USAspending.gov, the official source for federal spending data, to see which agencies buy what you sell and from whom.
- The Federal Procurement Data System, the repository of federal contract data, for detail on awards.
- Agency procurement forecasts, which show upcoming opportunities, including those for small businesses.
Then search SAM.gov contract opportunities by your NAICS codes and keywords. Look at who won similar work. Those companies are your competitors, your possible teaming partners or your future primes. Our capture planning example shows how to prepare for one real award, and our guide to space industry business development covers building the relationships behind it.
Step 4: Understand set-asides and certifications
Federal agencies reserve some contracts for small businesses under FAR part 19. SBA also runs certification programs, including 8(a) Business Development, HUBZone, Women-Owned Small Business and veteran-owned programs. If you qualify, certification can open doors. If you do not, you can still compete, team with certified firms or sell to primes.
Step 5: Build proof a government buyer trusts
Government evaluators and program managers look for evidence that you can deliver. Build it before you need it:
- A capability statement. One page: core capabilities, differentiators, past performance, NAICS codes, Unique Entity ID and CAGE code, contact details.
- A clear website. A government buyer should find a plain explanation of what you do and who it is for. See our space company website guide.
- Past performance, even small. Commercial customers, pilots, SBIR results and subcontracts all count. Turn them into short case studies.
- Export-safe content. Keep public marketing within ITAR and EAR limits. Our ITAR-safe marketing guide shows how.
Step 6: Plan for a long first win
SBA is candid: it can take a long time and significant money to win a first government contract, and it may take up to two years to start making a return. Defense work also requires electronic invoicing and payment. Keep commercial revenue or funding in place, and use a structured sales process, like the one in our space startup sales process guide, to track every opportunity from first conversation to award.
Want to compare notes with other founders working on government sales? Join Space Entrepreneurs, our free Skool community, and ask what has worked for them.
How do government contracts fit your marketing plan?
Government buyers still search, read and compare. The same content that wins commercial buyers, explained in plain language and backed by proof, helps program offices and primes find you. Our space marketing guide shows how to plan it, and our space industry lead generation page covers building a pipeline across both markets.
Frequently asked questions
How do space companies get government contracts?
Most start by registering in SAM.gov, identifying their NAICS codes and size status, and then entering through one path: SBIR or STTR, a DIU prototype agreement, subcontracting to a prime, or a NASA or Space Force program. Research what agencies buy and build proof before bidding.
Do I need to register in SAM.gov to sell to the government?
To bid as a prime or apply directly for federal awards, yes. Registration is free on SAM.gov and assigns a Unique Entity ID. If you only work as a subcontractor, you may need just the Unique Entity ID.
What is the easiest government contract for a space startup to win?
There is no easy contract, but SBIR or STTR awards and subcontracts to primes are common first wins because they are built for small businesses and new technology. The right path depends on your product and stage.
How long does it take to win a first government contract?
It varies. SBA notes that winning a first contract can take a long time and that it may take up to two years to start seeing a return. Plan cash flow accordingly.
How do I sell to the Department of Defense as a startup?
Common routes are defense SBIR and STTR topics through DSIP, DIU's Commercial Solutions Opening, Space Force programs through SpaceWERX and subcontracting to defense primes. Register in SAM.gov first and keep public content export-safe.
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