Defence, Security & Space UK-wide

Overview

The Ministry of Defence (MOD) spends approximately £29 billion a year with UK companies. Around 12,000 SMEs already work in the defence supply chain, and the government's Defence Industrial Strategy 2025 targets increasing SME spending by 50% to £7.5 billion a year by May 2028.

The MOD does not maintain preferred supplier lists. Any business that meets the quality, security, and compliance standards can bid for contracts.

Where to find MOD contracts

Register on all three portals — they list different types of opportunity:

  • Defence Sourcing Portal (DSP) — the MOD's main e-sourcing platform. All advertised requirements over £10,000 are listed here. Registration is free. Set up notification alerts for your category codes
  • Contracts Finder — government contracts over £12,000 (including VAT). Covers MOD and all other public sector buyers
  • Find a Tender — high-value contracts above £139,688 (including VAT). Required for above-threshold procurements under the Procurement Act 2023

Also check the MOD Acquisition Pipeline for forward-looking procurement activity and framework agreements, so you can plan ahead.

Requirements you must meet

Cyber security

Cyber Essentials Plus is mandatory for most contracts involving IT systems or sensitive data. Certification costs £400 to £700 through an IASME-certified body and takes 6 to 8 weeks.

Quality standards

  • AS9100 for aerospace quality management
  • AQAP-2110 or AQAP-2210 for NATO quality assurance
  • ISO 9001 as a minimum for non-aerospace contracts. Certification costs £3,000 to £10,000 depending on company size

Supply chain accreditation

Many prime contractors require JOSCAR (Joint Supply Chain Accreditation Register) membership before they will consider you as a subcontractor.

Security clearances

For classified contracts, your staff need clearance from UK Security Vetting (UKSV):

  • SC (Security Check) for SECRET access — 6 to 18 weeks
  • DV (Developed Vetting) for TOP SECRET access — 6 to 12 months

Your company must sponsor clearance applications. Plan well ahead as clearance processing times can be lengthy.

Export controls

If your contract involves controlled goods or technology, complete an F680 compliance declaration from GOV.UK.

Procurement Act 2023

The Procurement Act 2023 replaced the previous EU-derived procurement regime from 24 February 2025, including the Defence and Security Public Contracts Regulations 2011. Key changes for defence suppliers:

  • Single unified framework — one set of rules covering all public procurement including defence
  • Central digital platform — mandatory transparency notices at each stage of procurement for above-threshold contracts
  • Wider scope — the definition of defence and security contracts now covers goods, services, or works relevant to operational capability, effectiveness, or safety of the armed forces
  • Contract modification rules — Section 70 applies from 1 April 2026, governing how contracts can be changed after award

SME support and innovation funding

Defence Office for Small Business Growth

Launched in February 2026, this new MOD unit helps SMEs navigate defence procurement. It provides tailored guidance from commercial experts and a confidential channel for firms to raise concerns about procurement processes.

Defence and Security Accelerator (DASA)

DASA funds innovation for defence and security. Funding includes:

  • Open Call for Innovation — for novel ideas even without a defined requirement (reopening July 2026 under UK Defence Innovation)
  • Themed competitions — targeting specific defence challenges
  • Defence Innovation Loans — £100,000 to £1 million at 7.4% interest for mature solutions (TRL 6+)

Other entry points

  • Commercial X — MOD's innovation and commercial team
  • DSTL SME Searchlight — defence research innovation pathway
MOD annual UK spending
Approximately £29 billion with UK companies
SME spending target
£7.5 billion per year by May 2028 (50% increase from £5 billion)
Direct SME contract share
4% of contracts awarded directly to SMEs
Defence Sourcing Portal threshold
Contracts over £10,000 advertised on DSP
Find a Tender threshold
High-value contracts above £139,688 (including VAT)
Cyber Essentials Plus cost
£400 to £700, taking 6 to 8 weeks
SME payment target
90% of valid invoices paid within 5 days (89% achieved in 2023/24)
Defence jobs supported
430,000 UK jobs (1 in every 60)
  1. Register on the Defence Sourcing Portal

    Create a free account at contracts.mod.uk. Set up category code alerts to receive notifications for relevant opportunities.

  2. Register on Contracts Finder and Find a Tender

    Create profiles on both portals. Contracts Finder covers opportunities over £12,000 and Find a Tender covers high-value contracts above £139,688.

  3. Get Cyber Essentials Plus certified

    Apply through an IASME-certified body. Budget £400 to £700 and 6 to 8 weeks. Required for most contracts handling IT or sensitive data.

  4. Obtain quality certification

    Get AS9100 (aerospace), AQAP (NATO), or at minimum ISO 9001. Budget £3,000 to £10,000 for certification depending on company size.

  5. Consider JOSCAR accreditation

    Many prime contractors require JOSCAR membership. Register through the Hellios SME portal to improve your chances of subcontracting work.

  6. Arrange security clearances

    If bidding for classified work, sponsor SC or DV clearances for relevant staff. Allow 6 to 18 weeks for SC and 6 to 12 months for DV.

  7. Contact the Defence Office for Small Business Growth

    Get tailored guidance on bidding, procurement processes, and entry points. Use the confidential channel to raise any concerns.

  8. Explore DASA innovation funding

    If you have innovative solutions for defence, check DASA themed competitions and Defence Innovation Loans (£100,000 to £1 million).

THRESHOLD 250 employees

SME spending target — £7.5 billion by 2028

sme status threshold: 250 employees

The Defence Industrial Strategy 2025 targets increasing direct MOD spending with SMEs by 50% to £7.5 billion per year by May 2028. The MOD aims to halve contract award timelines and open up more single-source opportunities to smaller firms. If you are an SME, this is a significant opportunity to enter the defence supply chain.