GoldenDome, the Trump administration’s gambit to build next-generation missile defense systems, has a startup and long-time defense contractors seeking part of a $151 billion multi-year contract.
The process of qualifying for the $151 billion contracted vehicle, essentially an umbrella program, is piled up for most startups, not for technology. Instead, small businesses can be hampered by multi-layered, expensive bureaucratic processes used to enable businesses to meet security and other compliance requirements.
Ultimately, Golden Dome may not be a zero-sum battle between incumbents and incumbents. A breakthrough startup can convince the biggest defense contractor to take over as a subcontractor.
The Pentagon missile defense agency drafted the solicitation of a $151 billion prize contract last week, a prelude to the government’s upcoming defense technology purchases.
A 10-year contract called the Shield, or the innovative Enterprise Layered Defense of a scalable homeland, serves as an umbrella used to purchase technology for the Golden Dome System. The program, likened to the Israeli iron dome by the White House, covers systems ranging from space, land and sea to protect the US continent from the threat of various missiles.
To build this system, the government will consider purchasing a variety of cutting-edge technologies, including space-based interceptors, ground-based radars, and land- and sea-based systems that can rob enemy missiles during flight. The first hurdle for a company hoping to win one of its contracts is to qualify for an umbrella program or vehicle.
Aboard a $151 billion vehicle does not guarantee federal dollars. Instead, companies compete for contract work on individual task orders. The final request for the proposal will be released in the fourth quarter of this year, but it has not stopped businesses from starting lobbying.
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Bryce Dubs, CEO of consulting firm approach venture, told TechCrunch he estimates that between 5% and 10% of pots can realistically go to non-traditional vendors. For example, SpaceX and Anduril are backed by venture capital, but are already on the scale of small primes, and small startup opportunities will appear quite different.
Startups with attractive technology must work with Defense Primes such as Northrop Grumman and Lockheed to provide features that Prime does not currently offer in-house.
This is because many early stage businesses lack facility clearance, personnel, IT security, or other requirements to perform highly classified government jobs. And pre-cooperation liquidation warned that these barriers of entry would be introduced to suppliers.
Venture support companies like Anduril and SpaceX can meet these security and compliance requirements, but everyone else will need to convene under Prime to compete.
Dabbs says his company has seen earlier founders refer to Golden Domes on decks, and the program is frequently referred to as VCs diligently in supporting a startup approach. But investors may not fully understand how government procurement or large contracts work,” he said.
Meanwhile, mature, cash-rich startups like SpaceX and Anduril are poised to compete with legacy defense contractors such as RTX (formerly Raytheon), Lockheed Martin, Boeing and L3Harris.
Earlier this year, Reuters reported that a team consisting of SpaceX, Palantir and Anduril had already begun meetings with federal officials. Meanwhile, Lockheed launched the Golden Dome for America page on its website, highlighting how it will contribute to its efforts.
It’s far, not fair
William Greenwalt, a senior fellow at the American Enterprise Institute and former deputy director of DOD’s Defense Industry Policy, was not optimistic. “I’m not overwhelmed by the prospects of non-traditionals getting anything from now on,” he said.
It is because of the structure of contracts being implemented under the federal acquisition regulations (FAR) and contract competition law (CICA).
While “complete and open competition” is needed in the distance, Pathway’s high compliance standards implicitly keep newcomers out. Instead, Greenwalt said the program should be carried out as another trading office (OTA). This allows DOD to work with non-traditional vendors and fund prototypes to provide opportunities for Forion production.
“The CICA IDIQ agreement is about the stupidest way to do this when innovation is needed, to eliminate non-traditionality from the bid. This should be done as an OTA.
Trump has appointed General Michael Gutrain, commander of the US Space Force, to lead the initiative. He will be responsible for final decisions on the final architecture of the program. The White House wants to exist in just three years. That timeline prefers technology that is currently ready to be deployed, not yet resolved in R&D labs.
“The Golden Dome is a bold, offensive approach to rushing to protect our homeland from our enemies,” he said in May.
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