If you are a small business owner who has been curious about government contracting but assumed defense work was only for giant incumbents, this is a good time to rethink that. The federal government awarded small businesses a record $183.3 billion in prime contracts in FY2024, equal to 28.8% of all federal contracting dollars, and the Department of Defense also increased awards to small firms while posting an “A” on SBA’s FY2024 scorecard. That matters because it shows small-business participation is not a side conversation anymore. It is a real, measurable priority across federal buying, including in defense.
Within that broader picture, the Navy stands out because it has long treated small-business participation as a strategic part of acquisition, not just a compliance box to check. And one Navy command in particular is worth watching: Naval Information Warfare Systems Command, or NAVWAR. If your company sells IT, cybersecurity, software, communications, engineering support, logistics tech, digital services, training, or other information-related capabilities, NAVWAR may be much more relevant to your business than you realize.
Why this matters to newer government contractors
A lot of small businesses picture Navy contracting as shipbuilding, aircraft systems, or highly specialized hardware. Some of that is true, of course. But NAVWAR operates in a different lane. Its mission centers on information warfare capabilities and services that support naval, joint, coalition, and national missions across domains from seabed to space. In plain English, that means command and control, tactical communications, cyber, networks, software, enterprise IT, digital modernization, and related support work.
That is important because it opens the door to many firms that do not manufacture physical defense systems. A company with commercial software experience, cloud support capabilities, cybersecurity services, data engineering skills, IT integration expertise, training support, or program support experience may have a more natural path into Navy work through NAVWAR than through more platform-heavy commands. NAVWAR’s own FAQ even makes the point that it is increasingly interested in commercial off-the-shelf solutions and technologies that can be adapted for military use.
For a small business owner, that should be encouraging. You do not need to look like a traditional defense contractor to have a legitimate entry point.
NAVWAR’s small-business commitment is not vague language
One reason NAVWAR deserves attention is that its small-business messaging is backed by structure. NAVWAR states that its Office of Small Business Programs exists to foster acquisition opportunities where small businesses can best support Sailors, Marines, and their families through policy, advocacy, counseling, and training. It also says the office works closely with leadership, contracting officers, program offices, technical leads, and the Small Business Administration to build those opportunities.
That may sound bureaucratic on the surface, but it translates into something practical for small firms: there is an internal mechanism inside the command that is specifically focused on making sure small businesses are considered.
NAVWAR also publishes small-business goals and says one of the office’s critical responsibilities is to serve as the primary advocate for small business within the Department of the Navy and to ensure that all reasonable and practicable opportunities for small-business participation are identified and realized. It further notes that this work is supported by continuous analysis of acquisition data and spending trends.
That is the kind of language small businesses should pay attention to. It signals that small-business participation is being measured, tracked, and managed, not left to chance.
The numbers support the story
NAVWAR’s own FY23 small-business flyer reported $7.223 billion in contracts with industry, with $2.257 billion going to small businesses, for 31.24% small-business participation. That is not a token amount. That is a significant portion of real contracting volume flowing to smaller firms.
At the DoD level, the momentum is clear too. DoD says FY24 saw a $4.9 billion increase in contract awards to small businesses, plus $56.8 billion subcontracted to small businesses by large prime suppliers. That second figure is especially important for new entrants, because it reinforces a truth many experienced contractors already know: prime contracts are only part of the opportunity picture. Subcontracting is a massive lane of its own.
And that matters even more in defense, where relationship-building, past performance, and compliance maturity often separate firms that are “interested” in federal work from firms that actually win.
Why small businesses should care about NAVWAR specifically
NAVWAR is one of the Navy’s major acquisition commands, and its portfolios span areas like battlespace awareness, command and control, tactical networks, communications and GPS navigation, cybersecurity, ship integration, undersea communications, and shore and expeditionary integration. It also points vendors to active opportunity channels, including SAM.gov, its e-commerce site, and its long-range acquisition estimate.
That combination matters for two reasons.
First, the scope is broad. A small business does not need to be a perfect fit for every NAVWAR portfolio. It only needs to align well with one slice of the mission.
Second, the command gives vendors multiple ways to see where demand is headed. NAVWAR’s materials state that firms can use its e-commerce environment to view open solicitations, market surveys, future opportunities, special notices, broad agency announcements, and awarded contracts, while its Long Range Acquisition Estimate helps businesses see what may be coming down the road.
For a new contractor, that is valuable because one of the hardest parts of breaking into defense work is timing. If you only look when the RFP is live, you are often already late. Forecasting matters.
This is where many newer small businesses can make their smartest move.
The DoD itself says winning a first contract typically takes at least 18 months of planning. That is a useful reality check. Even when the opportunity is there, the path is rarely instant.
That is why subcontracting and teaming are often the most practical entry points for companies that are new to government contracting. DoD’s subcontracting program is specifically intended to increase subcontracting opportunities for small business, and DoD’s Mentor-Protégé Program pairs eligible small businesses with larger companies to help them expand their footprint in the defense industrial base. Over the past five years, DoD says participating protégés have been awarded more than $6.5 billion in contracts and subcontracts, and more than 190 small businesses have filled unique niches through the program.
Industry guidance points in the same direction. Prime contractors routinely enlist subcontractors and that subcontractors are often smaller businesses with specialized capabilities. In other words, if you have a niche skill set, you do not need to wait until you are ready to chase every prime opportunity yourself. You can enter by supporting a larger contractor that already has the vehicle, relationships, and past performance.
For many small firms pursuing Navy work, that is the better first win. It helps you build performance history, learn the pace and expectations of defense contracting, and develop relationships that can turn into future prime bids.
Where small businesses still get stuck
The opportunity is real, but so are the friction points.
Most small firms do not struggle because they lack capability. They struggle because the process is hard to navigate. They spend too much time hunting for the right opportunities, reading dense solicitations, deciding whether an opportunity is really worth pursuing, figuring out who the buyer is, and trying to identify good teaming partners before the window closes.
That is exactly where a platform like FedBiz365 becomes useful.
FedBiz365 is built to reduce those common bottlenecks. On the platform side, FedBiz365 says it uses AI to break down solicitation requirements, extract key compliance items, and generate a structured proposal outline mapped to the statement of work and evaluation criteria. It also emphasizes deeper visibility into programs, classifications, and procurement signals so contractors can align their positioning and outreach more effectively.
For a small business trying to pursue Navy opportunities, that means several practical advantages.
It can help you locate Navy and broader defense opportunities faster than traditional manual searching. It can help you turn a dense solicitation into a much clearer go or no-go decision instead of forcing your team to burn hours just to understand the basics. It can help generate a proposal outline in seconds so your team starts with structure instead of a blank page. It can help identify relevant contract and buyer information so your outreach is more targeted. And just as importantly, it can help uncover teaming and subcontracting opportunities, which are often the best on-ramp for companies that need to build past performance before they start chasing larger prime awards on their own.
That last point is worth underlining. New contractors often think the goal is to win a big prime contract as fast as possible. In reality, a smarter first goal is often to get into the ecosystem, support the right prime, prove you can perform, and then scale from there.
The bottom line
The Navy’s emphasis on small-business participation is not just good PR. It is backed by goals, offices, published opportunity channels, and real contract dollars. NAVWAR, in particular, is a meaningful entry point for firms whose capabilities align with information warfare, cyber, communications, digital systems, enterprise IT, and related support services.
For small business owners who are new to defense procurement, that should be encouraging. You do not have to know everything on day one. You do need a clear strategy, a realistic view of where you fit, and tools that help you move faster and qualify smarter.
That is where FedBiz365 can be a strong next step. If you want to see how AI can help you find Navy opportunities faster, simplify go/no-go decisions, surface teaming paths, and organize your next move, book a demo of FedBiz365 or call FedBiz Access for more information: 844-628-8914. It is a practical way to turn interest in Navy contracting into an actual plan.
If you want, I can also turn this into a cleaner publish-ready version with no citations in the body, plus an SEO title and meta description.
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Thank you, Mya, for your outstanding work and commitment to our success. We look forward to working with you again in the future.
— Professor Al Hogan
Owner, Team Randori Martial Arts
Retired U.S. Army CW4 | Veteran-Owned Business Owner
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https://i0.wp.com/fedbizaccess.com/wp-content/uploads/2026/03/navy-contracting-for-small-businesses.jpg?fit=1344%2C896&quality=89&ssl=18961344fedbizadminhttps://fedbizaccess.com/wp-content/uploads/2023/04/fedbizaccess-website-logo.pngfedbizadmin2026-03-17 19:11:152026-03-17 19:11:17Why the Navy’s Small-Business Push Matters Right Now—And Why NAVWAR Should Be on Your Radar
