Defence

MoD contracts signal new era for SMEs ahead of Birmingham defence procurement summit

Royal Nay aircraft carrier at Portsmouth – stock image

Thirteen UK firms win deals worth up to £4m as Defence Procurement Conference prepares to open access to defence supply chain

With the Defence Procurement Conference 2026 set to bring together SMEs, MOD buyers and senior policymakers in Birmingham in June, the government has underlined its commitment to opening up the sector by awarding 13 innovative British companies contracts worth up to £4 million each to develop cutting-edge technology for the UK Armed Forces.

The contracts, awarded through the MoD’s accelerated procurement vehicle Commercial X, cover technologies including quantum sensing, autonomous systems, secure communications, space manufacturing and synthetic training.

More than half of the winning firms had done no previous business with the MoD.

Defence Secretary John Healey MP said the initiative marked a new approach to procurement: “These are contracts, not words or promises, and they mean that 13 British companies, many of them new to defence, are receiving real investment to develop the technology our Armed Forces need.

“This is defence delivering growth right across the country.”

Opening the door for British innovators

The announcement will be welcomed by delegates preparing to attend the free-to-attend Birmingham conference, which is specifically designed to help SMEs understand how to secure defence contracts and position themselves within the MOD supply chain.

Praful Nargund, Director of the Good Growth Foundation, said: “Pounds spent on defence must do double duty, protecting both our national security and our economic security.”

Among the winning companies is London-based SpaceAM, whose CEO Chris Isaac said: “In just five weeks, six new staff, our first commercial labs operational, top London VCs lining up to invest, and the ability to scale at pace with confidence.”

The MoD has committed to increasing SME spending by 50% by May 2028, an additional £2.5 billion, bringing total SME spend to £7.5 billion.

The Defence Procurement Conference runs at Millennium Point, Birmingham, from June 11 to 12. It is free to attend.

Dr Richard Fallon

Columnist
Dr Richard Fallon is CEO of the Technology Supply Chain membership organisation. He has a wealth of experience in leadership, strategy and organisational development.

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