Air Force Awards $11B to Small Businesses in Record Year

Small businesses just landed their biggest win yet from the U.S. Air Force, and the numbers tell an incredible story of opportunity spreading across America.

The Air Force Materiel Command Small Business Office awarded a record-breaking $11 billion in contracts to small businesses during 2025, surpassing all previous financial milestones. Based at Wright-Patterson Air Force Base in Ohio, the office serves as the front door for entrepreneurs wanting to partner with the Air Force.

"Our mission is to promote and optimize small business solutions," said Luke Schultz, acting director of the AFMC Small Business Office. "Just like how AFMC trains and equips the Air Force, we do the same for small businesses that partner with AFMC and its centers."

The contracts targeted businesses often overlooked by major government spending. Service-disabled veteran-owned companies, woman-owned firms, and businesses in historically underutilized zones all received significant opportunities to contribute to national defense while growing their operations.

Nearly $2.9 billion went specifically to Small Business Innovation Research Phase III contracts, which help transition cutting-edge technologies from small innovators directly to warfighters. One standout project, the TENCAP Talon Revolution, now helps military commanders tap into national intelligence systems seamlessly on the battlefield.

The team didn't just write checks and disappear. They hosted 150 outreach events throughout 2025, connecting with more than 3,000 business owners. That's a 22% jump from the previous year, showing real commitment to building relationships beyond paperwork.

The Ripple Effect

This success story extends far beyond government contracts. Every dollar awarded supports jobs in communities nationwide, from manufacturing plants in small towns to tech startups in emerging business zones. The mentor-protégé program pairs experienced defense contractors with newcomers, creating a knowledge transfer that strengthens the entire industrial base.

The achievements came despite staffing challenges. The office faced workforce reductions but strategically leveraged resources across the command, working closely with program teams to exceed goals anyway.

From registration workshops to one-on-one meetings, the office simplified the notoriously complex process of working with the federal government. They partnered with public affairs teams to spread the word about industry days where business owners could network and connect with decision makers.

"We really try to make sure that the small business industrial base knows that we're out here and we're here to help them connect with teams and resources that are available," Schultz said.

The office plans to expand opportunities even further in 2026, strengthening partnerships and ensuring more entrepreneurs get their shot at contributing to national defense while building thriving businesses.