Civilian vendors configure a U.S. Army Stryker with counter-drone equipment at Vilseck, Germany

New markets.
First orders.

Market entry for defense and dual-use companies selling into the United States, Europe and Ukraine, and the Middle East

The entry structure, the contract vehicle, the funding line, and the first order of record

Field Record

Markets already opened

OriginTarget market
UNITED KINGDOMCANADAUNITED STATESAFRICA ROUTE 01 ORIGIN UNITED KINGDOM 52.6° N 1.8° W 3 DESTINATIONS 150W120W90W60W30W030E60E90E120E150E40S20S020N40N60N

Military software fielded on three continents

Partnered with the engineering team on military software now in service with special operations forces in the United Kingdom, Canada, and the United States, and with a team operating in Africa

UNITED STATESGULF STATES ROUTE 02 ORIGIN UNITED STATES 39.0° N 97.0° W 1 DESTINATION 150W120W90W60W30W030E60E90E120E150E40S20S020N40N60N

Autonomous ground vehicles into the Gulf states

A signed engagement to bring a partner's products into the United Arab Emirates, and a defense investment vehicle structured around offset capital, with terms binding the money to technology transfer and manufacturing

NORTH AMERICAUKRAINE ROUTE 03 ORIGIN NORTH AMERICA 45.0° N 100.0° W 1 DESTINATION 150W120W90W60W30W030E60E90E120E150E40S20S020N40N60N

Allied manufacturer into Ukraine and Europe

Three delivery models with cost, timeline, contacts, and asks, distributor exclusivity mapped country by country, and a funding overlay that lets an allied government pay for the first order

A U.S. contractor instructs U.S. Army soldiers on the Switchblade 600 loitering munition at Grafenwoehr, Germany
01 / United States

United States

The largest defense budget in the world, bought through rules written for domestic suppliers. Entry turns on eligibility before it turns on product.

Entry structure
What each one is allowed to bid:
  • Subsidiary
  • Joint venture with a domestic manufacturer
  • Cleared entity under a Special Security Agreement, Proxy Agreement, or Voting Trust Agreement
Regulations
  • International Traffic in Arms Regulations (ITAR) for defense articles
  • Export Administration Regulations (EAR) for dual-use items
  • Committee on Foreign Investment in the United States (CFIUS) review of foreign investment
Allied access
  • Qualifying countries, including Germany, France, Israel, Japan, Poland, and Sweden, whose end products are exempt from Buy American restrictions under reciprocal procurement agreements
  • National Technology and Industrial Base: firms in Canada, the United Kingdom, Australia, and New Zealand counted as part of the U.S. defense industrial base
  • United Kingdom and Australia: license-free trade in most defense articles under the AUKUS exemption
  • Canada: the Canadian Commercial Corporation as prime contractor, backed by a Canadian government guarantee
Contract channels
  • Commercial Solutions Openings
  • Other Transaction agreements
  • Foreign Comparative Testing: Department of War funding to test allied products against U.S. requirements, with procurement to follow
  • The Joint Interagency Task Force 401 counter-drone marketplace
Partner terms
Channel agreements marked up for:
  • Exclusivity
  • Lead registration
  • Manufacturing rights
A vendor competing in the xTechCounterStrike competition briefs a U.S. Army major and soldiers on a counter-drone system during Project Flytrap 4.5 at Putlos, Germany
02 / Europe and Ukraine

Europe and Ukraine

The fastest validation loop in defense, paid for by Ukrainian orders, allied military assistance, and new European Union instruments.

Entry models
  • Contractor-led lean entry
  • Licensed assembly with a local partner
  • A distributor as the infrastructure
Validation routes
  • Brave1, Ukraine's government defense tech cluster: grants, demonstrations, and feedback from the front
  • Defence Procurement Agency direct contracts
  • Drone coalition channels
  • NATO DIANA test centres across the Alliance
Funding
  • Allied military assistance budgets
  • European Union defense loans under Security Action for Europe (SAFE)
  • The Danish model: allied governments paying Ukrainian producers directly
  • PURL: Allies pooling funds through NATO to buy U.S. equipment for Ukraine
Distributor terms
Exclusivity read country by country:
  • Carve-outs mapped before the next deal
  • Government and NATO sales checked against the exclusivity
Local production
Local manufacturing precedents, and which one fits:
  • Licensed munitions production with Ukrainian industry
  • Joint ventures with state industry, such as Rheinmetall with Ukroboronprom
  • Drone plants in Ukraine and across Europe, such as Quantum Systems and Helsing
An industry partner and a U.S. Air Force Task Force 99 airman finish a new unmanned aircraft in the U.S. Central Command area of responsibility
03 / Middle East

Middle East

Israel and the Gulf states buy for different reasons. Israel writes its requirements from years of continuous combat. The Gulf states run air defense networks proven against ballistic missiles and drones, and buy through offset programs that require industry at home.

Israel
Requirements written from combat experience:
  • U.S. Foreign Military Financing of $3.3 billion a year through fiscal 2028, increasingly spent with U.S. suppliers as offshore procurement ends
  • Directorate of Defense Research and Development (DDR&D) pilots and field evaluations
  • Supplier and integration agreements with Elbit Systems, Rafael Advanced Defense Systems, and Israel Aerospace Industries
Gulf air defense
Gulf states that have defended against live missile and drone attacks:
  • United Arab Emirates: the first combat intercept by the Terminal High Altitude Area Defense (THAAD) system, January 2022
  • Saudi Arabia: years of intercepts against ballistic missiles and drones launched from Yemen
Offset programs
Industrial participation, regime by regime:
  • United Arab Emirates: the Tawazun Economic Program, with seven-year obligations by default
  • Saudi Arabia: the General Authority for Military Industries (GAMI) target of more than 50% local military spending by 2030
Sales route
  • Foreign Military Sales, government to government
  • Direct commercial sales, company to government
  • Export licenses as required
Local partner
The local partner or joint venture:
  • Gulf national champions: EDGE Group and Saudi Arabian Military Industries (SAMI)
  • Joint ventures and the ownership split
Investment terms
Terms that bind capital to:
  • Technology transfer
  • Local manufacturing
The Method
Into the United States

An allied company entering the United States

  • ✓has a product
  • ✕no contract of record
⇄
Out of the United States

A United States company entering Europe or the Gulf

  • ✓has a contract
  • ✕no local standing

Four answers before the first meeting

01Answer 01

The buyer

The office that can sign, and the requirement it is funded against

02Answer 02

The vehicle

The contract route that lets that office buy from you this year

03Answer 03

The money

The budget line, assistance fund, or offset program that pays

04Answer 04

The awardee

The company that is allowed to receive the award

Result

The first order of recordSigned in the company's own name

Drone vendors launch an unmanned aircraft during the Saber Strike live-fire exercise at Bemowo Piskie Training Area, Poland
How to Start

Start with one conversation

Where you sell today, the market you want next, and the route we would take to get there. No proprietary information required

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Photographs: U.S. Army, U.S. Air Force, and U.S. Space Force. The appearance of U.S. Department of War visual information does not imply or constitute endorsement. Maps: Natural Earth.