Defence Online

Building Britain’s Defence Unicorns

July 2, 2026

The UK Government’s Defence Industrial Strategy supports getting innovative technologies to frontline uses more quickly and expanding access for SMEs and scale-ups. Supporting these contracts will support regional growth, job creation and sustainable communities.

The scheme provides fast-tracked contracts to small, high-potential British companies, many of which had little or no prior engagement with defence.

Thirteen companies, drawn from across England, Scotland and Wales, will develop advanced capabilities spanning quantum sensing, autonomous systems, secure communications, space manufacturing and synthetic training. All thirteen companies are SMEs, with the smallest only having a single employee. These awards enable innovative firms to scale their ideas into deployable solutions that meet real operational needs.

Impact

Beyond immediate contracts, the programme provides a launchpad for long-term growth. Winning companies gain credibility and momentum to attract further private investment, helping them scale rapidly and realise their full potential. With Commercial X at it’s core, the MOD is redefining procurement to be fatser, more inclusive, and more responsive, ensuring the UK remains at the forefront of defence capability and innovation.

The contracts – the largest of which is worth £4 million – have been delivered by Commercial X, a team in the National Armaments Director Group (NAD Group) created to accelerate the pace of innovation procurement and reduce barriers to entry to small businesses. Commercial X work hand-in-glove with teams across the NAD Group to deliver on the government’s mission to get Britain war-fighting ready.

Working with Constellia and via our co-created framework, Neutral Vendor Framework for Innovation (NVFi), Commercial X worked at pace to get all 13 suppliers on contract in 10 weeks.

NVFi has been specifically designed to help teams rapidly get on contract with a wide range of suppliers specialising in technology and innovation and to lower the barriers to entry for SMEs so they can supply into defence. To date the framework has over 900 suppliers on it, with over 80% of contracts awarded going to SMEs.

Commercial X has played a central role in:

• Identifying high-potential suppliers
• Rapidly assessing proposals against Armed Forces requirements
• Awarding compliant contracts at pace, supporting SMEs to engage with MOD

This approach demonstrates a clear shift towards faster, more agile procurement, ensuring that innovation can move from concept to capability in significantly reduced timeframes.

Commercial X led the selection process, assessing companies across key capability areas including:

• Artificial intelligence and machine learning
• Robotics and autonomy
• Precision technologies

Backed by the MOD’s commitment to increase SME spending by 50% by May 2028 – an additional £2.5 billion, bringing total SME spend to £7.5 billion this programme is a cornerstone of broader reforms to unlock defence for the next generation of innovators.

“This is an example of what rapid, open procurement looks like in practice. Work in the hands of small British businesses that can move fast and deliver real capability for our Armed Forces. With the MoD committed to an additional £2.5 billion in SME spending by 2028, the infrastructure must match the ambition.

“The Neutral Vendor Framework for Innovation, delivered by Constellia with Commercial X, exists to do exactly that. These 13 companies show what becomes possible when the right businesses get access to the right opportunities.”

Rob Levene, Chair – Constellia Public, Constellia

For more information contact: nvfi-support@constellia.com | www.constellia.com/nvfi | 0330 320 8020

Post written by: Vicky Maggiani

Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.