Defense contractors in San Diego: who wins the $11.7 billion and how to reach them

San Diego's defense economy runs on services, ship repair and aircraft built for the Navy, not on a big factory base: Census counts only 28 aerospace and ordnance plants in the county. Follow the contract money instead, and the market is about 2,000 contractors sharing $11.67 billion a year.

Market report7 min readPublished

The Department of Defense obligated $11.67 billion in contracts performed in San Diego County in fiscal 2025 (USAspending), 63% of it through the Navy. About 2,000 recipients shared it, and 541 received $1 million or more. The largest were General Atomics Aeronautical Systems ($1.56 billion), Northrop Grumman ($1.32 billion across three units), AEVEX Aerospace ($677 million), BAE Systems' San Diego ship repair unit ($662 million) and NASSCO ($550 million). Small businesses received $2.85 billion.

  • $11.67 billion of DoD contract obligations were performed in San Diego County in fiscal 2025, 2.3% less than in fiscal 2024.
  • The Navy awarded $7.40 billion; engineering services, ship repair and aircraft were the three largest categories.
  • 541 recipients got $1 million or more, and the top 10 took 49% of the total.
  • Small businesses received $2.85 billion, 24.5% of the county's DoD contract dollars.
  • Viasat (Carlsbad) and AEVEX (Solana Beach) are listed defense firms based in the county; Kratos now lists Round Rock, Texas.
On this page

This report is for suppliers looking for primes to work with, engineers weighing San Diego defense employers, and B2B sellers whose customers are defense contractors. It leads with federal contract records, which show San Diego's defense work far better than factory counts.

Defense contracting in San Diego County, fiscal 2025

Measure (fiscal 2025)San Diego County
DoD contract obligations$11.67 billion
Fiscal 2024, for comparison$11.95 billion
Recipients with net positive obligations1,998
Recipients with $1 million or more541
Recipients with $10 million or more144
Recipients with $100 million or more16
Obligations to small businesses$2.85 billion (24.5%)

We pulled these from USAspending.gov on 30 October 2026: DoD prime contract awards (definitive contracts, purchase orders, delivery orders and BPA calls) performed in San Diego County, 1 October 2024 to 30 September 2025. Obligations are net of deobligations and cover prime contractors only, so subcontracts aren't included. A company with several registered units appears as several recipients, and 328 more recipient records netted to zero or less.

Who awards the money

The Navy awarded $7.40 billion (63%), the Air Force $2.76 billion and the Army $826.8 million. The Defense Logistics Agency ($254.4 million), the Defense Information Systems Agency ($169.1 million), the Defense Health Agency ($159.6 million) and Special Operations Command ($132.1 million) follow; the rest nets to a small negative after a $88.0 million deobligation by the Defense Contract Management Agency. Most San Diego defense selling is, in the end, selling into Navy programs, ships and bases.

The largest contractors

Recipient (as named in the federal record)Fiscal 2025 obligations
General Atomics Aeronautical Systems, Inc.$1,555.1 million
Northrop Grumman Systems Corporation (three recipient records)$1,318.6 million
AEVEX Aerospace, LLC$676.8 million
BAE Systems Maritime Solutions San Diego Inc.$662.1 million
National Steel and Shipbuilding Company (NASSCO)$550.4 million
Booz Allen Hamilton Inc$363.3 million
General Atomics$356.9 million
Viasat Inc$211.8 million
DPR-RQ Construction, LLC$173.9 million
Continental Maritime of San Diego, LLC$161.6 million

The top 10 recipients took 49% of the total. The names fall into clusters: under ship building and repairing, BAE Systems' San Diego unit ($657.5 million), NASSCO ($550.4 million) and Continental Maritime ($161.6 million) lead; under aircraft manufacturing, General Atomics Aeronautical Systems ($982.2 million) and Northrop Grumman ($499.1 million); under engineering services, Booz Allen ($351.4 million), Northrop Grumman ($165.1 million) and SAIC ($128.3 million).

What the money buys

Industry (NAICS)Fiscal 2025 obligations
Engineering services (541330)$2,143.7 million
Ship building and repairing (336611)$1,923.3 million
Aircraft manufacturing (336411)$1,734.8 million
Research and development in physical and engineering sciences (541715)$1,074.1 million
Commercial and institutional building construction (236220)$758.0 million
Other aircraft parts and equipment (336413)$659.8 million
Search, detection and navigation instruments (334511)$477.1 million

Engineering and R&D services together outweigh any single kind of hardware, so San Diego's defense market is as much about engineers and offices as shipyards.

The bases behind the demand

The San Diego Military Advisory Council's 2025 economic impact report (November 2025) counts these active duty and civilian personnel by installation in fiscal 2025:

InstallationPersonnel
Marine Corps Base and Air Station Camp Pendleton, with Naval Hospital Camp Pendleton42,945
Naval Base San Diego33,764
Naval Base Coronado30,015
Marine Corps Air Station Miramar8,593
Naval Base Point Loma8,353
Naval Medical Center San Diego4,878
Marine Corps Recruit Depot San Diego1,640

The same report says San Diego is homeport to 63 Navy ships, and that the Naval Information Warfare Systems Command (NAVWAR), one of five major Navy acquisition commands, is based at the Old Town Campus of Naval Base Point Loma. SDMAC puts fiscal 2025 defense contracting in the region at $19.8 billion across more than 2,000 companies, using data provided by military sources; it is measured differently from the USAspending total, so don't compare the two directly.

What Census factory data shows

The Census Bureau's County Business Patterns 2023 counts only 28 establishments in the San Diego-Chula Vista-Carlsbad, CA Metro Area (CBSA 41740) under aerospace product and parts manufacturing (NAICS 3364) and ammunition and ordnance manufacturing (332992, 332993, 332994), 1.08% of 2,598 nationally. The employee and payroll totals were published but flagged as high-noise, so they are not reported here.

Employees per establishmentEstablishments
1 to 44
5 to 93
10 to 195
20 to 493
50 to 99Not published
100 to 2496
250 to 499Not published
500 to 999Not published
1,000 or moreNot published

Those codes miss most of the work in the contract tables: ship building and repairing alone has 31 establishments and 8,435 employees in the county. For the aircraft side, see aerospace companies in San Diego.

Listed defense companies here

CompanyWhat its latest filing says
Viasat (VSAT)Carlsbad headquarters; Defense and Advanced Technologies revenue of $1,340.6 million of $4,640.3 million total in the year to 31 March 2026
AEVEX (AVEX)Solana Beach headquarters; listed on the NYSE in June 2026, no 10-K yet; $418.5 million of revenue in the first half of 2026
Kratos Defense & Security Solutions (KTOS)EDGAR shows San Diego, but the fiscal 2025 10-K gives Round Rock, Texas as head office, with San Diego a corporate and operating location; revenue $1,346.8 million
SDR Drone (SDCO)Escondido address; renamed from Hallmark Venture Group in June 2026; its 2025 annual report describes no revenue-producing business

Two Virginia-based primes name San Diego in their 10-Ks: General Dynamics among its Marine Systems locations, where NASSCO does surface ship repair, and Northrop Grumman under three of its sectors. General Atomics and BAE Systems don't file 10-Ks, so contract records are the best public view of them.

How to find and check a San Diego defense contractor

  1. Search the awards. In USAspending's advanced search, filter on place of performance (San Diego County), the awarding agency and your NAICS codes to see who wins that work.
  2. Check the registration. Confirm an active SAM.gov registration before you sign a teaming agreement or supply contract.
  3. Ask about CMMC. The DFARS rule took effect on 10 November 2025, starting phase 1. Under 32 CFR 170.3, phase 2 begins a year later, on 10 November 2026, when DoD intends to require Level 2 certification by an outside assessor for applicable contracts. A sub handling controlled unclassified information will be asked for it.
  4. Read the listed primes' filings. Segment revenue and the share from the US government tell you how much of a company's business your offer touches.

Selling to San Diego defense contractors

SegmentFiscal 2025 obligationsWho usually buysWhat they buy
Engineering and technical services$2.43 billion (541330 and 541990)Program and capture managers, facility security officersCleared staffing, CMMC and IT compliance, proposal support
Ship repair$1.92 billion (336611)Yard operations, procurement, environmental leadsIndustrial supplies, welding, scaffolding, waste services, temp labor
Aircraft and parts$2.39 billion (336411 and 336413)Supply chain, quality and manufacturing engineeringMachining, composites, test equipment
Base construction$758.0 million (236220)Project managers, estimatorsSubcontract trades, materials, equipment rental

Large primes buy through supply chain teams with approved-supplier lists, so expect a qualification step before the first order.

Illustrative example. The seller, price and win rate are invented; the counts are from USAspending.

Mesa Ridge Compliance (mesaridge.example) prepares contractors for CMMC Level 2 assessments. Its targets are the 397 San Diego recipients with $1 million to $10 million of fiscal 2025 obligations, big enough to hold controlled information but too small for a large security team. At a 3% win rate (12 firms) and $45,000 per project, that's $540,000 of work. It starts with firms hiring a compliance analyst. Bebop can find contractors matching that description and draft the first email.

Email to a contractor's security or compliance lead
Subject: CMMC Level 2 at [company] before your next recompete

Hi [first name],

[Company]'s DoD work in San Diego likely touches controlled unclassified information, and CMMC phase 2 starts on 10 November 2026.

We run a gap assessment against Level 2 and fix the findings with your team, so the outside assessment isn't the first test. Would a 30-minute review be useful?

[Your name]

San Diego sources

SourceWhat it gives you
USAspending advanced searchAwards by recipient, agency, NAICS and place of performance
SAM.gov entity searchRegistration status of federal contractors
San Diego Military Advisory Council reportsThe annual military economic impact report, with base headcounts
San Diego Regional EDC defenseThe region's defense profile, key companies and the defense ecosystem map
San Diego Regional ChamberMore than 2,000 member businesses, events and advocacy

Next step: for how the government buys and how to get on a contract, read the guide to selling to government.

Sources

Written by the Bebop team at Blackpearl Group. Published .

Questions people ask

What defense contractors are in San Diego?

In fiscal 2025 contract records, the largest were General Atomics Aeronautical Systems ($1.56 billion of DoD obligations performed in San Diego County), Northrop Grumman ($1.32 billion across three units), AEVEX Aerospace, BAE Systems' San Diego ship repair unit, NASSCO, Booz Allen Hamilton, General Atomics and Viasat. About 2,000 recipients had DoD work in the county, 541 of them with $1 million or more.

How much defense money goes to San Diego?

USAspending shows $11.67 billion of Department of Defense contract obligations performed in San Diego County in fiscal 2025, down from $11.95 billion a year earlier. The San Diego Military Advisory Council, using data from military sources and a broader scope, puts regional defense contracting at $19.8 billion and total direct defense spending, including pay and benefits, at $39.3 billion for fiscal 2025.

What military bases are in San Diego?

The San Diego Military Advisory Council lists Marine Corps Base Camp Pendleton (42,945 active duty and civilian personnel in fiscal 2025), Naval Base San Diego (33,764), Naval Base Coronado (30,015), Marine Corps Air Station Miramar (8,593), Naval Base Point Loma (8,353), Naval Medical Center San Diego and Marine Corps Recruit Depot San Diego. It counts 63 Navy ships homeported in San Diego.

How do I become a defense contractor in San Diego?

Register your company in SAM.gov, choose the NAICS codes you'll bid under, and check whether you qualify as a small business, since small firms received $2.85 billion of DoD work in the county in fiscal 2025. Many firms start as subcontractors to the primes in the contract records. If you'll handle controlled unclassified information, plan for CMMC, whose phase 2 starts on 10 November 2026.

Which defense companies are headquartered in San Diego?

Among listed companies, Viasat is headquartered in Carlsbad and reported $1.34 billion of defense and advanced technologies revenue for the year to March 2026, and AEVEX, listed in June 2026, is in Solana Beach. Kratos still has a San Diego address on EDGAR, but its fiscal 2025 10-K names Round Rock, Texas as its head office. General Atomics doesn't file with the SEC.

Find the San Diego defense contractors that fit your offer

Describe the primes or subcontractors you sell to, by work type, size or base. Bebop finds matching companies, explains why each fits and drafts the first email.

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