There's zillions of little defense contractors. I've dealt with many, many 2-man shops even (many of which failed). One of many ways this happens is they suppl

There's zillions of little defense contractors. I've dealt with many, many 2-man shops even (many of which failed). One of many ways this happens is they supply the prime contractors. Another way is through programs like SBIR, which has ~7500 to 10,000 awards per year to companies max size 500 (but most much smaller). https://ssti.org/blog/useful-stats-2020-sbirsttr-awards-state-and-agency https://ssti.org/blog/useful-stats-2020-sbirsttr-awards-stat... Any one of these companies may become a supplier. I worked ~20 yrs for a 50ish person company that was a supplier the entire time. As such, and doing SBIR pitches, I competed with many tiny firms, many of which were also suppliers. So yes, they can go out of business, from the 2-person shop to the 10,000+ person shop, just like any one else.