Ukrainian DefTech: Codective CEO’s Advice for Winning U.S. Contracts

How Ukrainian DefTech Can Win Defense Contracts in the USA: Strategy from the CEO of Codective

Ukrainian defense companies looking to enter the American market need to carefully study its specifics, choose the best market-entry model, and identify potential customers. This is according to Anton Gerasymenko, CEO of the Ukrainian-American company Codective, which specializes in autonomous navigation systems for drones and actively works with defense partners while taking part in U.S. government procurement.

According to Gerasymenko, the key steps are choosing the right operating model, studying tender requirements, and identifying customers that need specific technologies. He suggests two main paths for Ukrainian businesses: establishing a legal entity in the United States or partnering with a local company. Initial orders can also be secured through companies that already have experience participating in government contracts.

Market entry strategy: your own company or a partnership

For companies aiming to build their own brand in the American market, Gerasymenko recommends setting up a local legal entity. This involves hiring American specialists and systematically working with potential clients.

If, however, the main goal is direct contract execution, finding an American partner may be more effective. Such a partner already has the necessary registrations, experience with tenders, and can submit proposals on behalf of a combined team, with the Ukrainian company responsible for the technology component and implementation.

If a Ukrainian company decides to operate independently, it must complete a number of registrations. Required identifiers include a Unique Entity ID (UEI), an organization number in SAM.gov, and a CAGE code, which is a supplier code. Federal procurement also uses the DUNS number from Dun & Bradstreet. Some contracts involving classified information will require the appropriate security clearance, such as Top Secret. It is important to check the eligibility conditions for small business programs, as there are often restrictions based on the citizenship of the owners.

Strengthening your proposal through partnerships and subcontracting

An important step in strengthening a bid for a government contract is securing support from large American corporations that already have experience working with the defense sector. Codective, for example, works with Lockheed Martin. When Gerasymenko finds a suitable opportunity, he prepares a short presentation of his team’s capabilities and asks the partner for a letter of support to include with the overall proposal.

In addition to direct participation in tenders, Gerasymenko emphasizes the importance of finding subcontracts. This greatly simplifies market entry and allows a company to gain its first experience working with American customers. Companies can independently search for potential subcontracts and offer partners joint work, demonstrating specific capabilities and the support they need. One example of this model is Codective’s partnership with the IT company Carahsoft, which acts as an integrator between small business and the government.

Preparing the application and finding potential customers

Submitting an application for a competition is free of charge, but the main costs are tied to the team’s work in finding opportunities, preparing documents, and conducting negotiations. Proposal formatting requirements can be extremely formal, so incorrectly filling out even one field may lead to rejection.

Preparing a strong application requires significant time and human resources. It is important to focus on opportunities where the company’s technologies are highly relevant. Some of the document preparation work can be organized in Ukraine, but an active presence in the United States — meetings, conferences, and work with partners — is critically important. Even if a government contract is not secured right away, such activity can lead to commercial orders.

To find potential customers, Gerasymenko recommends tracking official U.S. Department of Defense announcements about awarded contracts on war.gov. This makes it possible to learn which company won the contract, for what amount, and for what kind of work. The next step is to contact those companies with a specific offer, showing how Ukrainian technology can complement or improve the delivery of the awarded contract.

Proving experience and adapting the offer

To successfully enter the American market, Ukrainian companies need to prove their track record. Potential partners will actively look for information about the company and its previous developments. That is why creating English-language materials that showcase products and their applications is extremely important.

It is important to be ready to adapt your offer to the customer’s specific needs. Interest may be sparked by a particular algorithm, software, or engineering solution, not necessarily a finished product. Gerasymenko stresses that success depends on the ability to show exactly what task the team can solve for the partner, using experience gained, including under the conditions of the Ukrainian front line.