Defense Industrial Base Explained: Who Is in the Sector

What the Defense Industrial Base Is

The defense industrial base is the global set of companies, subcontractors and government facilities that develop, build, deliver and maintain the weapons and equipment the US military uses. CISA calls the Defense Industrial Base (DIB) Sector "the worldwide industrial complex that enables research and development" of military systems.

CISA's definition covers the design, production, delivery and maintenance of "military weapons systems, subsystems, and components or parts, to meet U.S. military requirements."

Scale is the first thing to know. CISA counts more than 100,000 DIB companies and their subcontractors performing under contract to DoD. CISA says the sector's products and services are "essential to mobilize, deploy, and sustain military operations."

CISA states that DIB entities can be domestic or foreign, with production assets located in many countries. A company does not need to be American, or build only in the United States, to sit inside the defense industrial base.

Who Sits Inside the DIB Sector

CISA lists four groups inside the sector:

• DoD components themselves
• More than 100,000 DIB companies and their subcontractors performing under contract to DoD
• Companies that supply incidental materials and services to DoD
• Government-owned facilities, whether a contractor or the government operates them

CISA Exclusions from the Sector

CISA excludes commercial infrastructure providers of power, communications, transportation and utilities from the DIB Sector, even when DoD relies on them. Other Sector Risk Management Agencies cover those assets.

For anyone sorting companies, that boundary is a practical filter. A supplier of parts or subsystems under a DoD contract is inside the defense industrial base. A commercial power utility is outside it, even when DoD uses its services.

Department of Defense Management of the Sector

DoD is the designated Sector Risk Management Agency for the defense industrial base, according to CISA. The sector's plan follows the National Infrastructure Protection Plan risk-management framework. Its Sector-Specific Plan dates to 2010.

Inside DoD, the Office of Industrial Base Policy sits under the Under Secretary of Defense for Acquisition and Sustainment. The head of that office advises the Under Secretary on policies for maintaining the US defense industrial base. Its duties include industrial base policy, small business programs and supply chain assessments.

The Office of Industrial Base Policy also spots gaps in manufacturing capability and monitors foreign investment. Its stated mission is to work with domestic and international partners to forge and sustain a robust, secure and resilient industrial base enabling the warfighter. Those duties come from a December 2023 GovConWire summary of DoD briefings, and the office's current structure may differ.

The National Defense Industrial Strategy

DoD released its first National Defense Industrial Strategy in January 2024. The document sets four goals for the base. Those goals are resilient supply chains, workforce readiness, flexible acquisition and economic deterrence.

For the money behind these goals, see our US defense budget guide.

Why Supply Chains Matter to Defense Industrial Base Companies

CISA's count of more than 100,000 companies and subcontractors shows a much wider base. When you read a company's contract news on our defense stocks pages, ask where it sits: a company under direct DoD contract, a subcontractor, or a supplier of incidental materials and services.

Production capacity is the second question. DoD's Office of Industrial Base Policy spots gaps in manufacturing capability. Our guide to how defense procurement works shows how contracts reach the base; see also the Office of Strategic Capital guide.

Gaps in Published Defense Industrial Base Data

Several figures about the defense industrial base are not in the sources behind this page. The sources behind this page do not say how many of the 100,000-plus companies are small businesses. They also do not show how much DoD spending reaches each tier of the supply chain, or how many components rely on a single supplier.

Treat any outside claim on those numbers with care until you can trace it to a primary source. The CISA Defense Industrial Base Sector page holds the sector definition.

If you are tracking newer entrants to the defense industrial base, start with our list of defense startups and our guide to SBIR and STTR funding.