Albuquerque Firm Awarded Army Contract as Defense Spending Push Expands

An Albuquerque-based company has been awarded a $10 million U.S. Army contract as part of broader federal efforts to expand military capability and strengthen the defense industrial base.

According to the Department of the Army, Dynamic Systems and Research Corp., based in Albuquerque, received a contract for continued development of a firing system solution, including a graphics user interface and new systems designed to adapt to changing operational environments.

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The contract includes a mix of cost-plus and firm-fixed-price components, with work to be assigned through individual orders and an estimated completion date of April 19, 2031.

Local Role in a Larger Buildout

The award comes as federal officials outline a significant increase in defense spending, with a proposed $1.5 trillion budget request for fiscal year 2027 aimed at modernizing military systems and expanding production capacity.

“This budget builds this arsenal without compromising readiness that will ensure we remain the world’s premier fighting force, we protect the homeland, and we create peace through strength now and into the future.”

~Pete Hegseth
Secretary of Defense War

That proposal places heavy emphasis on strengthening the nation’s defense industrial base—an ecosystem that relies not only on major contractors, but also on smaller and mid-sized firms across the country.

Officials noted that tens of thousands of businesses contribute to the supply chain supporting U.S. military operations, providing components, software and specialized systems needed for modern warfare. 

Opportunities for Regional Firms

The budget proposal includes expanded use of multi-year contracts and increased investment in weapons systems, infrastructure and emerging technologies—moves intended to provide stability and encourage long-term growth among contractors and suppliers.

For companies like Dynamic Systems and Research Corp., such contracts represent both immediate project work and potential entry points into longer-term federal partnerships.

Work locations and specific funding allocations for the Albuquerque-based firm will be determined through future task orders under the agreement.