with Recent Investments and Strategic Mergers
By Jayne Mhono Dickey, Colorado Springs Chamber of Commerce & EDC
Editor’s Note: In light of the many decisions and changes coming from Washington, DC, the landscape of business and industry has become fluid. The Digest was granted permission to reprint the following article concerning Southern Colorado’s progress to date within the aerospace and defense industry.
Schriever Space Force Base in Colorado Springs has been chosen as the permanent home of Space Delta 15 (DEL 15), according to a November 2024 announcement by the Department of the Air Force. This decision underscores Colorado Springs’ pivotal role in national security and its status as a hub for aerospace and defense investments. DEL 15, part of the U.S. Space Force, focuses on advanced space operations, intelligence and cyber capabilities. It collaborates with the 74th and 75th Intelligence, Surveillance, and Reconnaissance (ISR) Squadrons to safeguard space-based services and systems like satellites.
Strong Aerospace and Defense Industry Presence
DEL 15 enhances Colorado Springs’ defense capabilities, supported by a robust Aerospace and Defense (A&D) industry, cutting-edge military technology, and over 150 private companies dedicated to national security missions. Colorado Springs’ A&D industry is among the nation’s strongest, housing five of Colorado’s six military bases and key national security assets like NORAD, U.S. Northern Command and U.S. Space Command. Major space contractors, including Lockheed Martin, Northrop Grumman, Boeing and L3 Harris Technologies, have a significant presence in the city, providing advanced technologies across various fields. Notably, Boeing’s Missile Defense systems at Schriever Space Force Base play a crucial role in protecting the United States and its allies from long-range ballistic missile threats.
Colorado Springs also boasts a thriving startup scene, with incubators and accelerators, like Exponential Impact and Catalyst Campus, fostering the growth of entrepreneurial startups and early-stage technology research projects. Catalyst Campus, in particular, creates an ecosystem where space and defense startups collaborate with industry leaders and government entities, accelerating the integration of new technologies into military applications.
A Hub for Engineering Talent and Innovation
Colorado Springs has a high concentration of trained engineers, thanks to its strong aerospace and defense industry. Collaboration between industry, military and academia fuels research and innovation. The University of Colorado Colorado Springs, designated as the lead institution for the Space Education Consortium, partners with the U.S. Space Force on research, advanced degrees and workforce development, preparing students for careers in aerospace and defense.
The U.S. Air Force Academy is categorized among the top institutions for undergraduate engineering programs in the U.S., boosting the region’s engineering talent pool. U.S. News and World Report ranked the Academy as the No. 6 undergraduate program in engineering where a doctoral degree is not offered. The area’s 400 monthly military separations also replenish the cleared talent pool, supporting classified missions in the industry.
In March 2024, the Aerospace Corporation and Colorado Springs-based Space Foundation announced a partnership to educate the next generation of space scientists and engineers. The Space Workforce 2030 program is a coalition that comprises about 30 companies working with universities, community colleges and high schools to solve industry worker shortages and the diminishing pool of students pursuing science, technology, engineering and math (STEM) degrees required for space careers.
Colorado Springs’ workforce pool flourishes due to the innovative community spread throughout the state. World-class institutions like CU Boulder train a highly skilled workforce to support the aerospace and defense sectors. CU Boulder also partners with government agencies, such as the National Aeronautics and Space Administration (NASA) and the National Security Agency (NSA), on pioneering aerospace and defense research, which enhances national security.
The decision to base DEL 15 in Colorado Springs is one of several recent developments that bolster the region’s status as a leading space and defense hub. This makes it an attractive destination for aerospace and defense industry businesses to invest, innovate and grow.
Economic Growth Driven by Business Expansions
Colorado Springs is experiencing increased economic activity, driving growth and competitiveness. Data released by the U.S. Bureau of Economic Analysis (BEA) in December 2024 showed that the Gross Domestic Product (GDP) for the Colorado Springs Metropolitan Statistical Area (MSA) grew by 4.4% between 2022 and 2023, reaching $53 billion. This growth rate was 1.5% higher than the U.S. national average, highlighting the region’s robust economic environment and attractiveness to investors.
Attracted by Colorado Springs’ strong military presence, thriving startup scene, leading technology and highly skilled workforce, seven aerospace and defense companies have announced business expansions into Colorado Springs since 2022. These are some of the 25 companies that chose to move into or grow within the region, creating more than 4,000 jobs and attracting $1.7 billion in economic funding.
In 2022, Colorado Springs-based Bluestaq, a software development firm in the aerospace industry chose to remain in the city for a large-scale expansion expected to create 585 jobs within eight years. During the same period, Denver-based Zivaro, a company focused on modernizing software for the aerospace and Defense industry, expanded into Colorado Springs, creating over 300 well-paying jobs.
At the 2024 Space Symposium, the Colorado Springs Chamber & EDC announced the expansion of Nooks, a defense industry startup specializing in classified facilities for use by industry and government partners, to build a 60,000-square-foot facility near UCCS. This will be Nooks’ third and largest national location. Intuitive Research and Technology (INTUITIVE), an aerospace engineering analysis firm, announced an expansion in March 2024, expected to create 1,347 jobs. The company opened a new office at the Garden of the Gods to support the U.S. Space Force, U.S. Space Command and other space warfighting units.
Construction of Aerospace Corporation’s $100 million state-of-the-art research facility dedicated to space warfighting and national security missions was completed in 2022. The 90,000-square-foot facility is expected to employ 200 workers, enhancing the existing team of around 240 engineers, scientists and analysts at Aerospace Corp’s location in Peak Innovation Park, near the Colorado Springs Airport, according to a 2020 company news release.
Mergers and Acquisitions Enhancing Competitiveness
Before rebranding to Auria, Boecore, a Colorado Springs-based aerospace and defense contractor, expanded in the city to build a large sensitive compartmented information facility (SCIF), where government officials and contractors can review highly classified information. Boecore later became part of a merger by Enlightenment Capital, combining four acquisitions under the Auria umbrella, including Boecore, Orbit Logic, Ascencion Engineering Group and La Jolla Logic, to provide specialized software products for space, missile defense and cyber operations, Enlightenment Capital said in a January 2024 release. Auria is headquartered in Colorado Springs and employed 400 workers, at the time.
In October 2022, Veritas Capital, a technology investor managing over $45 billion in assets, acquired CAES Space Systems (formerly Cobham Advanced Electronic Solutions), a Colorado Springs-based provider of critical space mission components. Veritas CEO and Managing Partner Ramzi Musallam said in a company release that CAES was well-positioned to support national security under their ownership. In September 2024, Honeywell International Inc., a major multinational conglomerate headquartered in Charlotte, North Carolina, announced the completion of its $1.9 billion all-cash acquisition of CAES Space Systems, aiming to drive long-term growth and expand its revenue streams across leading defense platforms.
To expand its reach and gain access to a wider range of DoD and federal contracts, Delta Solutions & Strategies (Delta) joined Ukpeaġvik Iñupiat Corporation (UIC) as part of the Bowhead Family of Companies. This acquisition, UIC’s largest to date, will complement Bowhead’s services and increase its chances of securing government contracts. It will also strengthen Delta’s expertise and ability to effectively compete for federal funding, according to a December 2024 news release by the two companies.
Government Investments Advancing Technology
Colorado Springs aerospace and defense companies have emerged as highly competitive in federal funding, scoring substantial contracts since 2022. According to the Colorado Office of Economic Development and International Trade (OEDIT), Colorado-headquartered companies received $22.8 billion in federal aerospace funding in 2024. Five large military bases in the state also received $12.3 billion in funding.
Back in 2022, Lockheed Martin landed a $581.6 million contract to support its Global Positioning System (GPS) at Schriever Space Force Base in Colorado Springs. The contract includes a variety of engineering services to keep the satellites running smoothly. During the same time, the Shared Early Warning System (SEWS) at Peterson Space Force Base, which alerts the U.S. and its allies to potential missile strikes, got an $84.4 million boost. Tetra Tech, based in Pasadena, California, was awarded the contract to provide maintenance and support. The work at Peterson SFB is expected to be finished by January 31, 2029.
After an earlier $341 million funding to build the first radar to track objects in distant orbits around the Earth, Northrop Grumman, Colorado Springs, was awarded a $200 million contract by the U.S. Space Force to develop a second site for Deep Space Advanced Radar Capability (DARC) in the United Kingdom. DARC is a state-of-the-art, all-weather radar system designed to detect objects in deep space. It ensures the safety and security of space-based services like navigation, weather forecasting and communications. This system is a collaborative effort between the United States, United Kingdom and Australia.
Recognizing the vital contributions of small aerospace and defense companies, Delta Solutions and Strategies, before its merger with UIC, secured a $186.6 million, five-year contract to advise and support the U.S. Space Command headquarters. This contract is expected to provide 155 jobs in intelligence, logistics, communications and war-game exercises. Additionally, Delta projected to hire 35 new employees, expanding its Colorado Springs workforce pool of 315.
