Small Companies Can Beat a Bigger Rival

For all the talk about jobs migrating overseas, there's been almost no acknowledgement of what Northrop will gain. Thanks to the partnership with EADS, a wealth of technological know-how will be transferred from Europe to the U.S.

"There's been a major consolidation in the U.S. defense industry," says Ben-Ari. "For larger platforms -- like aircraft carriers and satellites -- there's no competition in the U.S. market, and the Department of Defense is stuck with one domestic supplier. This decision sends a very strong signal to companies that might have become complacent."

Remember that overseas companies aren't always the competition; they can be valuable allies as well.

As with many government contracts, the process will likely drag on for months to come, since Boeing is expected to protest the Air Force's decision. But small businesses that learn from this high-flier's mistakes will find themselves ready for takeoff.