The Department of War is a customer, there's no handout here.

The government does procure services from private firms, this isn't new or special.

Uhh, the entire contract is a form of corporate welfare. So yes, the DoW giving money to these companies is a handout.

Just because it benefits them doesn't mean it's not a handout, especially when said money could be used elsewhere for purposes that actually benefit everyone and not a dozen people living in SF.

No, welfare is when you're given money for value you're not providing. It's a net drain on the system.

This is a government entity procuring a product they need from a private entity.

You can dislike it, but it's not a handout. Words have meaning.

Except it's buying a product that doesn't even exist yet…