So what happens if a new startup in the airport runway sinkhole calibration industry wants to bid on these deals?

Rightly or wrongly, you'll probably want to be local to have any chance of winning.

Similarly, a friend who works in engineering went to tender to a country council. Working for a big city firm they had no expectation of getting the job because they were up against a company from another nearby country town. Got to try and tender in case the shoe-in company really blows it, but no expectation of actually getting the job.