I struggle to see how Xtek will break into being a supplier with...

I struggle to see how Xtek will break into being a supplier with the USA military. It takes a lot more than just having the best product at the right price. You have to win over the right people.
Compare Xtek with Alexium (who have recently won a contract to supply flame retardant coating to the US army combat uniform). Alexium moved their operations to the USA, moved their CEO to Washington, brought in a high ranking General into the Board of directors, got advisers with military connections, and raised capital to American investors. All of these steps were necessary to get the deal across the line.

From where I stand, Xtek may have a breakthrough product, but are not putting in the groundwork behind the scenes to land the contract.