Also consider the need to ramp up production significantly in a short period of time. A large contract has large amount of work attached, which they'll need to get a larger facility, hire more employees, and more equipment (all of which is very complicated/specialized...thus, more expensive). A 5 million dollar contract would be a drop in the bucket if they intend to ramp production.
What I'd imagine them doing is utilizing the S-3 shortly after a large contract(s), get an independent board of directors, reverse split, then uplist (with a higher and more accurate market cap than not utilizing the S-3).