Yeovil’s Liberal Democrat MP Adam Dance said the Leonardo site contributes £320m to the local economy.
More than 10,000 people are indirectly employed in the local supply chain with their jobs also at risk if the site was closed.
Carole Champion is chief executive of Needles and Pins Aerospace in Somerton which provides textiles for the industry, from insulation blankets to helicopter covers.
“Leonardo was our first client and it still is a very important client, but, thank God, we’ve been able to spread our base now,” she said.
Champion wants the government to “pull its finger out” and set a date by which it will award the contract.
“We invested a lot of money in this company, moving to this new premises, we hired six new seamstresses, two engineers, a planner, an operations person and two apprentices.
“Our plans are to get bigger again but if they won’t give the contract why are we doing this for?
“We have invested all this money for about six months to get ourselves ready and there’s still no sign – it’s not good enough, not for me,” she said.