Our awards program is judged by state, with state winners going through to national finals. Is this possible to manage with Award Force?

Yes. This would use what we refer to as "chapters". Chapters can be a breakdown be e.g. geographic region, city, organisational departments, business units, schools, or as in your case, states. All entries / applications must be in a nominated chapter. Judging panels can then be configured by chapter (state). And results awarded by chapter. Your state finalists can then go into judging panels for national judging.