CEO NOTE

Happy Veterans Day! If you didn’t get the jokes in the meme above, you’re not alone. I remember my first encounter with aggressive inter-branch roasting in a professional setting. The crayon joke practically launched my eyebrows off my face! I was flabbergasted until a coworker assured me it was all in good fun. I have dear friends and colleagues who serve or have served across the military, and I'm grateful to every one of them. I'm also a proud instructor at the Veterans Institute for Procurement, where I help veteran business owners build the skills and tools to succeed in GovCon. So today, we're dedicating our Quick Hits to the SDVOSB/VOSB community, highlighting resources, stories, opportunities, and wins. Thank you for your service!

QUICK HITS

  • VETS27 is calling! Registration is open for the May conference in New Orleans, and speaker proposals are due Dec. 18.

  • Top employers of vets: Meet the federal IT/consulting firms recognized for their commitment to veteran hiring and retention in 2026.

  • Free veteran biz classes: VIP is a free program to teach Veteran business owners to succeed in procurement; if you’ve served, check VIP out.

  • It’s National Veterans Small Business Week. Check out this SBA resource for events happening this week.

  • Procurement goals: SBA just doubled the SDVOSB goal to 10% for FY27, but this is not a statutory floor…for now.

  • National Veteran Small Business Coalition Education Foundation: They are establishing a standard of excellence for small biz pros working in GovCon —The Small Business Professional (SBP) Certification Program™.

DEFENSE & AEROSPACE

How proposed Pentagon–SBA policy changes could affect defense suppliers.

The new Smaller War Plants Commission, a joint SBA–DOW effort, is meant to map small business capabilities and connect suppliers with financing, contracting support, and technical assistance. Comments on the SBA’s proposed size standards are due Nov 20. SDVOSBs in defense manufacturing should check whether the changes affect their size status.

Agencies sign an MOU to counter rogue drones without compromising civilian airspace safety.

DOD, DOT, DHS, DOE and DOJ signed an MOU that creates a unified federal process for testing and deploying counter-drone technology, a response to the recent surge in unauthorized drone incursions over military bases and sensitive sites. The agencies will work with the FAA and FCC as new systems come online; the FAA will run quick safety risk assessments and restrict airspace if a system threatens aircraft operations or navigation equipment. C-UAS vendors will need to show that their systems won’t disrupt the radar, communications, or GPS that civilian aviation depends on.

ICYMI:

  • [Event] NAWCWD to host an Autonomy & SI/AI Industry Day Dec 8–9.

  • DISA shops for modernized ID prototype to support zero-trust security.

Defense Contract Awards

  • BAE won a $63M IDIQ for energy automation operation tech sustainment.

  • Redwire lands $20M DARPA contract for a second very low Earth orbit demo

  • AeroVironment lands $940M IDIQ for advanced defense capabilities.

Defense Job Openings

  • DLA is seeking a Procurement Analyst.

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Champ Agents help teams identify funding, burn, margin, and cash risks earlier, resolve time and billing exceptions, plan resources more effectively, and keep work moving. With role-based access, traceable sources, auditability, and human oversight built in, teams can take advantage of AI while maintaining the control and accountability GovCon demands.

INTEL COMMUNITY

Why the harness matters far more than the model for SI success.

SAIC’s chief data scientist argues that DOD and intelligence agencies should prioritize AI orchestration systems and structured data over investing in increasingly powerful AI models. He says reliable mission outcomes depend on integrating models with secure data, specialized tools, access controls, and human oversight rather than relying on commercial AI solutions alone.

ICYMI:

  • NGA Draft RFP: Mercury.

  • Second Front won a DIU bridge program contract for a rapid RMF platform.

  • NRO names a new Deputy Director.

GET SEEN

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COMPLIANCE CORNER

GSA Contract Clause 552.239-7001.

GSA's new contract clause, 552.239-7001, took effect October 19, 2026, introducing new requirements for how contractors protect government data when using large language model (LLM) technology. The clause primarily applies to AI solutions where an LLM is a core part of the product and government data is being processed or generated. It generally excludes AI used for a contractor's internal operations or tools where AI is just a supporting feature. For contractors covered by the clause, there are a few important changes. AI-related incidents that could impact government data must be reported within 72 hours. Contractors retain ownership of their existing intellectual property, but must make reasonable efforts to ensure factual AI-generated responses are accurate and objective. The government also has the right to suspend use of the AI at any time, and the clause takes precedence over conflicting standard commercial terms.

What GovCons should do now:

  • Understand what's covered. Review your AI solutions to determine where LLMs are a core capability and whether government data is being processed or generated.

  • Review your contract terms. Make sure your existing AI agreements align with the new requirements, particularly where government contract terms take priority over commercial agreements.

  • Evaluate incident reporting processes. Contractors already subject to FedRAMP or CISA reporting should confirm whether existing reporting processes satisfy the new requirements to avoid duplicating efforts.

  • Revisit data and IP definitions. Make sure your definitions of background data account for licensed information and materials used to develop or improve AI models, not just internally developed IP.

  • Update AI governance policies. Review how you're managing AI accuracy, objectivity, and data protection to ensure your internal policies reflect the new expectations.

The bigger takeaway: If AI is part of what you're delivering to the government, it's worth understanding how these requirements affect your products, contracts, and internal processes now, rather than waiting until they become a compliance issue.

CIVILIAN

Op-ed: Congress should build a veterans-to-AI workforce pipeline, with VA and NIST in key roles.

An op-ed argues that veterans’ military experience makes them strong candidates for AI oversight roles requiring accountability, sound judgment, and risk management. The author urges Congress to establish a $120M Veterans AI Workforce Partnership Program to train at least 10,000 veterans over two years for AI governance, cybersecurity, and related positions.

GSA brings back daily work reports, with threat of disciplinary action.

GSA’s TTS employees must now email daily updates by 6 p.m. listing what they worked on, what’s next, and any blockers, a requirement that echoes DOGE’s “five things” emails and warns that failure to comply may result in adverse action. For contractors supporting TTS, expect closer front-office visibility into project progress and dependencies, and possible reprioritization as leadership gets a clearer picture of what’s moving and what’s stalled.

ICYMI:

  • USPS sounds alarm over finances, presses Congress for help.

  • USDA’s mass reorganization plan will have to remain on hold.

  • GSA’s PBS faces scrutiny for its handling of controlled unclassified info.

Civilian Contracts Awards

  • SDVOSB MicroTech won a $303M DOS cybersecurity BPA.

  • Deloitte won a $488M FAA ATLAS modernization challenge contract.

  • Apex Resource Management won a $3M DOI IT Support IDIQ.

Follow Civilian Leaders

  • The CIO at CMS is leaving federal service.

  • POTUS nominated Palantir’s CISO as the new Director of CISA.

Civilian Job Openings

  • CMS is seeking a Government Information Specialist.

  • CFPB wants an Assistant Director-Office of Finance, Procurement.

M&A CORNER

Windward buys Azimut.ai to add optical sensing to its maritime intel platform

The acquisition adds an optical sensing layer and marks Windward’s first move into ground- and ship-based sensors, including cameras at key maritime chokepoints. The goal is to see “dark” vessels that switch off their transponders, which helps customers working on sanctions enforcement and maritime domain awareness. Maritime intel vendors increasingly want to own their sensors, not just license data.

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