August 28, 2026

The wait is over—the 2026 GAUGE Report is now available.

Now in its 10th edition, the GAUGE Report continues to serve as a trusted benchmark for government contractors looking to understand how their peers are navigating today's rapidly evolving market. Developed by Unanet and CohnReznick, this year's report delivers data-driven insights into the trends shaping the industry, including growth strategies, profitability, compliance, operational efficiency, and AI adoption.

Built on feedback and performance data from government contractors across the industry, the report provides valuable benchmarks and actionable insights to help leaders make informed decisions, improve business performance, and stay competitive in an increasingly complex environment.

Download your copy today and see what's driving success across GovCon in 2026.

China controls most of the world's rare-earth supply, and the DOD just made a $750M move to change that. The investment, part of a broader $1.55B structure that includes $300B from the DLA and $500M from a money-center bank, will fund an offtake agreement for mixed rare-earth carbonates from Serra Verde's Pela Ema Project in Brazil. The target elements, including Dysprosium and Terbium, are essential for the magnets inside fighter jets, nuclear submarines, guided missiles, and drones.

DARPA is telling industry that “good enough” is not in its vocabulary. The agency is seeking concepts for a next-generation hypersonic cruise missile that delivers a “revolutionary leap” in range, speed, and altitude, while improving maneuverability and survivability. The effort aims to go well beyond today’s HACM program, which is expected to enter production in 2027.

The Army secretary's new software acquisition directive all but ends custom-built military software, making commercial products the default and reserving custom development for cases where no commercial solution can meet the mission. Program managers must now consider CSOs and OTAs first, cutting solicitation timelines from over a year to days or weeks.

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The NRO put more than 200 satellites on orbit in the past few years and the data haystacks are growing faster than humans can search them. The principal deputy director told AFCEA's Intel Summit that AI is now essential for getting through data at speed and scale, and that the NRO needs commercial partners who can do more than show a great idea. "It's got to scale so it can be implemented in a mission." BAAs, OTAs, and CSOs are all on the table.

NSA wants broad access to commercial AI models and is in discussions with leading developers as it takes a central role in the government’s new voluntary program for testing advanced models, including their cyber capabilities. The agency could receive pre-release access to qualifying frontier models for up to 30 days, while also trying to avoid dependence on any single AI provider.

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Contractors may want to double-check their paperwork. GSA says it has identified more than $13 billion in suspected procurement fraud since March 2026, marking the largest suspected fraud bust in agency history. The review spans COVID-19 spending, 8(a) program integrity, bid rigging, cybersecurity false claims, and other contractor risks, with cases being referred to the OIG and DOJ for investigation.

The U.S. is moving ahead with deep-sea mining to secure critical minerals, but not everyone is ready to dive in. NOAA has received more than 10 applications since the 2025 E.O., while over 40 countries oppose the practice, and Congress remains divided over environmental, legal, and national security concerns.

You can't build a Moon Base if your rovers and astronauts don't know where they are. Earth's GPS signals are too faint at 240,000 miles to use reliably, so NASA is building a lunar navigation system from scratch. Intuitive Machines is scheduled to launch the first of five communication and navigation satellites into lunar orbit in early 2027, targeting the Moon's south pole.

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Tricentis acquired Tabnine, whose Enterprise Context Engine builds a continuously updated knowledge graph of an organization's entire software environment, from code to tickets to APIs. The result: AI testing agents that understand architecture before taking action, not after. Early adopters report AI accuracy roughly doubling, token consumption dropping by up to 80%, and complex tasks resolving 50% faster.

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C) 100 days — The Competition in Contracting Act established GAO's bid-protest process, and GAO must resolve protests to the maximum extent practicable within 100 calendar days of filing. (Source)