QUICK HITS

  • VA policy shift: Incumbency no longer guarantees contract renewals.

  • Limitations on subcontracting: What costs can be excluded from the calculation?

  • The future of value-added resellers (VAR): What comes next?

  • Transparency coming to OTAs: Senators propose bill requiring public disclosure of OTA awards.

PRESENTED BY DELTEK

AI Adoption Is Nearly Universal in GovCon. Governance Is the Differentiator

Artificial intelligence is no longer an emerging capability in government contracting. It's already shaping how firms operate across the business. But adoption alone is not a competitive advantage!

According to Deltek’s 17th Annual GovCon Clarity Report, 90% of contractors are using AI in some capacity — yet only 5% say their AI is fully developed, and just 25% report established or advanced governance models. As firms move faster, that gap between AI adoption and oversight is becoming a real business risk, widening the distance between operational speed and audit defensibility.

See what the data says about the impact of AI on the GovCon Industry in the latest 2026 Clarity Report today!

DEFENSE & AEROSPACE

Senate eyes new guardrails for Pentagon equity investments.

The Senate is moving to formalize and rein in the Pentagon’s equity investments in private firms. Proposed NDAA language would expand authority while adding oversight, reporting, and conflict-of-interest reviews. With more than $1B already invested in defense-related companies, lawmakers are aiming to ensure strategic returns don’t come with governance risks.

SASC wants Navy to develop new DDG(X) Destroyer in tandem with Trump Battleship.

Congress is signaling that the proposed battleship is not a substitute for DDG(X). For shipbuilders and suppliers, that means the Navy's large-surface-combatant market could support three parallel efforts for years to come: Flight III Burkes, DDG(X), and the new battleship program.

DOD excels at prototyping. Getting to production is another story.

DOD can build cool prototypes; the hard part is turning them into real programs of record. Acquisition reform may help, but officials still lack clear data showing how often prototype efforts actually make it into production.

ICYMI:

  • DARPA RFI: Rapid reconstitution of space capabilities.

  • Securing critical minerals: Pentagon issues $1.2B in rare earth loans.

  • LOGZONE settles FCA claims over cybersecurity compliance failures.

  • Golden Dome updates: Congressional scrutiny, opportunities, aquisition.

  • DOD’s $9.7B award to Dell for Microsoft products derailed by protests.

Defense Contract Awards

  • Boeing lands $880M Navy IDIQ for P-8A Training Systems.

  • Virtualitics got a $311M OSD Personnel and Readiness Readiness Reporting Innovation SBIR Phase III IDIQ.

  • Jacobs won a $249M IDIQ for A-E Services in NAVFAC area of operations.

  • Top Flight Aerostructures won two DLA contracts for a combined $76M for B-1 aircraft work.

Follow the Defense Leaders

Defense Job Openings

FUNNY

INTEL COMMUNITY

CISA now has full Mythos Preview access.

CISA finally got the keys to Mythos. The move could significantly boost the government's ability to find cyber vulnerabilities before adversaries do—but it also puts one of the world's most powerful AI cyber tools directly into the hands of the federal cyber watchdog.

ICYMI:

  • DIA RFP: Data Science, Operations, Requirements, Exploitation, and Enhanced Engineering.

  • U.S. intelligence warns Israel is likely to undermind Iran peace deal.

  • SpaceX launches intelligence-gathering satellites for the NRO.

  • FBI’s Criminal Investigative Division named its Deputy Assistant Director.

  • QuSecure’s Federal Advisory Board has a new member.

  • ODNI is looking for a Division Chief.

GET SEEN

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CIVILIAN

HHS issues call for AI to support its “power users.”

HHS isn't just experimenting with AI anymore—it wants to find its internal AI champions and scale what they're doing across the agency. The move signals a shift from AI pilots and policies toward broader operational adoption.

VA IT official to contractors: Bring your AI game or get axed.

VA is telling contractors that the AI market is open for business—but agencies want proven results, not flashy demos. Vendors that can clearly tie AI capabilities to veteran outcomes and operational efficiencies are likely to have the strongest opportunities.

Simultaneous drones, better data: NOAA hurricane tech hits milestones.

NOAA is increasingly turning to drones and autonomous systems to gather critical storm data. As these technologies mature, contractors supporting UAS, sensors, communications, and weather analytics could see growing opportunities tied to hurricane forecasting and climate resilience missions.)

ICYMI:

  • IRS live chat apps have room for improvement.

  • GSA requests feedback on draft AI data safeguarding clause.

  • EPA is piloting AI on “everything,” but experts are still needed for highest levels.

  • NASA testing advanced technologies for lunar and Mars rovers.

Civilian Contracts Awards

  • Sapient Government Services got a $16M TIMPS contract.

  • Ardent secures $1M SSA SECRES GIS Development, Support contract.

  • WingSwept wins $432K NRC Case Management, Tracking System contract.

Follow Civilian Leaders

  • Department of Education names a new Acting CIO.

  • Intel Foundry announced its EVP.

Civilian Job Openings

M&A CORNER

Accenture strikes $4.2B deal for Dragos, runZero, NetRise.

Accenture has agreed to acquire a majority stake in Dragos and full ownership of runZero and NetRise in transactions worth approximately $4.2 billion combined to expand its operational technology cybersecurity offerings. The proposed acquisitions would add new capabilities to Accenture’s OT cybersecurity portfolio. Dragos provides an OT cybersecurity platform focused on threat detection and industrial environments. runZero offers asset intelligence and exposure assessment capabilities, while NetRise specializes in device security and software supply chain security.

SHOWER THOUGHTS 🚿

  1. Reasearchers develop chemically assisted plasma method for next-gen computing chips. Molybdenum disulfide may replace silicon, but naming a whole California valley after it will be clunky. SOURCE↗︎

  2. First look at the Global War on Terrorism Memorial. Architect Kengo Kuma has designed an amphitheater and arch made of reclaimed steel from the era’s combat operations. SOURCE↗︎

  3. How Peter Thiel-linked Dialog Club secretly ranks its members. C members are the most prominent, while A are less high profile. SOURCE↗︎

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