QUICK HITS
Critical programs get an extension: TMF and cyber authorities get an extension through December in stopgap bill.
Government AI innovation: A new path forward through public-private collaboration and shared infrastructure.
Access over acquisition: America's real procurement problem is keeping innovators out of the market.
Can a prime terminate its subcontractor for convenience? What does the FAR say about a prime’s right to terminate?
PRESENTED BY UNANET
GovCon's Benchmark Report Turns 10
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.
DEFENSE & AEROSPACE
Counter-drone marketplace: Pentagon stands up online platform to match UAS threats with defeat solutions.
The Pentagon launched an online marketplace for counter-drone capabilities, giving military units a central platform to identify, evaluate, and procure UAS defeat systems. The marketplace consolidates vetted solutions from across industry and allows operators to match specific drone threats with available defeat options. It is part of a broader push to accelerate counter-UAS fielding as drone threats from adversaries and non-state actors continue to grow.
DOD CIO issues new IT category management policy to consolidate technology buying.
DOD CIO issued a new IT category management policy, updating the framework that governs how the department buys technology across its enterprise. The policy establishes new requirements for spend analysis, contract consolidation, and vendor management, with a focus on reducing duplicative purchases and improving visibility into IT spending. Agencies must align their technology buys to approved category management strategies or justify exceptions.
PAC-3 and THAAD production scales up as Pentagon confirms major industrial expansion.
The Pentagon confirmed a major industrial expansion for Patriot PAC-3 and THAAD missile production, driven by depleted stockpiles from the Iran war and rising demand from allied nations. Lockheed Martin and Raytheon are both scaling manufacturing capacity, with production rate increases targeted through 2028. The expansion is part of the broader Arsenal of Freedom initiative and reflects growing pressure to rebuild US and NATO missile defense inventories.
ICYMI:
DOD RFI: B-52H Cryptographic Modernization Program.
USAF RFI: Counter Drone Detect and Defeat System.
B-21, F-47 ahead of schedule while B-52 upgrade runs $3 billion over budget.
The Navy is reclassifying 19 Virginia-class submarines to reflect their expanded attack capabilities.
AI-driven X-62 intercepts crewed jets in test.
Defense Contract Awards
Pentagon tapped Kaizen for $15M to build its Counter-drone Capability Marketplace.
Peraton secured a $109M USSF Weather System Maintenance contract.
Strike Solutions bagged a $100M USAF Data AFLCMC Collection and Interpretation contract.
The Marlin Alliance booked a $98M USN JTNC Technical, Management and Administrative Support deal.
Follow the Defense Leaders
Defense Job Openings
CHART
GAO. “B-52 Bomber: Air Force Actions Needed to Improve Major Modernization and Sustainment Efforts.” GAO-26-109272. July 31, 2026. (Source)
INTEL COMMUNITY
Pentagon explores AI monitoring of military inmate phone calls.
The Pentagon is exploring the use of AI to monitor phone calls made by military inmates, according to a recently posted sources-sought notice. The effort would apply natural language processing to flag concerning communications across military correctional facilities. Civil liberties experts have already raised concerns about accuracy, bias, and due process.
FBI counter-drone training isn’t keeping pace with demand.
The FBI expects to train 250 additional counter-UAS officers by the end of FY2027, but officials and industry stakeholders say demand already far exceeds the Huntsville training center’s capacity as drone threats spread nationwide. The pressure is growing with DHS considering new investments ahead of the 2028 Los Angeles Olympics.
ICYMI:
NGA BAA: Boosting Innovative GEOINT - Science & Technology.
FBI drone training center: Demand is outpacing capacity as counter-UAS requests surge across law enforcement.
SAPIENT validated in the field: Cambridge Pixel demonstrates NATO sensor integration standard at Romanian counter-UAS exercise.
NATO races to write the rulebook on military AI.
Chinese telecom firms kept footholds in US networks depsite federal crackdowns.
USSF awards $615M in deals for second batch of aircraft-tracking satellites.
DHS awards $1.5B in awards for drone defense gaps.
The U.S. Army NATO Brigade has a new Commander.
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CIVILIAN
$100 billion Paducah partnership: DOE launches a massive data center and energy infrastructure initiative.
The DOE launched a $100 billion public-private partnership in Paducah, KY, combining data center development with energy infrastructure investment on a former uranium enrichment site. The initiative will repurpose the DOE-owned land for AI and hyperscale computing facilities powered by a mix of nuclear, renewable, and grid energy.
GSA's new digital roadmap targets better agency services and modernized IT infrastructure.
GSA's CIO laid out the agency's digital roadmap, centered on improving service delivery, modernizing IT infrastructure, and enhancing the citizen experience across federal touchpoints. Key priorities include expanding shared services, streamlining procurement platforms, and increasing the use of AI tools across GSA's portfolio. The roadmap is intended to serve as both an internal guide and a signal to industry partners about where GSA is headed.
ICYMI:
VA's Contract Buy-Out Program offers a direct path for industry talent to join federal service.
DOT awards $9M in grants to expand drone inspection programs.
NASA opens new Flight Dynamics Research Facility to advance advanced air mobility testing.
CMS shifted to a risk-based cybersecurity model.
Civilian Contracts Awards
Follow Civilian Leaders
Civilian Job Openings
M&A CORNER
Tyler Technologies acquires CODY Systems to expand public safety software portfolio.
Tyler Technologies acquired CODY Systems, a provider of records management and public safety software used by law enforcement agencies across the US. The deal expands Tyler's existing public safety portfolio and adds CODY's agency management, field reporting, and evidence tracking capabilities.
ICYMI:
Tyto Athene rebrands as Quantum Sky to signal its shift toward AI-driven federal mission capabilities.
SHOWER THOUGHTS 🚿
Visa acquires BioCatch. $2.4B deal adds behavioral biometrics to its fraud detection stack. SOURCE↗︎
A triple celestial event! Are you excited, stargazers? August brings a total solar eclipse, Perseid meteor shower, and lunar eclipse all in one month. SOURCE↗︎
Spokane, Washington’s wildfire emergency: 65,000 flee as wildfires destroy 700 structures. SOURCE↗︎
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