February 12, 2025

QUICK HITS

• Congress strikes down VOSB contracting preference program: VOSBs can still compete for set-aside and sole-source contracts.

• How can we measure defense innovation? Quantify the measure of your technology’s impact on warfighter, innovation base, and impact on DOD.

• Bill to ban DeepSeek: Will agency workers be prohibited from using the app? Silicon Valley's anxiety over Chinese AI startup grows.

PRESENTED BY GOVLY

AI’s Rapid Rise in Federal Contracting

Artificial Intelligence is no longer a distant concept in federal contracting—it’s the new reality. Our latest report, “Federal Procurement Artificial Intelligence Trends: Q1 2025,” reveals how agencies are moving beyond pilot projects to invest heavily in HPC systems, generative AI, and identity automation. From the Air Force to the Treasury, buyers are demanding solutions that blend compliance, security, and measurable outcomes.

For sales leaders, this marks a pivotal moment. Success means bundling advanced AI capabilities, embracing top-tier compliance, and aligning offerings with mission-critical needs.

What’s the path forward? Download the report to uncover key trends, actionable insights, and strategies to position yourself as a leader in this fast-evolving AI landscape.

DEFENSE & AEROSPACE

Microsoft plans to hand over the $22B IVAS contract to Anduril.

Microsoft wants to offload the troubled $22 billion IVAS contract to Anduril, but the DOD hasn’t signed off on the transfer. The move—which would see Anduril assume oversight of the entire program, including development of the current hardware and software, hiring decisions on staff and takeover of production—comes as the Army is considering launching a follow-on IVAS competition. Read more

DOD’s new acquisition reform guidance will focus on rapid prototyping.

The DOD is gearing up to release new acquisition reform guidance, aiming to streamline processes and prioritize rapid prototyping. With an emphasis on speed and flexibility, the updates could reshape how emerging technologies make their way into military programs. Scuttlebut predicts an expanded role for the DIU and its push to circumvent the traditional acquisition process. Read more

DOD explores non-terrestrial networks for 5G innovation.

DOD is venturing into non-terrestrial networks (NTNs) to enhance 5G capabilities. By combining terrestrial and satellite networks, the DOD aims to improve communication for military operations. This experimental review, in collaboration with the private sector, seeks to set the stage for future innovations. Read more

ICYMI:

• USACE 8(a) RFP: CWB IRM Framework Certification, Continuous Monitoring.

• GDIT and IonQ collaborate to develop quantum solutions for government missions.

• BigBear.ai’s VANE is an AI platform designed to assess adversarial media.

• GAO found that the Navy’s surface ship maintenance continues to face delays and cost overruns due to insufficient planning and workforce shortages.

Defense Contract Awards

• Entergy Louisiana secured a $129M Army Electricity Services contract.

• RSC2 won a $116M Army Systems Engineering & Tech Assistance Support deal.

• SpiderOak booked an AFRL CASR Control Plane Development deal.

• Momentus was awarded a DOD Large Scale Structures In-orbit Demo contract.

Follow the Defense Leaders

• True Anomaly has a new Board Member.

• Lockheed selected a new UTIAMD Programs VP.

Defense Job Openings

• NAVSEA wants a Program Manager.

• Navy’s Strategic Systems Programs needs an SUPV Program Manager.

INTEL COMMUNITY

DISA launches advanced endpoint detection for cyber defense in Endguard.

DISA has introduced EndGuard, an advanced endpoint detection and response (EDR) system to enhance cyber defense across federal networks. This initiative aligns with E.O. 14028, which mandates improved detection of malicious cyber activity through a government-wide EDR approach. EndGuard aims to bolster the security of federal agencies by providing real-time monitoring and threat mitigation. Read more

ICYMI:

• NGA RFI: Policy Support (including developing acquisition policy).

• BlackSky and Rocket Lab set launch date for Gen-3 Satellite.

• FBI finds 2,400 new JFK assassination records.

• NGA implements the renaming of Gulf of America in GNS.

• Former military leaders were tapped to be Reliable Robotics’ advisors.

• DOS says goodbye to top data and AI official and welcomes new leader.

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CIVILIAN

White House cuts Education Department research arm.

The WH has announced plans to close the Institute of Education Sciences (IES), the research arm of the ED, aiming to save $900M in costs. This decision leaves employees uncertain about their future roles and the fate of crucial educational data. Many contracts have already been canceled, adding to the uncertainty. Read more

• Related: Lawmakers are concerned that DOGE fed sensitive data from ED into AI software. Which may have to do with this story below: ↓

DOGE develops AI chatbot for government contract analysis.

DOGE is reportedly developing an AI chatbot named GSAi to analyze government contracts and boost productivity. While details remain scarce, the project aims to simplify complex procurement documents Read more

DOE’s MESC initiative to boost U.S. energy dominance.

The DOE’s MESC (Materials and Energy Security Collaboration) is shaking up the energy game. The new initiative targets U.S. energy independence and aims to dominate the global market. MESC is focused on cutting-edge technology to ensure the U.S. stays ahead in the energy sector. Read more

ICYMI:

• FAA Pre-solicitation: Cloud Services.

• TREAS RFI: Logistics Services.

• New E.O. limits federal hiring and places DOGE leads in decision-making roles.

• NASA to continue using Artemis vans despite manufacturer's bankruptcy.

• SpaceX will launch NASA’s “Pandora Mission.”

• V-POTUS underscores the administration’s pro-industry stance on AI regulations and policy.

Civilian Contracts Awards

• FalconTek won a $130M VA HINES CMOP Professional Support contract.

• PSI inked a $156M VA EHR Test & Evaluation Support deal.

• Steampunk booked a $16M CIT Cloud Professional Support Services deal.

• Infer Solutions secured a $14M OLAO IT Services contract under STARS III.

Follow Civilian Leaders

• Auria named its new CTO.

• Riverbed has chosen a US Federal Market SVP.

Civilian Job Openings

• AOC is seeking a Legislative Affairs Officer.

• TSA is hiring a Transportation Security Manager.

SHOWER THOUGHTS 🚿

1. Here’s how all online maps are handling the “Gulf of Mexico” name change: Google made the change; Apple, Bing, MapQuest have not. SOURCE↗︎ 

2. Russia built a plasma engine that could reach Mars in 30 days. It uses hydrogen as fuel, propelling charged particles to an impressive velocity of 100 km/s. SOURCE↗︎

3. Should Christie’s cancel their AI art sale? Some 4,000 artists are denouncing the sale which will feature a variety of NFTs and physical art, claiming the AI used their work without permission. SOURCE↗︎

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