February 21, 2025

Unanet acquires Contraqer, DAF sources sought, new DOD CISO, OIA internal auditing RFI, DOJ targets data deals

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GovBrew
February 21, 2025

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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.

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  • Stay up to date on the upcoming events.

  • Keep track of the latest Agency Acquisition Forecasts.

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DEFENSE & AEROSPACE

Pentagon eyes 8% budget shift—changes incoming.

The Pentagon is reworking its budget, with an 8% shift in funds under review. Secretary of Defense Pete Hegseth is leading the charge, aiming to realign spending for greater lethality and readiness. Read more

Microsoft, DARPA claim quantum chip breakthrough.

Microsoft and DARPA may have cracked the code for a more stable quantum chip, a major leap toward practical quantum computing. Using topological qubits, their approach could mean fewer errors and more reliable performance—critical for defense and beyond. Read more

Pentagon’s zero trust journey: 14% Down, many hurdles ahead.

The Pentagon’s push for zero trust security is making progress—14% of the way there, to be exact. But challenges with identity management and data tagging mean there’s still a long road ahead. Cyber threats won’t wait, so let’s hope the DoD’s security strategy can keep up. Read more

ICYMI:

Defense Contract Awards

  • BAE Systems won a $251M USN AEGIS Combat System Engineering contract.

  • Lockheed Martin inked a $99.5M Development Studies, Technology Demonstrations, and Engineering Services contract.

  • J&J Maintenance booked a $7.7M Operations and Maintenance Services deal.

  • Integrity ISR inked a $2.4M USAF Operational Planning, Technical, and Analytical Services deal.

Follow the Defense Leaders

  • DOD has a new CISO.

  • Rugger Management’s founder was tapped to be the next Navy Secretary.

Defense Job Openings

TRIVIA 🤔

Which landmark U.S. government contract led to the creation of the modern interstate highway system?

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INTEL COMMUNITY

Defense execs seek clarity on space agencies' roles.

Defense executives are calling for clearer definitions of roles and missions among the U.S. Space Force, Space Command, and intelligence agencies. The current confusion is causing concerns about resource allocation and mission execution. Read more

ICYMI:

CIVILIAN

DOJ targets data deals over national security concerns.

The DOJ is cracking down on data transactions that could pose national security risks, targeting deals involving sensitive U.S. information. New regulations aim to block foreign adversaries from accessing critical data, adding another layer of scrutiny for businesses. Read more

NIST says zero trust is key for digital twin security.

NIST's latest report recommends adopting a zero trust cybersecurity model for digital twin technologies. The report highlights potential use cases and trust concerns, emphasizing the need for robust security measures. Read more

FTC keeps merger rules, healthcare M&A feels the heat.

The FTC isn’t easing up on mergers anytime soon. The previous administration’s guidelines remain in place, making life harder for healthcare giants looking to consolidate. Read more

ICYMI:

Civilian Contracts Awards

  • Axle Informatics inked a $21M NIH NCATS STPS contract.

  • BNL won a $16M USPTO RMO Support contract.

  • Rubicon booked NASA’s ASCENT Thruster Development deal.

  • Union5 secured a $1.6M NRC ARIES System O&M Support deal.

Follow Civilian Leaders

Civilian Job Openings

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M&A CORNER

Unanet acquires Contraqer to enhance GovCon capabilities.

Unanet is expanding its GovCon toolkit with the acquisition of Contraqer, a provider of automated contract management solutions. The move aims to streamline procurement and compliance for government contractors—because who doesn’t love fewer headaches in federal contracting? Read more

Ridgeline International to acquire System High.

Ridgeline International has reached an agreement to acquire System High for an undisclosed amount, aiming to create a larger provider of advanced security services to safeguard the nation's weapons systems, critical operations, and intelligence missions. Read more

SHOWER THOUGHTS 🚿

  1. Meta is planning to build this planet’s longest undersea internet cable. The company wants to expand high-speed internet access to more people globally. SOURCE↗︎ 

  2. Apple unveiled budget-friendly iPhone 16e to woo the mid-range market. It seems they're on a mission to make everyone an "iPerson." SOURCE↗︎

  3. Boeing to downsize moon rocket team. Hundreds will face the axe so the company can meet Artemis Program revisions and cost targets. SOURCE↗︎

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TRIVIA ANSWER ⭐️

C) The Federal-Aid Highway Act of 1956— Signed into law by President Dwight D. Eisenhower, this act authorized the construction of 41,000 miles of interstate highways, largely justified for national defense purposes. The act led to one of the largest government contracting efforts in U.S. history, with billions of dollars allocated to construction firms across the country, revolutionizing transportation, commerce, and defense logistics.