February 26, 2025

OPM procurements stall, VTG buys Loki Solutions, Starlink wins FAA work, new Army Secretary, DLA Data Tracking RFI, DOD budget shifts

QUICK HITS

  • [Listen] Customer experience (CX) is critical to success: Here are six areas of CX where agencies should focus their investments in 2025.

  • DOGE removes biggest contracts from its Wall of Receipts: What the accounting ledger means for contractors and for promised dividend checks.

  • Don’t forget to actually comply with all JV requirements: One protest sought further examination into 8(a) size standards for the JV firms.

  • Imprisoned IRS contractor update: Info of 400,000 taxpayers was leaked.

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DEFENSE & AEROSPACE

Pentagon unveils major review of defense budget priorities.

The Pentagon is launching a sweeping defense spending review that could reallocate up to $350 billion over five years, focusing on cutting bureaucracy and low-priority programs to fund key modernization efforts. Key systems like nuclear modernization, counter-UAS tech, and cyber defense are safe from cuts—but expect some tough congressional debates ahead. Read more

USSF gets major role in “Iron Dome for America.”

The Space Force is set to play a pivotal role in developing "Iron Dome for America," an advanced missile defense system focused on countering a wide range of missile threats, including hypersonic weapons. The initiative builds on existing programs and will be fast-tracked, with initial analyses expected soon. Read more

DepSecDef nominee talks DOD budget shifts, workforce reduction.

The new effort to adjust DOD spending is not a cut, but a reallocation to find $50B for the DOD’s priorities under the new administration, DepSecDef nominee Stephen Feinberg told the SASC. Feinberg said the targets could include “legacy systems that are not essential to the mission.” Read more

ICYMI:

Defense Contract Awards

  • 27 companies were awarded USAF Environmental A&E deals valued at $1.5B.

  • HII booked a $258M USAF Technical and Analytical Services contract.

  • Envision Technology secured a $249M Squad Aiming Laser Systems deal.

  • RTX’s Collins Aerospace selected by Boeing to provide ACES II ejection seats.

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Defense Job Openings

CHART

Estimated acquisition costs for selected DHS major acquisition programs, as of September 30, 2024. As found in: DHS Annual Assessment, GAO-25-107317, February 2025. Report Page 25, PDF Page 31.

INTEL COMMUNITY

ICYMI:

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CIVILIAN

OPM procurement process stalls amid agency layoffs.

OPM's procurement office came to a halt following significant layoffs, suspending all new actions, contract modifications, and ongoing solicitations. The shutdown could lead to delays in critical acquisitions and heightened operational risks. Read more

VA’s EHRM program will be delayed; May 2025 deadline is unlikely.

The VA's EHRM program, which was slated to complete by May 2028, is facing major delays. With only six sites deployed and over 150 remaining, experts agree the timeline is “impossible.” However, one representative from Oracle remains optimistic. The VA currently does not have an up-to-date schedule for the rollout. Read more

NASA’s moon mission will push forward, but the Mars landing is still years away.

NASA’s Artemis program is still on track for lunar missions, with plans to establish a sustainable presence on the Moon by 2027. However, the agency admits that while the groundwork for Mars exploration is being laid, sending humans to the Red Planet is a long-term challenge requiring significant technological and industrial advancements. Read more

ICYMI:

  • VA RFI: Zero Trust Application Realtime Protection.

  • GAO says VA should improve its financial management systems.

  • Looking for a long list of gov’t contracts that have been canceled (partially or completely) in the last few weeks? Check out OS AI-Premium.

Civilian Contracts Awards

  • SpaceX inked a $100M NASA Neo Surveyor Launch Services deal.

  • FAA to start using Starlink terminals two years after Verizon was awarded $2B contract for the work.

  • eTelligent secured a $382M Short-term IRS EAIB Support deal.

  • BAE booked a $231M NASA NOAA Spacecraft contract.

  • Fujifilm awarded DLA contract for Surgical C-Arm Systems.

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Civilian Job Openings

M&A CORNER

VTG expands intelligence community portfolio with acquisition of Loki Solutions.

VTG, a leading provider of national security solutions, has announced the acquisition of Loki Solutions LLC, further advancing its intelligence community growth strategy. Loki Solutions offers solutions and services to the U.S. government and intelligence community customers and missions. Read more

Gallant Capital acquires Navient’s government services arm.

An affiliate of Gallant Capital Partners has completed its acquisition of Navient’s government services business. Gallant Capital will absorb approximately 1,200 employees as part of the transaction, which will enable the education finance platforms provider to exit the business processing solutions market. Read more

ICYMI:

SHOWER THOUGHTS 🚿

  1. How did researchers in Japan create the world's largest biohybrid robot hand? They cultivated human muscles and tissues to make it. SOURCE↗︎ 

  2. Is warp drive within our reach? New research brings us one step closer to faster-than-light space travel. SOURCE↗︎

  3. How long did it take Microsoft to create its quantum computer? It took them 17 years, but some physicists are skeptical about its potential. SOURCE↗︎

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