🔐 GSA's LLM rule has a deadline

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Hello GovBrew Readers! My name is Lisa Shea Mundt, and I’m thrilled to be moving into the role of CEO. Some of you may know me from my musings in industry. I tend to be honest over tactful, and my face will always let you know exactly how I feel.

This is why GovBrew feels like a natural new home for me. I want to provide information to Government, Industry, and other stakeholders without an overly sanitized filter. My belief is life is too short to posture, peacock, and gate keep.

We’re a multi-faceted community in a rapidly changing marketplace, and to be blunt, this sh*t is hard because there are no right answers. For years I’ve advised Industry and Government on how to move through the chaos, and every teaching opportunity has started with, ‘it depends.’ That’s not a cop out. It’s the reality we face in a hyper-saturated, overly process-driven, cut-throat industry.

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Shield AI is developing the X-BAT, a 26-foot autonomous VTOL fighter drone powered by a GE F110 engine, the same one in the F-15EX, with a 1,150-mile combat radius and the ability to carry 2,000-lb. weapons internally. Three X-BATs fit in the deck space of one crewed fighter. No runway, no carrier, no GPS required. Shield AI plans to produce up to 150 per year by the early 2030s, with full production starting in 2029.

Anduril and the White House announced Arsenal-2, a 187-acre, 2-million-square-foot software-defined shipyard at Tradepoint Atlantic in Baltimore County, backed by a $2.9 billion Navy contract and $3.7 billion in Anduril's own investment. The facility will manufacture Virginia-class submarine components including ttorpedo tubes, a current production bottleneck.

JIATF-401 selected four directed energy systems for a year-long counter-drone pilot at US bases: AeroVironment's Palletized High-Energy Laser, Epirus' Leonidas high-powered microwave, Kord's Firefly laser, and Boeing's Compact Laser Weapon System. The sites include Grand Forks AFB, Whiteman AFB, and Fort Bliss. A December shoot-off at Dugway Proving Ground will evaluate additional systems.

USDOT OIG. “DOT Did Not Consistently Implement Privacy and Data Protection Controls Across All Operating Administrations.” FI2026037. September 23, 2026. (Source)

NATO Supreme Allied Commander Gen. Alexus Grynkewich drafted a classified "Theory of Victory" plan for rapidly defeating a Russian attack on the eastern flank, set to be presented in Poland on October 12. The plan pairs conventional land forces with cheap drones, minimally crewed systems, and AI-enabled targeting under the Eastern Flank Deterrence Initiative, then strikes Russian command and control to end the fight fast.

A Congressional Research Service report released October 5 tallied 81 US fixed-wing aircraft, helicopters, and drones lost or damaged in Operation Epic Fury since February 28. The list includes 47 MQ-9 Reapers, four F-15Es, an E-3 Sentry valued at $500 million, and seven KC-135 tankers. CBO put the replacement cost at $1.9 billion for what the Pentagon planned to replace.

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It's time to couple up. You don't want to be left alone on the dance floor. A select group of mentor-protégé agreements were approved by the SBA over the past month across FedCiv, FedHealth, and DOD. Check out the 18 IT and consulting firms that have already been taken.

NASA's SunRISE mission, launching no earlier than mid-2027 on a SpaceX Falcon Heavy rideshare with a Space Force payload, will send six SmallSats into geosynchronous orbit where they'll operate as a single giant radio telescope. The mission tracks solar radio bursts from the Sun's corona, the kind that can knock out satellites and endanger astronauts.

GSA's final clause 552.239-7001 takes effect October 19, setting binding rules for how contractors handle government data in LLM systems. The final clause narrowed its scope from the June draft, now applying only when LLM functionality is a "material feature" of the procurement, exempting incidental or back-office AI use. Contractors cannot use government data to train models, sell it, or target advertising.

SAIC completed its acquisition of Information Security Corporation, a 30-year-old PKI, encryption, and credential management firm deeply embedded across the US Intelligence Community and Department of War. ISC's CertAgent has been on the NSA's Commercial Solutions for Classified Components List for over a decade.

Dynatrace completed its acquisition of Arize, an AI observability and evaluation platform that monitors model and agent behavior from development through production. The deal addresses a growing blind spot: as AI agents multiply across enterprises, teams need visibility into how models perform before and after launch, not just during testing.

Blackstone formed Falcata by combining TSC and Applied Systems Engineering to build a defense technology platform focused on next-generation interceptor technologies, including advanced seekers, guidance electronics, GPS-denied navigation, and control actuation systems.

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