January 8, 2025

QUICK HITS

• Help for small businesses: Here’s a list of free grants and programs for you.

• Addressing the federal IT talent gap: Here’s how AI can help bridge the shortage in skills and enhance security.

• DOD OSC could lend up to $984M: DOD is accepting loan applications.

• Direct labor utilization rates: Here’s how you can calculate it easily to help you with your pricing strategy.

DEFENSE & AEROSPACE

DIU aims to lower barriers for new defense entrants.

The Defense Innovation Unit's new director, Liz Young-McNally, plans to make defense contracting less daunting for fresh innovators. From streamlining processes to improving transparency, DIU is working to attract nontraditional contractors and accelerate their impact within national defense agencies. Read more

Pentagon, Army explore AI's role in acquisition overhaul.

The Army and Pentagon are delving into AI's potential to revolutionize acquisition processes. From predictive analytics to smarter contract decisions, officials believe AI could cut costs and boost efficiency—though some hurdles remain. Is this the dawn of AI-enabled defense acquisitions? Read more

DOD's Replicator program eyes next steps for drone swarms.

The DOD's ambitious Replicator program is turning up the heat, aiming to deploy drone swarms faster and at scale to counter near-peer adversaries. With a focus on affordability and rapid development, officials highlight what's next for this game-changing tech. Read more

ICYMI:

• DOD Sources Sought: Continuous Process Improvement Support Services.

• Army RFI: Communications Electronics Command (CECOM)-G8/G1 Support Services.

• DARPA’s SPRINT contractors Aurora Flight Sciences and Bell Textron provide updates on their rapid, runway-independent aircraft.

• Tencent, CATL are on DOD’s blacklist for allegedly helping China’s military.

Defense Contract Awards

• Kratos won a $1.4B Hypersonic Missile Testing deal.

• Boeing inked a $616M F-15 Eagle Passive Active Warning Survivability System Production deal.

• MtronPTI was awarded a $10M DOD Production contract.

• NetRise secured a $2M AFWERX STTR Phase II contract.

Follow the Defense Leaders

• Telesat Government Solutions has a new President.

• SMX named its new Business Development and Strategic Growth SVP.

Defense Job Openings

• OSD needs an Infomation Management and Technology Director.

• ANGU wants a Force Support Director.

CHART

From the DOD report “Investment Strategy for the Office of Strategic Capital.” Page 7.

INTEL COMMUNITY

Federal background check overhaul finally gaining ground.

After years of delays, officials say efforts to modernize the federal background check system are back on track. The revamped system aims to streamline security clearances for over 4 million federal workers and contractors, addressing long-standing inefficiencies that have plagued the process. Read more

ICYMI:

• BAE Systems secured a $347M NGA NERVE contract.

• ODNI has a new IC CIO and a new Deputy IC CIO.

• Amentum welcomed a new Intelligence and Cybersecurity Business President.

• Ex-NSA cyber official joins startup foundry DataTribe as a venture partner.

• ODNI is looking for a Space Issue Manager.

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CIVILIAN

Funding “Rip and Replace” efforts.

FCC Chairwoman Jessica Rosenworcel is speeding up efforts to approve rules for auctioning AWS-3 spectrum, aiming to use the proceeds to address the multi-billion-dollar funding shortfall in the agency’s Secure and Trusted Communications Networks Reimbursement Program. Read more

Federal agencies propose cybersecurity workforce rules for contractors.

Aiming to close cybersecurity gaps, federal agencies are pushing a new framework for contractors to boost workforce development. The proposal emphasizes baseline qualifications, continuous skill-building, and standardized practices, giving the private sector a playbook for bolstering cyber defenses. Read more

GAO mulls a cost evaluation of nationwide telecom hardware replacement following Salt Typhoon hack.

The GAO’s cost review comes after espionage incidents involving China’s Salt Typhoon hacking group, which exploited hardware vulnerabilities that cannot be patched. The assessment would help determine the financial implications of mitigating these security risks. Read more

ICYMI:

• NASA Sources Sought: Occupational Health Contract III.

• DHS RFI: First Responder Technology.

• DHS invites small businesses to apply for funding for R&D projects.

• WH national cyber director is finalizing software liability proposals.

• NNSA completes B61-12 Life Extension program.

Civilian Contracts Awards

• BAH booked a $316M VA Transformation Support Services 2.0 contract.

• Clarity24, an 8(a) JV, secured a $19M USDA Digital Services deal.

• Nathan Assoc. inked a $4M DOS APEC-RISE Support Services contract.

• Williams Consulting won a $3M CMS CERT Accuracy Contractor deal.

Follow Civilian Leaders

• OPM CIO is retiring and heading to the private sector.

• Hitachi Vantara Federal promoted its Director to COO.

• Lentech welcomed a new CEO and CFO.

Civilian Job Openings

• NTSB is hiring a Deputy Director.

• DOS is seeking an Office Director.

M&A CORNER

BWXT acquires L3Harris’ AOT business unit.

BWX Technologies has finalized its acquisition of L3Harris’ Advanced On-orbit Technologies (AOT) business, bolstering its space and nuclear capabilities. This strategic move aligns with BWXT’s growth ambitions in defense and aerospace, adding expertise in radiation-hardened tech for demanding space missions. Read more

SHOWER THOUGHTS 🚿

1. Nvidia GeForce RTX 5090 has arrived at CES. Are you willing to dish out $2k for a supreme gaming experience? SOURCE↗︎ 

2. China’s human metapneumovirus (HMPV) outbreak: Should you worry? Here are the details. SOURCE↗︎

3. This fusion startup had an insane, over-the-top opening ceremony. The secret event had military, intelligence agency reps, artists, and scientists attending. SOURCE↗︎

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