🤝 M&A heats up

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The Pentagon is overhauling a long‑standing program designed to help tribally owned businesses compete for federal contracts. Defense officials say the changes aim to strengthen oversight, reduce misuse, and better align awards with legitimate Native enterprises. For government contractors, the update highlights a renewed emphasis on accountability within set‑aside contracting programs.

The DOD has canceled the troubled Joint Polar Satellite System (JPSS) Follow-On / Weather System Follow-on Microwave program after years of delays, cost growth, and technical challenges tied to replacing aging military weather satellites. The move leaves the Pentagon leaning more heavily on a mix of existing systems and commercial data sources for environmental intelligence, underscoring a broader shift away from large, bespoke space programs.

The Navy is moving ahead with plans for its new BBG(X) guided‑missile battleship under the Golden Fleet initiative. The lead ship is estimated to exceed $17 billion, with total program costs projected at more than $43 billion for three vessels, raising both strategic interest and budgetary scrutiny across the defense community.

United States Space Force. (2026). Objective Force Design (OFD) 2040 Baseline. U.S. Department of the Air Force.

The USCG is taking on a new mission to counter drones at major domestic events, expanding its role in homeland security. The effort will focus on detecting and mitigating unmanned aerial threats, reflecting growing concern about drone risks in crowded and high-profile settings.

The White House indicated that a DOD deal with Anthropic is “possible” following recent discussions, signaling a potential shift after the AI firm was labeled a supply‑chain risk earlier this year. The episode underscores how quickly policy stances can evolve in the government’s approach to advanced AI procurement.

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The GSA and OPM will soon share a headquarters as part of a plan to consolidate federal office space and reduce costs. The move is intended to improve collaboration and efficiency while reflecting a broader push to shrink the government’s real estate footprint.

The USDOT and the FAA are advancing air traffic control modernization efforts, including the use of AI and event-based architectures to improve efficiency and responsiveness. Officials highlighted industry partnerships, including work with Peraton, as key to scaling these technologies and modernizing how airspace is managed.

The DOE is advancing a strategy to strengthen America’s clean energy supply chains by expanding domestic manufacturing, securing critical materials, and coordinating with allied partners. The effort signals sustained federal priorities around resilience, transparency, and long‑term investment in clean energy and advanced manufacturing capabilities.

ServiceNow has completed its acquisition of Armis, formally integrating cyber asset visibility and exposure management into its AI platform. The move signals expanded capabilities to manage risk across IT, OT, and IOT environments, strengthening security and operational resilience across federal missions.

Scale AI has acquired ICG Solutions to expand its end‑to‑end AI infrastructure for defense and intelligence missions. The deal integrates ICG’s real‑time streaming data analytics into Scale’s platform, supporting the DOD’s AI‑First strategy.

Brady Corporation, a provider of identification solutions, announced that they have entered into a definitive agreement with Honeywell to acquire Honeywell’s Productivity Solutions and Services (PSS) business, a provider of mobile computers, barcode scanners and printing solutions, in an all-cash transaction for $1.4 billion.

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