May 14, 2025

❌ DHS scraps Leidos’ $2.4B cyber deal, DOD redirects $$ from Army to border mission, 3 VTG acquisitions, DOS Enterprise Database RFI, DIU HAS pilot

Author

GovBrew
May 14, 2025

QUICK HITS

  • The AI chip export rule has been rescinded: The WH believes that it stifled innovation and imposed burdensome regulations on U.S. companies.

  • DOD budgetary resources: Should a quarter of the Pentagon’s spending be allocated to the targeted expansion of the Space Force?

  • GSA’s consulting overhaul: Reshaping federal contracts for efficiency.

  • [Listen] Red Team GM gives FAR 2.0 advice: Here are 7 themes that companies should look for in the recent FAR overhaul.

DEFENSE & AEROSPACE

DIU expands “Hybrid Space Architecture” vendor pool, plans 2026 pilot.

The DIU is ramping up its Hybrid Space Architecture (HSA) project, bringing 13 new companies on board—including big names like Lockheed Martin and Viasat—bringing the total to 25, all working together to launch a pilot in 2026. This initiative is part of a broader effort to ensure secure, real-time communication across military operations, effectively building a "hack-proof" internet in space.

USAF launches AI Center of Excellence to drive innovation.

The Air Force is establishing a new AI Center of Excellence, leveraging partnerships with MIT, Stanford, and Microsoft to accelerate AI development. The initiative aims to enhance autonomous systems, data analysis, and mission readiness, ensuring AI investments align with strategic objectives.

DOD redirects billions to fund border mission, sparking debate.

DOD is shifting over $1B from Army facility repairs and hundreds of millions from personnel accounts to support operations at the southern border. While the move aligns with congressional guidance, critics argue it could strain military readiness.

ICYMI:

  • Army Special Notice: Open Solicitation (AOS) - R&D and Commercial Tech.

  • USN RFI: Recovery Assist Secure and Traverse System.

  • USAF confirms the Boeing F-47's expected service between 2025 and 2029.

  • Sierra Space has completed its third major test of R-GPS tech for the USSF.

  • US loosens some rules for offensive counterspace ops, wargaming.

Defense Contract Awards

  • QinetiQ US won a $49M Army Sensor Data Collection & Mgmt Support IDIQ.

  • Systems Intelligence secured a $45M Army Integrated Support Services deal.

  • Two contractors inked SSC JAM Prototype contracts.

  • Capella Space booked a DIU Enhance Hybrid Space Architecture contract.

Follow the Defense Leaders

Defense Job Openings

FREE RECOMPETE REPORT

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This report contains actionable intelligence about potential recompetes and expiring contracts at the U.S. Space Force (USSF). Sure, all this information is publicly available, but we gathered it from five different sources, so you don’t have to do it yourself. Now, you can focus on what matters most—fielding opportunities, closing deals, and grabbing a few more brews ( ☕️ 🍺).

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CHART

From: GAO: Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve an Additional One Hundred Billion Dollars or More in Future Financial Benefits. GAO-25-107604. May 2025. Page 21.

INTEL COMMUNITY

AI is helping DOD go from finding targets to predicting threats.

NGA uses AI to analyze satellite and other data, then alert analysts, in a program of record called Maven. It started in 2017 as a small “pathfinder” program for Air Force Special Operations, but has grown considerably, particularly since NGA took over three years ago. Now, Vice Adm. Whitworth said, demand is growing quickly across all the services and combatant commands.

Intelligence agencies doubled the use of US person-tied search terms under disputed spying power last year.

U.S. intelligence agencies doubled their use of search terms linked to American citizens under Section 702 of the FISA in 2024. That being said, the FBI's direct queries of U.S. persons decreased sharply during the same period, dropping from over 119,000 to 5,518, attributed to new legal reforms and increased caution among analysts.

ICYMI:

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CIVILIAN

OPM wants federal retirement processing fully digitized in three weeks.

OPM is fast-tracking its move to a fully digital retirement application system, mandating that all new federal retirements be processed electronically starting June 2, 2025. This shift ends a decades-long reliance on paper files stored in a limestone mine in Boyers, Pennsylvania, aiming to streamline the process and reduce delays.

AI funding vs. state regulations: A federal power play.

Congress is weighing a $500M boost for AI at the Commerce Department while simultaneously proposing a 10-year moratorium on state AI regulations. The move aims to modernize federal IT but raises concerns about limiting state oversight.

Outdated federal HR systems bleeding billions in lost productivity.

Federal HR leaders say legacy systems are draining nearly $1 billion annually in inefficiencies. A new study finds 89% of HR decision-makers are struggling with outdated tech, spending nearly half their time fixing errors. Despite the urgency, modernization remains a low priority.

ICYMI:

  • DHS RFI: Learning Content Management System.

  • DOL’s Office of Federal Contract Compliance reduces its workforce by 90%.

  • Leidos’ $2.4B DHS Cybersecurity deal has been scrapped.

  • IRS would eliminate Direct File under proposed budget reconciliation bill.

  • FAA continues rollout of Tower Simulation Systems (TSS) for training.

Civilian Contracts Awards

  • Leidos inked a $92M NLM Leidos Network Services contract.

  • SAIC secured a $43M EPA Geospatial Analytics GAVETS contract.

  • Digital Infuzion booked a $30M NIH NIA Clinical Research Opps 2.0 deal.

  • Avanz Systems won a $1.6M SME EIM Framework Support deal.

Follow Civilian Leaders

  • Guidehouse names new Global Health Segment Leader.

  • Keeper Security welcomes its new CISO.

  • Former KPMG Managing Director joins Alpha Omega as COO.

Civilian Job Openings

M&A CORNER

VTG expands intelligence reach with three strategic acquisitions.

VTG is making moves, acquiring three companies — Byte Systems, iota IT, and Tunuva Technologies — to bolster its presence in the intelligence community. The deals enhance VTG’s capabilities in digital transformation and engineering solutions, positioning the firm for broader national security contracts.

SHOWER THOUGHTS 🚿

  1. Have you heard of the Crusader software? The Marine Corps developed it to remotely control commercial radars. SOURCE↗︎ 

  2. How well do you know — and trust — your neighbors? 26% of US adults say they know most or all of their neighbors, and 44% trust them. SOURCE↗︎

  3. POTUS secures $142 billion defense sales deal with Saudi Arabia. It’s the biggest defense deal to date. SOURCE↗︎

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