May 19, 2025

QUICK HITS

• $1B USAF protest: KPMG says USAF bypassed competitive bidding in award of audit remediation contracts to Deloitte.

• [Watch] Cloudflare’s CTO talks AI: Here’s how the government uses Gen-AI and LLMs — especially through chatbots and system integrations.

• Congress says “Please!” to quantum: They urge doubling quantum funding to counter China.

• CISA’s Bridget Bean to contractors: Ensure your products are secure.

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DEFENSE & AEROSPACE

Army says deep aviation cuts aren’t set in stone, might “walk something back.”

Army Maj Gen Gill indicated that the Army's aviation cuts under the Army Transformation Initiative (ATI) might be reconsidered. Programs affected include the divestment of AH-64D Apaches, cancellation of the FTUAS competition, halting additional purchases of Gray Eagle drones, and potential reductions in the ITEP and HADES spy planes.

Navy could see its 6th generation F/A-XX fighter program cancelled.

The Navy's F/A-XX sixth-generation fighter program faces significant uncertainty due to a proposed 90% budget cut in the draft defense bill, reducing funding from $454 million to just $54 million for FY25. This drastic reduction threatens the development of the Navy's next-generation carrier-based stealth fighter, intended to replace the F/A-18E/F Super Hornet fleet and maintain air superiority in contested environments.

Pentagon prepares FY2026 budget for Golden Dome missile defense.

The Pentagon’s FY26 budget will reveal the first official cost estimate for Golden Dome, a next-gen missile defense system inspired by Israel’s Iron Dome. With $25 billion proposed in one spending bill, expect heated debates over feasibility, funding, and strategic impact.

ICYMI:

• USAF RFI: NC3 Classified Maintenance Information System.

• NAVAIR RFI: Service Life Modernization Program.

• Event June 17: Navy Future Unmanned Surface Vessel Industry Day.

• DOD faces ongoing challenges with multibillion-dollar moving contract.

• [Watch] Anduril’s Luckey talks about his vision for the future of warfare.

• Venus Aerospace debuts first-ever test of rotating detonation rocket engine.

Defense Contract Awards

• Raytheon won a $1B MDA contract for 55 SM-3 Block IB All-Up Rounds.

• Raytheon also inked a $581M USN Next-Gen Jammer Mid-Band contract.

• Palantir won a $218M USSF SSC contract under Space C2 Data Platform.

• PingWind won a $16M Army contract for IT project management support.

Defense Job Openings

• USAF needs an Executive Director.

• NAVSEA wants a Manager.

FUNNY

INTEL COMMUNITY

Military intel budget request aligns with DOD strategic priorities.

Senior defense officials testified that the FY26 military intelligence budget supports homeland defense, deterring China, and burden-sharing with allies. The proposal prioritizes modernization, cybersecurity, and intelligence capabilities to counter global threats. Expect debates as Congress weighs funding decisions.

NCIS, FBI officials see promise in AI use cases for business side.

Federal law enforcement agencies like NCIS and the FBI are using AI to streamline admin tasks like HR, phishing alerts, and cybersecurity. NCIS’s early internal tool fell short, but newer vendor partnerships are yielding better results.

ICYMI:

• Lawmakers oppose splitting NSA and CYBERCOM leadership.

• CBP says AI model cards are “law enforcement privileged.”

• DOD leaders urge Congress to strengthen cyber defenses.

• CBP, SS, & USCG shatter recruitment records in the last 6 months.

• Lockheed Martin booked a $616M NGA GEOINT Collect NeXT contract.

• CISA Director of Chemical Security to retire.

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CIVILIAN

(Mostly) No phone fraud at SSA.

DOGE implemented anti-fraud checks on SSA phone claims, but out of over 110,000 calls, only two were flagged as potentially fraudulent. However, DOGE’s anti-fraud tool initiative slowed retirement claim processing by 25% and degraded public service, leading the SSA to consider reversing the implementation of the tool due to its minimal fraud detection and significant operational impact.

FAA faces hiring push and layoff threats under POTUS plan.

The WH is simultaneously expanding air traffic controller hiring at the FAA while encouraging over 2,700 other agency employees to accept buyouts or face potential layoffs. This dual approach has raised bipartisan concerns about the agency's ability to maintain safety and operations amid ongoing staffing shortages and recent aviation incidents.

GSA procurement chief outlines bold acquisition reform strategy.

GSA’s Larry Allen is spearheading a sweeping acquisition overhaul, aiming to streamline procurement and cut costs. The OneGov Strategy is already delivering 70% software discounts, with Google and Adobe leading the charge. Expect more enterprise-level agreements as GSA centralizes federal purchasing.

ICYMI:

• CDC RFI: World Trade Health Center Program: Program Administrator.

• TREAS RFI: Case Management System.

• The impact of the Government Services Delivery Improvement Act.

• Keynote address at the Crypto Task Force Roundtable on Tokenization.

Civilian Contracts Awards

• Ampcus won a $93M Ginnie Mae Software Development Modernization gig.

• Peraton won a $10M VA EPSM Solution contract.

• ANR landed a $10M DHA IT and Management Support Services contract.

Follow Civilian Leaders

• HHS and EPA CX Program Manager takes role with WOSB Cynuria.

Civilian Job Openings

• US Courts is seeking a Legal Division Deputy Director.

• DOJ is hiring a Tactical Operations Assistant Director.

SHOWER THOUGHTS 🚿

1. National Air & Space Museum to reveal renovated galleries. Five galleries will open on July 28 as 7-year renovation continues. SOURCE↗︎ 

2. Leaders push DHS, FEMA to restore BRIC grant program. BRIC helps communities prepare for and recover from extreme weather events. SOURCE↗︎

3. Apple Intelligence has been a wreck since its launch last year. What is Apple doing to get “LLM Siri” back on track? SOURCE↗︎

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