May 5, 2025

Good morning. You may have seen our 2025 Federal M&A Outlook post hit your inbox a little early—oops, that was our mistake! See the updated version below (in its proper place) along with the rest of today’s newsletter.

—The GovBrew Crew

QUICK HITS

• 2025 federal M&A outlook: Must-know moves for industry trailblazers.

• The council has rewritten FAR Part 1: Check out the initial draft.

• Intellectual Property (IP) Guidebook for DOD Acquisition: DOD outlined how to meet DOD’s nat’l security mission while also innovating industry.

• On Friday POTUS unveiled his initial budget request: The plan cuts $163B in non-defense spending, freezes pay, and offers a big budget increase for defense. Here are the top tech takeaways from the proposal.

PRESENTED BY UNANET

Drowning in QuickBooks Quicksand?

Wave goodbye to manual spreadsheets and hello to streamlined success! Unanet ERP for GovCon automates your labor distribution, tracking every billable hour, at the right rate to the right project and cost pool.

Unleash Your Inner Guru

Ditch generic accounting for project-based precision. With Unanet, you'll know exactly where your money's going and what's coming in. Real-time insights, effortless compliance, and confident bidding? Yes, please!

Focus on winning contracts while Unanet's financial superpowers handle the rest. Level up from QuickBooks chaos to Unanet clarity and watch your GovCon business soar!

DEFENSE & AEROSPACE

USSF tells vendors “We want AI, but it needs to be specific.”

The USSF is cautiously advancing its adoption of AI, emphasizing the need for vendors to provide targeted solutions that address specific operational challenges such as data validation, orbital safety assessments, and administrative automation. Officials stress that proposals should begin with clearly defined problems rather than generic AI offerings, urging industry partners to focus on their core competencies and avoid pursuing AI initiatives solely based on current trends.

Marines say they’re “leading the way” in battlefield autonomy.

The USMC is advancing battlefield autonomy by deploying unmanned Joint Light Tactical Vehicles (JLTVs) in the Pacific, marking a significant step in integrating autonomous systems into ground operations. Despite this progress, the Corps faces challenges such as technical limitations and skepticism regarding the reliability of autonomous technologies, leading to cautious implementation and ongoing evaluation of these systems' effectiveness in combat scenarios.

ICYMI:

• DFAS RFI: Minitab Software and Maintenance FY26 - FY30.

• Navy tests CPS hypersonic missile at Cape Canaveral.

• Space junk falling to Earth needs to be tracked; meteoroid sounds can help.

• Modernization is readiness in the USMC—it’s a critical component, needing swift adaptation to ensure operational effectiveness.

Defense Contract Awards

• BAH secured a $743M USAF Enterprise App Mod & Migration contract.

• USSF selects 12 contractors for a $237M Satellite and Spacecraft Dev contract.

• Monterey Technologies inked a $73M UX/UI Design and Engineering deal.

• Advanced Sciences, Data intelligence, Forward Slope, G2 Software, Sev1Tech, and Solute win a $87M Navy mod for C2 technology.

Follow the Defense Leaders

• Senate advances Isaacman to lead NASA.

• Navy’s PEO CVN recruits a new IT executive.

Defense Job Openings

• [Watch] SSC is seeking a Plans and Programs Director, SLD.

• NAVSEA is hiring a Manager.

CHART

Mapping noncommercial data rights and development funding. As found in: DOD Intellectual Property Guidebook for DOD Acquisition. 30 April 2025. Page 23

INTEL COMMUNITY

Spy agency staffers to be cut by 1,000-1,200 employees.

The WH is implementing significant reductions across U.S. intelligence agencies, including plans to cut approximately 1,200 positions at the CIA and thousands more at agencies like the NSA and DIA, aiming to realign the workforce with national security priorities such as focusing on China and drug cartels.

Bitcoin is a matter of national security says Deputy CIA Director.

Deputy CIA Director Michael Ellis stated that Bitcoin has become a matter of national security, highlighting its growing role in U.S. intelligence operations and its importance in maintaining strategic advantages over adversaries like China. The CIA collaborates with law enforcement to track Bitcoin transactions, utilizing it as a data collection tool in counter-intelligence efforts, reflecting the cryptocurrency's maturation and institutional adoption.

ICYMI:

• WHS RFI: Software Fast Track (SWFT) Automation & Artificial Intelligence (AI).

• KBR has a new Intel and Space President.

• Department of State is seeking a Supervisory IT Specialist.

GET SEEN

Elevate your brand and expand your reach with GovBrew, the industry’s most reliable source for GovCon pros. Reach top figures and decision-makers across the government contracting industry. When you advertise with GovBrew, you can really make an impact. Get started here.

CIVILIAN

WH budget offers big increase to VA’s EHR effort but cuts agency IT systems.

The WH’s FY2026 budget proposes a $2.17B increase for the VA’s EHRM initiative, aiming to replace outdated systems with an interoperable platform compatible with the DOD and other partners. Conversely, the budget suggests a $493M cut to the VA's broader IT systems and introduces DOGE to oversee IT reforms, a move that has raised concerns among some lawmakers regarding transparency and data access.

GSA changes TMF repayment model with “longevity” in mind.

GSA has revised the TMF repayment model to prioritize full reimbursement for "high-impact" federal IT projects, aiming to ensure the fund's sustainability and encourage investments that deliver significant returns and improved services. This strategic shift also promotes interagency collaboration and shared solutions, moving away from isolated finance and IT approaches to reduce redundancy and enhance efficiency.

Trump’s 2026 budget overhauls Artemis Moon Program.

The White House’s proposed 2026 budget aims to reshape NASA’s Artemis program, cutting $879 million from legacy human exploration systems and phasing out the Space Launch System (SLS) and Orion capsule after two more flights. The plan also cancels the Gateway lunar space station, shifting focus to cost-effective commercial alternatives.

• Related: Proposed budget would slash NASA’s overall budget by 24%.

ICYMI:

• DHA RFI: IT Service and Equipment.

• GSA’s new procurement strategy challenges the reseller ecosystem.

• Initial layoffs at USDOT expected in late May.

Civilian Contracts Awards

• J.R. Reingold booked a $10M travel.state.gov Web Development contract.

• Focus-Nava JV inked a $4.4M ED FSA Automation Development Review deal.

Follow Civilian Leaders

• POTUS has appointed new members to FEMA’s Review Council.

• Nava appointed two new executives.

• Amivero added two DHS leaders to its executive team.

Civilian Job Openings

• NTSB wants a Deputy Director.

• FAA needs a Strategic Operations Director.

M&A CORNER

AeroVironment completes $4.1B BlueHalo acquisition.

AeroVironment has officially closed its $4.1 billion acquisition of BlueHalo, strengthening its position in defense technology across air, ground, maritime, cyber, and space domains. The newly merged entity, now operating as AV, will be headquartered in Arlington, Virginia, with over 3,750 employees.

Mercury acquires Star Lab to enhance secure processing.

Mercury Systems has finalized the acquisition of Star Lab, in line with efforts to continue advancing the company’s capabilities to deliver secure processing technologies to the aerospace and defense industries.

VTG expands signals intel capabilities through Triaplex acquisition.

National security platforms provider VTG has acquired Triaplex to broaden its cyber warfare and signals intelligence capabilities. VTG said the deal marks its fourth acquisition since receiving a majority investment from private equity firm A&M Capital.

SHOWER THOUGHTS 🚿

1. CIA unveiled its spy recruitment campaign. Are you a Chinese official? Do you want to spy for the US? America’s intelligence agency wants you. WATCH↗︎ 

2. Star Wars Day: The iconic Star Wars Rebel pilot helmet from the Battle of Hoth could fetch $400K at auction. SOURCE↗︎

3. Microsoft’s “Recall” screenshots and reads everything on your screen. Your private DMs may not be so private if you have this AI on your device. SOURCE↗︎

GROW WITH GOVBREW

Whenever you’re ready, here’s how we can help you:

1. Become a GovBrew Insider to keep your pipeline full. Weekly opportunities, recompete reports, agency forecasts, and much more. Learn more

2. Promote your brand to over 7,900 GovCon professionals by sponsoring this newsletter. Apply here

3. Follow us on LinkedIn for more GovCon coverage.

SHARE GOVBREW

Share GovBrew with your GovCon colleagues, acquire free swag, and then tell them where you got it.

We’re saying we’ll give you free stuff and bragging rights if you share a link. One link.

Your referral count: 0

Or copy and paste your referral link to others:
https://govbrew.co/subscribe?ref=PLACEHOLDER