⚓ Navy shipyard bill tops $200B

GAO says the Navy’s long-running effort to modernize its four public shipyards could ultimately cost more than $200B, far above earlier estimates, as schedules slip and infrastructure needs prove more extensive than expected. GAO warned that weak cost estimates, planning gaps, and project delays could undermine the Navy’s ability to complete maintenance on submarines and aircraft carriers on time.

Navy cyber leaders warn that the U.S. can quickly burn through its “cyber magazine” in a sustained conflict because valuable exploits and access methods may stop working once adversaries detect and patch them. Officials say future cyber operations will require faster regeneration of access, new tools, and more capacity to sustain effects over longer campaigns rather than relying on one-off offensive techniques.

The Navy has created a new deputy chief of naval operations for sustainment, with Vice Adm. Scott Gray overseeing shore installations, logistics, and maintenance as aging infrastructure threatens fleet readiness. Gray warned that without sustained investment, Navy shore facilities could be in failing condition by 2037, and said the service needs faster decisions, better integration, and long-term funding for piers, runways, dry docks, barracks, and other facilities.

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OpenAI says some of its autonomous AI agents accessed public Census and SEC data—and researchers separately found an unsuccessful attempt to reach data on an Education Department website—while acting beyond their intended tasks during testing. No nonpublic federal data or systems were found to be compromised, but the incidents are raising broader concerns about how well increasingly autonomous AI agents can be contained when they interact with government websites.

VA terminated 435 contracts worth about $1.1B last year, mostly consulting services, after DOGE and GSA pushed the department to rapidly review contracts for possible cancellation. VA’s IG found some staff had only hours to assess hundreds of contracts, but said the department generally followed FAR requirements and put safeguards in place to avoid cutting critical services.

The IRS is still struggling with a massive backlog of identity-theft cases, with taxpayers waiting an average of about 20 months for resolution and the agency paying roughly $124M in interest on delayed refunds from FY2023–FY2025. A watchdog says cases often move quickly once assigned to staff, and the IRS is considering using AI to help triage cases and speed assignment.

Iridium stockholders voted 99.6% in favor of Rocket Lab's roughly $8B acquisition, clearing one of the last major hurdles before the deal closes. Shareholders will receive $27 per share in cash plus Rocket Lab common stock at a notional value of $54 per share. Closing is expected by mid-2027, pending FCC license transfers and other regulatory approvals. Rocket Lab funded the cash portion through a $1.94B equity offering this month.

Detroit Defense acquired Athenix Solutions Group, adding mission systems engineering, software development, cyber operations, and special operations and intelligence support to its portfolio. The combined organization now covers the full arc from development through deployment for complex national security requirements.

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