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QUICK HITS

DEFENSE & AEROSPACE

Pentagon unveils sweeping reforms for R&D and AI strategy.

Three memos, one big message: the Pentagon is done with β€œscience fairs” and ready for wartime tech. SecDef announced major AI movesβ€”splitting Advana, creating an Ender Wiggin-inspired simulation foundry, and consolidating innovation shops under R&E.

SecDef emphasizes acquisition reform during Lockheed F-35 visit.

During a visit to Lockheed Martin’s F-35 facility, SecDef underscored the need for streamlined acquisition processes to accelerate delivery and maintain technological superiority. His remarks signal a shift toward efficiency and readiness in defense procurement.

Pentagon invests $1B in L3Harris rocket motor spin-off.

DOD is putting serious thrust behind domestic rocket motor production by dropping $1 billion into L3Harris’ new spin-off. The agreement allows the DOD to take a direct ownership stake in L3Harris’s Missile Solutions business, with an IPO of that division planned in the second half of 2026.

ICYMI:

Defense Contract Awards

  • SpaceX won $739M in USSF Launch contracts.

  • GDIT booked a $988M USN C5ISR Modernization deal.

  • CACI inked a $416M SeaPort-Next Gen task order for IT modernizations.

  • BAE Systems won a $256M USS IWO JIMA Maintenance contract.

Follow the Defense Leaders

  • ATS named its first CTO, who was a senior cyber advisor at a US embassy.

  • CSA’s new CFO comes to the company after serving as CFO at SilverEdge.

Defense Job Openings

CHART

GAO. Freshwater Supply: Interior Should Continue to Identify Improvemenets to the Large-Scale Water Recycling Program. GAO-26-1087888. January 8, 2026. Page 7.

INTEL COMMUNITY

SOCOM expands identity intelligence for battlefield operations

USSOCOM is advancing identity intelligence capabilities, integrating biometrics, forensics, and digital exploitation to enhance threat identification in real time. This initiative aims to strengthen operational effectiveness and situational awareness across complex battlefield environments.

ICYMI:

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CIVILIAN

GSA mandates transactional data reporting: $20M savings and counting.

GSA is slapping TDR on all Multiple Award Schedule purchases after a pilot yielded $20.2β€―million in annual cost avoidance. With full implementation now live, they expect savings to double to $50β€―million.

NASA and DOE to develop lunar reactor by 2030.

NASA and the DOE have announced a partnership to design and deploy a fission surface power system on the Moon by 2030. This initiative aims to provide reliable, long-duration energy for future lunar missions, ensuring sustained operations during extended lunar nights.

W.H. trims DOGE’s IT budget, boosts AI‑ready data guidance.

Congress approved $124.3M for White House admin, with $12.8M for IT modernization and just $8M for the DOGE efficiency unitβ€”a far cry from their requested $45M. The W.H. also wants AI‑ready data guidance and a multi‑cloud map in 180 days.

ICYMI:

  • NASA to launch Artemis II Moon Mission this year.

  • NASA backs new tech for β€œSuper Hubble” to hunt alien life.

  • Protest: GAO rejects Salient CRGT’s challenge to winning bid by SAIC, says price realism analysis wasn’t necessary.

  • GovCIO’s early impact: Driving VA’s RES modernization forward.

  • Samstream launches bid finding AI platform.

Civilian Contracts Awards

  • Khulisa Mgmt Services won a $251K FNS Support contract.

  • Contemporaries won a $229K HHS Support contract.

  • Guidehouse Digital secured a $198K NHLBI Lab Protocol Maintenance deal.

  • DOE taps OLI as an official Genesis Mission collaborator.

Follow Civilian Leaders

  • TRSS has a new President, previously VP of Public Sector at Forrester.

  • Alpha Omega welcomed a new DHS VP.

Civilian Job Openings

M&A CORNER

B&A acquires Celestar to strengthen defense and intelligence capabilities.

B&A has acquired Celestar, expanding its portfolio to include multi‑INT capabilities such as HUMINT, SIGINT, IMINT, MASINT, and OSINT. This strategic move positions B&A to deliver comprehensive intelligence solutions for agencies like NGA, DIA, and combatant commands.

Cherry Bekaert acquires Tarsus to expand accounting services.

Cherry Bekaert has announced the acquisition of Tarsus, a strategic move to expand its accounting and advisory services portfolio. The deal enhances the firm’s ability to deliver specialized financial solutions and reinforces its position in the professional services market.

Arlington Capital acquires Pond & Company in strategic expansion.

Arlington Capital Partners has acquired Pond & Company, an engineering and architecture firm with over 850 professionals across 21 offices. The deal marks Arlington’s first investment from its $6β€―billion Fund VII, signaling a strong commitment to infrastructure, energy, and life sciences sectors.

SHOWER THOUGHTS 🚿

  1. MIT’s smart pill: It sends a discreet signal when swallowed, offering a breakthrough solution to prevent missed doses. SOURCEβ†—οΈŽ

  2. Grok blocked in Malaysia and Indonesia due to oversexualized AI images: Musk’s artificial intelligence hits a wall. SOURCEβ†—οΈŽ

  3. Thousands of NYC nurses strike: Hospitals brace for staffing crisis. SOURCEβ†—οΈŽ

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