📋 OFPP rewrites the rulebook

The wait is over—the 2026 GAUGE Report is now available.

Now in its 10th edition, the GAUGE Report continues to serve as a trusted benchmark for government contractors looking to understand how their peers are navigating today's rapidly evolving market. Developed by Unanet and CohnReznick, this year's report delivers data-driven insights into the trends shaping the industry, including growth strategies, profitability, compliance, operational efficiency, and AI adoption.

Built on feedback and performance data from government contractors across the industry, the report provides valuable benchmarks and actionable insights to help leaders make informed decisions, improve business performance, and stay competitive in an increasingly complex environment.

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The Naval Research Laboratory is positioning its quantum research portfolio in direct alignment with POTUS’ E.O. on quantum computing, issued earlier this year. NRL's work spans quantum networking, sensing, and computing, with a focus on applications in navigation, communications, and cryptography. For contractors in the quantum space, NRL is signaling where the Navy intends to invest.

Congress is taking aim at the Navy's torpedo shortage in the FY27 NDAA, establishing minimum inventory requirements for the MK-48 heavyweight torpedo after years of procurement underfunding. The Navy currently holds fewer torpedoes than required under its own war reserve standards. The provision directs the service to close the gap through increased annual production and sets reporting requirements to track progress. For contractors in undersea warfare, this is a direct production signal.

The USAF is transferring management of the Military GPS User Equipment program to the USSF as part of a broader effort to consolidate space-related acquisition under one service. The transition covers GPS receivers and related systems used across the joint force. For contractors supporting military positioning, navigation, and timing programs, the shift changes who signs the contracts.

Department of State. “Generative AI Playbook.” July 2026. (Source)

USSPACECOM released its Space Warfighting Environment 2040 document, a requirements-driven framework identifying the capabilities the command needs to operate, deter, and fight in space through the next 15 years. The document covers threats from China and Russia, contested orbital environments, and the need for resilient positioning, navigation, and timing. For defense contractors in the space domain, SWE 2040 is a direct signal of where the command intends to invest.

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The FCC halted approvals for new foreign-made robots and power inverters from countries of concern, citing risks to critical infrastructure and national security. The action targets equipment that could give adversaries access to US power grids, manufacturing systems, and communications networks. The order takes effect immediately for new applications, with existing approvals under review. For contractors in robotics, energy, and industrial automation, the sourcing calculus just changed.

HHS released a new framework to identify and restrict high-risk life sciences research, including work that could create enhanced pathogens or pose dual-use biosecurity risks. The policy establishes a review process for federally funded research that meets certain risk thresholds, requiring additional oversight before funding can proceed.

NTIA launched its 6G Leadership and Security Initiative, a coordinated effort to position the US and 20+allied nations at the forefront of next-generation wireless standards, supply chains, and security frameworks before global competitors lock in the architecture. The initiative will focus on spectrum policy, trusted vendor development, international standards engagement, and domestic R&D investment.

Mobix Labs signed a definitive agreement to acquire dron manufacturer Vision Aerial to accelerate its push into national security and defense markets. Vision Aerial brings fixed-wing and VTOL drone platforms already in use by federal agencies, while Mobix contributes its 5G mmWave chipsets for secure, jam-resistant communications. The combined company aims to deliver a vertically integrated, Blue UAS-compliant drone and communications platform for DOD and federal customers.

The Carlyle Group acquired Secturion Systems, a provider of high-speed encryption and cybersecurity hardware for national security applications, and named Sean Berg as CEO. Secturion's products protect data in motion across air, land, sea, space, and cyber domains, with an installed base spanning defense and intelligence customers. Berg, a former Leidos executive, brings experience scaling classified technology businesses.

Leonardo DRS signed a definitive agreement to acquire Raft, a multi-domain AI, data fusion, and mission software company with a strong foothold in USSF programs including Kronos. The deal adds Raft's software capabilities to Leonardo DRS's existing sensor and electronic systems portfolio, with a focus on integrating AI-driven decision support across air, land, sea, space, and cyber domains.

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