QUICK HITS

  • VA upgrade push: New tech pilots aim to accelerate digital transformation.

  • With the 8(a) program under scrutiny, will self-certified SDBs be next? SBA’s IG sounds the alarm on Self-Certified Small Disadvantaged Businesses.

  • Army IT modernization drive: Killing legacy systems to fix its ‘Achilles heel.’

  • GSA POLARIS awards: 47 WOSB awardees added to the pool. (see list)

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DEFENSE & AEROSPACE

Pentagon accelerates full FY26 reconciliation spending.

The Pentagon plans to obligate the entire $152 billion in FY26 reconciliation funding, significantly expanding investments in munitions, missile defense, shipbuilding, and industrial base resilience. Officials describe the approach as an accelerated execution strategy.

Pentagon to startups: Focus on sensors, not rockets.

The Pentagon is telling space startups to hit pause on the rocket arms race and channel their energy into sensors and payloads instead. With mass‑produced launch now “good enough,” officials say the real bottleneck is affordable, scalable sensors (especially infrared) so the U.S. can field missions in weeks, not years. Turns out, the payload is now the hard part.

Saltzman emphasizes speed and managed risk in future force design.

Gen. Saltzman underscores that the USSF must accelerate capability delivery, accepting measured risk to keep pace with an increasingly contested space environment. His remarks highlight shifts toward integrated testing, incremental fielding, and a force design approach focused on rapid, mission‑aligned operational advantage.

ICYMI:

  • USN RFI: Seeking SB suppliers of brand-name IT hardware.

  • USSF looks to industry for satellite refueling concepts.

  • WSOM transfer advances: USSF assumes SATCOM management.

  • USAF to start all-encompassing sensor fusion experiments.

Defense Contract Awards

  • ARCTEC Alaska won a $596M USAF Radar System Support contract.

  • Sigma Defense won a $102M USN CANES Technical, Programmatic & Engineering Support contract.

  • BAE secured a $99M USAF Engineering Services Sustainment deal.

  • Cydecor got a $20M USN PEO LCS IMSAS AI/ML Development deal.

Follow the Defense Leaders

Defense Job Openings

CHART

GAO. “National Science Foundation: Schedule Delays Continue for Some Major and Midscale Research Infrastructure Projects.” GAO-26-107842. February 24, 2026.

INTEL COMMUNITY

Pentagon authorizes Grok for classified military systems.

The Pentagon has approved xAI’s Grok model for use within classified military systems, expanding its AI portfolio amid an ongoing dispute with Anthropic over usage restrictions. The agreement allows Grok to support sensitive missions, including intelligence analysis, weapons development, and operational planning. Officials note that any transition away from Claude will involve technical complexity.

  • Related: Hegseth gives Anthropic until Friday to back down on Claude’s AI safeguards.

Former advisor on policy shifts ahead of America’s 250th.

Former CIA and Pentagon advisor Jim Rickards says America’s 250th anniversary isn’t just fireworks. It’s prompting federal coordination on infrastructure, energy, and long‑term planning. He points to century‑old legal authorities, upcoming leadership transitions, and renewed focus on domestic capacity as signs Washington is quietly preparing for a major policy pivot.

ICYMI:

  • NATO RFI: Advanced target devt. for NextGen joint targeting capability.

  • SOSi is among four firms selected to support USSOUTHCOM’s EDA program.

  • DIA announced its 25th Director.

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CIVILIAN

DOT advances enterprise IT modernization under CIO Pidugu.

The USDOT is accelerating its enterprise‑wide IT modernization, with CIO Pavan Pidugu pushing six‑month delivery cycles, eliminating shadow IT, and migrating most offices to Google Workspace by early March. The initiative reflects DOT’s effort to unify systems and improve mission performance through a more disciplined, department‑wide technology approach.

House advances NIST-led AI support for small businesses.

The House passed the Small Business AI Advancement Act, directing NIST to build AI standards, best practices, and case studies so Main Street can keep pace with big tech. Lawmakers say the bill “levels the playing field” by giving small firms usable, tech‑neutral AI guidance.

DOE presents early iteration of Genesis Mission platform this year.

The DOE says its Genesis Mission teams are making solid progress toward key deadlines this year and expect to unveil a minimum viable product of the national AI-driven science platform in 2026, showcasing early results from AI supercomputing, software and data efforts.

ICYMI:

Civilian Contracts Awards

  • ARES won a $146M NASA Goddard Space Flight Center SMAS II contract.

  • Pyramid Systems won a $7M HUD OCIO AMSS contract.

  • Terrestris got a NASA Artemis II Launch Operations BPA.

Follow Civilian Leaders

  • HUD names a new CPD OTIE Deputy Director.

  • MITRE named its SVP, General Counsel.

  • Guidehouse welcomed its Strategic Missions Capture Leader and its Brand and Marketing Impact Manager.

Civilian Job Openings

M&A CORNER

Markon expands Cyber Capabilities through Millennium acquisition.

Markon has acquired Millennium Corporation, strengthening its position as a full‑spectrum cyber provider across defense, intelligence, and federal sectors. The integration expands mission‑critical capabilities, spanning cyber operations, testing, training, and engineering, while unifying both firms’ IRAD investments to better support national security missions.

DFW sells Sev1Tech to ERT.

DFW Capital Partners has completed the sale of Sev1Tech to ERT, a Macquarie‑backed company. Under DFW’s ownership, Sev1Tech expanded its IT modernization, cyber, and digital engineering capabilities while broadening its federal customer base. The combination with ERT positions the firm to continue supporting complex defense and national security missions with enhanced technical capacity.

SHOWER THOUGHTS 🚿

  1. Ever wonder how tech companies handle gov’t inquiries into your data? DOJ’s Epstein Files drop shows us a Google subpeona response. SOURCE↗︎

  2. Havana Syndrome response shifts: DOD moves AHI team under R&E. SOURCE↗︎

  3. Punch the Monkey’s journey: The rejected internet‑famous macaque finally finds friends. SOURCE↗︎

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