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OpenAI to Offer ChatGPT at $1 Per Federal Agency in 2026
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FSA Commissioner Josh Gruenbaum cited ChatGPT subscription discount

OpenAI has entered into a partnership with the General Services Administration to offer its ChatGPT Enterprise for a $1 annual fee in 2026 to each federal agency under the GSA’s OneGov strategy on standardized terms and pricing for government purchases of goods and services. 

“We encourage other American AI technology companies to follow OpenAI’s lead and work with us, as GSA’s OneGov continues to modernize and streamline government operations,” said GSA Federal Acquisition Service Commissioner Josh Gruenbaum, a 2025 Wash100 Award recipient.

He also noted that the partnership with OpenAI supports the White House’s America’s AI Action Plan by easing federal agencies’ access to AI tools for improving productivity and efficiency. 

ChatGPT Services for Federal Subscribers

The discounted 2026 ChatGPT pricing will be available to federal agencies through the GSA’s Multiple Award Schedule. Federal subscribers will gain access to a new user community with introductory training features, as well as custom-designed platforms for guided learning. OpenAI will also provide the federal users an additional 60-day unlimited access to advance models, such as Deep Research and Advanced Voice Mode. 

Sam Altman, OpenAI’s CEO, conveyed the company’s pride in the GSA partnership. “One of the best ways to make sure AI works for everyone is to put it in the hands of the people serving our country,” the company’s head remarked.

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NSF Awards Grants to Universities for AI Test Beds
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National Science Foundation logo. Four universities won a grant from the NSF to support the development of AI test beds.

The U.S. National Science Foundation has awarded over $2 million in grants to four universities to develop artificial intelligence-ready test beds, which are real-world environments designed to fast-track the testing and deployment of AI technologies in key sectors of the country.

The recipients of the grant include Rutgers University, Cornell University, University of Maryland and University of Michigan, NSF said Wednesday. The NSF’s Computer and Information Science and Engineering and Technology, Innovation and Partnerships directorates are leading the research effort in line with the government’s AI Action Plan, which seeks to invest in secure, real-world environments for developing and commercializing new AI systems.

Details of Awarded Research Projects

The projects awarded to the universities apply AI to several fields, including wireless and radio communications, smart transportation, disaster planning, agriculture and others.

The STARWAI project, which is headed by Rutgers University–New Brunswick, is a test bed where wireless technology can be tested and improved using AI. The project aims to improve the performance and management of wireless networks using AI, while also upgrading wireless systems to better support AI applications, which can be used for various sectors such as advanced manufacturing, smart cities and transportation. STARWAI was based on a previous project called COSMOS, a city-sized testing area in West Harlem.

The Artificial Intelligence for Agriculture, or AI4Ag, which is being developed by Cornell University, will create an AI-ready living lab at the institution’s Agricultural Systems test bed, where new AI technology can be tested in real farming conditions. The AI4Ag seeks to help farmers grow crops more efficiently, use less water and fertilizer, and adjust to climate change and market shifts.

The Test Bed For Disaster for Disaster Resilience Auditing Crisis Evaluation, or TRACE, which is managed by the University of Maryland, aims to address natural disasters like wildfires, earthquakes, snowstorms and hurricanes. TRACE will use AI, robots, sensors and live data to help emergency teams respond quicker and make smarter decisions. The project intends to transform disaster preparedness and response for cities.

The University of Michigan will improve the Mcity 2.0 test bed, aiming to make self-driving cars and delivery drones safer and more realistic. The project will be used to test how vehicles interact with people, other cars, and roads in real-life situations. The upgraded test bed will also help researchers develop new services like robotaxis and automated delivery or charging, which can fast-track the deployment of transportation technologies.

Remarks by NSF’s Ellen Zegura

NSF Acting Assistant Director for CISE Ellen Zegura said that the AI test bed project was unique to the agency.

“It leverages critical, existing test environments to drive AI progress. This initiative not only builds the foundation for new breakthroughs in AI research but also helps bridge the gap between research and applications by connecting researchers with real-world challenges and enabling them to explore how AI can be most effectively applied in practice,” she said.

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Top 4 Emerging Technologies GovCons Must Master
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Satellite imagery. In 2025, GovCons must develop expertise in several emerging tech fields.

Emerging technologies in 2025 are not just reshaping industries, they are fundamentally transforming how governments operate, provide public safety and serve citizens. From generative AI streamlining administrative workflows to quantum computing redefining cybersecurity, these innovations offer unprecedented opportunities to enhance efficiency, transparency and resilience across the public sector.

For GovCons, staying ahead of these trends is no longer optional—it’s imperative. Agencies are seeking vendors who can integrate cutting-edge solutions into legacy systems, ensure compliance with evolving cyber standards and deliver scalable innovations that align with national priorities. Those who understand how to apply AI, commercial satellite imagery and other transformative tools in government contexts will be better positioned to win contracts and drive long-term value.

In short, mastering these technologies is now a critical differentiator in the competitive landscape of GovCon. Let’s dive into the critical emerging technologies that are helping governments operate more efficiently and effectively.

Discover business opportunities in these critical emerging technologies at the Potomac Officers Club’s 2025 Navy Summit on August 26! Attend a fascinating “Optimizing Navy Decision-Making with GenAI: Balancing Human Insight With AI Precision” panel. Learn first hand about new AI requirements in information warfare from Vice Adm. Karl Thomas, deputy chief of naval operations for information warfare, N2N6, and director of naval intelligence. Check out the latest offerings from premier industry sponsors such as SAIC and Seekr. Sign up today for this elite GovCon conference specifically designed for technology professionals!

Commercial Satellite Imagery Powered by AI

Satellite networks and AI-driven sensors are revolutionizing how governments detect and respond to crises like wildfires. An initiative called FireSat from the Earth Fire Alliance is providing precise satellite images of wildfires from space leveraging mid-wave and long wave infrared, according to the Washington Post. This is providing governments with breaking information on developing fires and burn scars using bands of infrared light.

From more than 370 miles into space, these satellites can loop millions of miles around Earth each day and demonstrate technology critical to filling technological gaps in how governments fight fires. Private sector contributors to this effort include Google, which is leveraging AI to help sift through the imagery.

FireSat’s goal is to have 50 satellites in orbit by 2030, enough to provide imagery across the world every 20 minutes. The FireSat constellation is already detecting small fires unseen by existing space systems. The EFA plans to launch three additional spacecraft into space by mid-2026 to provide twice daily imagery and coordinate with agencies in states such as Colorado or California to help them fight fires.

Quantum Technologies and Post-Quantum Security

Governments are making massive investments in quantum computing for comprehensive simulations and optimization while prioritizing quantum-resistant encryption standards. Unlike conventional computers, which use bits to solve problems, quantum computers leverage quantum bits that can compute information at a dramatically faster rate.

This could lead to paradigm-shifting advances in realms such as cyber or military operations. As such, the European Union announced in July it would develop plans to pool funding and skills in quantum computing, the Financial Times reported.

As quantum computing advances, so do defenses against its capabilities. Governments are already issuing mandates and legal frameworks for strategies using post-quantum cryptography, or data protection that can resist quantum decryption. But one challenge is that post-quantum cryptography algorithms are not seamless replacements for typical asymmetric algorithms. Modern applications could have performance issues and would require testing.

Agentic AI and Generative AI

Federal agencies seeking to modernize their operations may see generative AI as a way to create efficiencies and upgrade their systems. The General Services Administration announced on Tuesday that three new AI models—Google’s Gemini, OpenAI’s ChatGPT and Anthropic’s Claude—were being added to the federal purchasing list, creating the opportunity for agencies to use these tools, according to Wired.

AI adoption is growing rapidly in the U.K. The National Audit Office, in a report, said 70 percent of respondents from government bodies in 2024 were trialing and planning AI use cases. Government users there are attracted to agentic AI for its potential to improve delivery of public services, TechRadar reported.

Agentic AI could give public sector workers time to focus on higher-value tasks. As an example, it could automatically create responses to citizen queries, process routine paperwork or generate policy documents by summarizing large amounts of legislation and research data.

Cybersecurity and Zero Trust Architectures

The evolution of AI is creating opportunities for bad actors to develop more sophisticated cyber attacks. But it is also allowing the development of more capable AI-based cybersecurity systems, laying the groundwork for new and automated threat detection and heartier encryption algorithms, according to the U.K.’s GovNet Technology.

The adoption of zero trust security architectures has become foundational among federal agencies, meaning no device, nor user, is trusted by default. Agencies are transitioning from perimeter defenses to continuous, identity-first authentication models. Gartner predicts that over 60 percent of public sector organizations will use zero trust as a starting point for security by the end of 2025.

Learn about new Navy emerging technology business opportunities before your competitors by attending the Potomac Officers Club’s 2025 Navy Summit on August 26! Learn how the service is helping small businesses get their technologies into sailors’ hands faster during a keynote address by NavalX Director Capt. Joel Uzarski. Dive into spending priorities for the Golden Dome missile defense program during our panel on the Navy’s role in Golden Dome’s architecture. Strike up collaborations with other GovCon titans to score that big contract. Secure your seat today and prepare for higher GovCon revenues in FY 2026!

Top 4 Emerging Technologies GovCons Must Master
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Tidal McCoy II Named Intelligence Community CFO
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Intelligence Community CFO Tidal McCoy II. McCoy joined ODNI as intelligence community chief financial officer.

The Office of the Director of National Intelligence has appointed Tidal “Ty” McCoy II, most recently a principal at Nexfed, as intelligence community chief financial officer.

McCoy announced his appointment at ODNI in a LinkedIn post published Tuesday.

Tidal McCoy II Named Intelligence Community CFO

Hear experts discuss the latest tech advancements, trends and opportunities facing the IC at the Potomac Officers Club’s 2025 Intel Summit on Oct. 2. Reserve your spot now!

Who Is Tidal McCoy?

In 2022, McCoy joined strategy consulting firm Nextfed as a vice president. At Nexfed, he led the firm’s intelligence and acquisition strategy practice and played a key role in mergers and acquisitions across the defense and intelligence sectors.

Before Nextfed, he spent more than a decade at the CIA, where he held senior acquisition and contracting roles. During his time at the agency, he served as senior acquisitions adviser to the Transnational and Technology Mission Center and helped manage IC’s relationship with In-Q-Tel and the venture capital community. He also led several acquisition organizations for the CIA’s Directorate of Science and Technology.

The Virginia Tech finance graduate is also a champion of acquisition reform and innovation.

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NSF Launches AI-Enabled Programmable Cloud Laboratories Initiative
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NSF TIP Assistant Director Erwin Gianchandani. Gianchandani commented on a national network of programmable cloud labs.

The National Science Foundation has launched an initiative to invest up to $100 million in a national network of artificial intelligence-enabled programmable cloud laboratories as part of efforts to advance automated science and engineering and drive discoveries and innovation.

NSF said Tuesday the Directorate for Technology, Innovation and Partnerships, or TIP, will lead the NSF Test Bed: Toward a Network of Programmable Cloud Laboratories, or NSF PCL Test Bed.

“The idea of a national network of programmable cloud laboratories builds on NSF’s longstanding legacy of transformative investments — such as NSFNET decades ago — that paved the way for the modern internet,” said Erwin Gianchandani, NSF assistant director for TIP.

NSF Programmable Cloud Laboratories Initiative

The NSF PCL initiative will invest in a network of programmable cloud labs that can be accessed remotely to operate user-programmed AI-enabled workflows. The program will initially focus on biotechnology and materials science.

“The PCL initiative will transform how U.S. researchers conduct scientific experiments. It will accelerate scientific progress by advancing AI-enabled technologies that form the backbone of the automated science revolution. This is a crucial step toward addressing the growing need to generate and interpret large volumes of high-quality experimental data in biotechnology, materials science, chemistry and other laboratory sciences,” Gianchandani stated.

NSF TIP expects to make up to six awards to higher education institutions, nonprofit organizations and for-profit organizations. Each award could be worth up to $5 million per year for four years.

The initiative will also invest in training and education by offering participants access to advanced labs in classroom settings.

The PCL Test Bed seeks to facilitate access to advanced scientific equipment, accelerate translation of basic research into industry applications and support the development of automated laboratory methods, including self-driving autonomous experiment workflows.

Full proposals are due Nov. 20.

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Senators Propose Bipartisan Bill Banning Hiring Freezes, Mass Layoffs at Navy’s Public Shipyards
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Shipyard. A proposed bill could ban mass layoffs and hiring freezes at public shipyards

Sens. Jeanne Shaheen, D-N.H.; Maggie Hassan, D-N.H.; Susan Collins, R-Maine; and Angus King, I-Maine have proposed legislation that would spare the Navy’s four public shipyards from workforce reductions. Called the Protecting Public Naval Shipyards Act, the bipartisan bill tells the Department of Defense to exempt certain positions at public shipyards from hiring freezes and layoffs to ensure that nuclear-powered submarine maintenance and overhaul are uninterrupted.

“This bipartisan bill will ensure that important naval operations continue without disruption by exempting public shipyard employees from the chaotic mass firings, workforce reductions, and hiring freezes directed by the Trump Administration,” said Hassan.

Senators Propose Bipartisan Bill Banning Hiring Freezes, Mass Layoffs at Navy's Public Shipyards

Top Navy leaders and experts will discuss the future of naval operations at the Potomac Officers Club’s 2025 Navy Summit on Aug. 26. Register for the in-person event here.

Protecting Public Shipyard Workers

The bill specifically names welders; pipefitters; shipfitters; radiological technicians and engineers; apprentices; mechanics; painters and blasters; and personnel supporting nuclear maintenance and refueling, maintenance and operations of infrastructure, the workforce development pipeline and the Shipyard Infrastructure Optimization Program as needing protection from hiring freezes and layoffs.

Portsmouth Naval Shipyard in Maine, one of the Navy’s public shipyards, needs to recruit 550 personnel annually to better meet demand for submarine maintenance and overhaul. Under President Trump, the Navy intends to hire 1,500 external personnel across all naval institutions per month, which Hassan’s office said is not enough.

Shaheen, who sits as a senior member of the Senate Armed Services Committee and co-chair of the Senate Navy Caucus, previously called on the DOD to exempt the Portsmouth shipyard from hiring freezes, but challenges remain. In a letter to the Office of Personnel Management, Shaheen urged the agency to process civilian personnel who have been hired at the Portsmouth shipyard but are still awaiting onboarding.

The Norfolk Naval Shipyard in Virginia, the Puget Sound Naval Shipyard and Intermediate Maintenance Facility in Washington, and the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility in Hawaii are the three other Navy public shipyards.

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Grand Forks Secures $103M WHS Contract Modification for UAS Operations Support
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Washington Headquarters Services logo. The WHS awarded Grand Forks with a modification to support UAS operations.

Grand Forks County, North Dakota, has landed a modification worth up to $102.8 million to a previously awarded indefinite-delivery/indefinite-quantity contract to support the military’s unmanned aerial systems. The DOD said Thursday that the contracting activity is the Washington Headquarters Services in Arlington, Virginia.

UAS Contract Details

According to the terms of the contract, Grand Forks County will support the development of airspace operations technology and concepts for UAS under the Office of the Under Secretary of Defense for Acquisition and Sustainment. The county will aid in integrating the UAS into routine DOD operations by conducting simulated and live exercises. The contract’s cumulative value is $121.9 million and no funds have been obligated yet. The work is set to be completed by May 19, 2029, and will occur in Grand Forks County, North Dakota.

FAA Approves Airbus Aerial Operations in North Dakota

In 2019, the Federal Aviation Administration authorized Airbus Aerial to operate UAS in the county as part of a public-private program to integrate it into public airspace. The company will use a SenseFly eBee drone to inspect Xcel Energy’s power lines, including beyond-visual-line-of-sight, or BVLOS.

North Dakota is one of 10 communities selected for the UAS Integration Pilot Program, focusing on BVLOS, night operations and flights over people.

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NASA Awards 6 Companies to Conduct Orbital Transfer Vehicle Studies
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Quantum's Ranger spacecraft. NASA selected six companies to conduct studies on orbital transfer vehicles.

NASA has awarded contracts with a total value of $1.4 million to six companies to conduct studies on cost-effective approaches to launching and deploying spacecraft to challenging orbits.

NASA Exploring New Launch & Delivery Approaches

The firm-fixed-price contracts will include nine studies tackling the potential of using orbital transfer vehicles for NASA missions. The selected companies and their studies are:

  • Arrow Science and Technology will leverage Quantum Space’s multi-mission Ranger spacecraft, which has rapid maneuverability and adaptability features, to deliver payloads to various destinations.
  • Blue Origin will conduct two studies on a new Glenn upper stage and Blue Ring, a mobile space platform with hybrid solar-electric and chemical propulsion capability for payload delivery, onboard computing and mission operations.
  • Firefly Aerospace will utilize its Elytra orbital vehicles, including Elytra Dark, for payload delivery, imaging, communications and cislunar space domain awareness.
  • Impulse Space will also conduct two studies involving its Mira and Helios space vehicles.
  • Rocket Lab will also provide two studies on its Neutron rocket and an orbital transfer vehicle based on the Explorer spacecraft. 
  • United Launch Services will evaluate how an extended-duration Centaur V upper stage, designed to transport multiple rideshare payloads to different locations, can support cislunar missions.

Once the studies are completed by mid-September, NASA will leverage the results to guide mission design, planning and procurement strategies for risk-tolerant payloads.

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GSA Adds Three AI Products to Multiple Award Schedule
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General Services Administration logo. GSA announced the addition of three AI products to its Multiple Award Schedule.

The General Services Administration has added three artificial intelligence products to its Multiple Award Schedule in line with the Trump administration’s commitment to advancing the U.S. global leadership in AI.

The products made available to federal, state and local government buyers through MAS, which offers volume discount pricing, are Anthropic’s Claude, Google’s Gemini and OpenAI’s ChatGPT, GSA said Tuesday.

According to GSA Acting Administrator Michael Rigas, providing federal agencies with easy access to cutting-edge AI solutions from the private sector will help transform government operations, including back-office processes and the delivery of mission-critical services, while enhancing employee and citizen experiences.

Responsible AI Adoption

The action, which aligns with America’s AI Action Plan and the administration’s priority to accelerate the availability of AI tools across government, is expected to boost the federal government’s effort to responsibly adopt and scale transformative AI technologies to improve daily workflows and processes.

“GSA is proud to leverage our procurement expertise to advance the President’s AI Action Plan. Through GSA’s marketplace, agencies will be able to explore a wide range of AI solutions, from simple research assistants powered by large language models to highly tailored, mission-specific applications,” said Federal Acquisition Service Commissioner Josh Gruenbaum, a 2025 Wash100 Award recipient.

“As we procure these products, we’re focused on models that prioritize truthfulness, accuracy, transparency, and freedom from ideological bias, aligning with the Trump Administration’s policy that federally procured AI systems must prioritize truth and accuracy over ideological agendas,” he continued.

The agency is inviting all approved AI providers committed to responsible use and compliance with federal standards to join the GSA Schedule.

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DOD Seeks Proposals for Advanced Joint Sustainment Decision Tool
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Department of Defense seal. The DOD is seeking proposals for an advanced logistics support tool.

The Department of Defense has started seeking proposals for a logistics support platform to replace existing systems and address the challenges of modern warfare.

Utilizing Advanced Tech to Boost Military Logistics

The Defense Innovation Unit said the joint sustainment decision tool will leverage advanced technologies such as artificial intelligence and machine learning to enhance logistics planning and implementation. It is expected to provide realistic courses of action options and identify potential risks, enabling commanders to make faster and more informed decisions in contested environments.

The tool must employ agentic workflows capable of reasoning and real-time data adaptation, ensuring AI-generated outputs align with the decision-maker’s objectives. It requires an intuitive interface and must be powered by mathematically and academically verifiable algorithms.

The DOD will prioritize AI-driven platforms capable of storing, tracking and distributing mission-critical resources such as munitions, bulk fuel, and fueling enablers like air tankers and trucks. These platforms must also support the evacuation of casualties and patients, chain-of-custody visibility, staging for medical materiel, and sourcing of critical spare parts.

The new platform will replace Joint Logistics Enterprise, or JLEnt, the current global logistics network used by the DOD to sustain global forces, which is not equipped to meet changes in strategic competition and large-scale combat operations.

Interested vendors can submit their responses until Aug. 14.

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