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GAO Identifies Key Challenges in Federal AI Procurement in New Report
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Government Accountability Office logo. A GAO report identified challenges federal agencies face in acquiring AI

Federal agencies are expanding their use of artificial intelligence, but a new Government Accountability Office report identified key challenges in buying and deploying the technology.

GAO Identifies Key Challenges in Federal AI Procurement in New Report

Leaders from GAO, the Pentagon and other agencies will explore the challenges in deploying AI in federal and mission-critical systems at the Potomac Officers Club’s 2026 Digital Transformation Summit on April 22. The event is dedicating multiple panels to AI, reflecting the technology’s growing adoption in the public sector to support operations and decision-making. You can still get your tickets here.

What Challenges Do Agencies Face in AI Procurement?

Officials interviewed for the report, issued Monday, cited several barriers to effective AI procurement, including limited access to technical experts such as data scientists who can evaluate vendor proposals and assess the performance of AI systems. Agencies also reported difficulty understanding AI-related costs.

GAO also found that agencies are not systematically collecting or sharing insights from past procurements. In 2025, the Office of Management and Budget issued guidance for the responsible procurement and use of AI, requiring agencies to submit best practices, knowledge and resources about AI acquisitions to a shared web-based repository. However, the General Services Administration, the Department of War, the Department of Homeland Security and the Department of Veterans Affairs cannot comply with the rule due to existing internal policies that prohibit them from collecting lessons learned.

GAO warned that agencies may miss opportunities to identify best practices or avoid repeating mistakes.

The watchdog urged agencies to update policies to require the collection and sharing of acquisition insights. 

How Are Agencies Acquiring AI Technologies?

The report also detailed the various approaches agencies use to acquire AI capabilities. Some agencies pursue agency-directed procurements by issuing contracts for specific requirements, while others adopt vendor-driven approaches in which companies introduce AI capabilities without pre-defined needs.

Agencies also vary in how they structure agreements. While traditional contracts remain common, some organizations use alternative agreements outside the Federal Acquisition Regulation to acquire advanced capabilities. In addition, some agencies are opting for AI-as-a-service, in which the vendor provides capabilities on an ongoing basis, rather than acquiring software. 

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Army Selects IS4S, GPS Source for Assured PNT NorthStar Prototype Effort
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US Army seal. The U.S. Army awarded contracts to develop next-gen mounted assured PNT capabilities.

The U.S. Army has awarded contracts worth up to $41 million to IS4S and GPS Source to develop next-generation mounted positioning, navigation and timing capabilities under the NorthStar program.

Issued by Army Contracting Command at Aberdeen Proving Ground, the other transaction authority agreements support a 36-month prototyping effort, the Army said Monday. 

Army Selects IS4S, GPS Source for Assured PNT NorthStar Prototype Effort

Register now for the 2026 Army Summit, hosted by the Potomac Officers Club on June 18, to hear Army officials and industry leaders discuss how the service is restructuring its approach to resources, contracting and technology modernization. The event will provide insight into progress toward the Army’s 2030 goals, including efforts to establish and sustain a unified network.

What Does the NorthStar Program Aim to Deliver?

The NorthStar effort is focused on developing a modular, upgradable assured PNT capability designed for Army 2040 ground platforms and built on a modular open systems approach to enable integration of emerging technologies.

“Awarding to multiple vendors encourages competition, speeds up implementation and integration of new technology to meet emerging threats, and reduces cost of engineering change proposals,” said Erik Scott, product manager for PNT modernization. “Prioritizing a modular system design for hardware and software ensures the best value for the government and the best solution for our Warfighters.”

The Army plans to begin contract kickoffs in May, followed by design reviews and soldier touchpoints to refine system performance in operational environments.

How Does This Fit Into Broader Army PNT Modernization?

The NorthStar initiative builds on ongoing Army efforts to strengthen assured PNT capabilities in contested environments where GPS signals may be degraded or denied.

Army organizations have already fielded thousands of systems and upgrades to improve resilience, including more than 2,500 ground-based assured PNT systems and approximately 27,000 M-Code-capable receivers deployed in 2024.

These efforts include software updates to legacy systems such as the Defense Advanced GPS Receiver and Ground Based-GPS Receiver Application Modules, enhancing survivability when paired with anti-jam technologies.

Introduced in 2023, the NorthStar program drew responses from 27 vendors, shaping requirements for multiple capability tiers and ultimately leading to a multi-vendor award strategy.

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Former Deputy ASA(ALT) Young Bang Appointed President of Two Six Technologies
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Young Bang. The former deputy ASALT has been appointed president at Two Six Technologies.

Young Bang, former principal deputy assistant secretary of the Army for acquisition, logistics and technology, has been appointed president of Two Six Technologies, the company told ExecutiveGov on Tuesday.

In the role, Bang, who is a recipient of the prestigious Wash100 Award, will lead operating teams across the company’s digital advantage, trusted electronics and effects, and research divisions. He will oversee contract execution, customer growth across the Department of War and intelligence community, and development of mission-focused technology solutions.

The company also named Amy Dalton as chief operating officer and Becky Fair as chief product officer, expanding their responsibilities within the executive team.

“I am excited to announce expanded roles for Young Bang, Amy Dalton, and Becky Fair within our executive leadership team,” CEO Joe Logue said. “As Two Six continues to grow rapidly, these outstanding leaders will maintain our focus on rapid innovation, mission-ready products, and flawless execution for our customers.”

What Did Young Bang Say About the Appointment?

Bang highlighted his enthusiasm for the role and its alignment with his national security focus in a statement shared exclusively with ExecutiveGov.

“I’m super excited for the opportunity with Two Six. Where else can I combine my passion for national security and the Great Power Competition and my passion to create exquisite (non-kinetic) capabilities for the warfighter?” he said. “Two Six’s commitment to people and mission totally resonates with me! I couldn’t be at a better organization!”

Who Is Young Bang?

Bang is a defense and technology leader with experience across government, industry and military service. He served as principal deputy assistant secretary of the Army for acquisition, logistics and technology from 2022 to 2025, where he helped drive modernization of Army acquisition processes and more flexible contracting approaches.

Following his Army tenure, he joined The Carlyle Group as an operating executive and joined Two Six in December as an executive vice president and special adviser. His appointment as president marks a promotion within the company.

Earlier in his career, Bang spent nearly 16 years at Booz Allen Hamilton, rising to senior vice president, and later served as chief growth officer at Atlas Research.

A U.S. Military Academy graduate, Bang served as a U.S. Army captain.

Former Deputy ASA(ALT) Young Bang Appointed President of Two Six Technologies
Young Bang addresses Potomac Officers Club’s 2024 Army Summit, while he was still in the principal deputy ASA(ALT) role. Photo: Executive Mosaic

Young Bang’s Potomac Officers Club Engagements

Bang has been a repeat speaker at Potomac Officers Club events, including keynote appearances at the 2024 Army Summit and the 2025 Artificial Intelligence Summit.

At the 2024 Army Summit, he outlined the Army’s push to modernize acquisition processes and adopt more agile, flexible contracting strategies. He emphasized the importance of industry collaboration to accelerate capability delivery, noting that working with commercial partners can “help to accelerate prototypes to really supercharge the productions that we need.”

He also highlighted efforts to move beyond strict reliance on firm-fixed-price models in favor of approaches better suited to software and service-based procurements, reflecting a broader shift in acquisition strategy.

What Is Two Six Technologies?

Two Six Technologies provides products and expertise to national security customers, addressing challenges in cyber, information operations, electronic systems, secure communications and zero trust.

The company supports the Department of War, intelligence community and civilian agencies through a portfolio of software and hardware offerings, along with contract vehicles totaling more than $1.5 billion in aggregate single-award ceiling.

Headquartered in northern Virginia, Two Six employs approximately 900 professionals across 38 states.

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VA Deploys Federal EHR System at 4 Michigan Hospitals
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VA Deputy Secretary Paul Lawrence. The Department of Veterans Affairs has deployed the Federal EHR system across Michigan.

The Department of Veterans Affairs has rolled out the Federal Electronic Health Record, or EHR, system at four medical facilities in Michigan, marking its initial deployment since the program was paused in 2023.

Where Has the Federal EHR System Been Deployed?

The Federal EHR system was launched April 11 at the VA Ann Arbor Healthcare System, VA Battle Creek Medical Center, VA Detroit Healthcare System and VA Saginaw Healthcare System. This deployment represents the first group of 13 planned implementations scheduled for 2026 under an accelerated timeline. In addition to the four Michigan facilities, the department has identified nine more medical facilities for deployment.

“These first EHR deployments in 2026 represent real progress toward a unified electronic health record that strengthens care delivery for our patients and providers,” said VA Deputy Secretary Paul Lawrence. “With our Michigan sites now live, we are building strong momentum as we prepare for the next wave of implementation.”

What Benefits Does the System Provide?

Veterans in Michigan can now access streamlined sharing of military and private-sector health records, reducing duplicative testing and allowing providers to spend more time with patients. The system also enhances coordination across VA facilities, supports the sharing of best practices and strengthens continuity of care, including during transfers and emergency visits.

How Did VA Prepare for the Rollout?

The department said it fixed hundreds of issues from earlier deployments, standardized the system across facilities and simplified decision-making by consolidating oversight under a single council. VA also hired additional staff and engaged directly with local facility leaders to ensure readiness.

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Ryan McArthur Appointed Special Adviser to DOW CIO
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Ryan McArthur. Zscaler’s former CTO for public sector has been named special adviser to the CIO.

Kirsten Davies, the Department of War’s chief information officer and a 2026 Wash100 awardee, has announced the appointment of Ryan McArthur, former chief technology officer for public sector at Zscaler, as special adviser to the CIO for capability development and operational excellence as part of a broader set of appointments within the CIO office.

Ryan McArthur Appointed Special Adviser to DOW CIO

Davies is set to deliver a keynote speech at the 2026 Digital Transformation Summit. Sign up now for the April 22 event to hear experts discuss how data, AI and enterprise IT initiatives are transforming government operations.

In this role, McArthur will provide counsel on emerging technologies and support efforts to advance complex cyber and IT initiatives across the department’s portfolio. He will also help guide modernization efforts aligned with the “Arsenal of Freedom” initiative of Secretary of War Pete Hegseth, a 2026 Wash100 Award recipient, the Office of the DOW CIO said in a LinkedIn post over the weekend.

Who Is Ryan McArthur?

McArthur most recently served as federal CTO at Zscaler, where he focused on advancing zero trust and cloud security capabilities across defense, intelligence and federal civilian agencies.

His government experience includes work with the Department of War and the Defense Information Systems Agency, where he oversaw the $9 billion Joint Warfighting Cloud Capability effort. He also served as a technical adviser to the DOW CIO and the U.S. Marine Corps.

McArthur is a retired U.S. Army signal chief warrant officer and an Operation Enduring Freedom veteran.

In a statement published on LinkedIn, McArthur said he valued his time at Zscaler, highlighting collaboration across government, industry and mission partners. He also expressed appreciation for the partnerships developed during his tenure.

Who Else Joined the DOW CIO Office?

Davies also announced the appointment of several additional leaders to key roles within the CIO office.

  • Kayla Huthoefer Nelson, Chief of Staff. In this role, Huthoefer will support executive decision-making, organizational coordination and leadership priorities across the department’s IT, technology and digital modernization enterprise, including oversight of OCIO operations and strategy. She brings experience spanning government, the defense industrial base and venture-backed defense technology. 
  • Marci McCarthy, Director of External Engagements. In this capacity, McCarthy will lead strategic communications and engagement with industry, international allies and partners to support innovation efforts tied to the Arsenal of Freedom. She previously served as director of public affairs at the Cybersecurity and Infrastructure Security Agency, where she led media strategy as a presidential appointee and agency spokesperson. 
  • David Vaughn, Technical Adviser for Data Infrastructure. In this role, Vaughn will provide expertise on data and artificial intelligence infrastructure initiatives. He previously held roles across cyber operations, intelligence and enterprise risk management during a nearly three-decade career, including service as a U.S. Army chief warrant officer 4.
  • Vishal Aswani, Special Adviser for Transformation. In this capacity, Aswani will support organizational change and business process reengineering efforts to improve agility within OCIO. He most recently served as chief of staff to the DOW CIO.
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Maj. Gen. Robert Kinney on DIA’s Digital Modernization Accelerator for AI
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Maj. Gen. Robert Kinney. DIA’s chief AI officer said the agency is centralizing AI efforts through DMA.

Maj. Gen. Robert Kinney, chief artificial intelligence officer at the Defense Intelligence Agency, said the agency is centralizing its AI efforts through a new organization designed to improve coordination and speed up capability delivery, Breaking Defense reported Friday.

Maj. Gen. Robert Kinney on DIA's Digital Modernization Accelerator for AI

DIA’s push to streamline AI efforts through a new centralized unit reflects a broader shift toward faster, more coordinated digital capabilities across the national security landscape. Explore these trends at the 2026 Digital Transformation Summit, which will feature panel discussions on AI in mission-critical environments and the digital backbone of defense modernization. Register now!

What Is the Digital Modernization Accelerator?

According to the report, DIA established the Digital Modernization Accelerator, or DMA, on March 1 as a permanent organization to centralize AI and technical expertise.

DMA, which evolved from Task Force Sabre, operates under a “hub-and-spoke” model to support DIA directorates and combatant commands worldwide. Kinney said the organization, nicknamed the “Maverick Accelerator,” helps consolidate scarce expertise and deploy technical support more efficiently.

What Is Task Force SABRE?

Task Force SABRE served as the precursor to the DMA, operating as a 25-person team with a 12-month mandate to advance AI adoption and accelerate reform efforts.

Kinney, who also serves as DIA’s mobilization assistant, said the task force helped the agency adopt faster acquisition approaches, including the use of other transaction authority agreements. Through Task Force Sabre, he noted that DIA executed six OTAs over the past year, including one that moved from request for information to contract award in 40 days.

He also mentioned the development of ChatDIA, the agency’s classified generative AI chatbot that was initially deployed in the fall of 2025 before expanding its use in December.

What Are DIA’s Plans for Agentic AI?

Kinney said the agency’s next goal is to implement agentic AI capable of acting as a semi-autonomous assistant to humans.

“Our intention is to take the applications we’re building, tie them together and build agents,” he said. “We’re moving very rapidly towards [deploying] agents in the classified fabric.”

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Air Force Seeks Industry Partners for AI Data Center Development in Alaska
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Department of the Air Force logo. DAF has issued a request for lease proposals for the development of AI data centers.

The Department of the Air Force has announced its pursuit of industry partnerships to develop and operate advanced artificial intelligence data centers across three installations in Alaska, the U.S. Space Force said Friday.

Air Force Seeks Industry Partners for AI Data Center Development in AlaskaRegister today for the Potomac Officers Club’s 2026 Air and Space Summit on July 30 to hear how the U.S. Air Force and Space Force are leveraging AI and advanced technologies to strengthen capabilities and maintain superiority in the evolving air and space domains.

What Is the Scope of the DAF AI Data Center Request?

DAF has issued a request for lease proposals on SAM.gov outlining plans to make about 4,700 acres of land available at Joint Base Elmendorf-Richardson, Eielson Air Force Base and Clear Space Force Station. The effort is structured under the Enhanced Use Lease model, which allows the Air Force to lease underutilized property for commercial purposes in exchange for financial returns.

Under the proposal, selected partners would build and manage one or more AI data centers on designated parcels. The project includes 12 identified parcels for possible development. The chosen developer will oversee all phases, from financing and permitting to construction and sustained operations.

“By making this land available, we are supporting the growing demands of the AI industry while generating value that directly supports our missions and the readiness of our Airmen and Guardians,” said Robert Moriarty, deputy assistant secretary of the Air Force for Installations.

How Can Industry Partners Engage With DAF?

The service will host a virtual industry day on April 23 to provide details regarding the proposal process and engage with potential offerors. Interested contractors can also participate in in-person tours of the proposed sites. Tours are scheduled for Joint Base Elmendorf-Richardson on April 28, Clear Space Force Station on April 29 and Eielson Air Force Base on April 30.

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CMS Rolls Out Digital Health Tools to Advance Patient-Centered Care
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CMS logo. CMS has launched the first wave of its HealthTech Ecosystem tools.

The Centers for Medicare & Medicaid Services has launched the first wave of its HealthTech Ecosystem tools, introducing new digital capabilities designed to modernize healthcare delivery and improve patient access to data and services.

The rollout includes a new Medicare App Library, foundational infrastructure and an initial set of patient-facing applications aimed at reducing administrative burden and enabling more connected, digital-first care, CMS said Thursday.

CMS Rolls Out Digital Health Tools to Advance Patient-Centered Care

The Potomac Officers Club’s 2026 Digital Transformation Summit on April 22 will feature discussions on AI, cybersecurity and enterprise IT, as well as efforts to enhance service delivery and accessibility across federal programs. Register now!

What Tools Are Included in the First Wave?

Unveiled at the HealthTech Ecosystem Live! First Wave Launch event, the tools were provided by over 50 companies, with many applications currently live or slated for immediate release.

Key capabilities include digital check-in tools that allow patients to securely share information via mobile devices, as well as personalized applications that support wellness, nutrition and chronic disease management beyond traditional care settings.

CMS said the initiative is designed to replace outdated processes such as paper forms and manual data entry with interoperable, user-friendly digital solutions.

How Does the HealthTech Ecosystem Work?

The ecosystem is built on shared standards for identity, security and interoperability, enabling patients to access and share health data across multiple platforms.

CMS will further enhance the ecosystem with plans to introduce core infrastructure components, including a national provider directory and expanded data sharing capabilities, to support integration across providers, payers and technology developers.

More than 700 organizations have reportedly pledged support for the initiative, reflecting broad industry alignment around a common digital framework.

Why Is CMS Prioritizing Digital Transformation?

“For too long, Americans have navigated a health system that lags behind the technology they use everywhere else,” said CMS Administrator Mehmet Oz. “Today, CMS is bringing healthcare into the modern era—aligning innovators to deliver solutions that make care easier, more connected, and more personalized.”

The initiative also aligns with broader federal efforts to modernize healthcare through advanced technologies, including artificial intelligence and data platforms that support more efficient and personalized care delivery.

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Space Force Issues Core Enlisted Framework to Chart Career Path for Guardians
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U.S. Space Force logo. The Space Force's Core Enlisted Framework outlines the career path of service members

The U.S. Space Force has introduced a new framework that outlines a structured path to guide the development of its enlisted force and create future leaders capable of operating in a contested space domain.

Space Force Issues Core Enlisted Framework to Chart Career Path for Guardians

The U.S. Space Force is accelerating its transformation into a warfighting service capable of defeating adversaries and achieving superiority in a contested space domain. Find out the capabilities that the Space Force needs from industry to achieve its mission at the Potomac Officers Club’s 2026 Air and Space Summit on July 30. Top Department of War and Space Force leaders will be present at the event to share insights, provide updates on ongoing initiatives and identify new priorities. Get your tickets today.

What Is the Space Force Core Enlisted Framework?

The Core Enlisted Framework, published Friday, serves as a career-long roadmap for guardians, defining how they evolve from tactical specialists, or E-1 to E-4, to operational leaders and strategic thinkers. According to the Space Force, enlisted personnel begin their careers by mastering foundational skills at the entry level before progressing into leadership and mentorship roles as non-commissioned officers.

At higher levels, guardians transition into broader operational leadership roles, with master sergeants, or E-7, expected to integrate deep technical expertise with mission execution and organizational leadership. Senior enlisted leaders eventually become specialty-agnostic, enabling them to take on institution-wide responsibilities.

“This framework is intended to cultivate the skills we need in our world-class master sergeants,” John Bentivegna, chief master sergeant of the Space Force, stated. “The Space Force of the future will need guardians who are subject matter experts, but also experienced at teaching, training, and mentorship. If we get this development right, we will naturally have the talent to cultivate E-8 and E-9s. But it all starts with ensuring our force understands their role at every level.”

Senior master sergeants and chief master sergeants are designated E-8 and E-9, respectively, Military.com reported.

The framework aligns with the Space Force’s Vector 2025, which guides the service’s transition into a highly skilled warfighting organization. Issued in November, Vector listed force development as a service-level activity critical to achieving its mission to achieve and maintain space superiority.

What Key Skills Must All Guardians Master?

The Core Enlisted Framework also identified several competencies essential across all ranks: 

  • Initiative 
  • Critical thinking and problem-solving
  • Outcome focus
  • Team-mindedness
  • Leadership

According to the Space Force, the skills will help guardians operate effectively in complex environments, make informed decisions and collaborate across teams to achieve mission success.

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NASA Launches Northrop Grumman Cygnus XL to Deliver Supplies to the ISS
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SpaceX's Falcon 9. The Northrop Grumman CRS-24 resupply mission launched aboard the SpaceX Falcon 9 on Saturday

NASA has launched Northrop Grumman’s Cygnus XL spacecraft on a SpaceX Falcon 9 to deliver crew supplies and science and technology demonstrations to the International Space Station.

On Saturday, the Falcon 9 lifted off from Space Launch Complex 40 at Cape Canaveral Space Force Station in Florida for the Northrop Grumman Commercial Resupply Services 24, or CRS-24, mission.

Once it arrives at the ISS, Cygnus XL will be installed on the Unity module to unload cargo. The Northrop spacecraft will remain docked with the orbiting laboratory until October.

NASA Launches Northrop Grumman Cygnus XL to Deliver Supplies to the ISS

Northrop Grumman CRS 24 exemplifies the growing collaboration between the public and private sectors to support national priorities. At the Potomac Officers Club’s 2026 Air and Space Summit on July 30, defense and industry leaders will convene to explore opportunities for partnerships and advance the development of new capabilities that will ensure U.S. leadership in the air and space domains. Register today to secure your seat. 

What Experiments Did the Northrop Grumman CRS-24 Mission Deliver to the ISS?

Northrop Grumman CRS-24 is carrying approximately 11,000 pounds of cargo, including dozens of scientific investigations to be conducted during Expedition 74/75 aboard the ISS.

Among the payloads is a new module for the Cold Atom Lab, which could advance quantum computing and contribute to dark matter research. Cygnus XL is also transporting a receiver that could enhance space weather models to help protect critical space-based infrastructure, such as GPS and radar systems.

Additional research includes model organisms to study the gut microbiome and hardware that could enable the increased production of therapeutic stem cells for treating blood diseases and cancer.

What Is Cygnus XL?

Cygnus XL is the latest iteration of Northrop Grumman’s Cygnus spacecraft line. First flown in 2025, the space resupply freighter offers approximately 33 percent more cargo capacity than previous variants.

In addition to transporting supplies and experiments, Cygnus XL can provide orbital reboost capabilities to help maintain the ISS’ altitude and stability.

“With every resupply mission, we’re evolving our technology and proving that Northrop Grumman is the go-to partner for the future of the commercial low Earth orbit economy,” David Schiller, vice president for civil space and sciences at Northrop Grumman, stated. “We’re committed to remaining a reliable partner for humanity’s exploration of space.”

The Cygnus program has delivered more than 158,000 pounds of cargo to the ISS since 2013, according to the company

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