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War Department Plans to Cap IT Products Purchased Through Resellers
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The Department of War's logo. DOW plans to put a price cap on certain IT products procured through resellers

The Department of War plans to impose a 5 percent cap on fees that value-added resellers charge for certain IT products, according to a draft memo obtained by Federal News Network.

The undated document from Michael Duffey, under secretary of war for acquisition and sustainment, said the change will affect IT products under special item number, or SIN, 3341 sold through the General Services Administration’s schedule contract.

SIN 3341 covers the acquisition of new electronic equipment, such as desktops and laptops, storage devices, servers, routers, switches, and audio, video and communications equipment.

War Department Plans to Cap IT Products Purchased Through Resellers

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What Are the Acquisition Changes DOW Wants to Implement?

DOW is not the only agency looking into government purchase of IT products from value-added resellers. In June, GSA sent a letter to 10 companies to understand the role of value-added resellers and to figure out how original equipment manufacturers can sell directly to the government.

Sources also told Federal News Network in October that GSA also plans to cap markups at 5 percent, but there will be exceptions that would require approval from contracting officers.

Duffey referenced GSA’s plan in the draft memo, adding that DOW contracting officers will “determine fair and reasonable pricing by considering the unique factors of a given acquisition.”

“Finally, and in general, we will apply the same common-sense approach to avoid paying excessive pass-through costs and avoid paying non or low-value added price markups across the complete range of the procurement,” the official added.

The Pentagon will also require value-added resellers to disclose the manufacturer’s price and percentage markup in price proposals. Vendors will need to submit justifications for markups above 5 percent.

What Other Actions Has the Government Taken to Save Taxpayer Dollars?

Since President Donald Trump took office in January, the government’s procurement processes have undergone changes to save taxpayer dollars.

In September, for instance, GSA established the Office of Centralized Acquisition Services, or OCAS, within the Federal Acquisition Service to coordinate and consolidate the purchase of common goods and services. OCAS is expected to reduce duplicative purchases and save money by taking advantage of the government’s buying power.

The Department of Government Efficiency also recently revealed that several agencies canceled 103 contracts with a total ceiling value of $4.4 billion, resulting in up to $103 million in savings.

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LLNL Tests Weapons-Grade Plutonium to Evaluate If Nuclear Warheads Can Survive Enemy Defenses
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Kim Budil, director of LLNL. Budil said the recent experiment support nuclear deterrence efforts

Researchers from the Lawrence Livermore National Laboratory in California have conducted an experiment at its National Ignition Facility, or NIF, to see if U.S. nuclear warheads, such as the W87-1, can survive attacks from enemy missile defense systems.

During the test, LLNL said Monday that it used weapons-grade plutonium samples that were exposed to pulsed thermonuclear neutron radiation to mimic the extreme conditions a warhead may encounter when entering enemy territory.

“By directly exposing these plutonium samples to extreme environments that are only possible at NIF, we are producing unmatched scientific data that will guide the future of the deterrent,” stated Kim Budil, director of the LLNL.

How Did LLNL Perform the Test?

The test utilized small samples extracted from a legacy W87-0 warhead pit from the late 1980s and from a newly produced W87-1 pit at Los Alamos National Laboratory. According to LLNL, the samples were sealed within specialized hardware and placed inside a high-fluence 14-megaelectron-volt neutron environment.

A cryogenic-compatible X-ray, neutron and blast snout, or CryoXNBS, enabled researchers to expose the samples to high thermonuclear fusion neutron fluences and collect data from the experiment. CryoXNBS is a diagnostic enclosure that features a 22-kilogram steel case and real-time diagnostics.

How Is LLNL Advancing the US Nuclear Stockpile Modernization?

Data from the experiment will be shared with the National Nuclear Security Administration in support of the government’s effort to modernize the U.S. nuclear stockpile for deterrence.

LLNL is also working on the W87-1 nuclear warhead to replace the aging W78, which was first introduced in 1979. The government plans to use the W87-1 on the Air Force’s Sentinel intercontinental ballistic missile. The warhead is expected to be ready for deployment in the 2030s.

The test also follows a recent directive from President Donald Trump to start testing nuclear weapons. According to the president, while the U.S. maintains the largest nuclear arsenal in the world, other countries are conducting nuclear testing.”

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Commerce Dept Signs LOI With xLight for Free-Electron Laser Prototype
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Secretary of Commerce Howard Lutnick. The Commerce Department partnered with xLight to build free-electron-laser prototype.

The Department of Commerce’s CHIPS Research and Development Office signed a non-binding letter of intent with xLight to offer up to $150 million in proposed federal incentives through the CHIPS and Science Act.

The National Institute of Standards and Technology said Monday the award supports the construction and demonstration of a free-electron laser, or FEL, prototype for extreme ultraviolet lithography.

“With the support from Commerce, our investors, and development partners, xLight is building its first free-electron laser system at the Albany Nanotech Complex, where the world’s best lithography capabilities will enable the research and development that will define the future of chip manufacturing,” said Nicholas Kelez, CEO and chief technology officer of xLight. 

How Will xLight’s Free-Electron Laser System Impact the Semiconductor Industry?

The FEL system is designed to serve as an alternative light source for EUV lithography, enabling high-volume production of semiconductors beyond the 7-nanometer node. It has the potential to advance lithography performance, productivity and cost-efficiency in commercial fabs.

“xLight’s FEL platform represents the kind of breakthrough innovation that restores American leadership, secures our supply chains, and guarantees that the next generation of semiconductors is born in the United States. This is the CHIPS program at its best,” said Secretary of Commerce Howard Lutnick.

xLight intends to test its prototype at the Albany Nanotech Complex with non-profit NYCreates starting in 2028. The project will use current EUV lithography machines and the facility’s research ecosystem to explore next-generation semiconductor manufacturing.

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NNSA Requests Industry Feedback on AI Capabilities for National Security
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NNSA logo. NSNA issued a request for information to identify potential applications of artificial intelligence capabilities.

The National Nuclear Security Administration has issued a request for information to identify potential applications of artificial intelligence capabilities that support its mission, advance scientific research and strengthen national security.

NNSA Requests Industry Feedback on AI Capabilities for National Security

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“This RFI is a critical step in harnessing the immense power of AI to enact the White House’s vision for America to lead in every aspect of AI,” said NNSA Administrator Brandon Williams in a press release published by the Department of Energy.

How Will the RFI Advance the Genesis Mission?

According to a sources sought notice posted Monday on SAM.gov, NNSA seeks to embed advanced AI technologies into its core operations to streamline nuclear weapons development and address emerging global threats. The RFI will prioritize classified AI development and deployment capabilities, data curation management for AI training, AI model development, partnership models and operational considerations. Responses to the notice will be accepted until Jan. 23, 2026.

The effort aligns with the Genesis Mission executive order issued on Nov. 24, which mandates the creation of a unified AI platform designed to leverage federal scientific datasets for training foundation models and developing AI agents to advance hypothesis testing, streamline research processes and drive scientific innovation.

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DLA Announces Acquisition Overhaul, Supply Chain Digitization Plans
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Defense Logistics Agency logo. DLA detailed its acquisition overhaul plan during an industry briefing.

The Defense Logistics Agency used its latest industry meeting to outline a strategic transformation effort meant to reshape acquisition, modernize supply chains and accelerate how the agency supports warfighters in contested logistics environments, the agency said Monday.

During the Demand Forecast and Industry Association Leadership Meeting on Nov. 17, DLA Vice Director Bradley Bunn said the agency is aligning with the Pentagon’s new acquisition transformation strategy, which calls for shifting from a compliance-driven model to one centered on speed, commercial offerings and rapid capability delivery. The approach is designed to help the department field technology faster than adversaries, expand production capacity for critical systems and munitions, and move the defense acquisition system toward a wartime footing.

Bunn said structural changes across the department will focus on how major defense systems are procured, sustained and delivered. “A focus on speed and a sense of urgency around velocity to bring capability to bear” will guide the reforms, he told attendees.

How Is DLA Modernizing Its Supply Chain?

DLA leaders highlighted efforts to digitize all segments of the agency’s global supply chains, with new investments in advanced data analytics to improve demand forecasting, scenario analysis and risk mitigation.

Army Brig. Gen. Sean Kelly, commander of DLA Troop Support, said digitization will likely be the agency’s most significant area of partnership going forward.

What Demand Trends Is DLA Seeing?

According to DLA’s acquisition director, Matthew Beebe, contract obligations rose in fiscal year 2025 and are expected to continue climbing in FY 2026, driven largely by increased activity within DLA Weapons Support and DLA Troop Support. Supplier participation also expanded, with more than 8,500 industrial base suppliers supporting DLA this year—the first increase since 2016.

Demand remains volatile due to COVID-19 impacts, working capital fund constraints, operational support to Ukraine and Israel, and U.S. disaster response efforts.

For FY 2026, DLA projects:

  • A 13 percent increase in demand for weapons support
  • An 11 percent decrease for troop support
  • A 4 percent increase in energy demand

Service contract spending is expected to reach about $5 billion during the period, led by facility services, logistics and IT.

How Is DLA Engaging Industry as Requirements Grow?

Leaders emphasized that collaboration with suppliers will be essential as the agency reforms acquisition processes and digitizes its logistics enterprise. DLA urged companies to participate in data-sharing efforts, wargames and exercises, and to provide feedback on DLA processes.

“We can’t do our mission without you,” DLA Director Lt. Gen. Mark Simerly told attendees.

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Ralph Abraham Appointed as CDC Principal Deputy Director
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Ralph Abraham. Louisiana’s surgeon general has been named CDC’s principal deputy director.

Ralph Abraham, a former Louisiana health official, has been named principal deputy director at the Centers for Disease Control and Prevention, The Hill reported Tuesday.

According to the publication, an internal CDC directory lists Abraham’s name, although it remains unclear when he began the job. The email associated with him at the agency was not functional.

Ralph Abraham Appointed as CDC Principal Deputy Director

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Who Is Ralph Abraham?

In 2024, Abraham was named surgeon general of the Louisiana Department of Health.

In this capacity, he was responsible for developing health policy, advancing wellness and disease prevention, and coordinating with other state agencies to improve health outcomes in Louisiana, according to his profile.

He served three terms in Congress for Louisiana’s 5th Congressional District. 

He practiced as a veterinarian for a decade and earned his medical degree from the Louisiana State University School of Medicine.

Abraham is a general family practitioner, aviation medical examiner and flight instructor who served in the Mississippi National Guard Special Forces from 1986 to 1989, according to his congressional biography.

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USPTO Releases Updated Guidance for AI-Assisted Inventions
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Artificial intelligence. The USPTO issued updated guidance for AI-assisted inventions.

The U.S. Patent and Trademark Office within the Department of Commerce has issued revised guidance on determining the patentability of an invention created with the help of artificial intelligence systems.

In a Federal Register notice published on Friday, the USPTO stated that it is rescinding the February 2024 inventorship guidance for AI-assisted inventions.

USPTO Releases Updated Guidance for AI-Assisted Inventions

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What Standards Govern Joint Inventorship in AI-Assisted Innovation?

According to the latest guidance, the Pannu factors do not apply when “only one natural person is involved in developing an invention with AI assistance because AI systems are not persons and therefore cannot be ‘joint inventors’ so there is no joint inventorship question to analyze.”

Pannu factors help determine whether an individual has made a meaningful and inventive contribution sufficient to be named a co-inventor.

The guidance considers AI systems as “analogous to laboratory equipment, computer software, research databases, or any other tool that assists in the inventive process.”

Although they may generate ideas and offer services, AI systems remain tools used by the human inventor, according to the guidance.

When several individuals contribute to an invention that was developed with the help of AI, the standard rules for determining joint inventorship still apply. According to the guidance, this includes assessing each person’s contribution to the claimed invention using the Pannu factors.

USPTO noted that in addition to utility patents, the guidance also applies to design and plant patents as well as patent applications.

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New ARPA-H Director Details Health Tech Initiatives, Pushes for Broader Partnerships With Innovators
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Alicia Jackson, director of ARPA-H. Jackson issued a new letter addressed to the ARPA-H community

Alicia Jackson, the new director of the Advanced Research Projects Agency for Health, identified recent ARPA-H initiatives and called for innovators to introduce new technologies that can improve the nation’s healthcare systems in a letter addressed to stakeholders.

What Projects Has ARPA-H Launched So Far?

One of the achievements that Jackson identified in the letter is the Universal Patching and Remediation for Autonomous Defense, or UPGRADE, a program that aims to develop automated cyber defense tools for hospitals.

UPGRADE, launched in November, has already identified performer teams that will work on projects addressing vulnerabilities associated with medical devices.

“Since my arrival only one month ago, we’re back in business and taking the bull by the horns: we’ve launched and awarded efforts spanning the gamut of health, from distributed biomanufacturing of genetic medicines, to automated cyber patches for our embattled hospitals, to new tools that will make the United States the safest place to have a baby,” Jackson, who was appointed ARPA-H director in October, wrote in the letter.

New ARPA-H Director Details Health Tech Initiatives, Pushes for Broader Partnerships With Innovators

What other technologies are revolutionizing federal healthcare? Find out at the Potomac Officers Club’s 2025 Healthcare Summit on Feb. 12. The event will feature leaders from the Defense Health Agency, National Institutes of Health, and other government and industry organizations to discuss healthcare innovation and modernization of IT systems. Secure your tickets to this critical GovCon summit today.

What Is ARPA-H Seeking From Innovators?

The agency leader also stressed the role of industry to advance the mission of ARPA-H. She noted some recent technologies developed to improve healthcare, such as 3D-printing organs, a tool that enables joints to heal, and a platform that can predict drug safety and efficacy prior to clinical trials.

Jackson is inviting researchers, start-ups and companies to engage with ARPA-H through upcoming Proposers’ Days and join open funding opportunities.

“By convening and inspiring the best innovators from around the world, we strive to make the seemingly impossible not just possible, but probable,” she stated.

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Space Force Advances Naval Research Laboratory’s TREx to Operational Prototype
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Logo of the U.S. Space Force. The Space Force conducted a TREx and JAM demonstration

The U.S. Space Force’s Space Systems Command has transitioned the Naval Research Laboratory’s Transmit/Receive Enterprise, or TREx, from a research effort into an operational prototype.

During an early August demonstration, TREx connected the Space Development Agency’s satellite operations center to commercial and government antennas through the Joint Antenna Marketplace, or JAM. TREx was integrated into SSC’s antenna services architecture after earning an Authority to Operate.

“The TREx system brings enhanced flexibility and efficiency to our antenna services, directly supporting our mission to deliver integrated, resilient capabilities to the field,” said Col. Patrick Little, program director for SSC’s newly established Systems Delta 85.

Space Force Advances Naval Research Laboratory’s TREx to Operational Prototype

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How Will JAM-TREx Integration Support Defense Missions?

Developed by Auria Space and Sphinx Defense, JAM is a cloud-based marketplace that enables satellite operations centers to schedule communication sessions, or contacts, with available antennas.

By pairing JAM and TREx, SSC is supporting Tranche 1 of SDA’s Proliferated Warfighter Space Architecture, or PWSA, by enabling contacts with the Tranche 0 satellites and meeting immediate warfighter requirements.

Tranche 0, also known as the warfighter immersion tranche, demonstrates the low-latency communications, enabling beyond-line-of-sight targeting and missile warning and tracking from low Earth orbit.

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White House Issues New Rules to Limit Foreign-Made Drone Use, Strengthen UAS Cybersecurity
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Drones. The OMB memo warns that foreign-made drones pose potential threats to federal networks and mission data.

The White House has released new procurement guidance directing federal agencies to adopt strict cybersecurity standards for unmanned aircraft systems and accelerate the shift away from foreign-made platforms. The government-wide memo, issued by the Office of Management and Budget on Nov. 21, implements provisions of the American Security Drone Act and outlines new requirements intended to protect federal missions and support U.S. drone manufacturers.

Why Is OMB Warning Against Foreign-Made Drones?

The memo warns that drones produced by entities tied to foreign adversaries pose potential threats to federal networks and mission data, including unauthorized data capture, remote-access vulnerabilities, covert surveillance capabilities and supply chain disruptions. It states that heavy reliance on foreign-made systems also undermines domestic manufacturing capacity needed for federal operations.

What Cyber Safeguards Must All Federally Funded Drones Meet?

Agencies have 180 days to implement the cybersecurity safeguards for any drone purchased with federal funds, including those acquired through grants. Under the new policy, drones must be treated as both aircraft and IT systems, and must meet requirements, including:

  • Multi-factor authentication for remote access
  • Secure and verifiable software and firmware updates
  • Encryption of data at rest and in transit
  • Controls to block unauthorized data transfers
  • Remote lock or wipe functions
  • Deletion of high-confidentiality mission data after operations

The memo also directs agencies to assess during acquisition and solicitation development whether procurement from U.S. manufacturers is necessary to maintain domestic production capacity. It allows noncompetitive acquisitions when needed to support the U.S. industrial base.

When Do Restrictions on Foreign Drones Take Effect?

Starting Dec. 22,  agencies may not use federal funds to purchase or operate drones listed as prohibited by the Federal Acquisition Security Council. Exemptions are limited to select national security agencies, including the Departments of War, Homeland Security and Justice. Those apply if certain procurements or operations serve a vital national interest. 

These exemptions cover operations related to research, evaluation, training, testing and analysis for electronic warfare, cybersecurity or the development of UAS and counter-UAS technology; active missions such as counterterrorism, counterintelligence, protective services, or federal criminal and national security investigations; and UAS platforms modified to eliminate data transfer to foreign entities.

All waiver requests must be approved by the OMB director and reported to Congress.

How Will the Rules Apply to Grants and Federally Funded Purchases?

Federal agencies must incorporate the new drone security requirements into grant solicitations and evaluate proposals before awarding funds. Recipients will be subject to monitoring and review to ensure systems purchased with federal funding comply with the updated standards.

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