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Air Force Realignment Puts Aerial Networks Division Under C3BM PEO
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PEO for Command, Control, Communications and Battle Management to oversee Air Force Aerial Networks Division

The U.S. Air Force has repositioned the Program Executive Office for Cyber and Networks’ Aerial Networks Division, placing it under the service branch’s PEO for Command, Control, Communications and Battle Management, or C3BM. 

In the Air Force Materiel Command announcement of the realignment Monday, Maj. Gen. Luke Cropsey, C3BM’s program executive officer, called the division “absolutely core” to the future warfighting capability of the Air Force. “If we don’t figure this part of it out, and if we don’t keep pushing forward with the talent, the capabilities and the skill sets that this team brings to bear, we aren’t going to win the next one,” Cropsey, a Wash100 Award winner, remarked.

Air Force PEO Division Leadership Turnover

The realignment of the division was coupled with a turnover in its leadership to Col. Alan Louie from Col. Thomas Ward, whom Cropsey thanked for his past contribution to the team. The C3BM PEO also conveyed excitement for the “incredible wealth of experience and background” that Louie is bringing into the division.

Jeremy Thiele, acting PEO for the Cyber and Networks Directorate, cited the division’s previous accomplishments, including $900 million in annual acquisition, fielding and maintenance of critical communication capabilities for Air Force warfighters.

As an integrator within the Air Force, the C3BM PEO oversees the design and delivery of the DAF Battle Network connecting sensor, effector and logistics systems. An Air Force contribution to the Department of Defense’s Joint All Domain Command and Control approach, the network is designed to deliver better situational awareness and faster decision-making.

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Trump Signs ‘One Big Beautiful Bill’ Into Law
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President Trump has signed the One Big Beautiful Bill into law

President Donald Trump on Friday signed into law a massive budget reconciliation bill that includes $150 billion in additional funding for the Department of Defense and trillions of dollars in tax and spending cuts.

CBS News reported that the move came a day after the House voted 218-214 to pass the Trump administration-backed measure, also known as the “One Big Beautiful Bill.”

The Senate approved the bill on Tuesday in a 51-50 vote, with Vice President JD Vance breaking a tie.

In late June, senior Department of Defense officials and military leaders released DOD’s proposed $961.6 billion fiscal year 2026 budget, which includes $113.3 billion in mandatory funding through congressional reconciliation. According to a senior DOD official, the mandatory reconciliation funding would support shipbuilding, munitions production, missile defense and other Trump administration priorities.

One Big Beautiful Bill’s Provisions

The law includes funding for the Golden Dome missile defense system and modernization of the U.S. military.

The measure will allocate $12.5 billion in funding to modernize the country’s air traffic control system and permanently increase the child tax credit for more than 40 million families.

Other provisions in the bill are expanding domestic oil and gas production capacity; completing the border wall and hiring thousands of Immigration and Customs Enforcement and Border Patrol agents; reducing $1.5 trillion in spending; creating Trump Accounts for every American newborn; and implementing a tax deduction on Made in America auto loan interest.

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Former DLA Official Shawn Lennon Joins OUSDC as Assistant Deputy CFO
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Shawn Lennon, formerly of DLA, has assumed the post of assistant deputy CFO at the Office of the USD Comptroller.

Shawn Lennon, a former Defense Logistics Agency official, has been appointed as assistant deputy chief financial officer at the Office of the Under Secretary of Defense Comptroller. 

Department-Wide Experience

In a LinkedIn announcement last week, OUSDC said the previous experience that Lennon brings to his new role includes the Department of Defense-wide development and implementation of financial policies for compliance with federal accounting rules. He served in the DLA as deputy CFO and director of financial improvement and audit remediation for over three years, according to Lennon’s LinkedIn profile. 

During his DLA tenure, Lennon led in the adoption of innovative approaches to solve the complexities of financial management, OUSDC noted. The office expects that his executive leadership will be vital as its comptroller team pursues the accomplishment of a clean audit opinion by 2028. 

Before his DLA stint, Lennon had served for 10 months as deputy director for revolving funds at the OUSDC/CFO, with a prior 10-month work also as senior budget analyst at the Office of the Secretary of Defense.

US Army Civilian Work

Lennon began his career in government service in 2006 as a budget analyst and later as financial management analyst in the U.S. Army, where he served for over nine years. After a subsequent nine-month work as an accountant at the Defense Secretary’s Office, the Army again took him in as director of working capital fund audit readiness, a role he held for more than four years.

He holds an executive master’s degree in public administration from the Syracuse University’s Maxwell School, as well as a master’s of business administration from the university’s Martin J. Whitman School of Management. He graduated with a bachelor of science degree in entrepreneurship/entrepreneurial studies from Fairleigh Dickinson University.

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NASA Releases RFI for JPL R&D Center Operation, Management Follow-On Contract
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The NASA Office of JPL Management and Oversight issued an RFI for FFRDC JPL operation and management support

The NASA Office of JPL Management and Oversight, NOJMO, has issued a request for information for potential contractors capable of operating and managing the Federally Funded Research and Development Center at NASA’s Jet Propulsion Laboratory.

Get the scoop on top space defense priorities from leaders like Gen. Michael Guetlein and Lt. Gen. Heath Collins at the 2025 Air and Space Summit on July 31! Only from Potomac Officers Club, the capital region’s leading GovCon networking organization.

NASA FFRDC Operation & Maintenance Contract Scope

According to the notice posted on SAM.gov Thursday, the contractor will provide project management services to support NASA in advancing research and development capabilities to meet agency needs. The contractor will collaborate with the on-site NOJMO and NASA sponsors to create task plans to facilitate science, research, technology, and mission development and operation of advanced science and exploration concepts and capabilities.

The contract will cover the management of deep space and Earth-orbiting missions and instruments for science and exploratory purposes. The services will include mission concepts, design work, project management, systems engineering and operational support for missions involving deep space communication and navigation, integration of radioisotope power systems, planetary entry, descent and landing, surface mobility, and survival in extreme environments.

The contractor will also support advanced Earth, planetary and astrophysical remote sensing, and space research and technology development. The project will cover the operation of spacecraft sent as orbiters to the Moon or other planetary bodies, robotic landers, rovers and scientific observatories.

Interested parties have until July 18 to submit their responses.

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SEC, USPTO Advance Digital Modernization With Cloud & AI
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SEC and USPTO are moving forward with their digital modernization intiatives

The U.S. Patent and Trademark Office and the Securities and Exchange Commission are moving forward to the next phase of their digital modernization initiatives, Federal News Network reported Thursday.

The agencies have progressed beyond initial efforts to migrate to the cloud that started five years ago. They are now leveraging cloud services to boost their IT modernization strategy, particularly on initiatives directly impacting their core missions and operational efficiency.

SEC’s Digital Transformation Initiative

According to SEC Chief Information Officer Dave Bottom, the agency prioritizes three key areas for adopting new and enhanced services. It moved its enterprise data warehouse to an enterprise data platform on Amazon Web Services and into Microsoft Office 365 for collaboration and access capabilities.

The SEC also prioritizes using software-as-a-service before building customized software and hosting it on-premises. The commission created a $250 million blanket purchase agreement, awarded to four firms in 2023, for acquiring digital services. The SEC CIO also stressed that the agency depends less on data centers since migrating to the cloud and modernizing its infrastructure.

USPTO’s Cloud Migration Efforts

The USPTO utilizes generative artificial intelligence to modernize its code, resulting in less latency in infrastructure and culture. USPTO CIO Jamie Holcombe said the agency is using AI to refactor old code and translate it for optimal cloud performance. It uses a 30-60-90-day pilot “fail fast” approach, in which the code modernization project will be terminated if there is no progress after 30 days. The GenAI has translated 80 percent of its old code after a 90-day pilot. The remaining 20 percent still require expert review to proceed with optimization.

USPTO developers are also leveraging AI on small code snippets and applying the lessons learned to further code refactoring. They are using GenAI to generate standard, repetitive code structures and identify memory leaks and other issues. The agency is also converting old Oracle stored procedures into Python and other scripting languages to enable the transition to the cloud and leverage cloud-native services like AWS, Google Cloud Platform, or Azure.

In addition, the agency is testing agentic AI for customer service to reduce the need for an answering desk. USPTO also aims to create a “culture of acceptance” with risks, failures and learning.

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Air Force Pilots Test Operating Drones in Aerial Combat
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A Florida-set demonstration by the U.S. Air Force tested the capabilities of a XQ-58A Valkyrie drone recently.

The U.S. Air Force demonstrated the capabilities of the XQ-58A Valkyrie drone in paired human–machine air combat in a recent training exercise at Eglin Air Force Base, Florida. The test involved pilots of an F-16C Fighting Falcon and an F-15E Strike Eagle, who each controlled flying Valkyrie autonomous collaborative platforms, or ACPs, the Air Force Research Laboratory said Thursday.

Air Force Pilots Test Operating Drones in Aerial Combat

Learn about the U.S. Air Force’s top priorities in expert panel and keynote sessions at the 2025 Air and Space Summit on July 31!

Drone Advantages in Affordability, Flexibility 

AFRL considers the demo as pivotal for integrating ACPs in air combat to lessen pilot workload and enhance situational awareness for mission success. With their semi-autonomous features, ACPs offer affordability and runway flexibility in high-risk environments, the lab noted. The platforms can also serve as force multipliers that enable their operators to retain strategic controls, AFRL added.

Gen. Kenneth Wilsbach, Air Combat Command chief, said the ACP test focuses on U.S. warfighters’ needs in evolving, complex battlefields requiring sharper combat capabilities to maintain air superiority.

“We are committed to innovation and integrating ACPs through these kinds of demanding, operator-driven evaluations that allow us to learn rapidly and enhance our human–machine teams,” the Air Force official stressed.

Companies With Stakes in ACPs 

Kratos Defense & Security Solutions developed the experimental XQ-58A Valkyrie in partnership with AFRL, with an initial test conducted in August 2023. The lab provided the artificial intelligence software to enable the drone to operate alongside manned jetfighters for a variety of missions, such as surveillance and electronic warfare.

In January 2024, Boeing, Lockheed Martin, Northrop Grumman, Anduril and General Atomics were also awarded Air Force contracts to design and build a next-generation fleet of unmanned aerial vehicles designed to fly in coordination with crewed platforms.

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Space Systems Command Opens MEO Space Operations Center to Strengthen Missile Tracking
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Space Systems Command's MEO Space Operations Center in Colorado will enable missile defense

The U.S. Space Force’s Space Systems Command has established a new facility for monitoring space-based sensors in medium Earth orbit.

The MEO Space Operations Center, also known as MSOC, is located at the Boulder Ground Innovation Facility, or BGIF, in Colorado and is expected to enhance missile warning and threat response for the joint force, Space Force said.

SSC’s Strategic Missile Warning, Ground and Integration Interim Overhead Persistent Infrared Tools, Applications and Processing Laboratory is also housed at BGIF. 

How Will MSOC Strengthen Missile Defense?

The MSOC will serve a critical role in SSC’s Resilient Missile Warning and Tracking program, which will detect airborne threats.

“The MSOC is the heartbeat of Resilient Missile Warning and Tracking,” according to USSF Col. Ray Imbo, materiel leader for the program’s ground system. “Today’s threats are designed to evade detection across multiple domains, and this system ensures we can track advanced threats, including hypersonic missiles, through all phases of flight.”

Space Systems Command Opens MEO Space Operations Center to Strengthen Missile Tracking

Leaders from the Space Force, the Missile Defense Agency and other military and industry organizations will discuss the challenges and opportunities within the air and space domains at Potomac Officers Club’s 2025 Air and Space Summit on July 31. Register for the in-person event here.

Imbo added that MSOC will close the capability gaps of the current missile warning enterprise by providing real-time tasking, antenna scheduling and cross-domain data fusion.

SSC’s Missile Warning Program Updates

The Resilient Missile Warning and Tracking program recently moved on to Epoch 2, with BAE Systems receiving a contract valued at $1.2 billion to develop 10 missile-tracking satellites. The company is expected to make the delivery beginning in fiscal 2029. 

Lt. Col. Brandon Castillo, materiel leader for SSC’s Epoch 2 program office, shared that the satellites will strengthen the resilience of the missile warning and tracking satellite architecture and deliver accurate information about threats in real time to decision-makers.

Epoch 1 satellites built by Boeing subsidiary Millennium Space Systems will be launched starting in late 2026.

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DOE Selects Westinghouse, Radiant for First Microreactor Tests at DOME Facility
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DOE selected Westinghouse and Radiant for the first microreactor tests at the DOME test bed

The Department of Energy has selected Westinghouse and Radiant to conduct the first microreactor tests in the Demonstration of Microreactor Experiments, dubbed DOME.

What Is the Demonstration of Microreactor Experiments Test Bed?

The Energy Department said Tuesday the DOME facility, operated by DOE’s National Reactor Innovation Center, is designed to boost the nation’s capability to meet power demands by accelerating the deployment of microreactor technologies. The facility, currently under construction at the Idaho National Laboratory, will utilize the laboratory’s existing infrastructure to conduct fueled reactor experiments that generate up to 20 megawatts of thermal energy.

Initial DOME Microreactor Tests

The two companies, competitively selected in 2023, will test their microreactor designs in the DOME facility starting in spring 2026. Westinghouse plans to test its eVinci Nuclear Test Reactor, supporting the development of its commercial, transportable microreactor that utilizes advanced heat pipe technology for passive cooling. The eVinci is designed to generate five megawatts of electricity. It is intended for powering remote communities, mining operations, data centers and other areas as small as two acres.

Radiant will conduct experiments on its Kaleidos Development Unit to further develop its commercial 1.2 megawatt electric high-temperature gas reactor design. Kaleidos, intended to replace diesel generators, is engineered to run for five years before needing to refuel. It can potentially serve as a backup power source for hospitals, military installations and other facilities.

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Top 5 Federal Policy Changes Shaping the GovCon Landscape in 2025
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Here are the top 5 federal policy changes that impacted the GovCon industry in the first half of 2025.

The first half of 2025 has brought a wave of federal policy changes reshaping the federal contracting space. With executive orders, acquisition reform, oversight mandates and emerging tech requirements, contractors are navigating significant shifts. Below are the five most consequential policy developments so far this year.

1. FAR Overhaul Under Executive Order 14275

In what many are calling the most ambitious rewrite of federal acquisition policy in decades, Executive Order 14275 directs a comprehensive overhaul of the Federal Acquisition Regulation. Signed in April, the order aims to “restore common sense” to procurement by eliminating outdated, duplicative or non-statutory regulatory requirements that have built up over time.

Key mandates include:

  • A “10-for-1” rule requiring agencies to eliminate 10 existing regulations for every new one adopted
  • A presumption that non-statutory clauses will sunset after four years unless explicitly justified
  • A full FAR review by October 2025, led by the Office of Federal Procurement Policy and the FAR Council

Several agencies—including the State Department, SEC and DOC—have already issued class deviations to bypass certain legacy clauses and implement the streamlined rules. While this transitional period may bring inconsistency across solicitations, the long-term outlook points to faster awards, simplified compliance and greater competition.

For contractors, now is the time to revisit internal processes, update boilerplate responses and stay alert to agency-specific rule changes. These early adopters may influence broader procurement trends across the federal landscape in the second half of the year.

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2. GSA’s GWAC Consolidation and Governmentwide Procurement Reform

In parallel with the FAR overhaul, the General Services Administration is advancing a historic consolidation of governmentwide acquisition contracts, known as GWACs, and IT purchasing vehicles. Under a March mandate from the White House, agencies must designate GSA as the executive agent for most common IT goods and services and submit GWAC streamlining plans by summer.

This reform affects several high-profile contract programs:

  • The next iteration of Alliant will consolidate multiple existing IT service vehicles
  • VETS 2, Polaris and other small business set-aside vehicles are being reevaluated under a unified structure
  • CIO-SP and SEWP are under review for possible integration or deconfliction with GSA-led platforms

GSA’s stated goals are to reduce duplicative contract vehicles, improve access for small and emerging businesses, and increase task order competition by shifting to modular, outcome-based approaches. Contractors should prepare for a more centralized and standardized acquisition environment—potentially offering greater clarity in some areas, but fewer specialized entry points.

In addition, GSA is requiring large consulting and IT vendors to justify contract value through deliverables and performance metrics, signaling a broader shift toward results-driven acquisition models.

For companies active on existing GWACs, this is a pivotal moment. Understanding where legacy vehicles stand, what new structures are emerging and how to align proposal strategies with GSA’s evolving priorities will be critical in the quarters ahead.

3. Efficiency Mandates & Cost‑Cutting Oversight

A government‑wide push to reduce duplication and waste included:

  • A 30‑day “DOGE Initiative” contract review window launched in February, pausing new CO warrants and awards during audits
  • Phase 1 and 2 agency efficiency plans submitted in March/April, followed by monthly compliance reporting
  • GSA following up on consulting contract scrutiny, pushing for outcome‑based delivery.

Contractors in consulting, IT and staffing should be prepared to justify pricing, scope and performance metrics under increasing scrutiny.

4. Civilian Hiring Freeze With Contractor Guardrails

In January, a 90‑day freeze on most civilian hiring (excluding IRS and certain defense roles) went into effect. Significantly, the freeze prohibits agencies from using contractors to fill vacated roles, requiring agencies to redirect backfill plans through OMB‑approved formats. Contractors offering staffing or support services tied to FTEs saw volume reductions during and after the freeze period.

5. Cybersecurity & Emerging Tech Compliance

Cyber and tech procurement policies are advancing alongside acquisition reforms:

  • Minimum cybersecurity standards are now mandated for all federal vendors, alongside a new “cyber trust mark” for compliant tech
  • EO 14179 continues to drive modular contracting and prioritizes artificial intelligence, data transparency and digital modernization

GovCon tech providers should sharpen their cyber hygiene, pursue certification where available and position themselves for accelerated adoption under modern tech initiatives.

How GovCons Should Approach the New Contracting Environment

The federal procurement environment in 2025 is gravitating toward streamlining, consolidation, cost discipline and enhanced tech compliance. Contractors should brace for continued FAR amendments, GSA-led vehicle rationalization, tighter oversight of spending and rising expectations in cybersecurity and AI readiness. Agility and proactive strategy will be critical as agency implementation plays out in the months ahead.

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Leonel Garciga Issues Updated Army Cloud Procurement Guidance
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Army CIO Leonel Garciga released updated guidance on the acquisition of cloud computing services across the service branch

Leonel Garciga, the U.S. Army’s chief information officer and a two-time Wash100 awardee, has signed and issued a memorandum providing updated guidance on the procurement of cloud service offerings, or CSOs, across the military branch.

The June 30 memo was posted on the Army Publishing Directorate’s website on Wednesday.

Joint Warfighting Cloud Capability Vehicle for Cloud Procurements

Effective immediately, the memo mandates the use of the Joint Warfighting Cloud Capability, or JWCC, contract vehicle to purchase all new CSOs across Department of the Army headquarters; Army commands; Army service component commands; direct reporting units; and field operating agencies.

Garciga noted that the policy only applies to unclassified and secret-level cloud computing services and capabilities.

In December 2022, the Department of Defense awarded four vendors positions on the potential $9 billion JWCC contract. The procurement vehicle seeks to provide military personnel with enterprisewide cloud offerings spanning all security domains and classification levels.

ECMA to Manage CSO Procurements Through JWCC

The directive designates the Army Enterprise Cloud Management Agency, or ECMA, as the “central authority” to broker and oversee CSO acquisitions through the JWCC contract to ensure compliance with Army reporting, governance and tracking requirements.

The memo directs existing CSO procurements funded through other means to coordinate with ECMA to create transition plans to align with the contract vehicle.

To reflect the new policy, ECMA will work with the deputy assistant secretary of the Army for procurement to update Army guidance and the Army Federal Acquisition Regulation Supplement.

According to the document, the service branch will continue to manage cloud procurements through the Army Military Intelligence Cloud Computing Service Provider to meet the cloud requirements of intelligence community components.

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