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CISA Issues Emergency Directive to Address Microsoft Exchange Security Risk
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CISA logo. CISA issued an emergency order to address a security flaw in Microsoft Exchange.

The Cybersecurity and Infrastructure Security Agency has issued Emergency Directive 25-02 to address a security flaw that could affect hybrid Microsoft Exchange users. The agency said Thursday that it is ordering federal agencies to respond to the risk by using Microsoft’s mitigation instructions.

The post-authentication vulnerability could allow hackers with administrative access to the Microsoft Exchange email server to gain more control and break into connected cloud systems. The agency has yet to find an attacker who uses the flaw to exploit its system, but the new common vulnerabilities and exposure, identified as CVE-2025-53786, could compromise its administrative controls over cloud services if it is left unresolved.

CISA Issues Emergency Directive to Address Microsoft Exchange Security Risk

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CISA’s Madhu Gottumukkala Shares Thoughts

Commenting on the security risk, CISA Acting Director Madhu Gottumukkala said the agency is “taking urgent action to mitigate this vulnerability that poses a significant, unacceptable risk to the federal systems upon which Americans depend.” 

“The risks associated with this Microsoft Exchange vulnerability extend to every organization and sector using this environment. While federal agencies are mandated, we strongly urge all organizations to adopt the actions in this Emergency Directive,” he added.

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SRNL Opens New Advanced Manufacturing Collaborative in South Carolina
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SRNL logo. SRNL opens new Advanced Manufacturing Collaborative in South Carolina.

The Department of Energy’s Savannah River National Laboratory has opened the Advanced Manufacturing Collaborative, a.k.a. AMC, a new center focused on accelerating innovation in manufacturing.

Boosting Innovation & Collaboration

DOE said Thursday the new facility is also intended to boost the economy and generate jobs in South Carolina. The 63,000-square-foot AMC, located at the University of South Carolina-Aiken, is meant to foster collaboration between the SRNL, academia and private industry.

The center, which SRNL will manage, aims to accelerate the development of technologies in additive manufacturing, artificial intelligence-driven automation and novel materials for fusion energy and energy resilience. It will also help develop a new talent pipeline to support the Savannah River Site’s environmental cleanup mission.

Remarks From Government Officials

Secretary of Energy Chris Wright, Sen. Lindsey Graham, R-S.C., Rep. Joe Wilson, R-S.C.-02, and state and local leaders attended the opening.

“The Advanced Manufacturing Collaborative will bring the expertise of the Department of Energy’s National Labs together with innovators from academia and the private sector with one shared goal: to unleash America’s energy potential,” stated Wright.

“The opening of the Advanced Manufacturing Collaborative on USC Aiken’s campus will greatly enhance the ability for the Savannah River National Laboratory and private sector, along with academia, to work together on critical initiatives,” said Graham.

“The opening of this facility is a success story of how the government, private sector, and institutions of higher education can come together to drive meaningful innovation and opportunities for the community and nation,” remarked Wilson.

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Trump Administration Weighs Future of AUKUS Agreement
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The White House. The Trump administration is reviewing the AUKUS trilateral agreement.

The United States’ review of the AUKUS security partnership is expected to conclude this fall, Axios reported Wednesday. Led by Pentagon policy chief Elbridge Colby, the review is examining how the trilateral agreement, which began under the Biden administration, aligns with the priorities of the Trump administration.

Colby previously voiced skepticism over how U.S. resources are allocated under AUKUS, though he also said Washington should “do everything we can to make this work.”

Trump Administration Weighs Future of AUKUS Agreement

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AUKUS Pillar I and II Challenges

At the center of the review is AUKUS’s Pillar I, under which the United States should deliver Virginia-class submarines to Australia. The Government Accountability Office and U.S. Navy leaders have warned that the U.S. submarine production remains far below the level needed to support the plan. Chief of Naval Operations Adm. Daryl Caudle recently told Congress that the current shipbuilding pace is insufficient and would require “a 100 percent improvement” to meet AUKUS Pillar I goals.

How Australia would use the submarines once acquired could impact the Trump administration’s decision about the trilateral agreement. Some analysts are unsure whether Australia would employ the submarines in operations aimed at deterring or countering China.

“They’ve been very coy about how they would actually employ the submarines, other than to say, ‘Well, it’s a deterrent, it could be employed to defend Australia,'” Bryan Clark, a senior fellow at the Hudson Institute, told Axios.

Pillar II, meanwhile, which involves joint development of advanced technologies such as hypersonics and artificial intelligence, has seen limited progress. “The matter at hand—sophisticated, trilaterally supported innovation—seems to be unfurling lethargically,” wrote Peter Dean and Alice Nason in their War on the Rocks piece.

Despite the challenges, the pact is expected to survive. One defense industry executive told Axios that the administration appears supportive of AUKUS, adding that insiders are portraying the agreement to Trump as “a big, beautiful trade deal.”

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Army Publishes Defense Business System Determination, Implementation Guidance
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Army CIO Leonel Garciga. Garciga signed a memo on defense business systems

The U.S. Army has issued an organization-wide memo to guide the optimization of systems critical to operations. Signed by Leonel Garciga, the service’s chief information officer and a two-time Wash100 winner, the Defense Business System, or DBS, Determination and Implementation Guidance offers clarifications, ensures accountability and enhances governance of the Army’s IT infrastructure.

What Is DBS?

A DBS is an IT system being used within the Department of Defense to support core business operations, including financial management, budgeting, planning, contracting, logistics, and human resources training and management. It does not cover systems that are utilized for military, intelligence and national security-related activities. The Defense Commissary System, the Exchange System and other DOD equipment designed for the morale, welfare and recreation of the Armed Forces and developed with non-appropriated funds are also not considered DBS.

According to the memo, DBS supports data-driven decision making, data governance by establishing authoritative sources of information and centralizing data and processes within an organization.

The Army has begun optimization of its DBS in an effort to reduce costs and improve operational efficiency and performance. The determination and implementation guidance ensure that efforts are in line with the DOD-wide strategic goals.

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Catalyst Accelerator Announces 6 Participating Small Businesses in Directed Energy, Electromagnetic Warfare Cohort
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The Catalyst Accelerator logo. The Catalyst Accelerator reveals selection for 15th cohort

The Catalyst Accelerator has named the six small businesses that will participate in its directed energy and electromagnetic warfare cohort. From August to November, the cohort will meet every two weeks to collaborate with subject matter experts and engage with government and commercial navigators to build connections and develop technologies for the warfighter.

The cohort, The Catalyst Accelerator’s 15th overall, is the first to be executed in partnership with the U.S. Space Force’s Space Security and Defense Program.

“The Space Security and Defense Program is excited to see such a diverse set of technologies in the Electromagnetic Warfare and Directed Energy Sector,” commented Maj. Joshua Haneline, deputy division chief of the electromagnetic warfare division at SSDP. “We are looking forward to bringing these small businesses together to develop innovative solutions for the warfighter.”

The Catalyst Accelerator is powered by the Air Force Research Laboratory Space Vehicles Directorate. It provides an opportunity for non-traditional technology companies to enter the national defense ecosystem through mentorship and business development activities.

Catalyst Accelerator’s Selected Startups

The Catalyst Accelerator team selected the small businesses based on the potential of their capability offerings. The new cohort’s participants are:

  • Aptos Orbital, a Palo Alto, California-headquartered firm developing a radio frequency mesh network that can connect and compute across space without needing ground stations.
  • Dcubed USA from Berthoud, Colorado, aims to build a next generation of in-space manufactured infrastructure.
  • Millennial Software, a company from Chantilly, Virginia, offers next-generation space battle management platforms powered by artificial intelligence and automation to accelerate decision advantage.
  • Overwatch OT, which hails from Lakewood Ranch, Florida, specializes in AI, EW and cyber technical systems.
  • Quadsat, a Danish firm, provides RF spectrum testing, antenna validation, and electromagnetic environment monitoring platforms.
  • RedTail Technology, a startup from Sydney, Australia, develops directed energy laser technology.

The six small businesses will pitch their technologies to government, industry and investors on Nov. 20.

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DOT Secretary Sean Duffy Introduces Proposed Rule to Expand Drone Operations
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DOT Secretary Sean Duffy. DOT Secretary Sean Duffy unveiled the proposed Beyond Visual Line of Sight rule.

U.S. Transportation Secretary Sean Duffy has announced a proposed regulation titled Beyond Visual Line of Sight, which aims to expand the use of unmanned aircraft systems in national airspace.

The Federal Aviation Administration said Wednesday the proposed rule will enable operators to bypass waivers or exemptions to utilize UAS or drones without a visual line of sight. Removing this step is expected to accelerate the innovative use of drones in manufacturing, farming, energy production, filmmaking, moving products such as medications and other areas.

The rule also incorporates new compliance requirements for manufacturers, operators and UAS traffic management services. These will help facilitate the safe separation between BVLOS drones and manned aircraft.

DOT, FAA, White House Executives Comment on BVLOS Rule

“From drones delivering medicine to unmanned aircraft surveying crops, this technology will fundamentally change the way we interact with the world. Our new rule will reform outdated regulations that were holding innovators back while also enhancing safety in our skies,” stated Duffy.

“Today’s NPRM is a bold, forward-looking step that helps unlock the full potential of BVLOS drone operations, transforming how we monitor infrastructure, deliver critical supplies, advance precision agriculture and speed up emergency response,” said White House Office of Science and Technology Policy Director Michael Kratsios, a two-time Wash100 Award winner.

“Normalizing BVLOS flights is key to realizing drones’ societal and economic benefits. Package delivery, agriculture, aerial surveying, public safety, recreation and flight testing are just some of the uses we expect to see as we enable these innovative technologies while maintaining the safety of our National Airspace System,” remarked FAA Administrator Bryan Bedford.

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DHS Issues General Solicitation for Advanced Maritime Technology
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DHS seal. DHS is seeking proposals for advanced maritime technologies.

The Department of Homeland Security’s Office of Program Accountability and Risk Management has started soliciting proposals for advanced commercial maritime technologies.

DHS Issues General Solicitation for Advanced Maritime Technology

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Maritime Capabilities & Innovation CSOP General Solicitation

According to the general solicitation notice published on SAM.gov Thursday, DHS intends to acquire innovative concepts, methods, tools and technologies, as well as strategic partnerships aimed at modernizing the department’s maritime operations, including homeland defense, law enforcement, border security, trade regulation enforcement, disaster response, anti-smuggling operations, humanitarian aid and critical infrastructure security.

The solicitation aims to strengthen resilience in shipbuilding, port infrastructure and supply chains, while developing the workforce. It will also support DHS’s modernization of its acquisition, sustainment, oversight and operational execution of its maritime operations. The department also intends to develop partnerships with various organizations involved in maritime technology, security and logistics. Through the endeavor, DHS intends to enhance lifecycle planning, risk management and component-level coordination to optimize maritime procurement. Furthermore, it aims to leverage applied research, technical expertise, strategic policy and prototype concepts to address maritime challenges.

Interested contractors can submit their proposals until Aug. 6, 2026.

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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.

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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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