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Artificial Intelligence/Defense Security Cooperation/News
US, Allies Test AI-Enabled Human-Machine Teaming in Coalition Battle Management Sprint
by Kristen Smith
Published on January 6, 2026
Artificial intelligence. The US, Canada and the UK participated in DASH 3.

The U.S. Air Force has completed a coalition experiment testing how artificial intelligence can support human decision-making in battle management, bringing together operators from the United States, Canada and the United Kingdom. Conducted during the 2025 Decision Advantage Sprint for Human-Machine Teaming, known as DASH, the effort evaluated how AI-generated recommendations could accelerate command and control decisions in simulated combat scenarios, the Air Force said Monday.

The latest iteration, DASH 3, was led by the Advanced Battle Management System Cross-Functional Team and executed at Shadow Operations Center–Nellis in Las Vegas in partnership with the Air Force Research Laboratory, the U.S. Space Force and allied operators.

US, Allies Test AI-Enabled Human-Machine Teaming in Coalition Battle Management Sprint

The 2026 Defense R&D Summit on Jan. 29, hosted by the Potomac Officers Club, convenes defense leaders, researchers and innovators to examine how emerging technologies—such as artificial intelligence and human-machine teaming—are influencing the future of warfare. Register now to learn from key decision-makers and pioneers shaping the defense landscape.

Table of Contents

  • How Was AI Used to Support Battle Management Decisions?
  • What Did the Experiment Reveal About Human Trust in AI?
  • Why Was Coalition Participation Central to DASH 3?

How Was AI Used to Support Battle Management Decisions?

During DASH 3, six industry teams and an innovation team from the 805th Combat Training Squadron worked alongside coalition operators to test AI-enabled tools designed to generate multiple battle courses of action. The tools were used to explore decision options across long-range strike planning, electromagnetic battle management, space and cyber challenges, and agile combat employment scenarios.

An Air Force official said the systems were able to generate multiple viable courses of action in seconds, compared with minutes using traditional methods. Machine-generated recommendations evaluated factors such as risk, fuel, timing, force composition and routing, while human operators retained decision authority.

What Did the Experiment Reveal About Human Trust in AI?

Participating operators reported increased confidence in AI tools as the sprint progressed. Rather than replacing human judgment, the systems provided starting points that operators could refine, according to U.S. Air Force First Lt. Ashley Nguyen, a DASH 3 participant.

Preserving human control is an approach consistent with broader Air Force guidance that emphasizes human oversight for high-risk operational decisions.

Why Was Coalition Participation Central to DASH 3?

Operators from Canada and the United Kingdom participated directly in the experiment, testing how AI-enabled decision tools could function in coalition command-and-control environments. According to the Air Force, the unclassified structure of DASH lowered barriers to allied participation and allowed interoperability considerations to be tested early.

Lessons from the 2025 DASH event will inform future experiments planned for 2026, as the service continues to refine the integration of AI into command-and-control operations.

News/Space
NASA Selects Industry Partners to Advance Habitable Worlds Observatory
by Miles Jamison
Published on January 6, 2026
Planet Earth. NASA has selected proposals to advance technologies for the Habitable Worlds Observatory.

NASA has selected industry proposals to develop technologies that will aid in building the Habitable Worlds Observatory, an advanced space telescope designed to search for signs of life on planets similar to Earth.

Table of Contents

  • What Is the Purpose of NASA’s Habitable Worlds Observatory?
  • Which Companies Were Selected?
  • What Are the Habitable Worlds Observatory’s Key Design Features?
  • What Prior Proposals Did NASA Award for the Space Telescope?

What Is the Purpose of NASA’s Habitable Worlds Observatory?

The agency said Monday the planned observatory will image Earth-like planets orbiting Sun-like stars and analyze their atmospheric chemistry for potential biological activity. The space telescope will also support a wide range of research across the universe, while supporting future human exploration of Mars and the broader solar system.

Which Companies Were Selected?

As part of this effort, NASA awarded three-year, fixed-price contracts to the following companies with proposals intended to advance the observatory’s technology readiness:

  • Astroscale U.S.
  • BAE Systems Space and Mission Systems
  • Busek
  • L3Harris Technologies
  • Lockheed Martin
  • Northrop Grumman
  • Zecoat

What Are the Habitable Worlds Observatory’s Key Design Features?

In terms of system design, the Habitable Worlds Observatory will be built for extreme optical stability, with system motion kept to less than the width of an atom during observations. The mission would also use a powerful coronagraph to block starlight and allow nearby planets to be observed, exceeding the capabilities of any space coronagraph built to date. In addition, the observatory would be designed for in-space servicing, extending its operational life and scientific return over time.

What Prior Proposals Did NASA Award for the Space Telescope?

In 2024, NASA selected BAE Systems, Lockheed Martin and Northrop Grumman to mature key technologies for future large space telescopes and support the Habitable Worlds Observatory concept. The selected projects, valued at a combined $17.5 million, cover the development of ultra-stable optical systems, integrated modeling tools for mission design assessment and system-level technologies for baseline telescope architecture.

Civilian/News
GAO Says Federal Award Programs Lack Complete Fraud-Prevention Safeguards
by Miles Jamison
Published on January 6, 2026
GAO logo. GAO found that some federal programs do not consistently apply key safeguards for federal awards.

The Government Accountability Office has reported that selected federal programs do not consistently incorporate key requirements and leading practices designed to safeguard federal awards—including grants, contracts and loans—from fraud, waste and abuse.

According to a GAO report published Sunday, four of the five programs reviewed—the Department of Commerce’s CHIPS for America Fund, the Environmental Protection Agency’s Greenhouse Gas Reduction Fund, the Department of Health and Human Services’ Health Center Program, and the Department of Energy’s Regional Clean Hydrogen Hubs—did not fully incorporate all nine criteria into their documented policies and procedures. The Federal Communications Commission’s Universal Service Program for Schools and Libraries was the only program that documented procedures addressing all nine requirements.

Table of Contents

  • What Are the Requirements for Safeguarding Federal Awards?
  • What Were GAO’s Recommendations? 

What Are the Requirements for Safeguarding Federal Awards?

An effective fraud risk management framework should include the following elements:

  • A designated office or function responsible for overseeing fraud risk management activities
  • Senior leadership oversight, including a body responsible for reviewing, tracking and addressing internal control weaknesses
  • Agencywide and program-level risk profiling to identify and prioritize risks
  • Assessment of fraud and other program-specific risks
  • Defined risk mitigation actions and documented antifraud strategies
  • Targeted control activities designed to prevent, deter and detect fraudulent activity
  • Collaboration with stakeholders, including partnerships and incentives that support effective antifraud implementation
  • Risk-based monitoring and comprehensive assessment of all components of the Fraud Risk Framework
  • Evaluation of audit results, including recovery audits and single audit

What Were GAO’s Recommendations? 

To address these gaps, GAO recommended that four agencies strengthen and formalize fraud risk management and internal control practices across major federal programs. For the Department of Commerce, GAO suggests documenting the use of recovery audits in the CHIPS for America Fund, while urging the Department of Energy enhance oversight of the Hydrogen Hubs program through documented fraud risk assessments, a formal risk profile, an antifraud strategy and procedures for sharing and monitoring fraud-related information.

The agency also recommended that the Environmental Protection Agency establish a senior management council to oversee internal control deficiencies and that the Department of Health and Human Services finalize fraud risk assessment policies and strengthen oversight of the Health Center Program through documented risk profiles and antifraud strategies.

Government Technology/National Security/News
Trump Orders HieFo to Divest EMCORE Semiconductor Assets After CFIUS Review
by Kristen Smith
Published on January 5, 2026
Chip manufacturing. Trump ordered HieFo to divest semiconductor assets acquired from EMCORE.

President Donald Trump has issued an executive order prohibiting HieFo from retaining ownership of certain semiconductor assets acquired from EMCORE, citing national security risks. 

The directive, issued by the White House on Friday, follows a review by the Committee on Foreign Investment in the United States, which determined that the deal could expose sensitive U.S. semiconductor technology and disrupt the domestic supply of indium phosphide chips.

Table of Contents

  • Why Did the President Block the Transaction?
  • What Does the Order Require HieFo to Do?
  • Why Did CFIUS Intervene After the Transaction Closed?

Why Did the President Block the Transaction?

According to the order, there is credible evidence that Delaware-based HieFo, controlled by a Chinese citizen, could take actions that threaten U.S. national security through its control of New Jersey-based EMCORE’s chip-related assets. The president stated that no existing legal authorities were sufficient to address the risk identified by CFIUS, which concluded that the transaction could allow access to EMCORE’s intellectual property, proprietary know-how and manufacturing expertise, as well as enable diversion of chip supply away from the United States.

What Does the Order Require HieFo to Do?

The order directs the company to divest all related rights and property within 180 days, unless CFIUS grants an extension. Until divestment is completed and verified, HieFo is barred from granting access to the assets or associated nonpublic technical information without CFIUS approval.

The order also restricts restructuring, asset transfers or other actions that could impede compliance, and authorizes CFIUS to audit and monitor HieFo throughout the divestment process.

Why Did CFIUS Intervene After the Transaction Closed?

The acquisition deal between HieFo and EMCORE was completed in 2024. According to CFIUS, HieFo did not submit the transaction for review until after the committee’s non-notified team initiated an investigation.

DoD/Healthcare IT/News
Navy Pilots New Medical Platform OpMed CDP Aboard USS Carney
by Elodie Collins
Published on January 5, 2026
Cmdr. John de Geus, chief health informatics officer for the Navy. De Geus discussed the OpMed CDP's recent trial

The U.S. Navy conducted an initial pilot testing of the Operational Medicine Care Delivery Platform, or OpMed CDP, aboard the Arleigh Burke-class destroyer USS Carney in early December.

The service said on Dec. 30 that USS Carney will be the first ship to use OpMed CDP to support daily medical operations once fielding is completed. 

Navy Pilots New Medical Platform OpMed CDP Aboard USS Carney

Leaders from across the federal and defense health landscape will participate in the Potomac Officers Club’s 2025 Healthcare Summit on Feb. 12 (rescheduled due to the fall’s government shutdown). The annual GovCon conference hosts panel discussions on the most pressing topics in healthcare, including modernization and the integration of artificial intelligence. Click here to purchase your tickets today.

During the 12-day test, the ship’s crew was trained to use the system.

According to Cmdr. John de Geus, chief health informatics officer for the Navy, the pilot provided insights into OpMed CDP. The platform will next move to the next phase of the program, which is an extended pilot to validate effectiveness and resilience.

What Is OpMed CDP?

OpMed CDP was developed by the Joint Operational Medicine Information System, also known as JOMIS, to deliver interoperable tools for documenting and coordinating care in deployed environments. It supports routine check-ups, laboratory and pharmacy records, damage control resuscitation, surgery, and patient stabilization.

The system operates in offline or low-connectivity environments.

“The JOMIS ecosystem will transform the way our clinicians, physicians and corpsmen provide care to warfighters in operational settings to maintain patient data flow through the continuum of care,” said Lt. Cmdr. Erik Lawrence, chief nursing informatics officer for JOMIS assigned to the U.S. Navy Bureau of Medicine and Surgery.

OpMed CDP is designed to integrate with the Military Health System’s electronic health record MHS GENESIS. 

Artificial Intelligence/DoD/News
US Space Command Applies AI Tools to Operational Planning at APEX Summit
by Elodie Collins
Published on January 5, 2026
Gen. Stephen Whiting, commander of the U.S. Space Command. Whiting comments about USSPACECOM's AI strategy published in March

The U.S. Space Command harnessed the capabilities of artificial intelligence to streamline planning across its command and its components at the Augmented Planning and Execution, or APEX, Summit held in Colorado from Nov. 18 to 21.

Over 70 leaders across the command and its components participated in the summit, providing insights to advance the 2026 Coordinated Campaign Order, USSPACECOM said Dec. 30.

According to Genna Ibsen, supervisory program analyst for USSPACECOM’s Joint Operations Division J3, the summit had two goals: refine the command’s approach to human-machine teaming and develop a governance model for the responsible use of AI in operational planning.

US Space Command Applies AI Tools to Operational Planning at APEX Summit

Get more insights into AI use cases across GovCon at the Potomac Officers Club’s 2026 Artificial Intelligence Summit on March 19. The event will host panel discussions featuring top voices from across industry and government to discuss how AI, machine learning and automation are revolutionizing the world today. Get your tickets today. 

Table of Contents

  • What Happened at APEX Summit?
  • What Is USSPACECOM’s AI Strategy?

What Happened at APEX Summit?

During the summit, USSPACECOM divided participants into four teams, each with access to three different AI tools to support operational planning. Participants curated inputs — procedural documents, references and manuals — into the AI tools based on campaign objectives and command guidance to generate contributions for the campaign order.

Ibsen explained that using different AI tools is critical to expose participants to structured campaign‑order, self‑directed exploration and engineer‑guided collaboration prompting methods, allowing them to compare outcomes and refine directives.

Staff members validated AI-generated output for inclusion into the 2026 Coordinated Campaign Order.

What Is USSPACECOM’s AI Strategy?

The summit is aligned with USSPACECOM’s AI/Machine Learning and Data Analytics Strategy published in March. Gen. Stephen Whiting, head of the command and a Wash100 awardee, said the strategy is critical for adapting to “what is emerging as an era-defining technology that demonstrates significant and growing relevance to national security.”

“We must lead the way in ensuring a safe and secure space domain for our nation, our Allies and Partners, and the rest of the world,” he added. 

Artificial Intelligence/DoD/News
Army Launches New AI, Machine Learning Officer Career Track
by Kristen Smith
Published on January 5, 2026
US Army logo. The Army establishes an AI/ML career field for officers.

The U.S. Army has created a new artificial intelligence and machine learning career pathway, laying the foundation for a dedicated cohort of uniformed officers focused on operationalizing AI-enabled capabilities.

“This is a deliberate and crucial step in keeping pace with present and future operational requirements,” Army spokesperson Lt. Col. Orlandon Howard said Tuesday. 

“We’re building a dedicated cadre of in-house experts who will be at the forefront of integrating AI and machine learning across our warfighting functions,” he added. 

Army Launches New AI, Machine Learning Officer Career Track

The Army’s decision to establish a dedicated AI and machine learning career pathway signals its serious approach to long-term force modernization. At the Potomac Officers Club’s 2026 Army Summit on June 18, senior leaders and practitioners will discuss how initiatives like this support the service’s broader transformation goals. Register now!

Table of Contents

  • How Will the 49B AI/ML Career Field Be Implemented?
  • What Will AI/ML Officers Be Responsible for?

How Will the 49B AI/ML Career Field Be Implemented?

The Army will phase in the new 49B AI/ML career field, designated as an area of concentration, beginning in January through the Volunteer Transfer Incentive Program. Officers selected during this initial cycle will be reclassified by the end of fiscal year 2026.

The 49B AOC will be open to officers eligible for VTIP, with candidates possessing advanced academic or technical backgrounds in AI- and data-related disciplines considered especially competitive. The Army said it is also examining the potential expansion of the specialty to warrant officers in the future.

What Will AI/ML Officers Be Responsible for?

Officers selected into the 49B field will receive graduate-level education and training focused on building, deploying and sustaining AI-powered systems. Their role will focus on applying AI and ML to operational challenges, including decision support, logistics and the use of autonomous systems.

“Establishing the 49B AI/ML career path is another key investment to maintain our decisive edge as an Army,” said Howard, noting that the effort is “about building a force that can outthink, outpace, and outmaneuver any adversary.”

Acquisition & Procurement/DoD/News
USSOCOM Seeks Starlink & Starshield Integration for AC-130J Gunship
by Miles Jamison
Published on January 5, 2026
USSOCOM logo. The command has issued an RFI for the integration of SpaceX's Starlink & Starshield onto the AC-130J Ghostrider

The U.S. Special Operations Command, or USSOCOM, and Air Force Special Operations Command, or AFSOC, have issued a sources sought notice to explore the integration of Starlink and Starshield satellite communication systems onto the AC-130J Ghostrider aircraft.

Table of Contents

  • What Is the Goal of the Starlink/Starshield Integration on AC-130J?
  • What Capabilities Will Be Required From the Potential Contractor?

What Is the Goal of the Starlink/Starshield Integration on AC-130J?

According to the request for information published Tuesday on SAM.gov, the effort aims to enable beyond-line-of-sight, or BLOS, satellite connectivity on the Ghostrider gunship, which provides tactical air support and battlefield surveillance for ground troops, to support various networked mission systems.

What Capabilities Will Be Required From the Potential Contractor?

The potential contractor should be able to provide a ruggedized, removable installation for special operations aircraft that utilizes off-the-shelf secure SATCOM terminals and controllers for harsh global operations, with potential roll-on/roll-off capability. The design should be compatible with other C-130 variants, while minimizing size, weight and power, or SWAP, efficiency.

In addition, the company should provide reliable network connectivity, support open-source interfaces and architecture and be ready to collaborate with third-party integrators. Interested companies should submit their responses by Jan. 30.

Following the 2022 launch of Starshield, SpaceX’s encrypted constellation designed for national security missions, Pentagon units have pursued the integration of the flexible, affordable terminals into their operations, reported DefenseScoop.

Digital Modernization/News
OPM Addresses Federal Retirement Delays, Points to Outdated Systems
by Miles Jamison
Published on January 5, 2026
OPM's Scott Kupor. OPM Director Scott Kupor said federal retirement processing delays are due to outdated tech and processes.

The Office of Personnel Management has responded to congressional concerns over delays in federal retirement processing, the Federal News Network reported Tuesday.

OPM Addresses Federal Retirement Delays, Points to Outdated Systems

Register now for the Potomac Officers Club’s 2026 Digital Transformation Summit on April 22 to gain exclusive insights into government modernization initiatives, tackling outdated legacy systems and exploring next-generation artificial intelligence, cyber and enterprise IT.

Table of Contents

  • Why Is Federal Retirement Processing Delayed?
  • What Is OPM Doing to Speed Up Retirement Processing?

Why Is Federal Retirement Processing Delayed?

OPM Director Scott Kupor, in a letter to House Democrats, stated that the backlog in federal retirement processing is primarily due to outdated technology and cumbersome procedures, rather than staffing shortages.

“The main issues with federal HR, we have found, are not low staffing levels, but inefficient and outdated technology and antiquated, cumbersome regulations and processes,” said Kupor.

Democrats earlier pointed to reduced staffing levels and a surge of retirements under the Deferred Retirement Program as contributors to the backlog.

What Is OPM Doing to Speed Up Retirement Processing?

The agency’s new Online Retirement Application, or ORA, is designed to replace manual, paper-based processes and help expedite previously stalled applications by shifting them to a fully digital system.

“As of today, ORA applications are being completed in approximately 40 days, compared with 90 days for paper-based applications. I am fully confident that this 40-day time period will continue to be reduced as we are able to get the payroll providers fully integrated into the new system,” said Kupor.

He also noted that 1,500 backlogged applications were fast-tracked electronically to payroll and then to OPM, bypassing slower manual processes.

“These applications had been sitting for months — and were likely to be sitting for months longer; ORA enabled us to address this challenge,” said Kupor.

Artificial Intelligence/Civilian/News
White House AI Action Plan: Progress & Policy Changes Since July
by Jane Edwards
Published on January 2, 2026
Artificial intelligence. Agencies have released AI guidelines and strategies,  building on the White House Action Plan.

Since the White House released its AI Action Plan in July, federal policymakers and agencies have taken key steps to implement components of the plan to accelerate U.S. leadership in artificial intelligence.

White House AI Action Plan: Progress & Policy Changes Since July

Explore innovative AI use cases and connect with GovCon leaders at the Potomac Officers Club’s 2026 Artificial Intelligence Summit on March 19. Reserve your seat today to be part of this transformative conversation.

The plan outlines over 90 federal policy actions across three pillars: accelerating AII innovation, building American AI infrastructure and leading in international AI diplomacy and security. 

Major follow-on actions by agencies touch on procurement, regulation, standards and broader agency AI strategies.

Table of Contents

  • Challenging Restrictive State AI Laws
  • How Are Federal AI Procurement Rules Evolving?
  • What AI Strategies Are Federal Agencies Adopting?
    • Department of Health and Human Services
    • Department of Veterans Affairs
    • State Department
    • Army CIO Guidance
  • Where Does Federal AI Policy Go From Here?

Challenging Restrictive State AI Laws

In December, the White House issued an executive order targeting state AI laws that could interfere with national policy objectives. The order directs the creation of an AI Litigation Task Force to review and potentially challenge laws deemed “unconstitutional, preempted, or otherwise unlawful,” which could potentially hinder innovation. 

The EO delivers on the AI Action Plan released by the White House in July. One of the key policies cited in the plan is to cut red tape and eliminate regulations that hinder America’s leadership in this critical technology.

How Are Federal AI Procurement Rules Evolving?

One of the notable policy shifts linked to the AI Action Plan is the Office of Management and Budget’s procurement guidance, which was released in December.

The OMB memo outlines contractual requirements to ensure that large language models, or LLMs, procured by the federal government comply with unbiased AI principles, including truth-seeking and ideological neutrality. According to the policy, agencies should avoid requirements that compel a vendor to disclose specific model weights and other sensitive technical information. 

In LLM solicitations, OMB requires agencies to request information from a vendor, including acceptable use policy; information about the model, system or data cards; end user resources; and mechanism for end user feedback.

Agencies are expected to revise their procurement procedures and policies to incorporate these standards by March 11.

What AI Strategies Are Federal Agencies Adopting?

Several federal agencies have released or updated AI strategies in alignment with broader AI Action Plan goals. These plans focus on responsibly integrating AI into missions while promoting innovation and governance.

Department of Health and Human Services

HHS launched its departmental Artificial Intelligence Strategy, emphasizing governance, workforce readiness, risk management and modernization of operations through AI to improve health and human services.

Department of Veterans Affairs

VA published a strategy to expand AI adoption across its services, aiming to streamline workflows, enhance healthcare delivery, accelerate benefits processing and strengthen public trust. The strategy outlines building data infrastructure, reshaping core workflows and developing an AI-ready workforce as central pillars, with pilots already improving administrative efficiencies and expanding AI-assisted tools for both clinical support and veterans services

State Department

The department unveiled its Enterprise Data and Artificial Intelligence Strategy for 2026, which aims to modernize diplomacy using AI and data. The strategy has two primary goals: pioneering advanced statecraft and accelerating AI adoption across operations. 

Army CIO Guidance

In August, the U.S. Army chief information officer issued guidance to ensure that AI products used within the service branch comply with records management, privacy protections and the Freedom of Information Act. The document requires system and application owners to treat prompts as the foundation for generating and refining content when using AI tools. They must also capture and manage all aspects of the AI interaction to support compliant record management. 

Where Does Federal AI Policy Go From Here?

With agency plans in motion and procurement rules evolving, the focus now turns toward implementation and impact. Upcoming deadlines for updated procurement policies and new agency deployments will shape how the federal government operationalizes AI. These developments will be critical in determining not just regulatory compliance but how AI ultimately transforms government services and international engagement.

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