PTS MONTHLY INDUSTRY SPOTLIGHT

4rd EDITION – July 2026

FROM THE EDITOR

GovTech: The Technology Shaping What Comes Next

Candice Smith | Account Executive – GovTech

In my early days of technical recruitment, everyone wanted a ServiceNow developer, a ColdFusion developer, or a .NET developer. Over time, I watched govcon shift from a heavy focus on programming and service management to automation, cloud, cybersecurity, data modernization, and now AI. Once the ServiceNow wave took hold, the market quickly moved to cloud engineers. AWS and Azure changed the game. The government saw how much more efficient it could be to use the cloud instead of relying on servers and legacy on-prem systems. Suddenly, data could be accessed from anywhere, and the Ethernet cord, HDMI cable, and USB drive became less essential. Reminds me of my college days, when a flash drive held your entire scholastic career.

Nevertheless, that shift also made cloud security essential. Cybersecurity boomed because once data moved into the cloud, it became more exposed to adversary threats, and NIST standards helped establish the framework for protecting it. The government leaned heavily on NIST standards, and now this administration has doubled down on CMMC requirements, making the cybersecurity bar even higher.

But once all that data was secure in the cloud, the next question became: what do we do with it now? That's when we saw a surge in data modernization efforts. Python developers and data engineers became critical, and that laid the foundation for the rise of AI and machine learning.

Today, automation is the name of the game. With AI leading the conversation, nearly every federal agency is looking for automation services across databases, ERP systems, and enterprise workflows. At PTS, we feel that shift firsthand. Over the last year, our clients have increasingly asked for leadership and business development talent tied to AI adoption, supply chain risk management, materials science, automation, and emerging technology.

And next up is quantum computing.

Quantum is still in its early stages, but it is already part of the conversation and the budget too. A lot of people are asking what quantum computing even is, and the simplest answer is this: quantum computing and AI are related, but they are not the same thing. AI is software that learns from data and helps computers make predictions, classifications, or decisions. Quantum computing is a different kind of hardware that uses qubits and quantum physics to solve certain complex problems in new ways. AI is the brain; quantum computing is the machine it may eventually run on. AI is already widely used, while quantum is still emerging and experimental. AI is strong in pattern recognition, automation, forecasting, language, fraud detection, and image analysis. Quantum computing is being explored for highly complex optimization, materials science, chemistry simulation, and certain cryptography-related problems.

That is part of why IBM is investing $10 billion in quantum R&D. The government is also making a serious push into quantum computing, with the DOC announcing $2 billion in planned funding and equity stakes in 9 companies to accelerate domestic quantum development and manufacturing.

We are also seeing the federal government align in real time with emerging technology instead of adopting it long after the rest of the world. Even the bidding process is changing, with many clients now seeking BD and capture talent who understand OTAs. Creating the ability to move faster and buy innovation with less red tape.

The takeaway is simple: technology is now part of everything in the govcon space. The time to embrace it has passed, and the pace of change is moving faster than many of us could have imagined. In less than a decade, all of these shifts have taken place. Partnering with a company like PTS allows us to be experts, find the experts you need, and stay ahead of the curve in your industry. We are well equipped and passionate about solving problems and connecting you with exceptional govcon talent.

PRECISION EXPERTS PRESPECTIVE

We are lucky to bring in other perspectives from our PTS Precision Experts and guests on The Future of GovCon podcast.

LTG (Ret.) John B. Morrison Jr.

Former Deputy Chief of Staff, G6, U.S. Army; Former Chief of Staff, U.S. Cyber Command

The unified network was never just a tech initiative. Every separate network is a seam an adversary can exploit. Breaking down the cultural barrier of "my network" thinking was as hard as the technology itself.
AI without cybersecurity baked in is a liability. Organizations are embracing AI at a pace that outstrips their understanding of the security implications. If it is not integrated from the start, you are not accelerating — you are just creating a bigger attack surface.
Stop selling widgets. Start solving problems. The vendors that got traction in Morrison's office came in describing the operational gap they were filling. If you cannot articulate your benefit in the customer's language, the meeting ends fast.
The government-industry coupling has to tighten. The pace of technological change is a national imperative that cannot be solved by government alone. The special operations community has been running tight innovation cycles with industry for decades — the rest of the force needs to build on those models.
One word: Acceleration. The rate of change is not just fast — it is compounding. Every organization that clings to old institutional processes will be left behind.

MG (Ret.) Ryan Heritage

Former J3, U.S. Cyber Command; Former Commanding General, Marine Corps Forces Cyberspace

Cyber is a maneuver domain, not a support function. Heritage came to Cyber Command with infantry instincts and never left them behind. He views networks as weapons systems and asks the same questions he asked as a lieutenant: how do you maneuver, how do you protect your flanks, how do you enable the commander?
A cyber service is coming and industry should be positioning now. A standalone cyber service would fundamentally reshape requirements, acquisition pathways, and the talent pipeline. The companies that understand that transition early will have a significant advantage over those who wait for the RFP.
The speed of the threat has outrun the speed of acquisition. What Ukraine demonstrated — commercial technology adapted and fielded in days, not years — is the new benchmark. The traditional acquisition model was not built for that pace.
GovTech is converging with defense tech whether the market is ready or not. AI, data infrastructure, and software are no longer separable from weapons systems and operational planning. The question is whether commercial GovTech companies can navigate the customer and compliance requirements to get there.
Workforce is the critical constraint. The talent required at the intersection of cyber, AI, and defense operations is scarce and getting scarcer. The government cannot compete on compensation, which means the public-private talent relationship has to be rethought entirely.
One word: Convergence. The lines between cyber, AI, GovTech, and traditional defense are dissolving. The opportunity — and the risk — is in that convergence.

CLIENT PERSPECTIVES

Brandon Daniels

CEO, Exiger

Supply chains are now a national security design problem, not an afterthought. COVID ripped back the veil on America's dependencies — antibiotics, PPE, semiconductors, weapons components. Exiger found the same vulnerabilities in defense industrial base supply chains everywhere they looked. Brandon's argument is simple: you cannot bolt supply chain resilience on after the fact. It has to be designed in from the start.
Supply chains are diamonds, not pyramids. The conventional mental model — one supplier fans out to many — is wrong. At the critical chokepoints, supply chains converge. The wafer fabs, the rare earth processors, the castings — they funnel back down to very few sources. The companies that understand that structure can identify and act on the real risks. Everyone else is managing noise.
AI is a 10x to 100x multiplier on execution. Exiger runs its entire product development lifecycle on AI. What used to take two months now takes two days. What used to take two years now takes two months. Brandon's point is not theoretical — Exiger's team of 15 is doing the output equivalent of 500 people. The companies building their AI infrastructure now will be structurally ahead of those that wait.
The defense industrial base needs to be built by design, not by emergency. Brandon's vision for three years out is a defense industrial base where supply chains are mapped before a weapon system goes to bid — where you know your source for a critical material over the next seven to ten years before you submit. Right now the opposite is true. The urgency of modernization is creating demand signals that look like static, and the supply side cannot respond to static.
Reshoring is real and the labor arbitrage is gone. The cost of manufacturing in North Texas versus Hebei, China is converging. With AI-driven robotics on the assembly floor, the traditional argument for offshoring disappears. Brandon believes American manufacturing is heading toward a genuine renaissance — not in five to ten years, but in three, if the regulatory and capital conditions hold.
One word: Explosive. If the U.S. harnesses its capacity to let individuals innovate freely — amplified by AI — there is no competitor that can match it. The next three years will be explosive for those who lean into it.

MARKET INTELLIGENCE

Industry Developments & Recent Awards

Recent Awards

Apr 1, 2026 | USSOCOM via GSA FEDSIM | Booz Allen Hamilton Inc. | $2.527B EMAPS 3 — Enterprise Machine Learning Analytics and Persistent Services. AI and analytics platform supporting special operations enterprise modernization. GovTribe: Award Record | Source: Orange Slices AI
Apr 10, 2026 | U.S. Air Force via GSA AAS | Black Cape, Inc. | $274.6M Authoritative Theater Object Management System — SBIR Phase III; data analytics and AI for defense modernization. GovTribe: Award Record | Source: Orange Slices AI
May 26, 2026 | U.S. Army | Deloitte & Touche | $249M Organic Industrial Base Modernization — Enterprise-level solutions development, integration, and innovation acceleration services. Source: GovConWire
June 16, 2026 | DISA | Empower AI | $255.4M J6 Service Delivery Recompete — Five-year recompete for enterprise IT support services for the Pentagon and National Capital Region. Source: GovConWire
May 17, 2026 | DOJ Bureau of Prisons | LEO Technologies LLC | $106.7M AI Translations & Inmate Communications — AI-powered monitoring, translation, and inmate communication services. GovTribe: Award Record | Source: Correctional News
June 5, 2026 | NIH / ARPA-H | Palantir Technologies Inc. | $13.7M DPMO / Aurora Sustainment — AI platform-as-a-service with agentic AI and governance frameworks. GovTribe: Award Record | Source: G2Xchange
May 1, 2026 | NASA Ames Research Center | KBR Wyle Services, LLC | $2.81M Intelligent Systems Division Technical Support — Technical advancement support for NASA's intelligent systems research mission. GovTribe: Award Record | Source: G2Xchange

PIPELINE & OPPORTUNITIES

Solicitations & Upcoming Events

Enterprise AI Governance, Management, and Implementation Support Department of Veterans Affairs | Solicitation # 36C10B26Q0537 VA Chief AI Officer-led effort to build a centralized framework managing the full AI lifecycle — use case intake, compliance tracking, stakeholder coordination, data pipeline oversight, and enterprise-wide adoption. Emphasis on alignment to federal policy and responsible, scalable AI. SAM.gov: View Solicitation
AI Intelligent Automation Support Services NAVSEA | Solicitation # N0017827R3105 Long-term applied AI and intelligent automation effort under SeaPort-NxG at NSWC Dahlgren. Spans AI/ML, DevSecOps, MLOps, cybersecurity, software engineering, digital twins, hardware-in-the-loop testing, and autonomous systems integration. High-clearance environment; formal solicitation expected later. Source: Orange Slices AI
Defense Healthcare Management Systems End User Services DHA / PEO DHMS Large-scale Enterprise End User Services transformation consolidating support for MHS GENESIS and JOMIS across 11 user domains. Priorities include service desk performance, rapid onboarding, tactical/disconnected support, and service intelligence from ITSM and clinical data. Source: Orange Slices AI
Defense Travel System (DTS) Administration and Technical Support U.S. Army (Shaw AFB) | Solicitation # W51H7226QA009 8(a) set-aside for DTS administration and technical support. Two FTEs to manage DTS operations, maintain compliance with Joint Travel Regulations, and provide help desk support. Includes base year, option years, and surge labor support. Source: HigherGov

Upcoming Events

Jul 26–29, 2026 | NCMA World Congress | Orlando, FL
Aug 14, 2026 | ACT-IAC: Smarter IT Acquisitions at FDA | Reston, VA
Aug 17–20, 2026 | AFCEA TechNet Augusta | Augusta, GA
Oct 12–14, 2026 | AUSA Annual Meeting & Exposition | _Washington, DC _

STRATEGIC ANALYSIS

PTS — Positioned for GovTech

Technology is no longer a line item in the GovCon budget. It is the mission.

Whether it is AI governance, supply chain risk management, cloud modernization, or autonomous systems, the agencies writing requirements today need leaders who understand both the technology and the acquisition environment around it. That combination is rare, and it is exactly what PTS is built to find.

Over the past year, our clients have increasingly asked for BD, capture, and program talent tied to AI adoption, data modernization, automation, and emerging technology. We have placed those leaders across defense, civilian, and intelligence accounts — and we understand the skills, clearances, and domain fluency that make the difference in this space.

If you are building a team for a GovTech opportunity, a recompete, or an emerging technology program, let's talk.

What We Place in GovTech