Q3 2025 Industry Update

2025 continues to be a year of transformation. Q3 brought sharp focus on the Administration’s priorities, rapid integration of AI, an awakening in Europe, and sweeping reorganization across the federal government. Unlike the usual end-of-year sprint to spend down budgets, projects slipped into FY26 and awards slowed as restructures and contracting bottlenecks rippled across the system. Adding to the turbulence, the federal government entered its first shutdown in six years – casting a long shadow over the start of the new fiscal year.

 

In this phase of uncertainty, PTS is here to connect the dots. From the Pentagon’s reset and shifting troop posture, to Europe’s security initiatives and NATO’s Eastern Flank, to rising counternarcotics missions, MILCON and contingency contracting in the Pacific, and growing instability in the Sahel and Africa – all alongside sweeping workforce shifts, procurement reforms, and department consolidations – PTS has tracked the signals that matter most for the contracting community heading into Q4.

 

And because even the most serious industry needs space to think out loud, PTS launched “The Future of GovCon” podcast hosted by Jake Frazer. Think of it as your coffee-break companion – a space where bold voices and boundary-pushers (flag officers, SES leaders, CEOs, politicians, think tankers, entrepreneurs) share what’s next in the federal marketplace. If this report is your map, the podcast is the soundtrack. So grab a cup, settle in, and join us as we look back at the summer of 2025 and chart what lies ahead.

 

Top Trends Observed

 

· Pentagon Signaling: Strategy Reset – Secretary Hegseth convened hundreds of flag officers at Quantico in a rare, closed-door summit, widely interpreted as groundwork for a new National Defense Strategy and possible COCOM realignment. The Pentagon also restricted personnel from think tank events and conferences, cutting off traditional policy-industry dialogue. Is this the start of a fundamental shift in U.S. defense posture, and how will industry adapt as priorities are set behind closed doors?

· JCIDS Termination: A New Approach to Setting Requirements – DoD ended the 22-year JCIDS system, replacing it with a Requirements and Resourcing Alignment Board (RRAB) to connect requirements directly to budget decisions. The JROC will now rank joint gaps at the enterprise level instead of reviewing every program. Will this speed up acquisition and innovation, or will concentrating authority in fewer hands make shifting requirements harder to anticipate?

· Fork in the Road: Federal Workforce Restructuring – Thousands of civil servants who opted into the “Fork in the Road” buyout are now departing, leaving agencies short on experienced acquisition and program talent just as new priorities take hold. Will this exodus create enduring capability gaps, and how will agencies adapt to a leaner federal workforce?

· Foreign Aid Consolidation Under State – With USAID absorbed into the State Department (DOS), foreign assistance is being retooled to serve strategic leverage. Can DOS build the procurement capacity to manage its expanded mandate, or will bottlenecks and disruption define the transition?

· NATO’s Eastern Flank Shifts – Moldova’s pro-EU election and Ukraine’s pivot toward stabilization highlighted Europe’s shifting dynamics. Q3 saw U.S. aid freeze and then $625M in new arms approvals, alongside discussions of troop or contractor missions. With Moscow pressing NATO’s borders, how far is Washington prepared to go in Ukraine’s security future?

· Narco-Terrorism: Militarizing the Counternarcotics Fight – The deployment of 4,000 troops, F-25A aircraft, warships, and submarines to Latin America marks a decisive move from DEA-led operations to a militarized counternarcotics strategy. With cartels designated as FTOs, new funding streams are opening in ISR, logistics, and advisory contracting. As the U.S. restores basing and mobility, will this drive sustained demand for contractors in counternarcotics, border security, and stabilization missions?

· DHS IDIQ Surge: Enforcement at Scale – What Q2 flagged as a “DHS gold rush” is now reality. Fueled by the $171B boost from the OBBB funding, obligations spiked in Q3 to historic levels. ICE is leaning on its IDIQ portfolio to expand detention and enforcement infrastructure, while DHS is adopting DoD-style surge vehicles like WEXMAC, including a $1.2B award to stand up a 5,000-bed detention facility at Fort Bliss. This shift cements DHS as a contracting powerhouse, with pipelines spanning O&M, construction, detention, monitoring, and logistics.

 

Behind each of these developments, PTS Precision Experts provide a practical perspective of leaders who’ve served inside governments and industry, helping contractors interpret where opportunity is headed next. As technology, policy, and mission priorities continue to evolve, these shifts are particularly evident in the rapidly advancing GovTech sector.

 

GOVTECH

 

AI, cybersecurity, and cloud computing dominated Q3 as federal and defense agencies accelerated modernization. Rising budgets for AI-enabled mission systems, new CMMC rules, and faster procurement pathways through OTAs and FedRAMP reforms are reshaping the GovTech landscape.

· Pentagon Narrows Tech Priorities – DoD’s Research & Engineering will reduce its 14 critical technology ** ** areas to a focused set of mission-essential priorities, aligning R&D budgets and accelerating field delivery.

· FedRAMP 20x Speeds Cloud Approvals – FedRAMP 20x slashed approval timelines from a year to weeks, with 114 cloud services approved by the end of Q3.

· Legacy IT Drives Cloud Migration – A GAO review identified 11 legacy systems costing $754M annually and flagged significant cybersecurity risks, reinforcing cloud migration as a modernization priority.

· DoD Backs Agentic AI – The Pentagon’s CDAO awarded $200M OTAs each to Anthropic, Google, OpenAI, and xAI to prototype “agentic AI” applications in warfighting and enterprise environments, part of a $1.8B shift toward leveraging commercial innovation.

· AI Action Plan – The White House rolled out 90+ federal actions under its AI Action Plan, spanning innovation, U.S. AI infrastructure, and global standards. Deltek projects AI spending to grow from $2.7B in FY26 to $3.1B in FY28.

 

As cloud, AI, and cybersecurity reshape the federal market, the challenge isn’t just technology – it’s people. PTS has dedicated teams led by Isaac Khaneles and Candice Smith, providing contractors with mission-ready talent across AI/ML, cyber compliance, cloud engineering, and digital transformation to compete and deliver in this fast-moving GovTech space.

 

Key Procurement Updates

 

Optimism across the industry is slipping, while challenges sharpen. Resource management remains the top hurdle, with 79% of firms struggling to secure contracts and one-third admitting they don’t fully understand the new CMMC requirements. With DOGE reforms reshaping acquisition, government contractors face mounting pressure to adapt talent and compliance strategies. Read the full GAUGE 2025[BR1] report here.

 

· FAR 2.0 Overhaul – A sweeping modernization of the FAR is underway, consolidating outdated clauses and streamlining compliance to accelerate acquisition cycles. While the overhaul preserves the long-standing Rule of Two, socioeconomic set-asides are being deprioritized. Track updates here.

· SBIR/STTR Programs in Limbo – The $4B Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs reached their reauthorization deadline on 9/30. Congress is weighing modernization under the Innovate Act versus permanent reauthorization. Delays could stall critical R&D funding for startups and research-intensive small businesses.

· SBA Proposes Higher Small Business Size Standards – A proposed SBA rulewould raise size thresholds across 263 NAICS codes. Mid-sized firms could re-qualify as “small,” intensifying competition in set-asides. Comments are due 10/21.

· CMMA 2.0 Rule Goes Final –The long-awaited DFARS rule was published on 9/10, formally establishing CMMC 2.0 with three compliance levels and making early certification a competitive discriminator. Implementation begins 11/10. Preparing for certification can take 6 – 28 months, so firms that haven’t started are already behind. PTS can help contractors get ahead of requirements – reach out to Candice Smith.

 

AGENCY UPDATES

 

ARMY

 

As of the end of Q3, the Army is executing a high-tempo restructuring effort focused on force realignment, digital transformation, and operational agility under constrained topline projections. The service continued to divest legacy systems while scaling its multi-domain command-and-control architecture and enterprise software platforms, including a $10B Palantir deal to accelerate the integration of AI and battlefield intelligence across echelons. The Army will begin cutting 6,500 aviation jobs from active duty in Q4 to realign the force toward unmanned drone operations.

 

· USACE Realignment – USACE announced a major institutional shift, realigning its Transatlantic Division (TAD) under the Southwestern Division (SWD) effective October 1. This change consolidates oversight of Middle East infrastructure and contingency operations under a CONUS-based command, improving acquisition speed, operational integration, and mission responsiveness to CENTCOM and AFRICOM requirements.

· Air Defense Expansion – The Army anticipates expanding its air defense force by 30% by FY29, adding four battalions and over 4,000 personnel to counter growing missile and drone threats across the Indo-Pacific and Europe.

· Joint Interagency Counter-Drone Task – DoD directed the Army to establish a new task force (JIATF401) to serve as the Pentagon’s lead organization for countering small drones, replacing the existing Joint Counter-small UAS Office (JCO).

 

Source: Deltek

 

Major Army Program Updates

 

· LOGCAP VI Is Here! – The Army’s next generation sustainment contract, valued at up to $82B, will restructure global support into two single-award IDIQs (East/West), with new small business MATOCs for CONUS logistics. LOGCAP VI will span base operations, life support, engineering, supply chain, and contingency services worldwide, with geographic priority shifting toward INDOPACOM while maintaining EUCOM, CENTCOM, and humanitarian response missions. The Army hosted an Industry Day from October 6-8; draft RFP expected in Q4.

 

· LOGCAP V – Tasking slowed significantly in 2025, with only one award reported to date: a $21.3M delivery order to KBR for base life support and sustainment at Dona Base Camp in support of ARNORTH and Joint Task Force-Southern Border, with performance through April 2026. The Army is also utilizing LOGCAP V as a platform to test digital sustainment tools and contested-environment readiness that will shape LOGCAP VI.

 

· NGCC – The Army’s Next Generation Command and Control (NGCC) modernization priority advanced in Q3, with Anduril awarded $100M to scale prototypes to the division level. This award is part of a broader initiative to unify sensors, shooters, and decision-making under a modernized, data-driven architecture.

 

With LOGCAP VI set to reshape Army sustainment, early positioning is key. PTS brings 25+ years of LOGCAP experience, and together with Precision Experts, delivers a powerful solution combining technical SMEs, acquisition leaders, key personnel, and capture talent to help contractors compete and win. Connect with Jake Frazer to explore the best path forward.

 

Notable Awards

 

· Conti Federal ** ** won a $65M FMS contract for construction support in Israel.

· Day & Zimmermann ** ** received $30.9M to produce M82A1 percussion primers.

· Amentum was awarded a $31.7M modification to support global Army aviation ** ** maintenance and sustainment operations.

· Metron ** ** received ** ** a $48.6M contract for RDT&E of AI/ML-enabling technologies to support expeditionary maneuver and recon operations.

· Acquisition Logistics won $231.8M to build and operate a 5,000-bed short-term detention facility in El Paso, TX, in support of ICE.

· Dynetics received $264M for continued development of the Indirect Fire Protection Capability (IFPC) system, a key component of Army layered defense.

· BFBC won a $174M border infrastructure contract for the design and construction of protective barrier fencing, gate installations, and roadway improvements in Arizona.

 

AIR FORCE

 

In Q3, the Air Force (AF) stress-tested its global mobility and readiness through ReForPac and Northern Edge 2025, moving 400 aircraft across 50+ Indo-Pacific sites and reintegrating homeland defense operations in Alaska. AMC demonstrated contested logistics and Agile Combat Employment at scale, reinforcing mobility as the backbone of power projection. On the policy front, FY26 budget talks sharpened tradeoffs – more investment in long-range munitions, B-21 acceleration, and next-gen systems like the F-47 and Collaborative Combat Aircraft, balanced by fighter procurement caps and divestments.

 

· AFCAP VI – The AF released a draft RFP for AFCAP VI, a $12.5B ceiling program emphasizing contested environment support and a larger vendor pool. Industry feedback is due 10/10, with final RFP expected in Q4.

· AFCAP V – The AF’s contingency support program is nearing the halfway mark of its $6.4B ceiling, with 79 task orders awarded to date. In Q3, KBR won a $3.9M task, Amentum received a $19M contract for ADAB EDD Engineering and Design, and V2X secured a $153M task for BOS and mission support services to the USSF at Ascension Island.

 

{add spending chart}

· NGAGE – The AF released a draft RFP for the Next Generation Aerospace Ground Equipment (NGAGE) IDIQ, a 10-year, $920M contract supporting advanced airbase systems.

· Global Exercises – The AF and Space Force (SF) wrapped up a slate of global readiness drills, including Mobility Guardian 2025, Emerald Warrior 25.2, and Bamboo Eagle 25-3. Together, these exercises involved over 12,000 troops and 500 aircraft, testing joint mobility, electromagnetic warfare, and cyber operations across multiple theaters.

 

As AI, cybersecurity, and cloud continue to redefine operations, the challenge isn’t just technology – it’s people. PTS has a dedicated team led by Isaac Khaneles and Candice Smith, providing contractors with mission-ready talent across AI/ML, cyber compliance, cloud engineering, and digital transformation to help companies compete and deliver in this evolving space.

 

Notable Awards

· Northrop ** ** received a $11.7M modification for Iraq’s C-172/C-208 CLS fleet support.

· V2X was awarded a $4.3B IDIQ contract to support the USAF T-6 COMBS Program and received $118M FMS contract supporting the Iraq F-16 Program at Martyr BG Ali Flaih AB.

· USAF C2E – Eleven contractors selected for a $15B, 10-year USAF worldwide SB Comprehensive Construction and Engineering (C2E) contract covering facilities, hangars, fuel systems, airfields, utilities, and other infrastructure work.

· Jacobs, AECOM - Baker JV, and WSP are among the awardees on a $249M architect-engineering IDIQ through 2032.

· CBRE was among seven firms to receive a $950M IDIQ award for design-build, sustainment, and renovation projects across the Kaiserslautern and Spangdahlem military community in Germany.

· CACI won a $43.2M sole-source IDIQ sustainment for the Integrated Broadcast Services Network Services (IBS-NS) network in the US, U.K., and Canada.

· World Wide Technology received a $99.9M IDIQ contract for IT Transformation under AF CyberWorx.

· Gilbane is among 15 companies selected for a $995M IDIQ contract for Okinawa infrastructure projects.

· ASRC received $526M under the Cyber Support Services 3 Program to deliver high-capacity digital communications to the USAF worldwide.

· The USAF has awarded spots to 33 companies under the $980M ATSA-I IDIQ supporting lifecycle sustainment and modernization of test systems.

 

SPACE FORCE

The Space Force advanced from planning to execution on missile defense modernization, launching the $151B SHIELD program to deliver layered defense capabilities. Alongside SHIIELD, the service restructured acquisition units under System Delta and increased use of SpEC OTAs, with 87% of awards now going to nontraditional vendors. Meanwhile, the relocation of the U.S. Space Command to Huntsville (AL) is reshaping the talent market and creating new challenges for industry.

 

• SHIELD – The Missile Defense Agency (MDA) launched the $151B SHIELD IDIQ, a 10-year multiple-award vehicle for layered missile defense capabilities across domains. Proposals are due by 10/10. For contractors, SHIELD will serve as the primary platform for opportunities in sensors, AI-enabled C2, and interceptors.

• MAPSS – The MDA released a Special Notice for the MAPSS procurement, a follow-on to TEAMS-Next, to provide professional services through 6 tranches until FY29. Valued at $5.5B and involving about 3,000 FTEs, MAPSS may leverage GSA’s OASIS+ contracts, with multiple requirements set aside for small businesses. First tranche RFPs expected in Q4.

• Target Booster Systems (TBS) – Responses for the MDA/TBS program were collected on 9/12, focusing on missile defense testing and validation. RFP expected in Q4.

• MDA Mentor-Protégé (M-P) BAA – MDA issued a new Broad Agency Announcement open through 2028 to strengthen the defense industrial base by pairing large DoD primes with small businesses. Focus areas include hypersonic tracking, Aegis upgrades, NGI development, THAAD, Patriot, and Guam defense systems. View BAA qualification here.

• 2025 MDA Small Business Conference – Scheduled for October 21-22; register here.

 

Notable Awards

• Amentum won a $4B Space Force Range Contract to provide test and training range support.

• Space Force PTS-G IDIQ ($4B) – Astranis, Boeing, Intelsat, Northrop, and Viasat were awarded spots on the Protected Tactical Satcom-Global contract for design and demonstration work.

• Boeing secured $2.8B to build the first two satellites under the Evolved Strategic SATCOM (ESS) program.

• NASA awarded the $1.8B COSMOS contract to Ascend Aerospace & Technology (with Aerodyne and Jacobs) for spaceflight operations and systems support.

 

The relocation of U.S. Space Command to Huntsville is intensifying competition for cleared technical and program talent, with 1,400+ positions shifting from Colorado Springs. PTS is actively mapping Huntsville’s talent landscape and building pipelines of senior leaders, engineers, and program managers ready to support both government and industry. To explore alignment with space initiatives, contact Isaac Khaneles.

 

NAVY

The U.S. Navy sharpened its focus on distributed operations, unmanned systems, and OCONUS force posture. In response to Indo-Pacific tensions and growing infrastructure demands, the service advanced logistics, innovation, autonomous teaming, and next-generation sustainment.

 

• WEXMAC 2.1 TITUS – The Navy activated the $20B WEXMAC TITUS contract, selecting 104 vendors to deliver rapid expeditionary support across the U.S and Alaska.

• WEXMAC 2.0 – More than 235 task orders have been awarded in the first nine months of 2025 under this $2.5B IDIQ (awarded to 87 in 2024), delivering expeditionary support across the U.S., Ecuador, UAE, Senegal, Greece, Bahrain, and Saudi Arabia.

• Collaborative Combat Aircraft (CCA) ** ** – The Navy selected Boeing, Northrop, Anduril, Lockheed, and General Atomics to develop a “drone wingman” capability for ISR, strike coordination, and decoy operations in maritime environments.

• Expanding U.S.-Philippine Naval Collaboration – The U.S. will build a new fast boat facility in Palawan, near contested South China Sea waters, to support resupply missions and patrols. The Philippine (PHI) Navy also secured FMS support for small boats, and the U.S. Coast Guard issued RFIs for depot-level maintenance equipment (mobile crane, engine testing system, forklifts, and trucks).

• NRCO Reorganization and Replicator – The Navy consolidated several offices into a restructured Naval Rapid Capabilities Office (NRCO), now tasked with leading the Pentagon’s Replicator Initiative to accelerate unmanned systems deployment.

NAVY OCONUS BOS Q3 Update

• Guam (Joint Region Marianas) – DZPS 21 received a $116M modification to continue operations across Navy, Marine Corps, and Air Force installations in Guam.

• Diego Garcia –The long-anticipated BOS recompete remains delayed following RFIs collected in May 2024. Incumbent KBR continues under bridge arrangements, with an updated RFP anticipated in FY26.

• Sigonella (Italy) – NAVFAC issued a pre-solicitation on 9/8 for the upcoming BOS contract covering NAS Sigonella and supporting sites. The RFP is expected in Q4 FY25. The incumbent is Valiant/Alca JV.

• Djibouti (Camp Lemonnier) – The new $476M BOS contract awarded to KBR earlier this year is now transitioning into full performance, set to begin in November 2025.

Notable Awards

• Serco ** ** awarded $97M to continue supporting submarine communication systems.

• NAVFAC Pacific selected eight vendors to provide construction services under a $15B Pacific Deterrence Initiative (PDI) contract.

• Guam Awards – ** ** Core Tech-HDCC-Kajima ** ** won $295M to construct a defense system command center; Global Pacific Design Builders ** ** received $297M for housing replacement, while Nan was awarded $211.4M to construct a communication center, both at Andersen AFB. In addition, NAVAF Pacific awarded ten contractors ** ** a $15B MACC for construction services in Guam.

• Framaco/Bozdemir ** ** won a $38M contract for facility renovations at Keflavik Air Station, Iceland.

• Five vendors secured positions on a $1.5B MACC construction and sustainment contract at Diego Garcia.

 

PTS supports Navy contractors with specialized talent across base operations, engineering, logistics, and program execution. Our robust network includes former Seabees, CEC officers, licensed engineers, trades professionals, and PMO teams—people who understand the mission, pace, and Navy programs demand.

 

 

STATE

Q3 brought major structural changes at the State Department (DOS) with direct implications for contractors. On July 1, the USG formally closed USAID, consolidating foreign assistance programs under DOS. The transition includes reorganizing contract management and procurement functions, expected to take 6-18 months to become fully operational. The EUR and NEA bureaus are progressing faster due to their existing aid offices.

 

· GLOBALCAP (IDIQ, $5B / 10yr) – Awarded 7/1 to 16 vendors, consolidating AFRICAP and GPOI into State’s new flagship contingency vehicle for stabilization, logistics, training, equipment, and construction. No task orders have been released in Q3.

· GATA III (IDIQ, $765M / 5yr) – No new task orders were issued in Q3 following an early protest. Multiple releases are anticipated in Q4.

· GLOBAL ADVISORY (IDIQ, $250M / 5yr) – Proposals were collected 5/6, with DOS confirming in its 7/28 update that evaluations remain underway. Awards are now expected in Q4.

 

Ongoing Reforms

 

• $5B Foreign Aid Rescinded – The administration canceled $5B in unobligated foreign assistance via a pocket rescission, affecting DOS and legacy USAID programs in humanitarian relief, health, development, poverty reduction, regional security assistance, and multilateral contributions. This move sent shockwaves through donor networks and implementing partners.

• Revised FSO Recruitment Process – DOS implemented a new Foreign Service Officer (FSO) recruitment and testing process alongside the DOS Policy Provisions Act, codifying workforce and structural changes. The shift signals a move toward more centralized, streamlined model for foreign assistance and operations, creating short-term disruptions but also new contracting opportunities.

• Development Entities – The DFC is now central to the administration’s financial diplomacy, with a proposed expansion from $60B to $250B and a shift from grants to loans and equity tied to U.S. strategic goals. Early moves include a $20B swap line for Argentina, financing to counter Chinese telecom influence, and support for critical mineral projects in Africa. The MCC has narrowed to core priorities, while USTDA continues limited project prep amid an uncertain future.

• DOS Organization – DOS published an updated org chart in July 2025, reflecting ongoing structural changes as foreign assistance functions migrate under DOS.

 

The foreign assistance landscape is being redefined as DOS consolidates programs and realigns procurement. Navigating this shift required experience, context, and access to the right expertise. Through Precision Experts, PTS connects contractors with senior-level advisors who understand the inner workings of DOS, helping teams adapt, compete, and deliver in this evolving environment. For insight and guidance on positioning in this space, contact Jason Hutchison

 

Upcoming Opportunities

 

• NDF Mission Support Services – RFI due on 8/28 for a $100M+ multi-year opportunity for rapid-response consulting support to assist DOS’s Nonproliferation and Disarmament Fund in countering WMD threats, dismantling weapons facilities, and supporting host nations in austere environments. RFP expected in FY26.

• FASTC Emergency & Fire Services – RFP released on 9/25, proposals due 10/24. Requires certified ALS ambulance support, fire suppression equipment, vehicles, and trained personnel to provide emergency response services at the new Foreign Affairs Security Training Center in Ft. Pickett, VA.

 

Notable Awards

 

• CACI and GDIT won positions on the potential $8B Evolve IDIQ for network and telecommunication services.

• Seneca Strategic Partners won a $41M INL task under the MAC INL FA 6 Vehicles IDIQ for 135 trailers, 900 pick-up trucks, and related equipment for Ukraine.

• Alutiiq secured $24M from OBO for facility management support services.

• Echodyne won a $35M INL contract to deliver counter-drone radars, technical support, and training.

• GM Defense received $43M DS award for specialized armored SUVs.

• CGI won $214M contract for Passport Personalization Facilities Support.

 

 

 

DHS

Q3 marked the start of deploying $171B – the largest increase in enforcement funding in U.S. history. With billions flowing into detention infrastructure, border expansion, and a significantly larger workforce, DHS procurement priorities are changing rapidly. PTS Precision Expert Sue Armstrong breaks down what this rollout means for contractors and highlights where the next opportunities will emerge.

 

• Advisory & Assistance Services (A&AS) – Follow-on competition for CWMD Operations Support Directorate (OSD) and Information Analysis Directorate (IAD), to be competed under OASIS+ GWAC. Est. value $100M. RFP expected Q4.

• Maritime Capabilities & Innovation – DHS opened a year-long Commercial Solutions Opening Pilot (CSOP) program, inviting commercial and non-traditional vendors to propose maritime technologies for interdiction, port resilience, digital engineering, and sustainment. Awards may reach $25M each, creating a faster pathway for innovation.

• Mobile Detection Deployment Program (MDDP) – RFP expected in Q4 for an estimated $100M program providing deployable field management, logistics, technical, and scientific support worldwide.

• Counter-UAS (C-UAS) ** ** – RFP expected early FY26, estimated $250M, for advanced detection and interdiction solutions to protect federal facilities, border regions, and critical infrastructure.

 

As DHS enters FY26 with its most expansive portfolio to date, demand for specialized expertise is outpacing traditional staffing. Precision Experts, PTS’s flexible consulting and advisory practice, provides on-demand access to senior leaders like Sue Armstrong, who bring mission-specific insight across law enforcement and homeland security operations. Whether supporting pre-RFP positioning, shaping capture strategies, advising on program execution, or mapping opportunities, Precision Experts aligns government contractors with trusted, high-impact talent. Contact Jason Hutchison for details.

 

Notable Awards

 

• Four TO awards under VETS 2 GWAC, including $129M by Coast Guard to Oasys for IT at Aviation Logistics Center, $17M to Vets2 Synergy for network services at ICE’s Technical Ops Center, and $10M to DecisionPoint for CISA TOC support.

• CBP awarded $42M to Anduril under the SBIR Autonomous Surveillance Towers IDIQ for surveillance technology.

• GEO Group won $18M for North Lake Detention Center (MI) and $10M for the South Texas Detention Center. Its subsidiary B.I. secured over $1B under the ISAP V IDIQ contract for the Intensive Supervision Appearance Program, providing case management and electronic monitoring support for non-detained migrants.

• Safe America Media secured over $62M to support ICE recruitment campaigns, advertising, and media support for the National Emergency at the Southern Border taskings.

• Kcorp Reliance won $24M for facility maintenance at Ft. Benning.

• Fusionedge Solutions (TechSur and REI Systems mentor-protégé JV) received $71M for the USCIS Resources for Innovation and Enterprise Readiness (RIVER) contract, supporting the adjudication of immigration benefits and services related to immigrant and non-immigrant petitions and applications.

• Acquisition Logistics won $231.9M to establish and operate a 5,000-capacity short-term detention facility in El Paso, TX.

 

Defense Logistics Agency (DLA)

DLA focused on modernization and agility, strengthening its global sustainment role. At the Worldwide Logistics Symposium, leaders showcased progress on the Strategic Plan, emphasizing agility, resilience, and industry partnership. The agency advanced its digital strategy to overhaul warehouse management, streamline procurement, improve visibility, and enhance readiness.

 

Subsistence Prime Vendor (SPV)

· Middle East – Current SPV program for Iraq, Jordan, Kuwait, and Syria is in its final option period ending on 11/1/26. Regional instability may prompt DLA TS to expedite awards before contract end or adjust RFP to align with CENTCOM plans, possibly delaying awards due to scope changes. Awards expected Q126.

· Northern Europe – Proposals for the $1.1B SPV Northern Europe contract were submitted 5/6, covering 180+ sites across 16 countries. The incumbent received a 400+ day through Dec 2026, with source selection expectedmid-2026. A new U.S.-Poland treaty and the expansion of Polish Provider Logistics Support (PPLS) are expected to increase program volume.

· Southern Europe – RFI responses collected in April; RFP expected in Q126, covering land bases in Southern Europe and Navy ops in the Mediterranean.

· Southwest Asia and Eastern Africa (SWAEA) – New acquisition strategy integrating SAPNEA (Southern Arab Peninsula and Nations of Eastern Africa), Bahrain, Qatar, and KSA; RFP anticipated in Q226.

· JSPDA – Coastal Pacific Food Distributors secured an $871M, 5-year IDIQ contract covering Japan, Singapore, the Philippines, Diego Garcia, and Australia.

· Korea – RFI released in Sep for a $425M, 60-month SPV program with three pricing tiers; RFP expected in Q4.

· Americas – RFI for Norfolk land customers (incl. GTMO and Honduras) released in Q1; RFP delayed, now expected in Q4.

· Guam – Pacific Unlimited was awarded a 5-year $980M IDIQ contract in Q3.

 

Maintenance, Repair & Operations (MRO)

· Pacific Region – RFIs for Zones 1 & 2 collected in April; RFP delayed, now expected Q4.

· Europe and Africa – Proposals collected on 9/26 for MRO support across three new zones (North and South of Alps, Africa). Awards expected Q126. Noble, TWI, and SupplyCore continue under the current $916M contract (through May 2026).

· Alaska/CONUS – SupplyCore awarded a $75M bridge contract to cover CONUS-Alaska-Hawaii until recompete awards are finalized.

 

Other DLA Programs

· DECAP – Proposals collected on 6/23 for the $477M Distribution Expeditionary Capabilities (DECAP) IDIQ, covering global rapid-response, disaster relief, foreign aid, humanitarian ops, and contractor-operated centers. Awards expected Q4.

· Global Tires Program 2.0 (GTP 2.0) – RFI released for a 10-year, $10B recompete; RFP expected FY27.

· Energy Pacific – Proposals collected in August for the procurement of commercial fuel products to support INDOPACOM military exercises in the Pacific Region through Dec 2030.

 

With decades of experience supporting SPV, MRO, and energy supply programs, PTS understands the scale and complexity of DLA missions. From shaping bids to building high-performing supply chain teams, we deliver logistics, program, and leadership talent that helps customers succeed across global sustainment and expeditionary operations.

 

· MAAC – ASRC selected among six vendors on the new 10-year, $5B Maritime Acquisition Advancement Contract (MAAC), supporting Navy nuclear submarine and surface ship supply chains.

· Fuel Supply – DLA awarded $2.18B across 12 companies for bulk fuel supply.

· Tech & Info TLSP – Proposals due by 10/15 for the 10-year, $11B IDIQ spanning communications, detection, ADP, and software.

· C5ISR Gateway to Sustainment (G2S) ** ** – Responses collected on 9/30 for a 10-year, $3.2B IDIQ onramp to add vendors. Awards expected in Q226.

 

Defense Threat Reduction Agency (DTRA)

 

DTRA focused on nuclear enterprise oversight, allied integration, and partner capacity building. Signals from the FY26 budget – more than $25B in planned acquisition cuts – suggest potential pressures on cooperative threat reduction and security assistance programs.

 

· CTRIC IV ($4.8B+) – DTRA awarded its flagship Cooperative Threat Reduction Integration Contract (CTRIC IV) to Amentum, V2X, Jacobs, Fluor, Parsons, and Black & Veatch.

· Africa Shield 2025 — DTRA launched Africa Shield to expand counterproliferation capacity across the continent, delivering training, detection equipment, and partner integration for African security services.

 

GSA

 

GSA stood out in Q3 with a major organizational shift, launching the Office of Centralized Acquisition Services (OCAS) to consolidate oversight of GWACs, Schedules, and BIC vehicles. While intended to reduce duplication, paired with GSA’s proposal to raise the Simplified Acquisition Threshold, the move raised concerns that awards could consolidate under large incumbents, putting more than $4.2B in small business obligations at risk.

 

• Alliant 2 – Seven task orders were awarded in Q3 under the $82.5B Alliant 2 GWAC (ceiling increased by $7.5B in Dec 2024). The largest went to Mantech, a $909.9M award from USSOUTHCOM for enterprise-level cyber and data-informed IT services.

• OASIS+ – GSA advanced rolling awards across the unrestricted and 8(a) tracks, part of $375B vehicle that will run for 10 years. The unrestricted track is expected to accommodate 1,000+ large business awardees, while the small business tracks (8(a), HUBZone, WOSB, SDVOSB) could total another 3,000 vendors. With agencies already signaling task orders for FY26, OASIS + is positioned to become the largest services GWAC in government.

• Polaris – GSA continued source selection under Polaris, designed to channel emerging IT modernization spend with no formal ceiling. Awards in the HubZone Pool slipped in Q3 due to protest risk and evaluation complexity, while reviews for the SB and WOSB pools remain underway. Analysts expect Polaris, together with OASIS+, to handle hundreds of billions in federal IT and services obligations over the next decade. continue for the SB Pool and other tracks.

 

European Defense Market

 

European defense contractors outperformed the broader market as long-term rearmament commitments sustained demand in air defense, drones, munitions, naval systems, and infrastructure. Major initiatives such as the European Sky Shield Initiative (ESSI) and the European Defence Industrial Programme (EDIP) continued laying the groundwork for joint procurement. NATO member signed $245B+ in contracts versus pre-Ukraine levels, while NATO/ NSPA expanded momentum with €7.4B in 2024 awards and €2.8B+ in active infrastructure projects, reinforcing the alliance’s role as a collective procurement engine and industry catalyst.

 

· UK Defense Industrial Strategy (DIS) Signals a Shift to “Wartime Pace” – Released in September, DIS outlines the deepest reforms in 50 years: a new National Armaments Director, segmented acquisition timelines (major platform cut from 6 to 2 years), and a 10-year Defense Investment Plan to give industry predictable demand. The strategy pledges £2.5B for SMEs, faster innovation uptake, and inward investment to position the UK as Europe’s leading defense exporter.

· Naval Recapitalization – Norway signed a $14B deal for UK-built Type 26 frigates; Poland advanced the Orca submarine program; the UK Royal Navy prioritized unmanned systems in future fleet plans.

· Sweden’s Procurement Drive – Since joining NATO in 2024, Sweden doubled defense spending, directing nearly 43% of the budget to acquisitions across air, naval, and land.

· Ukraine Support – Europe moved to redirect frozen Russian assets to aid Ukraine. The U.S. added an $1.6B allied-financed package and an $825M missile sale. Europe was on track to commit€35B in procurement-based aid by mid-2025, surpassing U.S. contributions, a trend expected to remain elevated into 2026.

· Drone Wall – EU leaders advanced a continental layered “Drone Wall” as Baltic states accelerated layered counter-UAS deployments. ESSI gained momentum following Russian airspace incursions.

· Baltic Posture & Infrastructure – Lithuania and the U.S. launched a 20-year plan to expand Pabradė Training Area, anchoring allied readiness on NATO’s eastern flank.

 

European M&A Deals

 

M&A activity reflected Europe’s push to consolidate supply chains, expand cyber capabilities, and strengthen land and naval platforms, aligning with ESSI, EDIP, and NATO modernization.

 

• Leonardo completed a €1.7B deal to acquire Iveco Defence Vehicles (IDV), making it a leader in land systems, including tactical trucks, 8×8 vehicles, and logistics. It also acquired a 24.55% stake in SSH Communications Security (Finland) to boost its cyber capabilities and acquired Axiomatics AB (Sweden) to integrate ABAC technology to its NATO/EU cyber stack.

• Thales signed an MoU to acquire RTX’s stake in TRS AMDC2 (France), consolidating NATO air C2 under Thales.

• Rheinmetall announced an agreement to acquire NVL (Naval Vessels Lürssen), pushing Rheinmetall into naval platforms.

• Safran completed the acquisition of Collins Aerospace Flight Controls (select businesses), bolstering its actuation/flight-controls portfolio supporting missiles and next-gen aircraft.

• SES closed a $3.1B multi-orbit satellite merger with Intelsat (Luxembourg/US), creating a 120-satellite GEO+MEO powerhouse for gov/defense connectivity.

• Neo Space Group completed the acquisition of UP42 (Germany, ex-Airbus), enhancing EO/geospatial data platform capabilities.

• ASML Holding NV is investing €1.3B in France’s Mistral AI, an unusual move for the Dutch chipmaking equipment company that shores up Europe’s most important AI startup.

 

As European defense spending accelerates, the talent gap is widening. With most of team based in Europe and deep ties to NATO and EU programs, PTS is uniquely positioned to connect companies with leaders, engineers, and program talent to deliver against ambitious procurement and readiness goals. For transatlantic support, contact Jim Bowden, PTS European Defense Market Lead.

 

 

NATO / NSPA

NATO sharpened its focus on collective defense, rapid force generation, and procurement speed, reinforcing deterrence along the Eastern Flank. With member states signing record numbers of contracts, NATO and the NSPA have become vital industry enablers, managing billions in infrastructure and sustainment. For an in-depth dive into how multi-nation politics, standardization hurdles, and the new 5% defense pledge are reshaping opportunities for contractors, listen to Lt. Gen. (Ret.) Andrew Rohling on the Future of GovCon podcast with Jake Frazer.

 

· Eastern Sentry– NATO deployed new counter-drone sensors and effectors in response to Russian incursions.

· GIUK Gap Surveillance – The NATO ISR Force extended coverage across the Greenland - Island - UK (GIUK) Gap to strengthen maritime awareness.

· UK AWACS Training Facility – RAF opened a new flight/training facility at RAF Waddington, a milestone under NATO Flight Training Europe.

· Arctic Posture – NATO warships increased Arctic patrols to counter Russian and Chinese activity.

· Exercises – NATO conducted several large-scale multinational exercises in Q3 testing mobility, interoperability, and ISR capabilities:

– Two Neptune Strike (NS) exercises, including NS 25-2 in August and NS 25-3 in September, involved over 10,000 personnel from 13 NATO nations across the Mediterranean, Adriatic, North, and Baltic Seas.

– Nexus Ace with NATO AWACS and the Turkish Air Force to enhance interoperability.

– Cobra Warrior, a Royal Air Force-led multinational exercise with extensive allied participation.

 

· Clean Energy Industry Day – The NSPA hosted industry day sessions to advance the integration of sustainable energy across allied bases.

 

Major NSPA Awards & Initiatives

 

• Vincorion was awarded a €60M contract to upgrade Patriot power supply systems for five NATO countries.

• Teal Drones (Red Cat Holdings), Skydio, ETRA, and Aurea Avionics secured framework contracts for nano-UAS.

• Pratt & Whitney RTX has been awarded an $18M TF33 engine sustainment contract to support NATO’s AWACS fleet.

• Polaris secured a two-year framework contract for MRZR D tactical off-road vehicles.

• Denmark and NSPA procured four MQ-9B SkyGuardian Remotely Piloted Aircraft (RPA) and a sustainment package from General Atomics.

• NGRC – The NSPA advanced work on the Next Generation Rotorcraft Capability (NGRC) program, building on contracts awarded to Airbus, Leonardo, and Lockheed Martin to develop concept studies for a new medium-lift rotary aircraft.

• AIM-9X Sidewinder – The NSPA was selected as the procurement agent for a $103M multinational acquisition of AIM-9X missiles and related equipment, supporting Belgium, Italy, and Romania, with RTX as the primary contractor.

• RFPs Released – RFPs dropped for versatile payload carrier US (due Oct 31) and fixed-wing mini UAS with in-service logistics support (due Oct 27).

 

Upcoming NATO/NSPA Industry Events:

– NATO Industry Forum 2025 | Nov 5-6 | Bucharest

– NSPA Military Clothing and Textiles Industry Day | Nov 10 | Luxembourg

 

NATO’s unprecedented spending surge is translating into tangible gains in readiness, modernization, and innovation. Recent NSPA and NCIA high-value contract awards highlight this momentum, while evolving partnership framework agreements are expanding NATO’s industrial and technology base. Positioning is now essential for contractors to align with these efforts. To navigate NATO procurement and frameworks, contact Jim Shields, PTS Precision Expert and NATO Lead.

 

Mergers & Acquisitions

 

Despite geopolitical and rate headwinds, Q3 M&A remained resilient as strategic consolidations, private equity plays, and dual-use tech convergence reshaped the GovCon landscape.

 

Source: Raymond James

· Rocket Lab acquired Geost ($275M), expanding its vertically integrated EO/IR sensor capabilities for missile warning and space-based ISR, which strengthens its positioning as a contender in the emerging Golden Dome homeland defense architecture. In parallel, they secured a $23.9M CHIPS award to scale U.S. production of space-grade solar cells and electro-optical wafers, reinforcing domestic supply chain resilience for national security space missions.

· Amphenol acquired Trexon (~$1B) to expand its rugged interconnect solutions portfolio for shipboard electronics, avionics, and next-gen weapons systems.

· Coherent divested its Aerospace & Defense business ($400M) to Advent International, which plans to scale photonics and laser components for ISR and directed energy platforms.

· FMD acquired Rolls-Royce’s Naval Propulsors business to secure control over the only U.S. private foundry capable of casting submarine-scale systems, supporting FFG-62 and Navy shipbuilding.

· Mission Essential merged with Ghostdog to create a new defense powerhouse in intelligence, cyber, and national security operations, combining ISR and language support with cyber and AI-driven capabilities.

· V2X acquired QinetiQ’s U.S. Federal IT services business ($31M) to expand its IC and national security portfolio in cyber, data engineering, and mission IT.

· York Space Systems acquired Atlas Space Operations to integrate ground station infrastructure into satellite ops, strengthening SDA-aligned space-to-ground delivery.

· IonQ acquired Capella Space to merge quantum and SAR capabilities for next-gen secure space communications.

· Knexus acquired S4 to strengthen AI-powered analytics and cybersecurity for TradeWinds, DLA AI, and FedRAMP initiatives.

· General Atomics (Aeronautical Systems) acquired key assets of Achates Power, adding opposed-piston engine IP to boost propulsion efficiency for UAS platforms like MQ-9 and Collaborative Combat Aircraft.

· General Atomics acquired MLD Technologies to secure high-power optics and thin-film coatings critical to directed energy weapons and advanced photonics systems.

· Cherokee Federal acquired MSI to bolster its modernization, RPA, and digital transformation delivery for federal clients.

· Culmen International acquired Madison Springfield, adding OSINT tools and geopolitical analysis platforms used by intel and State clients.

· LevelBlue acquired Trustwave to create the largest FedRAMP/StateRAMP MSSP platform with global threat intelligence coverage.

· B&A acquired Hexagon US Federal’s HS3 portfolio (undisclosed), adding GEOINT, cyber, and defense analytics used across IC and defense intel programs.

· Neumo was launched by Arlington Capital Partners (~$3B roll-up) through the merger of Avenu, GovOS, and ITI to form a cloud-first GovTech platform targeting public admin, DMV, and licensing markets.

· KBR plans to spin off its Mission Tech Solutions unit into a separate company focused on space, intelligence, and cyber operations, aiming to foster growth as an independent contractor and streamline its government and commercial services portfolio.

· SpaceX acquired EchoStar spectrum (~$17B) in a mega-deal involving $2B in interest relief, boosting Starlink’s bandwidth and MILSATCOM dominance.

· Sphinx acquired Enigma, expanding CI and counter-threat analytics for intel clients under DLITE II and OASIS+.

· Accenture acquired NeuraFlash to advance its AI-driven Salesforce and AWS delivery stack, targeting service modernization contracts.

 

 

Foreign Military Sales

 

With nearly $20B in approvals, Q3 set the 2025 high-water mark, driven by Europe and the Middle East, and reinforced coalition sustainment. The $1.07B AMRAAM support for Finland (months after NATO accession), and $103M for NSPA underscored the focus on integrated air defense and the U.S. role as a strategic partner.

 

· Europe – Finland ($1.07B) for IAM-12D-3 AMRAAM missiles and support; Poland ($1.85B) for F-35 sustainment, spares, and training; Denmark ($3.2B) for IBCS-enabled Patriot system; UK ($861M) for C-17 Globemaster III sustainment; Norway ($2.6B) for HH-60W combat rescue helicopters; Bulgaria ($620M) for missile defense system; NATO/NSPA ($103.9M) for AIM-9X sidewinder missiles, guidance units, and sustainment for Belgium, Italy and Romania; and Ukraine ($2B+; multiple cases) for munitions, Patriot system sustainment, SATCOM equipment, Bradley IFV and M109 howitzer maintenance, HAWK Phase III missile sustainment, and transportation and consolidated services.

· Middle East & Africa – Egypt ($4.67B) for NAMAS air defense system; Bahrain ($500M) for HIMARS rocket artillery systems; and Lebanon ($100M) for A-29 Super Tucano aircraft sustainment, Nigeria ($346M) for munitions, precision bombs and rockets.

· Australia – $97.3M for Javelin lightweight command launch units and $404M for MC-55A Baseline 2 upgrade.

· Canada ** ** – $160M for Joint Light Tactical Vehicles.

 

 

PTS Updates

 

Q3 was high-visibility for PTS – global engagements, deepened industry partnerships, and (drumroll…) the launch of The Future of GovCon podcast!

 

• Future of GovCon Podcast – Hosted by Jake Frazer, the first four episodes feature leaders and inspiring voices shaping the federal landscape. Catch the episodes on YouTube, Spotify, or Apple podcasts!

• Career Concierge – With talent shift accelerating across government contracting, PTS expanded its Career Concierge offering to support professionals in transition. From personal branding and networking to AI literacy and small group coaching, this program meets the candidates where they are and prepares them for what’s next. Get in touch with Jason Hutchison to find out more.

• Precision Experts in Action – Building on last quarter’s launch, our flexible advisory model is already connecting GovCon firms with senior-level experts for high-impact, fractional, and project-based engagements. Demand is rising across DHS, NATO, and space. Jason Hutchison can show you how fast this talent pool can augment your team.

• Global Industry Engagements – From the POC Air & Space Summit in DC to DSEI in London, and the ISOA NATO Conference in Bucharest, PTS teams connected with government leaders and industry partners on readiness, logistics, NATO Eastern Flank security, and emerging tech. PTS loves to bring the industry together, as we did for a medieval-themed dinner in Bucharest. Yes, goblets were involved! We always enjoy the HUMAN side of our industry – it’s one of our Core Values! These conversations are shaping how talent, strategy, and mission intersect in FY26.

• Team Offsite in Albania – In September, our entire PTS team came together for workshops, strategy sessions, team building, and (of course) karaoke night! A key focus was leveraging AI in recruitment and program delivery, keeping PTS ahead of the curve.

• Women in Defense National Conference – Julie Kmet and Candice Smith represented PTS in DC, underscoring our commitment to empowering the next generation of women leaders in defense and GovCon. The future of defense depends on it!

Across everything this quarter, one theme stands out: GovCon is moving fast, and people make the difference. PTS isn’t just tracking trends – we’re in the room, building connections, and helping talent and companies turn opportunity into impact. Onward to Q4!

 

Where To Meet PTS in Q4:

POC - 2025 Intel Summit | Oct 2 | Mclean, VA

AUSA | Oct 13 – 15 | DC

AUSA Networking Luncheon | Oct 15 | DC

POC - 2025 GovCon International Summit| Oct 16 | Mclean, VA

Google Public Sector Summit 2025 | Oct 29 | DC

PSC Defense Conference | Oct 30 | Arlington, VA

ISOA Global Summit and 2025 Awards Recognition | Nov 3 –5 | DC

PTS Matchmaking 3.0 | Nov 6 | Tysons, VA

POC - 2025 Homeland Security Summit | Nov 12 | Mclean, VA

2025 Defense & Government Conference | Baird Conferences | Nov 18 | DC