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Compliance & Risk

Fewer than 1% of HHS’s AI uses are ‘high impact.’ It stands out.

HHS has classified fewer than 1% of its nearly 450 AI use cases as 'high impact' requiring heightened risk management, a significantly lower rate than other major agencies like DHS (23%), DOJ (36%), and VA (59%). This raises concerns about potential misclassification and inconsistent AI governance practices across federal agencies, which could impact how contractors develop and implement AI solutions for HHS. The discrepancy suggests contractors may face varying AI risk management requirements depending on the agency, affecting compliance strategies and solution design.

Cabrillo Club·February 23, 2026
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Regional Ocean Partnerships Reauthorization Act of 2026

The Regional Ocean Partnerships Reauthorization Act of 2026 is legislation that reauthorizes existing regional ocean partnership programs. This may create or extend contracting opportunities for government contractors working in ocean research, environmental monitoring, coastal management, and related marine science services. Contractors in environmental consulting, data collection, and oceanographic services should monitor this legislation for potential funding and program continuation.

Cabrillo Club·February 22, 2026
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Export-Import Bank Reauthorization Act of 2026

The Export-Import Bank Reauthorization Act of 2026 represents congressional action to extend the authorization of the Export-Import Bank, which provides financing support for U.S. exports. This reauthorization impacts government contractors and businesses engaged in international trade by ensuring continued access to export credit financing, loan guarantees, and insurance programs that facilitate overseas sales of U.S. goods and services. Contractors involved in defense, aerospace, infrastructure, and other export-oriented sectors should monitor the specific terms, funding levels, and any policy changes included in this reauthorization.

Cabrillo Club·February 22, 2026
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Make Housing Affordable and Defend Democracy Act

The Make Housing Affordable and Defend Democracy Act has been referred to multiple House committees including Armed Services, Homeland Security, and the Judiciary for consideration. While the bill's title suggests focus on housing and democratic processes, its referral to Armed Services and Homeland Security committees indicates potential implications for defense and homeland security contractors. The specific provisions and their impact on government contracting remain unclear pending committee review and bill text analysis.

Cabrillo Club·February 22, 2026
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Stop Censoring Military Families Act

The Stop Censoring Military Families Act has been referred to the House Committee on Armed Services and the Committee on Education and Workforce for consideration. This legislation appears to address issues related to military families, though specific provisions and potential impacts on government contractors are not detailed in the available content. Contractors supporting military family programs or education services should monitor this bill's progress for potential policy or operational changes.

Cabrillo Club·February 22, 2026
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Submission for OMB Review; Federal Acquisition Regulation Part 27 Requirements

The Regulatory Secretariat Division has submitted a request to OMB for review and approval of an extension of existing information collection requirements under FAR Part 27, which governs patents, data, and copyrights in government contracting. This is a routine administrative action to maintain current reporting requirements rather than introduce new regulatory changes. Contractors should not expect any immediate changes to their compliance obligations related to intellectual property and data rights under existing FAR Part 27 provisions.

Cabrillo Club·February 21, 2026
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House Democrats question DHS, ICE use of surveillance tech

House Democrats are demanding oversight of DHS and ICE's procurement and use of surveillance technologies from vendors Penlink and Paragon, citing concerns about data privacy, civil liberties, and constitutional compliance. The lawmakers are requesting a briefing by March 5 on acquisition processes, legal justifications, data handling procedures, and oversight mechanisms for these surveillance tools. This scrutiny could lead to increased compliance requirements, procurement restrictions, or policy changes affecting contractors providing surveillance and data collection technologies to DHS and its components.

Cabrillo Club·February 20, 2026
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GSA reveals first round of awards for Alliant 3 contract

GSA announced the first round of 43 awards for the Alliant 3 GWAC, a no-ceiling governmentwide IT services contract vehicle that will eventually have 76 total awardees. This unrestricted enterprise GWAC enables agencies to issue task orders for cybersecurity, data solutions, systems engineering, cloud services, and other IT services, representing a major procurement opportunity for government contractors. The awards come after a year-long delay due to bid protests and mark a significant shift in how federal agencies will procure IT services.

Cabrillo Club·February 20, 2026
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How commercial drones make the Pentagon’s ‘Blue UAS Select’ list

The Defense Department has launched its Drone Dominance Program with testing at Fort Benning, Georgia, evaluating 25 commercial drone vendors. The Defense Contract Management Agency established the Blue List UAS website cataloging 54 approved drone models (29 with 'select' status for operational deployment), creating a streamlined procurement pathway for military units to acquire compliant commercial drones. This program builds on the 2020 Blue UAS initiative and NDAA requirements prohibiting drones with foreign components from security-risk countries, significantly impacting contractors in the commercial drone market seeking DOD contracts.

Cabrillo Club·February 20, 2026
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How to make Tech Force work

The Office of Personnel Management announced the U.S. Tech Force program, which will place 1,000 technology fellows annually into federal agencies starting September for one- or two-year terms, supervised by private sector managers. This represents a significant government hiring initiative that could create new opportunities for technology contractors and consulting firms to support federal digital transformation efforts. The program's success will depend on implementation decisions being made currently, and could impact how agencies approach technology modernization and talent acquisition going forward.

Cabrillo Club·February 20, 2026
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Federal CIO Greg Barbaccia tapped for two leadership roles at GSA

Federal CIO Greg Barbaccia has been appointed as acting director of GSA's Technology Transformation Services (TTS) and senior advisor to the GSA administrator, replacing Thomas Shedd who moves to a fraud prevention role. TTS oversees critical government digital services including Login.gov and SAM.gov that contractors use for registration and authentication. This leadership change at GSA, following multiple DOGE-related departures, may signal shifts in how the agency approaches technology modernization and digital service delivery that could affect contractor engagement with these platforms.

Cabrillo Club·February 19, 2026
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SpaceX and Blue Origin abruptly shift priorities amid US Golden Dome push

A December 2025 White House executive order mandates a missile shield prototype by 2028 as part of the Golden Dome initiative, with lunar return timelines set for 2028 and permanent moon presence elements by 2030. This directive is driving major commercial space companies SpaceX and Blue Origin to rapidly shift priorities toward lunar development, with Defense officials emphasizing commercial partnerships as essential to achieving these goals. The policy shift represents significant new contracting opportunities in space defense and lunar infrastructure for aerospace contractors.

Cabrillo Club·February 19, 2026
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Airbus open to two-fighter option for FCAS to keep program alive

The Future Combat Air System (FCAS) program between France, Germany, and Spain faces potential restructuring, with Airbus proposing a 'two-fighter solution' to break the development deadlock. The sixth-generation fighter program has stalled due to disputes over work share, leadership, and technology transfer, with Germany's Chancellor indicating his country may not need the same aircraft as France. This represents a significant shift in European defense cooperation that could impact U.S. defense contractors working with European partners and affect transatlantic defense industrial relationships.

Cabrillo Club·February 19, 2026
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BAE says its Eurofighter pipeline is filled until first GCAP assembly

BAE Systems announced that Eurofighter Typhoon production is secured through the mid-2030s with recent orders from Spain, Italy, Germany, and new customer Turkey, filling the pipeline until GCAP sixth-generation fighter assembly begins. The consortium plans to increase production from 14 to 20 aircraft annually by mid-2028, with potential to reach 30 per year. This represents significant international defense contracting activity with implications for U.S. defense industrial base competition and allied interoperability, particularly as the UK-Italy-Japan GCAP program targets 2035 entry into service.

Cabrillo Club·February 19, 2026
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HHS’s reported AI uses soar, including pilots to address staff ‘shortage’

HHS reported a 65% increase in AI use cases in 2025, including pilots specifically designed to address staffing shortages following significant workforce reductions. The agency is deploying AI tools like ChatGPT and Copilot for legal investigations and public correspondence, indicating a strategic shift toward automation amid reduced personnel. This trend suggests potential changes in how HHS contracts for services and may create opportunities for AI-enabled solutions while reducing traditional staffing-based contracts.

Cabrillo Club·February 19, 2026
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Interior Department finding momentum with modernization

The Department of Interior is modernizing its contracting and procurement processes by implementing robotic process automation (RPA) tools and exploring emerging technologies like generative AI and blockchain. The agency is also working to centralize IT infrastructure and improve compliance following an IG audit that found $40 million in misclassified IT purchases during FY2022-2024. These modernization efforts and process changes may impact how contractors engage with DOI procurement systems and requirements.

Cabrillo Club·February 18, 2026
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FAA, DOD data silos were partly to blame for last year’s DCA crash

The NTSB's final report on the DCA midair collision reveals systemic data-sharing and safety management failures across FAA and DOD, with specific recommendations for improved data analysis and inter-agency information sharing. The findings highlight deficiencies in Army helicopter flight safety data monitoring and FAA's risk assessment processes, which may drive new data management and safety compliance requirements for defense contractors. Contractors supporting aviation operations, particularly those working with FAA and DOD on safety systems and data analytics, should anticipate enhanced oversight and potential new requirements for safety data collection and sharing protocols.

Cabrillo Club·February 18, 2026
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Australia prepares for next batch of ‘Ghost Bat’ warplane buddy drones

Australia's Royal Australian Air Force has ordered seven additional MQ-28A Ghost Bat collaborative combat aircraft from Boeing Defence Australia in a third tranche worth AUS$754 million (US$534 million). This brings the total fleet to 18 aircraft across three blocks, with plans for 10 operational units by 2028 as part of Australia's long-range deterrence strategy. The program demonstrates international defense collaboration and potential export opportunities for U.S. defense contractors working with allied nations on unmanned combat systems.

Cabrillo Club·February 17, 2026
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Federal Register: Federal Acquisition Regulation: Prohibition on Certain Semiconductor Products and Services

OFPP, DoD, GSA, and NASA (collectively referred to as the Federal Acquisition Regulatory Council, or FAR Council) are proposing to amend the Federal Acquisition Regulation (FAR) to partially implement a section of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 which prohibits executive agencies from procuring or obtaining certain products and services that include covered semiconductor products or services effective December 23, 2027.

Cabrillo Club·February 17, 2026
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Federal Register: Posting of Informational Video: Cybersecurity Maturity Model Certification (CMMC) Program

The Office of the Department of Defense Chief Information Officer (DoD CIO) has released an informational video to provide the public with an overview of the proposed rule for DoD's updated Cybersecurity Maturity Model Certification (CMMC) Program, which was published in the Federal Register on December 26, 2023 for public comment. The proposed rule establishes requirements for a comprehensive and scalable assessment mechanism to ensure defense contractors and subcontractors have, as part of the CMMC Program, implemented required existing security requirements for Federal Contract Information and Controlled Unclassified Information (CUI) and adds new CUI security requirements for certain priority programs. This document announces that a video file containing an overview briefing of the CMMC proposed rule, presented by leadership and staff from the Office of the DoD Deputy CIO for Cybersecurity, was posted on the internet on February 14, 2024.

Cabrillo Club·February 17, 2026
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Federal Register: Cybersecurity Maturity Model Certification (CMMC) Program

With this final rule, DoD establishes the Cybersecurity Maturity Model Certification (CMMC) Program in order to verify contractors have implemented required security measures necessary to safeguard Federal Contract Information (FCI) and Controlled Unclassified Information (CUI). The mechanisms discussed in this rule will allow the Department to confirm a defense contractor or subcontractor has implemented the security requirements for a specified CMMC level and is maintaining that status (meaning level and assessment type) across the contract period of performance. This rule will be updated as needed, using the appropriate rulemaking process, to address evolving cybersecurity standards, requirements, threats, and other relevant changes.

Cabrillo Club·February 17, 2026
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Federal Register: National Industrial Security Program

This final rule removes the DoD's regulations on the National Industrial Security Program (NISP) regarding industrial security procedures and practices related to foreign ownership, control, or influence (FOCI) for U.S. Government activities. The interim final rule currently in effect is duplicative and obsolete. The Director of the National Archives and Records Administration's (NARA) Information Security Oversight Office (ISOO) is responsible for implementing and monitoring Executive Branch implementation of the NISP, and DoD's rule duplicates an amendment to the NARA rule on the same subject.

Cabrillo Club·February 17, 2026