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Policy
OMB raises Buy American domestic content threshold to 75% — phase-in complete for most product categories
The final phase of the Biden-era Buy American rule is now in effect, raising the domestic content threshold for manufactured products on federal contracts to 75%. Contractors must demonstrate that 75 cents of every dollar in product cost originates from U.S. manufacturing, up from the prior 65% threshold.
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Awards
Parsons books $91M extension on State's $1.12B OSIS II diplomatic-security contract
February 2026: Parsons secured a $91M contract extension — the seventh option year of a 10-year, ~$1.12B OSIS II workstream. Scope covers technical security installation at 265+ U.S. diplomatic facilities worldwide.
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Awards
FAA's $12B air traffic modernization — Peraton named prime integrator, RTX/Collins lands $438M radar contract
Congress allocated $12B+ for FAA air-traffic-control modernization; FAA expects to obligate ~half by end of FY26. Peraton named prime integrator for the entirely new ATC system. Collins Aerospace wins $438M for Radar System Replacement.
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Policy
Federal 1-for-4 hiring rule — and the OMB push to reduce 'shadow workforce' of consultants
1-for-4 hiring ratio: agencies can only hire 1 person back for every 4 who depart. RIF moratorium expired Jan 30, 2026. OMB's 'Continued Accountability' push aims to reduce expensive consulting contracts — agencies are insourcing roles previously contracted out.
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Policy
Department of Education's FSA modernization — and the planned Treasury transfer for $1.7T loan portfolio
FSA $100M middleware contract supports cloud and core systems. March 2026: Education announces transfer of FSA core responsibilities to Treasury for the $1.7 trillion student loan portfolio. Coordination with FAFSA system continues.
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Policy
Department of Interior FY26 IT — $1.98B for IT and cybersecurity, AI roadmap a priority
DOI's FY26 budget includes $1.98B for IT and cybersecurity (2.9% of overall discretionary). Priorities: AI roadmap pilots, infrastructure centralization per the Secretary's April directive, $33.2M for cyber operations and incident remediation.
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Enforcement
EPA 2026 enforcement priorities — and TSCA Confidential Business Information access for contractors
EPA's revised National Enforcement and Compliance Initiatives focus enforcement on imminent threats. Plus: contractors handling Toxic Substances Control Act (TSCA) Confidential Business Information must complete a multi-step access authorization for each employee.
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Awards
Maximus loses Medicare Advantage appeals contract to C2C — incumbent shake-up at CMS
March 30, 2026: CMS announced C2C Innovative Solutions will replace Maximus in reviewing and processing appeals of Medicare Advantage organization determinations and reconsiderations as of May 1. Maximus retains separate $6.6B CMS Contact Center Operations contract.
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Enforcement
DOJ flags DFARS 7012 cybersecurity compliance as 2026 False Claims Act priority
DOJ announced significant cybersecurity-related FCA actions against DoD contractors at end of 2025. Translation: DFARS 7012 compliance for firms processing CUI is an enforcement priority in 2026. Plus: BreakPoint Labs $50M HPCMP cybersecurity SME contract.
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Awards
Navy's $18.5B Virginia-class attack submarine contracts — 2 boats + workforce development
Navy awards Up To $18.5B in contracts for 2 Virginia-class attack submarines plus workforce development investments. Continues the demand signal of one Columbia + two Virginia-class submarines per year that the supplier base must meet.
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Policy
FTC + DOJ joint focus on cybersecurity — and what that means for federal contractors in 2026
Cybersecurity enforcement now spans FTC (consumer protection / Made-in-America claims), DOJ (False Claims Act on DFARS 7012), and DoD (CMMC). Federal contractors face overlapping enforcement reach. Compliance investments now defend against multiple enforcement vectors simultaneously.
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Awards
Palantir's $10B Army enterprise deal and Maven going Pentagon-wide
The Army's 10-year $10B Palantir enterprise agreement plus expanding Maven AI adoption across the services signals an inflection point — commercial data platforms are becoming the integration backbone for DoD operations.
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