GSA Launches “Revolutionary GSAR Overhaul” (RGO)
In response to Executive Order 14275, “Restoring Common Sense to Federal Procurement,” the General Services Administration (GSA) has initiated the Revolutionary GSAR Overhaul (RGO).
GovCon Takeaway: Contractors should monitor Acquisition.gov for updates, as this overhaul could significantly reduce administrative overhead. However, firms must stay agile to adapt to rapidly changing regulatory requirements as “deviations” are issued.
OMB Releases Guidance on “Unbiased AI” in Federal Procurement
Implementing the “Preventing Woke AI” Executive Order, the OMB has released guidance (M-26-04) mandating that federal agencies incorporate “Unbiased AI Principles” into contracts for Large Language Models (LLMs).
GovCon Takeaway: Contractors developing or reselling AI tools to the federal government must review their models against these new neutrality standards. Non-compliance with these “unbiased” principles could result in ineligibility for federal awards or contract termination.
SBA Releases 2025 Annual Report: Record Capital and Manufacturing Focus
The SBA’s 2025 Annual Report highlights a strategic pivot toward industrial revitalization and “Main Street” growth, reporting over $100 billion in capital delivery to small businesses.
GovCon Takeaway: The agency’s focus on domestic manufacturing and supply chain resilience suggests new funding avenues for small businesses in the industrial sector. Additionally, the emphasis on program integrity indicates that contractors should expect stricter scrutiny and enforcement during audits.
FAA FY 2026 Budget Estimates: $22 Billion for Aviation Infrastructure
The Federal Aviation Administration (FAA) has released its FY 2026 budget estimates, requesting a robust $22 billion funding level, a $1.4 billion increase over previous levels to modernize the nation’s aviation system.
GovCon Takeaway: This budget request points to consistent solicitation activity for contractors in aviation technology, engineering, and facility maintenance. The specific allocation for contract towers and system modernization presents immediate opportunities for incumbents and new entrants alike.
White House Adopts Risk-Based Approach to Security (M-26-05)
The Office of Management and Budget (OMB) has issued Memo M-26-05, “Adopting a Risk-based Approach to Software and Hardware Security,” rescinding previous rigid attestation requirements (M-22-18).
GovCon Takeaway: While the rigid attestation form is being deprecated, the demand for security evidence remains. Contractors should expect a shift toward contract-specific security deliverables, such as Software Bills of Materials (SBOMs), tailored to the risk profile of the agency’s mission.
DHS Appropriations Bill Bolsters Staffing at CISA, FEMA, and Secret Service
A newly advanced Department of Homeland Security (DHS) spending bill for fiscal year 2026 allocates critical funding to bolster staffing levels at key component agencies. Despite broader federal workforce reduction efforts, the bill explicitly directs the Cybersecurity and Infrastructure Security Agency (CISA) to maintain “sufficient” staffing to execute its mission.
GovCon Takeaway: This funding signals a continued demand for contractor support in cybersecurity, election security, and specialized staffing. Firms with capabilities in staff augmentation and technical support for DHS components should prepare for upcoming solicitations aimed at filling these “critical” gaps.
SBA Suspends 1,000+ 8(a) Firms for Data Non-Compliance
The Small Business Administration (SBA) has suspended approximately 1,000 contractors from the 8(a) Business Development Program following a program-wide audit. The suspensions stem from a failure to submit required financial and operational data by the January 19, 2026, deadline
GovCon Takeaway: Compliance is not optional. 8(a) firms must treat data reporting deadlines with the same urgency as proposal submissions. Affected contractors should immediately check the MySBA portal to initiate the reinstatement process, as prolonged suspension could jeopardize future set-aside eligibility.
