Defense Acquisition and Industrial Base Updates: October 1–15, 2025
- Dean Brabant
- Oct 15, 2025
- 7 min read
Executive Summary
Between October 1 and 15, 2025, defense acquisition news was marked by major contract announcements, key legislative progress on the FY2026 defense authorization, FAR updates, and industry events. Notable contract awards included a nearly $1 billion loitering-munition IDIQ (Uvision/Mistral for the Army’s HERO-120)[1], multi-hundred-million-dollar space launch and software acquisitions (SpaceX/ULA launch contracts[2]; Firefly-SciTec and SAIC-SilverEdge M&A[3][4]), and a quantum-networking task order to startup Qunnect[5]. On Capitol Hill, the Senate approved a $913.9 billion FY2026 NDAA on October 9[6] (the House had passed its version in September), putting acquisition reform at the top of the upcoming conference agenda[7]. Concurrently, FAR changes took effect: on October 1, inflation adjustments raised the micro-purchase threshold to $15,000 and the SAT to $350,000. [8][9] In pursuit of industrial-base resilience, leaders announced initiatives to engage commercial innovators (e.g., the Army’s new VC-like “FUZE” model[10]) and allied suppliers (a Lockheed–Diehl MoU to diversify PAC-3 missile supply chains[11]). Finally, SAM.gov postings advertised industry days for upcoming Navy programs – e.g., a Naval Undersea Warfare Center “TIH 28/30/32” industry day on October 8 (preparing for a submarine hardware IDIQ)[12] – and noted that a planned IWRP consortium event (October 16–17) was canceled [13].
Defense Acquisition and Contracting Updates
Army Silicon Valley Approach: At AUSA 2025 (October 13), Army Secretary Dan Driscoll vowed to reform Army procurement by adopting a “Silicon Valley” model, rapidly funding startups and getting minimally viable products to soldiers in weeks [10]. He announced the FUZE accelerator program funding would rise from $750 M to $765 M next year[10] and teased a major acquisition enterprise overhaul: combining the Army’s fragmented procurement offices under a single streamlined organization to “break down barriers until we measure acquisitions…in months and thousands”[14].
Navy Sustainment Concerns: A GAO-backed report (Defense News) highlighted sustainment shortfalls in legacy programs. It noted Navy maintainers have resorted to “scaveng[ing]” parts from grounded aircraft and ships due to lack of data rights for contractor-owned designs[15]. Several major weapon systems (F/A-18, F-35, LCS, etc.) “lack the data rights” needed for organic maintenance, leading to costly vendor lock-in[16]. These findings have prompted calls for acquisition contracts to secure lifecycle sustainment rights.
Defense Acquisition Reform Efforts: The FAR Council is actively revising acquisition regulations. By Oct 1, 2025, annual inflation adjustments took effect: the micro-purchase threshold rose from \$10,000 to \$15,000 and the Simplified Acquisition Threshold from \$250,000 to \$350,000[8][9]. Separately, under Executive Order 14275, the DOD launched a “Revolutionary FAR Overhaul” (RFO) to streamline procurement. Phase I deviations have been issued for 38 FAR parts (e.g., moving GSA federal supply schedules into the FAR and streamlining procurement procedures), with Phase II formal rulemaking planned for FY 2026 [18]. The NDAA conference is expected to finalize acquisition-reform language, as both the House and Senate have identified it as a top priority. [7]
Major Contract Awards (Oct 1–15, 2025)
Date | Contractor(s) | Program/Description | Value | Source |
Oct 3, 2025 | SpaceX; United Launch Alliance (ULA) | Space Force NSSL Phase 3 launches (High-priority satellite orbits)[2] | SpaceX: \$714 M (7 launches); ULA: \$428 M (2 launches) | Breaking Defense[2] |
Oct 6, 2025 | SAIC | Acquisition of SilverEdge Government Services (cyber/AI SaaS)[4] | \$205 M (cash) | Breaking Defense[4] |
Oct 6, 2025 | Firefly Aerospace | Acquisition of SciTec (data analytics software)[3] | ~\$855 M | Breaking Defense[3] |
Oct 9, 2025 | Qunnect (NY startup) | Air Force Research Lab (AFRL) Quantum Networking contract[5] | (18-month award, amount undisclosed) | Breaking Defense[5] |
Oct 14, 2025 | Uvision (Israel) and Mistral (U.S.) | Army Lethal UAS (HERO-120 loitering munition) IDIQ[1] | \$982 M (multi-year IDIQ) | Breaking Defense[1] |
Oct 14, 2025 | Boeing | U.S. Army PAC-3 Missile Segment Enhancement (seeker units)[19] | \$2.7 B (for ~3,000 seekers) | Breaking Defense[19] |
Table: Selected major awards and acquisitions reported in early Oct 2025 (values approximate).
Legislative Updates
FY2026 NDAA: On October 9, 2025, the Senate passed its \$913.9 billion FY2026 Defense Authorization (77–20)[6]. (The House had passed its version in mid-September[6].) Passage in both chambers triggers a formal conference; leaders have signaled that acquisition reform will be a top conference issue. [7] (For example, both Houses’ bills include sweeping FAR and acquisition changes.) Other NDAA provisions of note: an amendment was adopted to extend the B-1 bomber’s retirement moratorium to FY2030, and another to give DoD new drone-defense authorities over military bases[20]. (The full NDAA language was not final as of Oct 15.)
Other Legislation: No new standalone acquisition laws were enacted in this window. Congress remained deadlocked by a partial government shutdown (Sep–Oct 2025), delaying further appropriations. Defense industry groups and some lawmakers have floated procedural workarounds for delayed appropriations (e.g., automatic spending extensions), but as of October 15, only continuing resolution bills were in play.
FAR and Procurement Regulation Changes
Inflation Adjustments (Oct 1): On Oct 1, 2025, the Federal Acquisition Regulation incorporated standard inflationary threshold bumps: the Micro-Purchase Threshold increased from \$10k to \$15k, and the Simplified Acquisition Threshold from \$250k to \$350k[8][9]. Corresponding contingency and defense-support thresholds also rose (e.g., SAT-contingency from \$800k to \$1M)[8][9]. Contract-value thresholds for ethics disclosures and cost accounting standards likewise increased under the annual FAR inflation update.
FAR Overhaul (RFO): The Defense Acquisition Regulations System (DARS) is actively executing the Executive Order to “refresh” the FAR. In FY2025 Phase I, the FAR Council approved deviations to modify 38 FAR parts[17]. For instance, FSS/GSA schedule ordering was moved under the FAR, and new streamlined procurement procedures (from Part 13-like processes) have been drafted for inclusion in FAR Part 12 (commercial items)[18]. These interim changes were published for public comment. Phase II (formal notice-and-comment rulemaking) is set to launch in FY2026[21]. The ultimate goal is to simplify the FAR for modern DoD acquisitions (including prioritizing outcome over compliance paperwork).
Defense Industrial Base Developments
Prime vs. Commercial Innovation: Experts warn the U.S. defense industrial base is overly consolidated. One analyst notes “a handful of prime contractors dominate the industrial base,” but these firms are “poorly suited for producing fast, modular” systems[22]. Smaller firms and startups – which drive rapid innovation – face “massive barriers to entry,” including lengthy contracting delays and continuity gaps[22]. To counter this, defense leaders are promoting venture-style funding: e.g. the Army’s $765M FUZE program and similar efforts aim to attract Silicon Valley–style investment and speed prototyping[10].
Supply Chain Resilience: Supply-chain strengthening was a theme at AUSA 2025. Lockheed Martin and Germany’s Diehl signed a memorandum to diversify the Patriot PAC-3 missile supply chain by sourcing more components in Europe[11]. This “dual-source” approach is intended to ramp up production quickly for allies (notably, to support Ukraine)[11]. Separately, US boosters and integrators are increasing launch output (e.g. additional SpaceX/ULA launches above). In munitions, DOD is continuing multiple efforts to restore capacity (new loading plants, new suppliers) in artillery and energetics – although no new ones fell into Oct 1–15.
Accessing Capital: Commentators emphasize that DoD must use demand-side levers to attract private capital. The National Interest points out that major non-defense companies (GM, Apple, etc.) have R&D budgets exceeding the defense primes combined[23], and argues DoD should issue clear and predictable demand commitments (programs of record, advanced purchase agreements, etc.) so that investors will fund defense innovations[24]. One proposal (already in the NDAA) extends Defense Production Act Title III funding to “Five Eyes” allies, enabling shared production with trusted partners[25].
Industry Days and Consortium Events (Oct 1–15, 2025)
TIH 28/30/32 Industry Day (Oct 8, 2025): The Naval Undersea Warfare Center announced an Industry Day for Oct 8 at NUWC Newport[12]. This event, advertised on SAM.gov, previews a forthcoming full & open IDIQ procurement (“TIH 28/30/32”) to upgrade submarine computing hardware (processors, memory, I/O boards)[12]. The industry was told to register by October 1 to attend. It illustrates the DoD’s interest in accelerating technology refreshes in subsystems.
IWRP Quarterly Industry Day (planned Oct 16–17, 2025): A Special Notice had slated an Information Warfare Research Project (IWRP) consortium “Quarterly Industry Day” for Oct 16–17 in Charleston (hosted by NAVWAR and managed by ATI)[13]. The event aimed to share upcoming RFP topics related to information warfare technologies. However, an October 9 amendment to that notice simply stated, “The IWRP QID is canceled”[13]. (No reason was given.) Though it fell outside Oct 15, the Oct 9 cancellation notice was posted during our window.
Other Consortium News: NAC, MTEC, SOSSEC, and similar consortia had no major new announcements in early Oct. (NAC was active at AUSA 2025 and continues its working-group efforts, but no new SAM.gov postings were found for Oct 1–15.) DIU and AFWERX did not issue any contract announcements in this period (most DIU awards occur via challenges or are reported through partner press releases).
Sources: All information above is drawn from contemporaneous news and official updates[5][15][16][10][14][8][9][17][18][6][7][22][24][25][11][12][13]. Tables and timelines are compiled from these sources.
[1] Israel's Uvision looks to cement US Army ties after nearly $1B loitering munition win - Breaking Defense
[2] Space Force taps SpaceX, ULA for first set of critical launches beyond FY27 - Breaking Defense
[3] Firefly to buy SciTec with eye on Golden Dome - Breaking Defense
[4] SAIC will acquire software shop SilverEdge for $205 million - Breaking Defense
[5] Qunnect announces Air Force contract for quantum networking over conventional fiber - Breaking Defense
[6] [7] [20] Senate passes $914B defense policy bill after resolving gridlock on amendments - Breaking Defense
[8] [9] Threshold Changes - October 1st, 2025 | Acquisition.GOV
[11] [19] Lockheed, Germany’s Diehl sign PAC-3 MSE pact to boost supply chain resilience - Breaking Defense
[12] 2025 Ocean State Workshop hosted by NCMA RI
[13] Information Warfare Research Project (IWRP) Quarterly Industry Day 16-17 Oct...
[17] [18] [21] The Next Steps in the Revolutionary FAR Overhaul – The Coalition for Government Procurement
[22] Want Drone Dominance? Let the Squad Fail - Modern War Institute
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