The FAR Rewrite's Cybersecurity Liability Trap

The FAR overhaul's failure to resolve controlled unclassified information responsibility is not a loose end — it is a structural pricing problem that transfers unquantified breach liability onto vendors operating under firm-fixed-price terms. For small AI shops handling sensitive DoD and VA data, this gap is embedded in nearly every delivery. Today's episode also covers the FY2027 AI budget surge, why the headline overstates small-firm opportunity, and what Army exercise failures mean for how to pitch AI work.

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• Federal acquisition rewrite leaves cybersecurity confusion unresolved — Government Executive

Also today

• Agencies have four months to finalize quantum-ready migration plans — FedScoop
• OMB issues instructions for agency migration to quantum-proof encryption — Nextgov/FCW
• A $1.5 trillion defense budget: The IT programs contractors should be watching — Washington Technology
• Trump's budget supplemental would secure billions for munitions, emerging defense tech — DefenseScoop
• Agencies award $179B to small firms in 2025, down from 2024 — Federal News Network
• KBR hires CEO, finance chief to lead government spinoff — Washington Technology
• Army Air Assault brigade found AI tools ill-suited to tactical planning — Breaking Defense
• CRS tried to use AI, but less than 3% of results met their standards, director says — FedScoop
• AI has helped to slash nuclear licensing review times, NRC official says — Nextgov/FCW
• As opposition mounts, House cancels vote on VA overhaul bill — Government Executive
• The defense sector confronts the growing convergence of cyber and kinetic domains — DefenseScoop
• 101st Airborne unit put 'steel' between soldiers and the breach, tested limits of AI in recent exercise — DefenseScoop