Key Opportunities for GovCons in DOD’s FY25 Budget

Source:GovConWire

The Department of Defense’s fiscal year 2025 budget request offers significant insights for government contractors seeking to align with the department’s priorities. With $143.2 billion allocated to research, development, test and evaluation, this budget emphasizes innovation, modernization and technological advancements aimed at strengthening U.S. national security. For contractors, this creates a host of opportunities across diverse domains.

If you’re looking for more information on the exciting technologies currently being incubated at the DOD—and what the department needs from industry to continue this innovation—the Potomac Officers Club is hosting its annual Defense R&D Summit on Jan. 23. For over a decade, the event has been a central gathering place for the industrial base and top Pentagon officials to commingle and get the ball rolling on new projects. Register before it’s too late!

Priority Areas in the FY 2025 Budget

Science and Technology

The budget allocates $17.2 billion to science and technology initiatives, highlighting the DOD’s commitment to fostering advancements that can enhance operational capabilities. Areas such as advanced materials, hypersonics and quantum technologies are likely areas of focus, presenting substantial opportunities for contractors specializing in research and cutting-edge technologies.

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Corporate Transparency Act (Update)

Source: PilieroMazza

In response to the preliminary injunction, the U.S. Department of Justice (DOJ) filed a Notice of Appeal with the U.S. Court of Appeals for the Fifth Circuit on December 5, 2024. The Financial Crimes Enforcement Network (FinCEN) also issued an alert with the following guidance:

FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports.

This confirms that FinCEN is complying with the injunction and will not require any BOIR filings until the injunction is stayed or overturned by the Fifth Circuit.

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Department of Defense Finalizes Rule Adding New Cybersecurity Requirements for Defense Contractors and Subcontractors

Source: JDSupra

The U.S. Department of Defense (DOD) has published a Final Rule to implement the Cybersecurity Maturity Model Certification (CMMC) program, which establishes minimum cybersecurity requirements for nearly all DOD contracts. The Final Rule is part of the DOD’s efforts to bolster the protection of sensitive information within the defense industrial base against evolving cybersecurity threats. The Final Rule is effective December 16, 2024, and will require proactive measures by contractors and subcontractors seeking to partner with the DOD.

The Final Rule will be implemented in four phases over a three-year period. Relatedly, the DFARS Proposed Rule outlines how CMMC Program requirements will be incorporated into contracts. Final comments on the DFARS Proposed Rule closed on October 15, 2024, and a Final Rule is expected in mid-2025. This will serve as the effective date for the phase-in process to begin. Once this occurs, solicitations and defense contracts that require contractors to process, store, or transmit federal contract information (FCI) or controlled unclassified information (CUI) on a non-federal system will condition contract eligibility on a contractor’s ability to meet these new requirements.

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