Might Executives Pay for Defense Delays?
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The Trump administration is considering an executive order limiting dividends, buybacks, and executive pay for defense contractors’ projects over-budget and delayed, reports Reuters. Industry groups have been on high alert about the closely held proposal. Shares of Lockheed fell 1.6% and Northrop Grumman sank 2% in after-hours trading after some aspects of the news were first reported by online political news service Punchbowl.
The Bureau of Labor reports November 2025’s unemployment rates are the highest since September 2021 and hit post-9/11 veterans the hardest, reports Military Times. These youngest veterans bumped up from a 2.7% unemployment rate in September to 4.3% in November, as the jobs market was buffeted by the US government shutdown, hiring freezes, and layoffs in the private sector. The jobless rate for all veterans also rose from 2.7% in September to 3.4% in November, while the overall unemployment rate for the general population ticked up from 4.4% in September to 4.6% in November, the highest unemployment rate since the 4.7% rate recorded in September 2021.
A new Data for Progress poll of 1,165 likely voters shows a majority disagree with the ongoing boat strikes in the Caribbean, and a plurality want DefSec Pete Hegseth to resign, reports Military.com. Results came from 454 Republicans and 448 Democrats and 263 independents who aligned more with liberals/Democrats. Asked for a favorable or unfavorable view of Hegseth, 40% responded viewed him unfavorably (9% “somewhat” unfavorable and 39% “very” unfavorable). That included 66% of Democratic respondents and 44% of independents, but just 16% of Republicans.
The US military conducted strikes against three alleged drug-trafficking boats in the eastern Pacific Ocean on Monday, killing eight people, reports CNN. At least 95 people have now been killed in strikes on suspected drug boats as part of a campaign, dubbed Operation Southern Spear, that the Trump administration has said is aimed at curtailing narcotics trafficking.
Hegseth will not publicly release unedited video of a strike that killed two survivors of an initial attack on a boat allegedly carrying cocaine in the Caribbean but will permit House and Senate Armed Services Committee members to view it, reports Military Times. He did not say whether all members of Congress would be allowed to see it, even as a defense policy bill demands that it be released to Congress.
The Trump administration on Tuesday designated Clan del Golfo, based in Colombia, as another foreign and global terrorist group, increasing financial pressure on its members and opening the door to potential military action against them, reports Military.com. The actions against a traditional US ally reflect a surge in cocaine production and fraying ties between the White House and Columbia’s leftist president, Gustavo Petro.
The government of Trinidad and Tobago said Monday that it would allow the US military to access its airports in coming weeks as tensions build between the United States and Venezuela, reports Military.com.
JetBlue Flight 1112 heading to New York from the Dutch Caribbean island of Curaçao on Dec. 12 nearly collided midair with a US military plane in proximity to Venezuelan airspace. Airline officials and the United States military pledged to investigate, if necessary, reports Military.com.
Chair of the House Armed Services Committee, Rep. Mike D. Rogers (R-AL), has summoned the senior military lawyer present during a controversial US strike that killed the survivors of an initial attack on their alleged drug smuggling boat in the waters off Venezuela, reports The Washington Post. Rogers wants ADM Frank M. Bradley, the commander who oversaw the Sept. 2 operation, to return to Washington next week and brief all committee members. “I want the lawyer there, too,” Rogers said.
The Pentagon escalated its “preliminary review” of “serious allegations of misconduct” into “an official Command Investigation” of Sen. Mark Kelly (D-AZ), a retired naval officer, for appearing in a video with five other Democratic lawmakers reminding military and service members they could disobey unlawful orders, reports Axios. It “should send a shiver down the spine of every patriotic American that the president and secretary of defense would abuse their power to come after me or anyone this way,” Kelly said.
Some all-volunteer teams of service women, slashed during the Trump administration’s DEI sweep of the Pentagon. will return via a provision tucked into the $900 billion defense policy bill, reports Military Times. The FY26 NDAA restores service-level women’s initiative teams and requires each of the five services to establish one within a year after the bill becomes law.
Senators Ted Cruz (R-TX) and Maria Cantwell (D-WA) want restrictions on military flights reestablished before government funding runs out at the end of January, reports AP News. The massive defense bill expected to pass this week allows military aircraft to again operate without broadcasting their precise location. This waiver was eliminated after the Jan. 29 crash between an airliner and an Army helicopter killing all 67 people aboard both aircraft. The senators denounced the provisions in the National Defense Authorization Act but believe eliminating the provision in the follow-up government budget bill will be a quicker fix.
Boeing and the USAF now expect delivery of the next Air Force One in mid-2028, a delay from the previous official schedule but earlier than the most recent expectation, reports Aviation Week. The new date comes as the service has awarded another $15.5 million for the program, bringing the total contract amount to $4.3 billion. The new contract covers an expansion of communication capabilities for both of the VC-25Bs.
After the US raised the price, Switzerland decided to reduce its order of 36 F-35s, despite its eventual need to grow to between 55 and 70 modern platforms, reports Aviation Week. Switzerland will trim the size of the F-35A buy to as many aircraft as it can get for its currently budgeted $7.6 billion.
The two Iowa National Guard soldiers killed Saturday in an ambush by an apparent ISIS gunman have been identified, reports Military Times. SGT William Nathaniel Howard, 29, of Marshalltown, and SGT Edgar Brian Torres Tovar, 25, of Grimes were killed in the Dec. 13 attack in the Syrian city of Palmyra, where they were supporting of ongoing counter-terrorism operations.
Trump said Saturday that “there will be very serious retaliation” after two US service members and one American civilian were killed in an attack in Syria that the United States blames on the Islamic State group, reports Military Times.
The Navy has a total of 20,683 gaps, the majority are gaps at-sea in the apprentice level, which covers E-1 through E-3 reports USNI News. Despite a historic recruiting year, the Navy must continue to bring in more junior sailors to fully man at-sea billets, a problem likely to continue for two to three years and compounded by delays in the training pipelines.
The Pentagon inspector general found the Army and Navy exceeded the legal limit of low-scoring recruits entering the military and failed to notify the DefSec or Congress, reports Federal News Network. According to the report, “exceeding enlistments” of low-scoring recruits “without the awareness and approval of the Department’s leadership, could create unanticipated quality gaps in the fleet, degrading the Navy’s overall readiness and lethality.”
NASA plans to test SpaceX’s Starshield satellite network, designed primarily for national security customers, to support operations of the agency’s Deep Space Network. Starshield is an offshoot of SpaceX’s Starlink constellation intended to provide communications, imaging, and other services, primarily for national security customers, reports Space News.
Turkey shot down an unmanned aerial vehicle over the Black Sea approaching its airspace, a rare military intervention by the NATO member amid regional tensions, reports Bloomberg.
The US, Ukraine, and major European countries have reached consensus on 90% of terms for a deal to end Ukraine’s war with Russia, two senior US officials said Monday, but they added questions of territorial control have yet to be resolved, reports The Hill.
Ukraine’s state security service has claimed the first-ever uncrewed underwater vehicle attack on a Russian vessel. The strike was on a Project 636 Varshavyanka class, or Improved Kilo class diesel-electric submarine, in the Black Sea naval stronghold of Novorossiysk. It would mark a historic first successful use of a UUV as an anti-ship attack weapon, reports TMZ.
Contracts:
Northrop Grumman Systems Corp., Mission Systems Sector, Linthicum Heights, Maryland, was awarded a $334,419,034 firm-fixed-price modification to previously awarded contract (N00024-20-C-5519) for production of Surface Electronic Warfare Improvement Program (SEWIP) Block 3 Hemisphere and Quadrant systems. This contract modification includes options, which if exercised, would bring the cumulative value of this contract action to $783,025,378. Work will be performed in Baltimore, Maryland, (33%); Tampa, Florida (10%); Chelmsford, Maryland (8%); Sykesville, Maryland (7%); San Diego, California (5%); Hudson, New Hampshire (4%); Woburn, Massachusetts (4%); Rochester, New York (3%); Nashua, New Hampshire (3%); Glendale, Arizona (2%); Denver, Colorado (2%); Washington, North Carolina (2%); Longmont, Colorado (1%); Cincinnati, Ohio (1%); and miscellaneous locations – each less than 1% (15%), and is expected to be completed by December 2029. If all options are exercised, work will continue through April 2030. Fiscal 2025 shipbuilding and construction (Navy) funds in the amount of $334,419,034 were obligated at time of award and will not expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Awarded Dec. 12, 2025)
Airbus U.S. Space & Defense Inc., Arlington, Virginia, was awarded a $323,734,736 modification (P00214) to contract W58RGZ-22-C-0022 for UH-72 Lakota logistics support and engineering services. Work will be performed in Grand Prairie, Texas, with an estimated completion date of Dec. 31, 2026. Fiscal 2026 operation and maintenance, Army funds in the amount of $100,084,643 were obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
BAE Systems – Norfolk Ship Repair (BAE), Norfolk, Virginia, was awarded a $117,702,348 firm-fixed-price modification to a previously awarded contract (N0002426C4403) to provide funding for the accomplishment of maintenance, modernization, and repair of USS Forrest Sherman (DDG 98) fiscal 2026 depot modernization period. The scope of this acquisition includes all labor, supervision, equipment, production, testing, facilities, and quality assurance necessary to prepare for and accomplish the Chief of Naval Operations availability for critical modernization, maintenance, and repair programs. Work will be performed in Norfolk, Virginia, and is expected to be completed by August 2027. Fiscal 2026 other procurement (Navy) funds in the amount of $117,702,348 will be obligated at the time of award and will not expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Peraton Technology Services Inc., Herndon, Virginia, is awarded a $10,904,116 cost-plus-fixed-fee, cost reimbursable, indefinite‐delivery/indefinite‐quantity contract to provide for updates, improvements, maintenance, and operation of the Intelligence Situation Awareness Tool software application used for range safety situational awareness and long-range, over-the-horizon ocean surveillance during target, missile, and test vehicle flight tests at the Pacific Missile Range Facility. Work will be performed at Kauai, Hawaii (90%); Oahu, Hawaii (4%); Santa Clara, California (3%); Point Mugu, California (2%); and Chantilly, Virginia (1%), and is expected to be completed in December 2030. No funds will be obligated at the time of award; funds will be obligated on individual orders as they are issued. This contract action was not competed. Naval Air Warfare Center Weapons Division, China Lake, California, is the contracting activity.
PRISM Maritime LLC, Chesapeake, Virginia is awarded a $9,241,744 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for VPX chassis needed for the landing helicopter dock and landing helicopter assault machinery control systems technical refresh. Work will be performed in Chesapeake, Virginia, and is expected to be completed by May 2031. Fiscal 2026 other procurement (Navy) funds in the amount of $38,099 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the System for Award Management (SAM) website, with five offers received. The Naval Surface Warfare Center Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N6449826D0001).
Sikorsky Aircraft Corp., Lockheed Martin Co., Stratford, Connecticut, is awarded a $113,502,108 modification (P00015) to a previously awarded firm-fixed-price, cost-plus-fixed-fee, cost reimbursable, indefinite-delivery/indefinite-quantity contract (N0001923D0011). This modification increases the contract ceiling to provide continued integrated logistics support, sustaining engineering, spares support, material management, component overhaul, and training activities in support of sustaining the VH-92A Patriot in-service helicopter for the Navy. Work will be performed in Stratford, Connecticut (84%); Owego, New York (5%); Quantico, Virgina (4%); Patuxent River, Maryland (4%); Orlando, Florida (1%); Moorestown, New Jersey (1%); and various locations outside the continental U.S. (1%), and is expected to be completed in November 2031. No funds will be obligated at the time of award; funds will be obligated on individual orders as they are issued. The contract that is being modified was not competed. Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
Amentum Services Inc., Chantilly, Virginia, was awarded a $30,645,502 modification (P00069) to contract W58RGZ-25-C-0003 for worldwide aviation maintenance. The modification brings the total cumulative face value of the contract to $289,470,540. Work will be performed in Chantilly, Virginia, with an estimated completion date of Nov. 30, 2026. Fiscal 2010 and 2025 Foreign Military Sales (Egypt, Kuwait, and Slovenia); fiscal 2026 operation and maintenance, Army; and fiscal 2025 aircraft procurement, Army funds in the combined amount of $30,645,502 were obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
Evernorth Federal Services Inc., St. Louis, Missouri, is awarded $719,426,247 (P00093) for the fourth option (out of seven one-year option periods) of the previously awarded contract (HT940221C0007), for the Defense Health Agency TRICARE Pharmacy Benefit Program. Pharmacy benefit services are available in all 50 states; Washington, D.C.; Guam; Puerto Rico; and the Virgin Islands. The program offers services at retail network pharmacies, authorized non-network retail pharmacies, and the TRICARE Mail Order Pharmacy. The period of performance for this option is Jan. 1, 2026, to Dec. 31, 2026. Fiscal 2026 operations and maintenance funds will be incrementally obligated. The Defense Health Agency, Managed Care Contracting Division, Aurora, Colorado, is the contracting activity. (Awarded Dec. 15, 2025.)
Ipsos Public Affairs LLC, of Norwalk, Connecticut is awarded modification number P00008 to firm-fixed-price task order HT001123F0033 under contract GS-00F-123DA for a 12-month period of performance to support the TRICARE Patient Experience Survey effort. This modification increases the basic order by $10,120,487. This modification provides for the exercise of an option to provide for Consumer Assessment of Healthcare Providers and Systems (CAHPS) surveys for the Defense Health Agency of: (a) the recently discharged adult and child inpatient population; (b) the CAHPS Clinician and Group Survey; and (c) the CAHPS Outpatient and Ambulatory Surgery Survey. The task order was awarded on a competitive basis, effective June 1, 2023. The place of performance is Falls Church, Virginia. The period of performance for the third option year is Dec. 1, 2025, to Nov. 30, 2026. The Defense Health Agency, Professional Services Contracting Division, Falls Church, Virginia, is the contracting activity. (Modification awarded Nov. 28, 2025.)
Humana Government Business Inc., Louisville, Kentucky, is awarded $7,342,637,605 to exercise Option Period Two under contract number HT9402-23-C-0001 (inclusive of adjustments to estimated health care costs, as a result of change orders accomplished during the implementation phase of contract performance) for health care and administrative support services in support of the Defense Health Agency (DHA) TRICARE program in the East Region. The contractor will assist DHA in operating an integrated health care delivery system combining the resources of the contractor and the military’s direct medical care system to provide health, medical, and administrative support services to eligible members of the uniformed services, retirees, and their eligible family members. The East Region includes Washington, D.C., and the states of Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, and West Virginia. The cost-plus-award-fee, firm-fixed-price, and fixed-price type contract was awarded Dec. 22, 2022, with a 12-month base period (transition-in) and eight one-year option periods, plus a transition-out period. The option year period of performance is Jan. 1, 2026, to Dec. 31, 2026. The place of performance is Louisville, Kentucky. The Defense Health Agency’s Managed Care Contracting Division, Aurora, Colorado, is the contracting activity. (Awarded Dec. 16, 2025.)
