Subcontracting

The SBA proposes consolidating nearly 1,000 industry size categories into 338 and raising many revenue and employee thresholds, potentially changing access to federal small-business preferences and subcontracting dynamics. Contractors have until November 20, 2026, to comment and should assess the proposal against their own industry classifications and contracting status.

A newly certified SDVOSB freight brokerage is exploring public-sector opportunities, while a separate first-time SDVOSB prime contractor reported winning a multi-year equipment-service contract. The discussion points firms toward APEX Accelerator support and SBA SubNet, and underscores the need for brokerages to assess subcontracting limits against their carrier model before bidding.

Amazon ended its delivery-services contract with Manhattan-based Kaizen Management Solutions, with approximately 200 e-bike delivery workers’ positions scheduled to end November 18, 2026. The transition comes as the New York City Council considers a proposal that could require Amazon to employ delivery workers directly, potentially changing subcontracting and workforce obligations.

Sierra Nevada Corp. has withdrawn from the Navy’s Undergraduate Jet Training System competition, leaving Textron Aviation and Leonardo as the sole identified bidding team. The reduced competition may concentrate supplier and subcontracting prospects around the remaining team, but no contract value, award date, or specific solicitation details were reported.

HII selected Eastern Shipbuilding Group to fabricate six structural modules for the future USS Philadelphia (LPD-32), with production underway in Florida and deliveries planned to Ingalls Shipbuilding in Mississippi. The work expands the San Antonio-class Flight II subcontracting supply chain; the future USS Harrisburg’s October 31, 2026, sea-trial completion provides a separate program progress marker.

Northrop Grumman reported $16.4 billion in third-quarter 2026 net awards, including major awards associated with Sentinel, Virginia-class submarines, and the F-35, lifting backlog to a record $109.6 billion. The company raised its adjusted earnings outlook while holding sales guidance steady; the results may indicate supplier demand but do not identify new solicitations or specific subcontracting opportunities.

NASA’s Jet Propulsion Laboratory selected Intuitive Machines on November 3, 2026, to provide the spacecraft platform and system-level integration for the FALCON-RADAR Earth science mission. The award value and contract number were not disclosed; the selection is the company’s third NASA Earth science award in six months, with launch planned no earlier than 2029.

The U.S. Army awarded AeroVironment a reported $464.8 million OTA in September 2026 to move its Enduring-High Energy Laser program into production, with Leonardo DRS providing integration and power and thermal-management support. The reported plan for 12 systems signals demand for specialized mobile directed-energy components, but no direct Army solicitation or subcontract value has been disclosed.

The U.S. Army Corps of Engineers’ Buffalo District awarded SA Environmental Services II a contract worth up to $249 million for the first phase of cleanup at the former Guterl Steel site in Lockport, New York. Work is expected to begin in 2027, pending approval of detailed work plans and contractor mobilization, creating potential subcontracting opportunities for environmental remediation firms.

The U.S. Navy awarded Lockheed Martin a fully funded, noncompetitive $114.6M order to redesign obsolete components in the F-35's GPS electronic unit and NAV100 Inertial Navigation System. Work runs through January 2030, supporting production and sustainment, with subcontracting opportunities likely for qualified suppliers.

A newly established Colorado LLC is seeking its first subcontract, drawing on its founder’s five years of contractor experience on Department of Homeland Security and Department of Veterans Affairs projects. The advice emphasizes stronger SAM and DSBS profiles, targeted outreach to agency primes, and planning for payment delays of 30–60 days or longer; no active solicitation or award is identified.

American Microwave, an Ironwave Technologies company, received a multi-million-dollar award from an unnamed defense prime to supply power dividers for a naval air and missile defense program, with deliveries scheduled through 2027. The award signals continuing demand for qualified RF suppliers, but the prime, program, and government customer have not been disclosed.

Federal prosecutors allege former U.S. Army Pacific official Carlos Duque accepted $1.25 million in bribes to steer contracts and subcontracts tied to the Hawaii-Pacific Innovation Campus. The case is not an open procurement opportunity, but it highlights integrity, subcontract-cost, and oversight risks for contractors and agencies managing defense innovation programs.

U.S. Cyber Command awarded Leidos a five-year, $160 million contract for cyber operations planning, threat analysis, defense, and tactics development, including protection of the Department of War Information Network. The award signals continuing defense demand for operational cyber expertise and creates potential openings for specialized subcontractors.

New subcontractors can gain visibility by promptly responding to ITBs and maintaining up-to-date profiles. Engaging in industry events and utilizing platforms like GovSeek can enhance partnerships with prime contractors.

Louisiana IT contractors face potential restrictions from a government staffing firm's agreement, limiting future work opportunities. Professionals are encouraged to negotiate terms centered on specific contracts to protect their business interests.

Computer Aid (CAI) rejected a subcontractor's insurance certificate for lacking **Cyber Liability** and **Professional Liability** coverage. This situation emphasizes the importance for subcontractors to ensure their insurance meets specific contract requirements, which could affect approval processes for federal contracts.

Governor Larry Rhoden announced a **$1 million** investment to create a defense cluster in Rapid City, anchored by **Northrop Grumman**. This initiative aims to bolster local defense capabilities and attract subcontractors, while enhancing collaboration among defense entities and educational institutions.

Federal construction subcontractors struggle with late notification of permits hindering project access. Addressing these barriers requires timely communication strategies to improve participation and competition.

The Entwistle Co. has acquired The Hales Group, enhancing its naval capabilities and position in the defense market. This acquisition may create new subcontracting opportunities within U.S. Navy procurements, likely influencing competitive dynamics significantly.

Maryland has terminated its Phase 2 contract with Kiewit for the Francis Scott Key Bridge, citing excessive cost proposals. This creates new opportunities for contractors while reshaping the landscape of the state’s $5 billion infrastructure undertaking, emphasizing the critical need for competitive pricing amid federal-state collaboration.