The Pentagon Bets Big on Rare Earths!

In a bold move to reshape the global rare earth’s landscape and blunt China’s dominance in the market, the U.S. Department of Defense is making a strategic investment in MP Materials, acquiring a 15% stake in the company and funding the construction of a new magnet-making facility on U.S. soil. And it’s a clear signal that the U.S. government is done playing defense when it comes to critical minerals.

The Strategic Metal Behind the Machines? Rare earths like Neodymium and Praseodymium may not make headlines like AI or quantum computing, but they power the very technologies those industries rely on from electric vehicles to F-35 fighter jets, missile systems, and cutting-edge medical devices. MP Materials, founded in 2017, owns and operates the Mountain Pass mine in California currently the only operational rare earth mining and processing site in the U.S. Their specialty is Neodymium-Praseodymium oxide, a mineral that forms the backbone of high-strength permanent magnets used in everything from precision motors to defense systems.

Another thing is “The China Factor” . Here’s the geopolitical wrinkle: In 2023, China accounted for nearly 70% of all U.S. rare earth imports, per U.S. Geological Survey data. And earlier this year, Beijing began restricting exports of these materials following a wave of new tariffs from the Trump administration. The message was clear: If rare earths are the supply chain’s beating heart, China holds the stethoscope and the scalpel. It’s actually DOD’s game-changing investment. Because I entered the Pentagon. In a move to rewire the supply chain, the Defense Department is funding MP’s plans to build a second manufacturing facility, code-named “10X,” with a mission to scale U.S. magnet production like never before. MP aims to have the facility online by 2028, and when it’s up and running, DOD has already agreed to buy 100% of its output for the first 10 years. Not only that, the government will purchase the rare earth oxide from 10X at a guaranteed price of $110 per kilogram, locking in a long-term offtake agreement that secures both buyer and supplier from future market volatility.

📜 COMPLIANCE AND REGULATION UPDATES

There are some aspects of procurement compliances that are key to thriving in Government contracts! Under FAR Subpart 51.1, contractors can access GSA, DLA, or VA supply sources for cost-reimbursement contracts or security equipment, but only with proper authorization. Procurement compliance requires a written finding from contracting officers, evaluating cost, suitability, and delivery.

Contractors must obtain FEDSTRIP or MILSTRIP codes and adhere to strict ordering protocols, like attaching authorization copies. Ignoring procurement compliance risks penalties and project delays. Procurement compliance ensures efficient use of Government resources while demanding accountability—proper supply use and timely payments are non-negotiable. By embracing procurement compliance, contractors boost efficiency and avoid pitfalls.

Navigating Government Procurement Compliance

Recently, MetTel, a telecom titan, got a reality check when the Social Security Administration (SSA) slyly shifted gears, ditching MetTel’s toll-free services for Amazon Web Services (AWS) Connect through Four Points Technology’s blanket purchase agreement (BPA). SSA, tapping into an existing cloud contract, sidestepped a fresh government procurement showdown, leaving MetTel fuming. Their protest to the Government Accountability Office (GAO) was swiftly dismissed. MetTel didn’t hold a GSA Schedule for cloud services, unlike Four Points. This government procurement saga highlights a critical compliance lesson: as agencies embrace all-in-one cloud solutions like AWS Connect, contractors must pivot to stay relevant. Don’t get caught flat-footed! Ensure your portfolio matches the cloud-driven tide of government procurement to secure your spot in this fast-evolving federal marketplace.

🔓 Small Tech Firm Wins Big with CSO Strategy!

A small cybersecurity startup in Virginia used a Commercial Solutions Opening (CSO) to win a Department of Defense contract in just 6 weeks. They didn’t have past performance in federal work, but they had a strong commercial product.

Instead of going through traditional bidding, they responded to a problem statement posted on SAM.gov. Their pitch focused on solving the agency’s issue fast, not on compliance jargon. They also joined a tech consortium to access OTA (Other Transaction Agreement) opportunities.

Key Moves That Helped Them Win:

● Skipped traditional FAR-heavy bids and used CSO/OTA pathways.

● Focused on solving a real problem, not just selling a product.

● Joined a consortium to access exclusive opportunities.

● Kept their SAM.gov profile and NAICS codes updated.

● Used their SBA certification to build credibility.

Strategic Moves That Actually Shift the Needle

1. Target Micro-Purchases Under $10K

● Why it works: These don’t require competitive bidding or lengthy paperwork.

● How to act: Email contracting officers directly with a one-page flyer showing your

product/service, pricing, and delivery speed. Mention your set-aside status if relevant.

● Bonus: Ask them, “What’s something you need fast but don’t have time to source?”

2. Use SAM.gov Filters to Spot CSO/OTA Opportunities

● Why it works: These bypass traditional FAR rules and favor speed + innovation.

● How to act: Search using keywords like “problem statement,” “prototype,” or

“non-traditional.” Don’t wait for RFPs—respond with a short pitch deck showing how

you solve the problem.

3. Audit Your NAICS Codes for Relevance

● Why it works: Agencies search by NAICS. If yours are outdated, you’re invisible.

● How to act: Go to USAspending.gov → Search recent awards → See which NAICS

codes are trending in your niche → Update your SAM profile accordingly.

Checklist: July 2025

Task Action

• Search SAM.gov weekly for CSO/OTA and micro-purchase leads.
• Use filters like “non-traditional”, “prototype”, “urgent”.
• Audit your NAICS codes Align with recent awards in your niche.
• Build a 3-part teaming strategy Prime + niche expert + compliance partner.

💰 Boeing Wins Key Contract Expansion to Advance Next-Gen Jamming Capabilities for EA-18G Growler!

The Boeing Company has secured another strategic win, receiving a not-to-exceed $9.2 million contract modification from the U.S. Navy to advance integration work for the Next Generation Jammer Low Band (NGJ-LB) system onto the EA-18G Growler aircraft. This award builds upon Boeing’s existing indefinite-delivery/indefinite-quantity contract (N0001922D0001) and underscores the company’s deep technical expertise in electronic warfare and aircraft integration. This modification will allow Boeing to continue providing critical non-recurring engineering (NRE) support necessary to integrate the NGJ-LB pod system. The work will involve the design and qualification of the A-kit provisions required on the Growler platform, in-depth physical interface analysis between the aircraft and the pod, and a series of advanced testing efforts including wind tunnel testing and ground vibration testing. Boeing will also be responsible for developing and verifying technical directives to support system deployment, along with delivering comprehensive logistics product data to ensure sustainment throughout the life cycle of the system.

There are more! The integration work will take place primarily in St. Louis, Missouri, where Boeing has long served as a hub for advanced military aviation and engineering programs. Additional portions of the project will be conducted at Naval Air Station Patuxent River, Maryland, which plays a key role in test and evaluation activities, and at Naval Air Weapons Station China Lake, California, where specialized systems testing is carried out. The entire scope of work is expected to be completed by November 2026. While no funds are being obligated at the time of award, they will be incrementally allocated to specific orders as they are issued under the contract.This contract was awarded on a sole-source basis under Federal Acquisition Regulation 6.302-1, indicating that Boeing was uniquely qualified to perform the work based on its prior experience and technical integration with the Growler platform. The award highlights the Navy’s trust in Boeing to continue delivering innovation in a domain that is becoming increasingly critical to modern warfare.

This win marks a significant step in ensuring that U.S. electronic warfare capabilities stay ahead of the curve. Boeing’s continued leadership in supporting the Growler and its next-generation upgrades not only strengthens the aircraft’s role in joint operations but also enhances the Navy’s overall readiness to operate in the digital battlespace. With this latest award, Boeing reinforces its position as a key enabler of the Defense Department’s future-forward mission in electronic warfare and electromagnetic spectrum dominance.

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