Congress is aiming to break down a Catch-22 scenario faced by small defense businesses with classified technology. The 2024 National Defense Authorization Act features provisions designed to open up existing classified workspaces to these businesses. The goal is to ease the costly burden of either building or gaining access to secure facilities, which poses a considerable obstacle for startups looking to secure government work.
Overcoming these barriers is crucial, as they hinder innovation and prevent innovative, potentially game-changing technologies from being adopted by the Pentagon. Andrew “Scar” Van Timmeren, Vice President of Government Solutions for Blue Force Technologies, emphasized the problem, citing examples of incumbent companies winning contracts due to their existing access to secure workspaces, effectively shutting out smaller businesses. Proposed measures, if implemented, would allow smaller firms to bid on classified contracts without having to meet certain facility security standards after the contract award. These changes could lead to earlier contract opportunities for small businesses, improving their ability to contribute innovative solutions to national security challenges.
Layoffs: citigroup
Citigroup reduced its headcount by 2,000 employees in Q3, incurring $650M in severance charges for the year. This brings the total job cuts to around 7,000 in 2023. The reduced headcount is attributed to repositioning charges, but this doesn’t encompass the recent reorganization focused on five key businesses, which will result in more job cuts. Despite the workforce reductions, Citigroup’s total headcount has remained stable at 240,000 employees over four quarters, as the bank hired additional staff to address regulatory issues. In Q3, the bank’s spending increased by 6% to $13.5B, slightly less than expected. Citigroup anticipates $54B in total expenses for the year, as part of its cost-cutting strategy to adapt to market conditions.
Hiring: Hiller Measurements
Hiller Measurements is set to boost El Paso’s economy with its expansion to the El Paso International Airport, creating new engineering jobs and economic growth. Under the approved lease agreement, the city is projected to see a significant return on its investment, reflecting the community’s strategy to attract aerospace, defense, and advanced manufacturing companies. The expansion will bring high-skilled engineering jobs and innovation-driven technology to the region, emphasizing El Paso’s growing influence in these industries.
Cleared Employer at Work: CISA
Opportunity to Watch
Empower AI has been awarded a $21 million contract to provide essential IT services and engineering support. Under this task order, the company will focus on improving command, control, communication, cyber-defense, and intelligence systems for the U.S. Army Intelligence and Security Command and the U.S. Army Counterintelligence Command at Fort Meade, MD, with services ranging from infrastructure implementation to quality assurance and cybersecurity efforts. This contract reflects Empower AI’s commitment to supporting the Army’s evolving infrastructure requirements to ensure the success of critical missions.
