The Office of Federal Procurement Policy (OFPP) has finalized another step in its broader effort to modernize the federal acquisition system by significantly streamlining decades-old cost accounting regulations. Working with the Cost Accounting Standards Board, OFPP eliminated more than 10,000 words of regulatory text, rescinded two sections entirely, and removed 68 of 72 individual requirements governing how contractors account for costs on federal contracts.
The changes are intended to better align federal cost accounting standards with Generally Accepted Accounting Principles (GAAP) while reducing regulatory complexity. Officials say the updated rule maintains safeguards against waste, fraud, and abuse while bringing the government’s 51-year-old approach closer to modern commercial accounting practices.
Layoffs: Leidos
According to reporting first published by Washington Technology, Leidos issued layoff notices to 305 employees during June 2026. The company said the reductions affect indirect (non-billable) positions rather than employees who charge time directly to government customers.
A Leidos spokesperson said the layoffs are part of broader organizational changes intended to improve efficiency and better position the company for future growth. The company also noted that several dozen of the affected employees are expected to be reassigned into direct billable roles, meaning the final number of employees leaving the company will be lower than the 305 notices issued.
This appears to be a targeted restructuring rather than a broad workforce reduction, and it comes as several government contractors continue to adjust overhead costs amid changes in federal spending priorities.
Hiring: General Dynamics Mission Systems
General Dynamics Mission Systems is growing its workforce at its Precision Structures & Optics facility in Cullman, AL, with a range of newly posted manufacturing and engineering support positions. Recent openings include manufacturing technicians, machinists, quality professionals, production planners, and supervisors, reflecting continued demand for skilled workers supporting the company’s aerospace and defense programs. Several of the roles require candidates to be eligible for a U.S. government security investigation, underscoring the facility’s work on sensitive national security missions.
The Cullman facility manufactures precision optical and structural components used in military targeting, surveillance, and reconnaissance systems. While the company has not announced a formal expansion project, the steady stream of new job postings throughout June and July points to continued investment in the site’s manufacturing capabilities and represents one of the more notable defense hiring efforts in the region this summer.
Cleared Employer at Work: MANTECH
At MANTECH, we have embarked on the monumental, 7-year, $910 million SCITES II contract supporting the US Southern Command (USSOUTHCOM) in Doral, Florida. We are actively recruiting cleared Cybersecurity Professionals, Systems/Network Engineers, IT Architects, Data Scientists, and AI Engineers who want to modernize critical infrastructure and directly impact national security.
Take the Next Step: Connect with our recruiting team today and help us advance the mission!
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Opportunity to Watch
Karman Space & Defense is expanding its international footprint with an agreement to acquire Scotland-based Walker Precision Engineering for approximately $94 million (£70 million). Walker supplies precision-engineered components for more than 25 European missile, air and defense programs and brings expertise in engineering, advanced materials, precision machining and electromechanical assemblies. The acquisition gives Karman its first major European manufacturing presence, complementing its existing 17 U.S. locations.
The companies say the deal will strengthen Karman’s position in the growing missile and defense market by expanding access to European prime contractors and allied defense programs. Expected to close in the third quarter of Karman’s fiscal 2026, the acquisition is also projected to immediately boost the company’s revenue, backlog and cash flow while creating new opportunities for cross-selling and international growth.
