Defense Secretary Pete Hegseth is moving to shake up Pentagon contracting with a new unit called “Deal Team Six,” a group of private-sector negotiators tasked with pushing defense companies toward faster production, flatter pricing, and more contractor-funded expansion. The team, housed inside the Pentagon’s Economic Defense Unit, is part of a broader effort to replace what Hegseth has called a slow and costly acquisition process with a more production-focused model.
The basic pitch is straightforward: companies that invest their own money in new factories, assembly lines, and expanded capacity could receive larger, longer-term defense contracts in return. Pentagon leaders say the goal is to reduce delays and cost overruns while ensuring the military gets equipment faster. The unit received funding in the FY2026 defense policy process and is slated for a larger research and development allocation in the administration’s FY2027 defense budget.
Layoffs: The State Department
The State Department has moved forward with finalizing layoffs for hundreds of employees, closing the chapter on a workforce reduction effort that began last summer. Roughly 250 Foreign Service officers and about 30 civil servants were officially separated after spending months on paid administrative leave, even as the department simultaneously launched a campaign to recruit new personnel. Officials say the cuts are part of a broader reorganization aimed at streamlining operations and improving efficiency, but the decision has raised questions about workforce planning and continuity.
Critics, including employee groups and some lawmakers, argue the approach risks sidelining experienced diplomats at a time when global demands are high. Many of those affected held specialized language skills and security clearances, and some reports indicate that positions similar to theirs are now being advertised. The situation highlights an ongoing tension between restructuring efforts and mission readiness, particularly as the department continues to shrink its workforce while navigating complex international challenges.
Hiring: Collins Aerospace
RTX’s Collins Aerospace is putting $26.5 million into its Largo, FL facility, a move aimed at speeding production of commercial aviation radars and defense-focused multi-domain security systems. The expansion is expected to create more than 100 high-tech jobs in engineering and factory operations, adding capacity at a site that already supports radar, satellite, secure communications, and testing work for commercial and military customers.
The investment also ties into broader aviation safety and national security needs. Collins says the Largo facility will support work on the FAA’s Radar System Replacement Program, including production of the Condor Mk3 cooperative surveillance radar and the ASR-XM non-cooperative radar. The new radar production area is expected to be fully operational by late 2026.
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Opportunity to Watch
The Office of Personnel Management is taking a significant step toward modernizing federal hiring, kicking off a broad effort to shift away from degree requirements and toward skills-based evaluations. The initiative begins with the federal government’s IT workforce (the 2210 series), where applicants will now be assessed through formal, job-relevant testing rather than relying on educational credentials or self-reported experience. The move is aimed at addressing long-standing concerns that degrees often serve as imperfect stand-ins for actual ability, potentially filtering out qualified candidates who lack traditional academic backgrounds.
The overhaul is expected to be extensive, with OPM planning to revise all occupational series and even reduce their total number by roughly a quarter. The changes also eliminate self-attestation practices, requiring hiring managers to rely on standardized assessments—such as coding tests for software roles—to better gauge real-world competency. Notably, the push toward skills-based hiring has gained support across administrations and in Congress, signaling a sustained, bipartisan effort to make federal hiring more merit-driven while expanding access to talent pools that may have previously been overlooked.
