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Defense Business Brief: Here comes the quantum boom; GDIT's perspective; and Sec. 889. Business Editor September 24, 2026 06:15 AM ET The benefits of quantum technology could hit the mainstream sooner than you think - at least that's what one company is aiming for. "We're actually really hoping in the next year or two [to] release these as products that people can buy and integrate into their cybersecurity protocols," said Mehdi Namazi, co-founder and chief science officer of the quantum networking company Qunnect. But the products aren't "that futuristic." Quantum is usually discussed as being able to one day break encryption and help discover new drugs. But Qunnect is betting that commercial quantum technologies for telecommunications networks could be ready sooner rather than later, according to newly released research. Several focus on authentication, including a quantum position verification process that allows you to verify the position and time of a transaction, providing a physical receipt, Namazi told Defense One ahead of the Quantum World Congress event outside of Washington, D.C. That could unveil the true source of a phishing call that is pretending to be your bank, for example. Another example is quantum channel protection, where "entanglement networks can supplement post-quantum encryption to perfectly protect and monitor the communication networks to make sure no one is eavesdropping, no one is harvesting the data," he said. It also protects against redirecting traffic on the network. Qunnect counts In-Q-Tel, an investment firm focused on intelligence and national security needs, as one of its backers. Background: DARPA has previously explored entanglement networks through its Quantum Augmented Networks effort, but has recently become more vocal about it. Following a White House executive order, the Pentagon released its quantum strategy, which focuses on network modernization, such as integrating secure commercial products and using quantum-resistant devices. It also named 2030 as the deadline for all Pentagon systems to support post-quantum cryptography. That method of using entangled photons or particles, known as quantum entanglement, can also aid in precise time synchronization, which could be used for future telecommunications networks, including 6G. Precision would drill down to one trillionth of a second, "which you usually need for financial transactions, defensive systems - places that you really, really care about the security and the accuracy of your network," Namazi said. But there are challenges, particularly in making sure the technology is compatible with existing telecommunications infrastructure. "These are hardware-based technologies. So, as much as we build everything to be compatible with the telecommunications infrastructure - which they are - this still means that you do need to go and add devices to different locations," Namazi said. "And when it [comes] to devices that you use for your cybersecurity, you usually want them to be manufactured [domestically]...in very large quantities, in form factors that make sense. That's definitely still a challenge." You've reached the Defense Business Brief, where Defense One dig into what the Pentagon buys, who they're buying from, and why. Send along your tips, feedback, and song recommendations to [email protected]. Check out the Defense Business Brief archive here, and tell your friends to subscribe! Bigs v. littles: quantum edition. Last week, I had the pleasure of interviewing Amy Gilliland, president of GDIT, onstage at NDIA's Women in Defense conference. When I asked her how GDIT was navigating a changing dense industrial base with startups getting more interest, in some cases, than primes, she said: "It is our job to go out and find these companies and to show them how we can bring them to the mission." * Gilliland, who received a "Service to the Flag" award at the event, named the quantum company IonQ as an example. * "These are companies with great ideas. A lot of times they have no certification or accreditation, but they have really great ideas," she said. "They have a lab at the University of Maryland...They have a big clock in there that's ticking down to when they think Q-Day is," the day quantum technology would be able to crack the encryption protecting some of the world's most secure systems. * "They're making great progress. And it is our job to bring the big brains that are in this quantum company to bear on programs." * That includes an intelligence contract in which GDIT is using quantum computing to look through imagery and "detect the tiniest of changes...so we can see what the enemy is doing in ways that conventional computers can't today," she said. Remember the Huawei ban? The Pentagon and General Services developed processes and tools to comply with Section 889 of the 2018 National Defense Authorization Act, including a search function for contracting officers to find out how companies "represent their compliance," the Government Accountability Office wrote in a report released Tuesday. But they don't routinely share those insights with the rest of the federal government. * "GSA and DOD do not broadly share their insights from implementing Section 889 prohibitions with other government agencies," the report states. "For example, based on its experience with Section 889 prohibitions, GSA has plans to expand its use of customs data to identify the origin of goods, which GAO previously reported is difficult to do. By sharing information about their experience with current prohibitions, GSA and DOD could help other agencies address additional upcoming statutory prohibitions, such as on semiconductors. Sharing information could also help improve compliance." * The GAO issued four recommendations, two for DOD: to share "subsidiary and affiliate information it collects with relevant federal agencies," including the Cybersecurity and Infrastructure Security Agency; and coordinate with federal agencies on Sec. 889 implementation. * AEVEX has a new jet-powered drone called Scepter. * Holland & Knight added Ike Blanton to its national security team. He previously led global investment and economic security out of the Pentagon's acquisition and sustainment office. * John Roche, Accenture's managing director for defense, joined the Professional Services Council's board. * The Space Force awarded Impulse Space a $28 million contract for space domain awareness. * BAE Systems delivered two prototype combat vehicles to the Army. The "Infantry Fighting Vehicles" are based on the Armored Multi-Purpose Vehicle chassis and are designed to combat drone threats. * The Special Competitive Studies Project released its tech scorecard on biotechnology and the U.S. competition with China.

Chartis says healthcare economics and AI are driving a new care model. * Published on Sep 23, 2026 Demographic pressure, worsening healthcare economics, AI-enabled clinical innovation, and rising private investment are converging to push the U.S. healthcare system toward a different model of care, according to a new Chartis report. In a business-as-usual scenario, the firm projects that the median nonprofit health system's operating margin could fall from 1.5% to negative 9.6% over the next decade. One in five Americans will be 65 or older by 2035, while the population age 85 and older is projected to grow by nearly 60%, according to the report. Older adults are expected to drive nearly all of the increase in healthcare utilization over the next decade. AI adoption has also reached significant scale. Chartis said 80% of physicians report using AI professionally, with more than three-quarters saying it improves their ability to care for patients. Healthcare also accounted for 43% of enterprise spending on vertical AI applications in 2025, investment that Chartis said is helping accelerate adoption. Cindy Lee, Chief Strategy Officer and report co-author, said, "Incremental change won't be enough." She pointed to agentic AI as one way organizations are pursuing reductions in costs and improvements in clinician experience. Chartis calls the emerging model HealthCare360. The report argues that technology should enhance rather than replace the clinician-patient relationship while healthcare organizations address access, affordability, quality, safety, and responsible AI governance. Anneliese Gerland, Senior Vice President of Strategy and report co-author, said a fundamentally different care model is moving "from possibility to necessity." She said organizations that redesign care delivery and responsibly integrate AI will be better positioned to meet growing demand while addressing quality and financial sustainability. Government GDIT named OpenAI Select Partner to modernize federal systems. GDIT has been named an OpenAI Select Partner in a collaboration focused on bringing AI... Technology TCS selected to harmonize METRO's IT application landscape. TCS has been selected by international wholesaler METRO as a strategic partner to simplify its... Government Booz Allen finds AI models can execute end-to-end cyber intrusions. Booz Allen has released a new report finding that advanced AI models can now carry... PwC and Palantir expand alliance across enterprise AI, M&A, and ERP. PwC and Palantir are expanding their strategic alliance across three areas: scaling enterprise AI, transforming...