Quantum sensing is post feasibility but pre-scale. The market is moving from RDT&E into transition activity, characterized by operationally relevant testing, platform integration pilots, and limited early procurements rather than broad programs of record. Progress toward production is gated less by performance claims than by repeatability in operational environments, SWaP-C (Size, Weight, Power, and Cost) and environmental qualification, integration burden (hardware and software), and a credible sustainment path. As a result, the near-term market is defined by funded validation and transition efforts that precede wider production adoption. Platform manufacturers including UAV and UUV OEMs typically engage as downstream adopters once government-funded programs have materially reduced integration and performance risk.

This post is Part Two of a Marion Square blog series examining the Department of War’s shift to the Warfighting Acquisition System and what it means for commercial technology vendors.

The new acquisition strategy responds to this reality by introducing something DoW did not previously have in a formal, empowered way: portfolio level ownership of digital and software capabilities.

That is where the new Portfolio Manager role comes in.

One thing is clear these days: the federal tech landscape is not standing still. Agencies are under more pressure to justify spend, defend outcomes, and align investments directly to mission objectives. Whether you are sharpening your federal messaging or entering the space for the first time, the rules of engagement are shifting.

The Department of Health and Human Services (HHS) has published a comprehensive Artificial Intelligence Strategy outlining how AI will be governed, deployed, and scaled across healthcare delivery, public health, and research.

While the FY 2026 HHS Budget does not create a single “AI program,” it does fund the strategy in practice through investments in technology modernization, data infrastructure, public health analytics, digital health, and research systems.

Last week’s release of Transforming the Defense Acquisition System into the Warfighting Acquisition System is likely the most consequential change in defense acquisition policy in decades  and it sends a very clear message to the industrial base, startups, and commercial vendors:

Speed, modularity, and mission impact now outrank process, compliance, and tradition.

For companies building AI, cybersecurity, PQC, quantum, edge compute, cloud, analytics, sensors, or advanced manufacturing technologies, this is not just a policy update.

It’s an open door.

The headlines are all about gridlock: the Senate racing to pass a three-bill “minibus,” the House waiting for the green light, and another short-term continuing resolution (CR) keeping the lights on only through January 30. It’s tempting to read this as a signal for technology companies to pause their government efforts.

That would be a mistake.

While Washington wrestles over process, the underlying mission priorities driving government IT, cybersecurity, and AI investments haven’t changed. Agencies are still under binding mandates from Zero Trust and post-quantum encryption to AI governance and data modernization that require continued action regardless of the budget dance on Capitol Hill.

At Marion Square, we see this as one of the best times to be positioning for growth.

When Congress fails to pass funding legislation, the federal government officially shuts down. For federal contractors, a shutdown introduces a period of significant uncertainty, affecting ongoing projects, payment schedules, and future business opportunities.

The federal government’s FY26 budget cycle begins October 1st, and agencies are already shaping acquisition plans. Billions are being directed toward AI, cybersecurity, post-quantum readiness, infrastructure, and defense making this one of the largest opportunities yet for technology companies

Whether you’re already working with federal agencies or just starting to explore the market, the message is clear: the time to act is now.