As 2025 comes to a close, defense and space contractors continue to operate in increasingly complex and contested environments, including gray zones and evolving threat landscapes.
With the anticipated passage of the FY2026 National Defense Authorization Act (NDAA), which is projected at approximately $900 billion, defense and space contracting activity is expected to remain robust across the industrial base.
In this environment, contractors face heightened legal, contractual, and reputational risk. Beyond performance requirements, companies must remain attentive to compliance obligations arising under the Law of Armed Conflict (LOAC) and to the proper implementation of required contractual flowdown provisions for subcontractors, where applicable.
Depending on contract scope and operational context, risk mitigation may include documented LOAC compliance measures, internal controls, and training aligned with applicable DFARS requirements (including DFARS 252.225-7040) and DoD Law of War mandates.
Addressing these issues proactively through contemporaneous, good-faith compliance efforts can materially reduce exposure if questions later arise from contracting authorities, partners, or other stakeholders.
In regulated and operationally sensitive environments, contemporaneous documentation can be the difference between defensibility and exposure.
Conflict Orbit is a private law firm focused on Law of War compliance and national security risk mitigation for defense and space-sector partners.
Disclaimer: Conflict Orbit is a private law firm. The views are informational only (not legal advice) and those of Richard Waring in his private capacity. They do not reflect the views of the U.S. Government or Department of Defense. Viewing or responding to this post does not create an attorney-client relationship. No guarantee of results is made.
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