Two new Executive Orders signal increased federal action around quantum innovation and post-quantum cryptography. For government contractors and new entrants, participation in these initiatives will require careful attention to funding structures, FAR changes, NIST requirements, and compliance expectations.
Highlights
- Quantum Policy Action. On June 22, 2026, the President issued two Executive Orders focused on advancing U.S. quantum innovation and strengthening federal defenses against future quantum-enabled cryptographic threats.
- Contractor Participation. The quantum innovation EO directs agencies to prioritize research, development, testing, evaluation, commercialization, and deployment, creating potential opportunities for defense contractors and new entrants.
- Cybersecurity Requirements. The cryptographic security EO requires movement toward NIST-approved FIPS for post-quantum cryptography and directs the FAR Council to issue a proposed rule addressing contractor compliance.
- Funding and Cost Considerations. Quantum-related research and development may be funded through contracts, grants, or Other Transaction Agreements, but contractors should carefully evaluate cost recovery, funding structures, and regulatory obligations.
- Compliance Impact. New entrants, including nontraditional defense contractors, may face reduced requirements in some areas, but compliance expectations under FAR, NIST, cybersecurity, and cost-related requirements will still need to be understood before pursuing these opportunities.
The President issued two Executive Orders on June 22, 2026, Ushering in the Next Frontier of Quantum Innovation and Securing the Nation Against Advanced Cryptographic Attacks that together outline an aggressive national plan to secure long-term leadership in quantum information science and technology (QIST) and to defend against the future security threats posed by large-scale quantum computers.
Ushering in the Next Frontier of Quantum Innovation
The first Executive Order (EO) emphasizes coordinated federal action to develop a quantum computer with computing, sensing, networking, and secure supply‑chain capabilities for commercial, government and national security applications. Agencies are instructed to prioritize research, development, testing, and evaluation, and to develop plans to support a robust quantum ecosystem.
The EO establishes a whole‑of‑government plan to secure U.S. leadership in QIST. It directs the Assistant to the President for Science and Technology (APST) to promote commercialization and deployment of QIST, support quantum‑enabling technologies, eliminate barriers, and encourage partnerships with the private sector to strengthen the U.S. quantum ecosystem.
Securing the Nation Against Advanced Cryptographic Attacks
The second EO mandates that the United States strengthen cryptographic protections and transition federal information systems to National Institute of Standards and Technology (NIST)–approved Federal Information Processing Standards (FIPS) for Post‑Quantum Cryptography (PQC). This transition is intended to mitigate future threats from foreign adversaries capable of exploiting quantum‑enabled attacks.
The EO also requires the FAR Council to publish a proposed rule that ensures federal contractors comply with FIPS, incorporate PQC‑compliant algorithms, and implement vulnerability disclosure programs aligned with NIST guidelines. In other words, government contractors should expect additional FAR requirements and new NIST‑driven security obligations.
What Does This Mean?
These EOs create significant opportunities for defense contractors and new industry entrants to participate in federally supported quantum initiatives. However, participation comes with regulatory expectations. New entrants may qualify as nontraditional defense contractors, and although the Department of Defense has reduced certain regulations for them, compliance obligations still exist, and costs will not be unlimited.
The EO directs agencies to prioritize research and development, and most R&D is funded through cost‑reimbursable mechanisms such as contracts, grants, or Other Transaction Agreements. This raises concerns because it appears to conflict with the earlier EO on Promoting Efficiency, Accountability, and Performance in Federal Contracting, which states that fixed‑price contracts are preferred unless the agency head specifically approves a non-fixed-price approach.
Additionally, the new EOs signal forthcoming FAR proposed rules tied to NIST‑approved FIPS requirements. These are not the same as the NIST controls associated with the Cybersecurity Maturity Model Certification (CMMC) Program; they represent an additional layer of security obligations that contractors must understand and implement.
Takeaway
Before jumping into these new quantum‑related opportunities, government contractors and new entrants must understand the regulatory landscape, the cost implications, and compliance expectations. The opportunities are real, but so are the obligations.
Redstone GCI assists government contractors with understanding the Government’s expectations and supporting government contractors from contract award to contract closeout.
Frequently Asked Questions (FAQs)
- What did the new Executive Orders address? The President issued two Executive Orders on June 22, 2026, focused on quantum innovation and post-quantum cryptography. Together, they direct federal action to advance quantum research, commercialization, deployment, and security protections for federal systems.
- Why do these Executive Orders matter to government contractors? The EOs may create new opportunities for contractors and new entrants to support quantum-related work. At the same time, participation may involve funding, costs, cybersecurity, FAR, and NIST-related compliance considerations.
- What is quantum information science and technology? Quantum information science and technology, often called QIST, refers to technologies that use quantum principles to support advanced computing, sensing, networking, and security capabilities. The federal government is prioritizing QIST because of its potential commercial, government, and national security applications.
- What is post-quantum cryptography? Post-quantum cryptography refers to cryptographic protections designed to help secure systems against future threats from large-scale quantum computers. Under the EO, federal systems are expected to transition toward NIST-approved FIPS for post-quantum cryptography.
- Does this create new cybersecurity requirements for contractors? The EO directs the FAR Council to publish a proposed rule addressing contractor compliance with FIPS, post-quantum cryptography algorithms, and vulnerability disclosure programs aligned with NIST guidelines. Contractors should understand that these requirements are separate from the NIST controls associated with CMMC.
- What should new entrants understand before pursuing quantum-related opportunities? New entrants may have opportunities to participate in federally supported quantum initiatives, including through research and development work. However, reduced requirements for some nontraditional defense contractors do not eliminate all compliance obligations, and contractors should carefully evaluate funding structures, cost treatment, and contract requirements.
Lynne is a Director with Redstone Government Consulting, Inc. providing government contract consulting services to our clients primarily related to Commercial Item Determinations and support, Cost Accounting Standards, DFARS Business System Audits, Proposals, and Incurred Cost. Prior to joining Redstone Government Consulting, Lynne served in several capacities with DCAA and DCMA for over 35 years. Professional Experience Lynne began her career working with DCAA in the Honeywell Resident Office, Clearwater, FL in 1984. Lynne’s experience included various positions which involved conducting or reviewing forward proposals or rate audits, financial capability audits, progress payments, accounting and estimating systems, cost accounting standards, claims and disclosure statement reviews. She is an expert in FAR, DFARS, CAS and testified as an expert witness. Lynne assisted in drafting the commercial item guidance for DCAA Headquarters. Lynne was assigned as a Regional Technical Specialist where she provided guidance to 20 field offices on highly complex or technical issues relative to forward pricing, financial capability or progress payment issues. As an Assistant for Quality, she was involved in reviewing and ensuring audit reports were in compliance with policy and GAGAS as well as made NASBA certified presentations to the staff including but not limited to billing reviews, CAS, unallowable cost and progress payments. To enhance her experience in government contracting, Lynne accepted a position with DCMA in 2015 as part of the newly organized DCMA Cadre of Experts in the Commercial Item Group. This included performing reviews of prime contractor’s assertions and/or commercial item determinations as well as performing price analyses. Lynne was a project lead and later became a lead analyst where she engaged with the buying commands on requests and reviewed price analysis reviews performed by a team of 5 analysts. She also assisted the DCMA CPSR team relative to commercial items and co-instructed the Commercial Item Training presented to DCMA. Education Lynne earned a Bachelor of Science Degree in Accounting from the University of Central Florida. Certifications State of Florida Certified Public Accountant State of Alabama Certified Public Accountant Defense Acquisition Workforce Improvement Act (DAWIA) Level III- Auditing DAWIA Level III – Contracting