the Army wants to develop software without you.
They are tired of vendor lock, tired of waiting years and years for software, tired of spending hundreds of millions of dollars. They want to be able to create their own software at their own speed, to their own liking, without having to depend on private industry.
This is Step One of a larger plan. The Army is creating an entirely new software capability similar to the Corps of Engineers, but with software. They are going to have a whole lot of internal talent that can create software at the speed of relevance.
What Can My Company Do?
Up your game. Make your offering so good, so convenient, and so attractive that the Army will choose you, rather than their internal talent. After all, even the Corps of Engineers contracts out to civilian engineers; there will be room for you.
But know this: the Army wants to do without you, and if you don’t change your old game, they will.