[wahern]

I don't know the scope or applicability of this regulation (i.e. what loopholes exist or alternative mechanisms for licensing), but "licensing of government-owned patents... will generally be royalty free, revocable and nonexclusive. They will normally be issued to all applicants and will generally contain no limitations or standards relating to the quality or testing of the products to be manufactured, sold, or distributed thereunder." https://www.law.cornell.edu/cfr/text/34/6.3

I don't think the [notorious] Bayh-Dole Act (https://en.wikipedia.org/wiki/Bayh%E2%80%93Dole_Act) applies as it seems the inventor is an actual DoD employee (Naval Air Systems Command/NAWCAD, NAS Patuxent River), not a scientist at a private institution receiving government funding.