The Pentagon is implementing reforms to its acquisition processes aimed at enhancing the flexibility and power of its executives overseeing major acquisition programs. Defense Secretary Pete Hegseth announced these changes on a Friday, focusing on transforming program executive officers into “portfolio acquisition executives.” This initiative is intended to empower these executives to make necessary adjustments to their programs more autonomously.
Michael Duffey, the Department of Defense’s undersecretary for acquisition and sustainment, elaborated on this new strategy during a call with reporters on a subsequent Monday. He highlighted the need for these executives to have greater authority in reallocating resources and adjusting requirements to ensure the timely delivery of new systems. The shift seeks to change the existing culture from one of compliance to one that encourages calculated risk-taking.
Duffey acknowledged the concerns surrounding the potential risks associated with a faster acquisition cycle but clarified that speed would not be mandated. Instead, he emphasized the importance of program leaders utilizing their judgment to balance the need for speed with the associated risks to cost and system performance.
In his Friday address, Hegseth mentioned that the Pentagon would be open to acquiring systems that provide an “85% solution” initially, allowing for subsequent improvements over time. Duffey indicated that the portfolio acquisition executives will be vital in determining whether to pursue options that meet most requirements, rather than all.
Details on how this new structure will function are still being finalized. Duffey anticipates that executives will have the autonomy to make decisions on less critical issues but will require broader consultation for significant capabilities.
Additionally, the Pentagon aims to retain talented program executive officers and program managers longer to have a more substantial impact on their programs, supporting a culture of accountability and long-term performance.
The department is also planning to utilize established flexible contracting mechanisms like Other Transaction Authorities (OTAs) to streamline the acquisition process. Moreover, two pieces of legislation, HR 3838 (the SPEED Act) and S 5618 (the FoRGED Act), have been integrated into versions of the upcoming National Defense Authorization Act.
The SPEED Act, proposed by House Armed Services Committee Chairman Mike Rogers and Rep. Adam Smith, focuses on overhauling acquisition regulations and exempting smaller programs while enhancing program executive officers’ authority and accountability. The FoRGED Act, introduced by Sen. Roger Wicker, aims to eliminate bureaucratic obstacles and encourage efficient commercial contracting practices.
Duffey expressed optimism that the provisions from these bills included in the 2026 NDAA would benefit the department and indicated a commitment to seeking ongoing congressional support for future needs.
Stephen Losey, the author of this piece, is a respected air warfare reporter for Defense News and has previously covered leadership and personnel issues for various military-themed publications.
