Calls to overhaul the Pentagon’s buying process have been ongoing for decades, with contributions from various defense secretaries such as William Perry, Donald Rumsfeld, Robert Gates, and Ash Carter. A recent executive order signed by President Donald Trump is considered the most ambitious attempt yet to reform these processes, emphasizing the need for speed, flexibility, and execution in defense acquisitions.
The executive order mandates improvements in the Defense Department’s acquisition processes, including the greater use of Other Transaction Authorities (OTAs), a review of internal regulations that hinder purchasing, enhanced training for acquisition officials, and oversight of major programs. These initiatives echo a sentiment expressed by venture capitalist Marc Andreesen in The Wall Street Journal in 2011, noting the disruptive potential of software and the need for the Pentagon to adjust its practices to avoid falling behind in a tech-driven landscape.
Information technology is becoming increasingly vital for the Defense Department, with initiatives like the joint all-domain command and control showcasing the importance of rapid data processing in modern warfare. The integration of software into hardware development has revolutionized how the military can create new capabilities, using technologies such as digital twinning and artificial intelligence.
Former Republican congressman Mac Thornberry highlighted that the key technologies relied upon by the Department of Defense (DoD) are increasingly developed in the private sector. Thus, enhancing the ease with which private companies can engage with the Pentagon is crucial for fostering innovation and competition.
An example of the Pentagon already adopting these reforms is the Navy’s Program Executive Office for Digital Services (PEO Digital), which has improved decision-making by leveraging existing technologies rather than over-investing in new developments. The office employs alternative contracting methods, such as OTAs, to accelerate the acquisition process and implement new technologies.
PEO Digital is working on various pilots, including one that utilizes artificial intelligence to streamline acquisition workflows. By automating processes that typically require significant manpower and time, such as reviewing proposals for conflicts of interest, the Navy expects substantial cost and time savings.
The executive order also stresses the establishment of performance-based metrics to assess technological efficacy, a contrast to traditional procurement methods that often lead to overruns and delays. Experts like Govini CEO Tara Murphy Dougherty note that inefficient testing and validation hinder various defense programs, creating a pressing need for reformed evaluation processes.
Moreover, Adm. Sam Paparo of U.S. Indo-Pacific Command has advocated for removing bureaucratic obstacles that hinder readiness within the Pentagon, calling for procurement processes that match the pace of combat and a culture that embraces prudent risk-taking, as emphasized in the new executive order.
While the order represents a significant step forward, issues such as the interconnectedness of acquisition, requirements, and budgeting remain unresolved. Former DIU head Mike Brown pointed out that a rigid budget process can severely restrict modernization efforts, with the need for a more adaptable funding system critical for advancing military capabilities.
The executive order does not solve all challenges related to defense acquisition, as some require Congressional action. Limitations on OTA contract sizes and the segmented nature of the defense budget further complicate efforts to streamline procurement. Nevertheless, experts believe the executive order marks progress toward addressing long-standing issues in the defense acquisition landscape.
