Modernizing Defense Acquisitions And Spurring Innovation In The Defense Industrial Base

The administration aims to deliver military capabilities faster, expand the use of commercial and flexible contracting methods, and scrutinize costly or delayed weapons programs.

What the order does ​

• Requires a defense acquisition reform plan within 60 days that prioritizes commercial solutions, flexible contracting authorities, fewer approvals, and centralized risk management.
• Directs the Department of Defense to eliminate unnecessary acquisition rules and apply a ten-for-one rule when proposing new internal requirements.
• Requires a workforce plan within 120 days to adjust staffing, training, performance metrics, and incentives for calculated risk-taking and innovative purchasing.
• Orders a 90-day review of major defense acquisition programs, with programs exceeding cost or schedule thresholds, missing performance targets, or conflicting with mission priorities considered for cancellation.
• Requires contract and program performance information, potential cancellation lists, and a plan for reviewing other major systems to be provided to the Office of Management and Budget.
• Orders a 180-day review of the military’s joint capability requirements process to streamline and accelerate acquisition.

Who it affects ​

• Defense acquisition personnel, including program managers, contracting officers, engineers, financial managers, cost estimators, and logisticians.
• Defense contractors and commercial companies seeking Department of Defense business.
• Major weapons and technology programs that are delayed, over budget, underperforming, or misaligned with defense priorities.
• Military services and officials responsible for defining requirements, managing programs, and approving purchases.