Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base
This executive order, titled Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base, directs the Department of Defense (DoD) to overhaul and speed up the defense procurement system while strengthening the defense industrial base and encouraging innovation. Its core approach is to shift toward faster, more flexible acquisition pathways—especially through commercial solutions and Other Transactions Authority (OTA)—and to modernize the acquisition workforce and governance. It also establishes a structured review process for Major Defense Acquisition Programs (MDAPs) and other major systems, with an emphasis on identifying underperforming or misaligned programs for potential cancellation and reallocation of resources. The order sets specific timelines for plan development, program reviews, and workforce reform, and it calls for a broad internal-regulations cleanup to reduce unnecessary rules and barriers. In practical terms, the order aims to reduce red tape, speed up delivery of new capabilities to the military, and push DoD to adopt commercial and innovative acquisition tools where appropriate. It also creates new governance and incentive mechanisms to reward risk-taking and practical innovation by DoD personnel, while maintaining compliance with applicable law and budget constraints.
Key Points
- 1Acquisition Process Reform and speed emphasis
- 2- Prioritize use of commercial solutions and OTA authorities, apply Rapid Capabilities Office policies, and leverage the Adaptive Acquisition Framework to streamline acquisitions. DoD must prioritize these authorities in ongoing contracting actions during plan development and pursue them where appropriate and lawful.
- 3Acquisition Workforce and governance reforms
- 4- Conduct a detailed review of acquisition functional roles to remove unnecessary steps and centralize decision-making. Create a Configuration Steering Board to manage risk across major programs, chaired by senior DoD acquisition leaders, and develop field training teams to provide hands-on guidance and best-practice templates for using innovative authorities.
- 5Major Defense Acquisition Program (MDAP) review
- 6- Within 90 days, DoD must conduct a comprehensive MDAP review to identify programs inconsistent with policy goals. Programs more than 15% behind schedule, 15% over cost, failing key parameters, or misaligned with priorities may be canceled, with a report list to the Director of the Office of Management and Budget (OMB). DoD must also report all MDAP contracts and performance against estimates to OMB within 90 days, and plan for reviewing non-MDAP major systems.
- 7Internal regulations review and deregulation
- 8- DoD shall review and revise internal acquisition guidance and eliminate unnecessary regulations, applying the ten-for-one rule for any proposed new regulations (i.e., deregulation priority where possible) to speed acquisitions.
- 9Joint Capabilities Integration and Development System (JCIDS) review
- 10- Complete a comprehensive review of JCIDS within 180 days to streamline and accelerate joint capability development and acquisition.
- 11Acquisition workforce performance and incentives
- 12- Develop a plan within 120 days to reform, right-size, and train the acquisition workforce, including new performance metrics that emphasize commercial solutions, adaptive pathways, and iterative requirements from the end-user perspective; establish field teams to support implementation and share templates/case studies.
- 13Definitions and scope
- 14- Clear definitions for terms such as Adaptive Acquisition Framework, Acquisition Program Baseline, commercial solutions, Configuration Steering Board, innovative acquisition authorities, Joint Capabilities Integration and Development System, Other Transactions Authority, and Rapid Capabilities Office are provided to standardize use and interpretation across DoD.