The Pentagon is reimagining its approach to managing major acquisition programs, introducing significant changes aimed at enhancing flexibility and efficiency in the delivery of new weapon systems. This initiative, led by Defense Secretary Pete Hegseth, seeks to empower executives with the authority to make strategic decisions and take calculated risks.
Under this reform, program executive officers will transition into the role of “portfolio acquisition executives,” providing them with greater autonomy to redirect resources and adjust program requirements as needed. Michael Duffey, the Defense Department’s undersecretary for acquisition and sustainment, emphasized the shift towards a culture that values calculated risk-taking over strict compliance. “We intend to [give portfolio acquisition executives] greater flexibility when it comes to reallocating resources and trading requirements, in order to … [deliver] a system at speed and on time,” Duffey remarked during a recent press briefing.
Addressing concerns about the potential risks associated with accelerating the acquisition cycle, Duffey clarified that the emphasis on speed does not equate to a mandatory directive. Instead, the department aims to equip executives with the discretion to balance speed with risk, ensuring program leaders can make informed judgments. “We’re continuing to be dependent on the judgment of program leaders who are executing these programs to understand where does the need for speed balance with the risk,” Duffey explained.
Hegseth highlighted the Pentagon’s openness to adopting systems that meet an “85% solution,” allowing for incremental improvements to achieve full capability over time. This approach grants portfolio acquisition executives significant influence in deciding whether to prioritize timely delivery over comprehensive capability attainment.
While the specifics of this new framework are still being finalized, Duffey noted that executives might independently resolve less critical matters, whereas significant capabilities will require broader discussions. This strategy is complemented by efforts to retain talented leaders in key positions longer, thus fostering sustained impact and accountability.
The Pentagon is also leveraging existing flexible contracting tools, such as other transactional authorities (OTAs), to streamline the acquisition process. Legislative efforts, including the SPEED Act and the FoRGED Act, are integrated into upcoming National Defense Authorization Act versions, further supporting this transformation.
The SPEED Act, introduced by House Armed Services Committee leaders, aims to revamp acquisition regulations, particularly for smaller programs, granting executives clear authority and budget flexibility. Similarly, the FoRGED Act, sponsored by Sen. Roger Wicker, seeks to eliminate bureaucratic hurdles and encourage efficient contracting practices.
As these legislative measures progress, Duffey anticipates further collaboration with Congress to identify additional areas for improvement. He expressed confidence in the bipartisan support for these initiatives, stating, “We’ve already gotten bicameral, bipartisan support for our initiative and a willingness to work with us on whatever additional authorities we need.”
