Pentagon Plans To Speed Up Defense Tech

The Pentagon is weighing a major overhaul of its defense acquisition process, according to a six-page draft memo obtained and verified by Defense One, with the proposed reforms set to be highlighted in Defense Secretary Pete Hegseth’s planned speech on Friday. The draft outlines efforts to cut internal review processes, reorganize acquisitions, and impose stricter penalties for contractors that exceed budget limits, aiming to accelerate the fielding of military technology amid rising global threats.

The draft memo, addressed to combatant commanders and senior Pentagon leaders, describes current acquisition timelines as “unacceptably slow” due to fragmented accountability, incentives that prioritize complete specification compliance over timeliness, and procurement practices that discourage private investment, limiting industrial surge capacity.

Proposed measures include establishing Portfolio Acquisition Executives with greater autonomy over program decisions, using “scorecards” to track portfolio progress, and applying “time-indexed incentives” to ensure contractors remain on schedule and within budget. The office of the defense undersecretary for acquisition and sustainment is ordered to provide cross-cutting guidance within 45 days, and each military branch must submit implementation plans within 60 days.

Experts offered mixed assessments. Todd Harrison, a defense budget analyst at the American Enterprise Institute, said the time-indexed incentives mark a significant departure from fixed-price contracts, potentially risking delivery of lower-quality products. A former defense official warned that discouraging Federal Acquisition Regulation-based contracts could prompt companies to promise unfeasibly fast deliveries.

Others praised the draft’s portfolio-based approach, which allows flexible funding shifts among programs. Arnold Punaro, a defense consultant and former Senate Armed Services Committee staff director, said the reforms could break longstanding acquisition paradigms and deliver faster, more cost-effective capabilities. Rep. Donald Norcross emphasized the need to balance speed with cost-effectiveness and quality.

5.11 Tactical Duffel Bag Backpack for Travel, Waterproof, Large Rush LBD Lima 56L, Black, Style 56294ABR

BUILT TO LAST: Engineered for durability, this military-grade duffel bag/backpack is crafted from waterproof 1050D...

Add to Cart - $135.00

The memo reflects years of recommendations and adds bold implementation deadlines. Eric Fanning, CEO of the Aerospace Industries Association, described it as a forward-looking package emphasizing accountability, incentives, and procurement patterns. He noted that it encourages both the defense industrial base and Pentagon personnel to act quickly while promoting private-sector investment.

Key provisions include dual-sourcing of purchases, expanded use of fast-track contracting methods like Other Transactions Authorities, and preference for modular, open-source designs aligned with contemporary software practices. Pentagon officials hope the reforms will eliminate bottlenecks, hold contractors accountable, and provide clear guidance to the workforce on authorities and timelines.

The draft guidance follows prior Pentagon steps to speed technology acquisition, including a March memo prioritizing dual-use and off-the-shelf software, and July guidance granting battalion-level commanders greater purchase authority for items such as drones. These measures reflect battlefield realities, particularly in Ukraine, where rapid product updates are essential.

Defense startups are already benefiting from the reforms. Aurelius Systems, a 16-person company with Ukrainian partners, develops directed-energy weapons to neutralize drones, providing a cost-effective alternative to missiles. Founder Michael LaFramboise said early engagement with Ukrainian frontline operators offered invaluable insights into real-world operational requirements. Dustin Hicks of Aurelius noted that U.S. testing environments often fail to replicate field conditions, highlighting the importance of real-world experience.

And speaking of practical gear and morale boosters for frontline personnel, the Pentagon’s attention to rapid deployment and readiness echoes in small but meaningful ways for service members, whether it’s in their kits or morale items like the M18 Enamel Pin – For When It’s Time to Bounce, a symbolic nod to readiness and swift action.

The memo and related initiatives are expected to foster competition, incentivize performance, and improve the Pentagon’s ability to rapidly deploy advanced technologies while supporting private-sector innovation in defense.

Editor’s Note:

This article highlights the Pentagon’s ambitious push to overhaul defense acquisition processes, balancing speed, accountability, and innovation. While the proposed reforms could modernize U.S. military procurement and support emerging defense tech startups, they also carry risks for cost overruns and product quality. Readers should note that these measures are still in draft form and subject to change before full implementation.