WASHINGTON – The Department of Defense is launching a comprehensive overhaul of its procurement system, aiming to dismantle decades of bureaucratic inertia and accelerate the adoption of commercial technology. Defense Secretary Pete Hegseth announced the new measures on November 7, describing them as a necessary shift to counter the rapid pace of military modernization by U.S. adversaries.
Speaking to industry leaders at the National War College, Hegseth outlined a six-month plan designed to move the Pentagon away from its slow, costly reliance on custom-built systems from traditional defense giants. The reforms prioritize speed, volume, and commercially available solutions to better equip the armed forces.
Key Takeaways
- The Pentagon will adopt a "commercial first" policy, making off-the-shelf technology the default choice for new acquisitions.
- The notoriously slow Joint Capabilities Integration and Development System (JCIDS) will be completely eliminated.
- Program managers will receive greater authority to manage budgets and timelines without lengthy approval processes.
- The reforms aim to open the defense market to more innovative commercial tech companies, breaking the dominance of traditional contractors.
A Direct Challenge to the Status Quo
Defense Secretary Hegseth delivered a sharp critique of the current system, which he argued benefits contractors at the expense of national security and taxpayer dollars. He accused the established defense industry of profiting from inefficiency.
“The defense industry financially benefits from our backwards culture, schedule overruns, huge order backlogs,” Hegseth stated. “Our military and our taxpayers need a defense industrial base that it can count on to scale with urgency in a crisis, not one that is content to wait for money before taking urgent action.”
He called on major contractors to invest their own capital to increase production speed and volume, shifting the focus from process to performance. To emphasize the long-standing nature of these issues, Hegseth invoked a 2001 speech by former Defense Secretary Donald Rumsfeld, who had condemned the same bureaucratic hurdles nearly 25 years ago.
Hegseth said he resurrected Rumsfeld's words to underscore how little has changed, noting that the system still “prioritizes process and paperwork over the urgent and evolving needs of forces in the field.”
Implementing a 'Commercial First' Strategy
The centerpiece of the reform is a fundamental shift in purchasing philosophy. Under the new guidance, commercial products will become the standard, not the exception.
“Commercial products and offerings will be the default policy,” Hegseth announced. This change is formalized through a new “‘commercial first’ and alternative proposal policy to enhance flexibility.”
Opening Doors for New Players
This policy is expected to significantly benefit commercial space and technology companies. Many of these firms have developed advanced capabilities but have struggled to navigate the Pentagon's complex and lengthy procurement rules, which often favor established defense contractors with purpose-built, or bespoke, systems.
To encourage investment from these new partners, the Pentagon plans to offer more stability. “We will award companies bigger, longer contracts for proven systems so those companies will be confident in investing more to grow the industrial base,” Hegseth explained.
The goal is to create a more competitive and agile vendor ecosystem, moving away from what Hegseth described as a “prime contractor dominated system defined by limited competition, vendor lock, [and] cost plus contracts.”
Streamlining Command and Cutting Red Tape
Structural changes within the Pentagon are a core component of the initiative. The reforms aim to flatten the chain of command and empower officials to make faster decisions.
Program managers will be given direct authority to “direct program outcomes, to move money and quickly adjust the priority of required sister performance to deliver on time and under budget.”
Senior acquisition officials, currently known as Program Executive Officers, will be rebranded as “Portfolio Acquisition Executives.” According to Hegseth, each will serve as the “single accountable official for portfolio outcomes” and will have the power to act decisively “without running through months or even years of approval chains.”
JCIDS is Officially 'Dead'
In one of the most significant moves, Hegseth confirmed the elimination of the Joint Capabilities Integration and Development System (JCIDS). The process, long criticized by officials and industry for adding years of delays to programs, is being scrapped entirely. “JCIDS is dead. It was slow and bloated and disconnected from reality, and we will do better,” Hegseth declared.
The administration will also aggressively target regulatory burdens. “We will remove excessive and burdensome regulations and reporting requirements, accounting standards, excessive testing, oversight, excessively long studies and analysis,” Hegseth pledged. “Anything that unnecessarily slows down government contracts will be eliminated.”
Building on Existing Momentum
These new reforms do not exist in a vacuum. They build upon previous executive orders aimed at increasing the use of commercial technology and are supported by legislative efforts in Congress.
Recent bills, such as the House’s SPEED Act and the Senate’s FORGED Act, share the goal of reducing bureaucracy and strengthening the domestic industrial base. This alignment between the executive and legislative branches could provide the momentum needed for the changes to take hold.
The implementation of this ambitious agenda will be led by Undersecretary of Defense for Acquisition and Sustainment Michael Duffey and Undersecretary for Research and Engineering Emil Michael.
Hegseth concluded with a stark warning about the stakes involved, pointing to the rapid technological advancements of global competitors. “Our adversaries are moving fast,” he said. “They’re developing and delivering new capabilities at a rate that should be sobering to every American.”