US to streamline Pentagon's weapons acquisition amid global threats

By Mike Stone and Phil Stewart

U.S. Secretary of Defense Pete Hegseth unveiled sweeping changes on Friday to how the Pentagon purchases weapons, allowing the military to more rapidly acquire technology amid growing global threats.

Hegseth addressed industry leaders, military commanders and officials at the National War College, where he detailed the transformation of the Defense Acquisition System in accordance with an executive order signed by President Donald Trump in April.

The reforms target what Pentagon officials call "unacceptably slow" procurement, which they blame on fragmented accountability and misaligned incentives that have hampered the military's ability to field new technology quickly.

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Established defense contractors such as RTX and L3Harris Technologies were among those present for the address, while newer defense entrants like Govini, a defense technology company, maritime drone maker Saronic and electronic warfare company Epirus also attended.

The restructuring creates Portfolio Acquisition Executives who will have direct authority over major weapons programs, to eliminate bureaucracy. The acquisition chain will run directly from program managers to these portfolio executives to military service branch acquisition leaders, with no intermediate approval layers.

The reforms require at least two qualified sources for critical program content through initial production.

This is the latest in a series of reforms. Earlier in the year, the Pentagon changed how it purchased software.

Hegseth told the audience: "For those who come along with us, this will be a great growth opportunity and you will benefit. To industry not willing to assume risk in order to work with the military, we may have to wish you well in your future endeavors, which would probably be outside the Pentagon."

Commercial products will become the default acquisition approach, streamlining the solicitation process, the memo says. The changes also call for time-indexed contract incentives that reward early delivery and penalize delays proportionally.

The Under Secretary of Defense for Acquisition and Sustainment, the Pentagon's chief weapons buyer, will chair monthly Acquisition Acceleration Reviews to track implementation, remove barriers, and monitor defense industrial base competition.