President Donald J. Trump has signed an executive order directing a comprehensive overhaul of the U.S. Department of Defense’s acquisition system, titled “Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base.” The order outlines new policies and reforms aimed at accelerating defense procurement, modernizing the defense industrial base, and restructuring the acquisition workforce.
Purpose and Policy
The order emphasizes the importance of maintaining the United States’ military edge through a more agile and efficient defense acquisition process. According to the order, “America’s defense industrial base is central” to ensuring military readiness, and the acquisition workforce is described as “a national strategic asset” that would be decisive in any potential conflict.
The President declared it the policy of the U.S. Government to accelerate defense procurement by reforming outdated acquisition procedures with a focus on speed, flexibility, and execution. It also promotes incentivizing risk-taking and innovation among defense acquisition personnel.
Key Actions and Deadlines
-
Acquisition Process Reform:
Within 60 days, the Secretary of Defense must submit a plan to reform acquisition processes. This includes prioritizing commercial solutions, using Rapid Capabilities Office policies, and streamlining approvals across the acquisition workforce. -
Internal Regulations Review:
The Secretary of Defense will review and propose changes to internal regulations and guidance, including the Financial Management Regulation and Defense Federal Acquisition Regulation Supplement, applying a “ten-for-one” rule for new regulations. -
Acquisition Workforce Reform:
Within 120 days, a plan will be submitted to reform the acquisition workforce, including performance metrics, staffing analysis, field training teams, and tools to promote innovative procurement practices. The Secretary of Defense will coordinate with the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, and Component Acquisition Executives to make these determinations. -
Review of Major Defense Acquisition Programs (MDAPs):
The Secretary of Defense, acting through the Deputy Secretary of Defense, in coordination with the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, the Under Secretary of Defense for Acquisition and Sustainment, and Component Acquisition Executives, will complete a 90-day review that assesses MDAPs for cost, schedule, and alignment with mission priorities. Programs failing to meet performance criteria may be considered for cancellation and submitted to the Office of Management and Budget for budget planning. -
Requirements Review:
A 180-day review of the Joint Capabilities Integration and Development System will be conducted to further streamline defense acquisition.
Definitions and Implementation
The order defines key terms such as “Adaptive Acquisition Framework,” “Other Transactions Authority,” and “Configuration Steering Board,” to ensure consistent application across agencies. The executive order is to be implemented in accordance with applicable law and subject to available funding.