Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base
The order directs the Department of Defense to overhaul its acquisition system by requiring reform plans, a comprehensive review of all major defense programs with a potential cancellation list sent to OMB, and an immediate shift toward commercial solutions and flexible contracting tools.
It sets four parallel deadlines — from 60 to 180 days — to restructure how the Pentagon buys weapons, trains its acquisition workforce, and vets whether costly programs are meeting cost, schedule, and performance targets.
What this order does
What it orders
The order directs the Secretary of Defense to submit a 60-day acquisition process reform plan prioritizing commercial solutions and Other Transactions Authority over standard contracts. Immediately upon signing, the Secretary must apply those flexible authorities to all pending contracting actions. Within 90 days, the Secretary must complete a full review of all Major Defense Acquisition Programs (MDAPs), submitting a potential cancellation list — for programs more than 15 percent over cost or behind schedule, or unable to meet performance targets — to the OMB Director for budget decisions, along with a listing of all MDAP contracts and cost performance data. Within 120 days, a workforce reform plan must be submitted covering staffing levels, new performance metrics, and field training teams. Within 180 days, the Joint Capabilities Integration and Development System must be reviewed for streamlining.
The order also directs a rolling review of internal DoD regulations to eliminate or revise unnecessary rules, applying a ten-for-one deregulation standard from a prior executive order. It does not itself cancel any programs, change any law, or restructure the workforce — all operative changes flow from the plans and reviews it sets in motion.
Who it affects
The Pentagon's acquisition workforce — including program managers, contracting officers, financial managers, and engineers — faces restructured performance metrics and potential right-sizing. Defense contractors competing for DoD contracts will encounter a strong preference for commercial and Other Transactions Authority deals over traditional procurement vehicles. Major defense program offices whose programs are over budget or behind schedule face potential cancellation reviews.
Why it matters
Defense contractors relying on traditional procurement vehicles may see fewer standard contracts as the Pentagon shifts toward faster, more flexible buying tools. Weapons programs running over cost or behind schedule face formal cancellation reviews, with decisions feeding directly into future DoD budget proposals. The acquisition workforce faces new performance standards and potential staffing changes.
What must happen and when
How the order is supposed to work
Four parallel workstreams run simultaneously: a 60-day acquisition reform plan, a 90-day MDAP review (with a cancellation list and contract performance data both going to OMB), a 120-day workforce plan, and a 180-day review of the Joint Capabilities Integration and Development System. Critically, the shift to commercial solutions and Other Transactions Authority begins immediately — before any plan is finalized. Plans go to the President for consideration; cancellation and budget decisions flow through OMB. There is no enforcement mechanism for missed deadlines, and all implementation is subject to available appropriations.
Actions and deadlines
- Prioritize use of innovative acquisition authorities in all pending DoD contracting actions
- Submit acquisition process reform plan to the President emphasizing speed, commercial solutions, and Other Transactions Authority
- Complete comprehensive review of all Major Defense Acquisition Programs and submit potential cancellation list to OMB Director
- Provide OMB Director a listing of all MDAP contracts with performance against government cost estimates
- Develop and submit workforce reform plan covering restructuring, staffing analysis, field training teams, and innovation incentives
- Complete review of the Joint Capabilities Integration and Development System to streamline and accelerate acquisition
- Oversee review of DoD instructions, manuals, and regulations relating to acquisition and propose revisions to eliminate unnecessary rules
- Provide OMB with a plan for reviewing all remaining major systems not covered under the MDAP review