WASHINGTON D.C. – The Pentagon is moving to fundamentally reshape its multi-billion-dollar weapons buying process, aiming to replace a “culture of compliance” with one of “calculated risk-taking” to field new military systems faster.
The sweeping acquisition reform, recently unveiled by Defense Secretary Pete Hegseth, centers on empowering a new cadre of executives with greater authority to prioritize speed over rigid requirements.
Elevating ‘Portfolio Acquisition Executives’
The core of the change involves transforming traditional program executive officers (PEOs) into “Portfolio Acquisition Executives.” These new executives will oversee major weapons system programs and gain unprecedented flexibility to make critical trade-offs on resources and technical requirements.
Michael Duffey, the Defense Department’s Undersecretary for Acquisition and Sustainment, emphasized the goal is to deliver systems “at speed and on time.”
“We intend to [give portfolio acquisition executives] greater flexibility when it comes to reallocating resources and trading requirements,” Duffey said in a call with reporters.
The ‘85% Solution’ Approach
A key part of the new philosophy is the acceptance of the “85% solution.” Secretary Hegseth indicated that the Pentagon will be more willing to purchase a system that provides the majority of the required capabilities now, rather than waiting years for a system that meets every single requirement perfectly.
The Portfolio Acquisition Executive will be instrumental in making this decision, balancing the need for speed against the cost and performance risk. Duffey elaborated on this judgment call:
“Is it worth waiting for that extra 10% of capability? Or is it worth delivering it now and sacrificing that extra 10% of capability?”
This shift is intended to speed up the delivery of modern technology to warfighters, although Duffey stressed that the department is “emphasizing speed, we’re not mandating speed,” leaving the final judgment to program leaders.
Legislative and Personnel Support
To support this cultural shift, the Pentagon is also pushing to keep talented program leaders in their roles for longer periods, allowing them to have a greater impact on programs and be held accountable over extended terms.
Additionally, the reforms draw heavily from two key pieces of legislation:
- The SPEED Act (Streamlining Procurement for Effective Execution and Delivery): Aims to overhaul regulations and provide acquisition executives with clear budget flexibility.
- The FoRGED Act (Fostering Reform and Government Efficiency in Defense): Seeks to cut red tape and encourage the use of more efficient commercial contracting procedures.
The provisions from both bills are largely expected to be folded into the next National Defense Authorization Act (NDAA), demonstrating strong bipartisan support for the acquisition overhaul. The Pentagon plans to continue working with Congress to secure any additional authorities needed to fully implement the reforms.
Aleda Kawis is the Professional Journalist and serving in the field since 2012. She keeps extensive experience as investigating journalist and media influencer.
