DoD Acquisition Reform Efforts Largely Ineffective, Analysis Finds
An analysis in War on the Rocks argues that over 30 years of DoD acquisition reform efforts have largely failed, with timelines for fielding new capabilities continuing to lengthen. The piece identifies a pervasive fear of failure within the acquisition workforce as the greatest threat to meaningful transformation. This institutional inertia remains a significant barrier for innovative companies trying to work with the Pentagon.
- A recent MITRE survey of over 1,000 defense acquisition professionals found that 57% identified the inflexibility and complexity of acquisition processes as the most significant challenge to participation. This complexity contributes to a risk-averse culture, which Pentagon leadership has identified as a major obstacle to fielding capabilities quickly. - In November 2025, Secretary of War Pete Hegseth announced a major reform initiative to transform the "Defense Acquisition System" into the "Warfighting Acquisition System," prioritizing speed and risk tolerance to outpace adversaries. This effort includes overhauling the Joint Requirements Process and unifying the department's arms transfer and security cooperation enterprise. - A key component of the new strategy is the "Business Operators for National Defense" (BOND) program, which embeds private-sector executives into the Pentagon's acquisition processes to help eliminate inefficiencies. The program has already engaged over 70 former corporate officers and aims to expand to 250 industry experts. - The government has initiated a comprehensive overhaul of the Federal Acquisition Regulation (FAR) to reduce complexity and remove non-statutory rules. The process is being conducted in two phases, with the first phase involving the issuance of class deviations to streamline requirements ahead of formal rulemaking. - To accelerate the adoption of commercial technology, the DoD is increasingly using flexible contracting tools like Other Transaction Authorities (OTAs) and Commercial Solutions Openings (CSOs). The Defense Innovation Unit (DIU), for instance, has awarded over 500 OTAs since 2016, with 68% going to small businesses. - The Middle Tier of Acquisition (MTA) pathway is being used for rapid prototyping and fielding, with 106 MTA programs currently underway across the DoD. Of the 236 programs that have used this pathway, three have transitioned to full operational capability, while 107 have moved to other acquisition pathways. - The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are crucial for involving small businesses in defense R&D, with the DoD investing over $1 billion annually in SBIR contracts. A 2019 study found that DoD SBIR Phase II awards generated a 22-to-1 return on investment. - Despite ongoing reforms, a 2020 analysis of major defense acquisition programs (MDAPs) found that from fiscal year 1963 to the present, the average cycle time to field new capabilities was 6.9 years, with an average growth of 31.3% from initial estimates. Historically, about one-third of MDAPs have experienced significant cost breaches.
