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American Focus > Blog > The White House > Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base – The White House
The White House

Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base – The White House

Last updated: April 10, 2025 10:43 am
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Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base – The White House
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In accordance with the powers bestowed upon me as President by the Constitution and the laws of the United States, I hereby issue the following directive:

Section 1. Objective. As the Chief Executive and Commander in Chief, my unwavering commitment is to ensure that the United States military maintains its status as the most formidable fighting force globally. Central to this mission is our defense industrial base. Equally vital is our defense acquisition workforce—an asset of national strategic significance that could prove pivotal in times of conflict, where the factory floor may hold as much weight as the battlefield.
Regrettably, after years of misguided focus and ineffective management, our defense acquisition system lacks the agility and responsiveness required to provide our Armed Forces with the critical advantages they need in the future. To bolster our military superiority, we must expedite the delivery of cutting-edge capabilities at both speed and scale through a thorough revamping of this system.

Sec. 2. Policy. The U.S. Government is committed to accelerating defense procurement and revitalizing the defense industrial base, operating under the principle of “peace through strength.” To achieve this, we will rapidly reform our outdated defense acquisition processes, emphasizing speed, adaptability, and effective execution. Additionally, we will modernize the roles and structure of our defense acquisition workforce and foster a culture that encourages risk-taking and innovation among these professionals.

Sec. 3. Reform of Acquisition Processes. Within 60 days from the issuance of this order, the Secretary of Defense is tasked with presenting a reform plan for the Department of Defense’s acquisition processes that, to the greatest extent feasible, will include the following elements:
(a) Leveraging existing authorities to expedite acquisitions across the Department of Defense, prioritizing commercial solutions and broadly favoring Other Transactions Authority while applying Rapid Capabilities Office policies or any other methods that streamline acquisitions under the Adaptive Acquisition Framework. From the moment this order is issued, and during the plan’s formulation, the Secretary of Defense must prioritize these authorities in all pending contracting actions and require their application where applicable and consistent with laws.
(b) Conducting a thorough review of each functional role within the acquisition workforce to eliminate redundant tasks, minimize unnecessary approvals, and centralize decision-making. This review will encompass evaluations of program managers, contracting officers, engineering authorities, financial managers, cost estimators, and logisticians.
(c) Establishing a structured process for the Under Secretary of Defense for Acquisition and Sustainment, Service Acquisition Executives, and Component Acquisition Executives to effectively manage risks across all acquisition programs via a formal steering body known as the Configuration Steering Board.

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Sec. 4. Review of Internal Regulations. The Secretary of Defense will oversee the evaluation and potential revision of relevant Department of Defense instructions, implementation guides, manuals, and regulations related to acquisition to:
(a) Remove or modify any unnecessary supplemental regulations or internal guidance, such as relevant portions of the Financial Management Regulation and the Defense Federal Acquisition Regulation Supplement.
(b) Encourage expedited and streamlined acquisitions. When proposing new supplemental regulations or internal guidance, the Secretary of Defense shall apply the ten-for-one rule as outlined in Executive Order 14192 of January 31, 2025 (Unleashing Prosperity Through Deregulation).

Sec. 5. Acquisition Workforce Reform. Within 120 days of this order, the Secretary of Defense, in collaboration with the Secretaries of the Army, Navy, and Air Force, along with Component Acquisition Executives, will devise and submit a plan to the President aimed at reforming, resizing, and training the acquisition workforce, which will include the following components:
(a) Revamping performance evaluation metrics for acquisition personnel to incorporate the ability to prioritize commercial solutions, adaptive acquisition pathways through the Adaptive Acquisition Framework, and iterative requirements based on the end user’s perspective.
(b) An assessment of the staffing levels necessary within the acquisition workforce to develop, deliver, and sustain effective warfighting capabilities.
(c) Forming field training teams led by senior acquisition executives or managers experienced in innovative acquisition authorities and commercial solutions. These teams will offer practical guidance, provide templates and successful case studies, and assist integrated functional program teams in managing acquisition and sustainment tasks.
(d) Creating and implementing policies and tools that incentivize acquisition officials to, in good faith, utilize innovative acquisition authorities and take calculated risks.

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Sec. 6. Review of Major Defense Acquisition Programs. (a) Within 90 days of this order, the Secretary of Defense, through the Deputy Secretary of Defense, alongside the Secretaries of the Army, Navy, and Air Force, the Under Secretary of Defense for Acquisition and Sustainment, and Component Acquisition Executives, will conduct a comprehensive review of all major defense acquisition programs (MDAPs), as defined in section 4201 of title 10, United States Code, to assess their alignment with the policy objectives stated in section 2 of this order. During this review:
(i) Any program that is more than 15 percent behind schedule according to the current Acquisition Program Baseline (APB), over budget by 15 percent, unable to meet key performance parameters, or misaligned with the Secretary of Defense’s mission priorities will be considered for potential cancellation. The Secretary of Defense will submit this potential cancellation list to the Director of the Office of Management and Budget (OMB) for future budget considerations.
(ii) The Secretary of Defense will provide a list of all MDAP contracts, detailing performance against original and approved Government cost estimates to the Director of OMB for evaluation within 90 days of this order.
(b) Following the comprehensive MDAP review, the Secretary of Defense will present the Director of OMB with a strategy for assessing all remaining major systems, as defined in section 3041 of title 10, United States Code, that are not categorized as MDAPs.

Sec. 7. Requirements Review. The Secretary of Defense, through the Deputy Secretary of Defense, in collaboration with the Secretaries of the Army, Navy, Air Force, and the Joint Chiefs of Staff, will complete a thorough review of the Joint Capabilities Integration and Development System within 180 days from this order, aiming to streamline and expedite acquisition processes.

Sec. 8. Terminology. For the purposes of this order:
(a) The “Adaptive Acquisition Framework” refers to the series of acquisition pathways designed to enable the workforce to provide “effective, suitable, survivable, sustainable, and affordable solutions to the end user in a timely manner,” as articulated in Department of Defense Instruction 5000.02.
(b) The “Acquisition Program Baseline” denotes the officially established cost, schedule, and performance baselines for a program, as described in Department of Defense Instruction 5000.85.
(c) “Commercial solutions” encompass any methods for procuring commercial products or services as outlined in part 12 of the Federal Acquisition Regulation, subpart 212.2 of the Defense Federal Acquisition Regulation Supplement, or subpart 212.70 of the Defense Federal Acquisition Regulation Supplement; or other industry solutions backed by private investment that fulfill military requirements.
(d) The “Configuration Steering Board” signifies an annual review focused on potential changes in requirements, critical intelligence parameters, and significant technical configuration adjustments as indicated in Department of Defense Instruction 5000.85.
(e) “Innovative acquisition authorities” include Other Transactions Authority, commercial solutions, the application of Rapid Capabilities Office policies, or any other methods that promote streamlined acquisitions under the Adaptive Acquisition Framework.
(f) The “Joint Capabilities Integration and Development System” is the formally established process used by the Department of Defense to identify, assess, and prioritize joint military capability requirements.
(g) “Other Transactions Authority” refers to the U.S. Government’s ability to enter into agreements other than standard contracts, grants, or cooperative agreements.
(h) The “Rapid Capabilities Office” includes the Army Rapid Capabilities and Critical Technologies Office, the Naval Air Warfare Rapid Capabilities Office, the Department of the Air Force Rapid Capabilities Office, or the Space Force Rapid Capabilities Office.

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Sec. 9. General Provisions. (a) Nothing in this order shall be construed as impairing or affecting:
(i) the authority granted by law to an executive department or agency, or its head; or
(ii) the functions of the Director of OMB concerning budgetary, administrative, or legislative proposals.
(b) This order shall be implemented in accordance with applicable law and subject to available appropriations.
(c) This order is not intended to, nor does it, create any rights or benefits, substantive or procedural, enforceable at law or in equity, by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other individual.

THE WHITE HOUSE,
April 9, 2025.

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