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Pentagon Sets Commercial-First Purchasing Rules as Overhaul Prioritizes Speed and New Entrants

Undersecretary Michael Duffey says program leaders will balance speed with risk to protect program outcomes.

Overview

  • The department designates commercial products as the default and will accept an '85% solution' to field capabilities faster and iterate to full requirements.
  • Duffey emphasized that speed is prioritized but not mandated, with program leaders expected to weigh schedule against cost and performance.
  • The reform replaces Program Executive Offices with Portfolio Acquisition Executives and scraps the JCIDS requirements process to streamline decisions.
  • Program guidance directs special consideration for nontraditional contractors and privately funded startups to expand competition.
  • The plan moves the Defense Security Cooperation Agency under acquisition and sustainment and shifts from formal Analyses of Alternatives toward prototyping, with exceptions for major programs.