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Acquisition Research Program Newsletter

July 25, 2025       —       Issue 249

Happy Friday!

In this week's news...

The Trump administration has released its AI Action Plan, which includes 19 items that fall under the Pentagon portfolio...

In the wake the Microsoft Office security breach, DOD will review all its cloud services with an eye to rooting out any reliance on Chinese labor...

Manufacturing startup Hadrian will offer "factories-as-a-service" to defense primes...

Congress is looking to refine and reform Foreign Military Sales (FMS) and Reciprocal Defense Procurement (RDP) to better support the industrial base and preserve national security...

...and MITRE is out with a white paper on leveraging allied partnerships to accelerate acquisition reform.

Plus, a new report from RAND considers how to match Navy force structure to future needs...

...and articles from DOD leadership and NPS researchers make the case that effective deterrence requires robust logistics.

Enjoy!

This Week's Top Stories 

Marines with Marine Corps Forces Cyberspace Command observe computer screens in the cyber operations center at Fort Meade, Md., Feb. 5, 2020. (Photo by Marine Corps Staff Sgt. Jacob Osborne)

How the Pentagon plays into Trump’s sprawling artificial intelligence ‘Action Plan’
Sydney J. Freedberg Jr., Breaking Defense

The White House has issued an "AI Action Plan" that frames AI as a winner-take-all competition for global dominance, primarily against China.

• DOD Mandate: The Action Plan assigns the DOD 19 policy actions, positioning the Pentagon as a key player in interagency efforts for developing common standards and coordinating across the executive branch.
• Explainable AI: DARPA is tasked to lead a program on AI interpretability and robustness to address generative AI hallucinations.
• Enhanced Security: The Pentagon will lead efforts for develop high-security AI centers, assess adversary AI progress, support intelligence community AI assurance standards, and collaborate on domestic manufacturing and export controls for AI security.

Action Plan: Winning the Race: America’s AI Action Plan 

Related: Trump signs 3 executive orders to advance AI 

Related: How the White House AI plan helps, and hurts, in the race against China 

Factories First: Winning the Drone War Before It Starts
Martin C. Feldmann and Gene Keselman, War on the Rocks

National security in the age of drone warfare hinges on industrial mobilization, not just technological innovation. This demands a strategic focus on enabling mass production of autonomous systems, leveraging existing industrial strengths, and fostering a dual-use economic boom.

• U.S. Strengths: The U.S. can leverage robust plastics, injection molding, and automotive assembly industries for drone production; a billion drones would use only 1% of current auto assembly capacity.
• Strategic Demand: Strong demand drives US industrial policy far better than central planning. The government needs to provide clear incentives and guaranteed purchases to industry, to motivate manufacturers to pivot their operations towards drone component production.

Ships assigned to Destroyer Squadron 23 transit the Pacific Ocean, Jan. 22, 2020. (Photo by Navy Petty Officer 3rd Class Erick Parsons)

United States Navy Force Structure: The Challenge of Global Crisis Response
Bradley Martin, RAND

The Navy’s optimization for major conventional warfare leaves it ill-equipped for future challenges that will likely require persistent presence and crisis response missions, necessitating a critical re-evaluation of its force structure. Adding enough ships to deploy and sustain a dispersed presence will require an expansion of the the shipbuilding and sustainment industrial base.

• Small Ship Value: Small surface combatants have significant potential value in both crisis response and maintaining presence, as they can effectively perform roles currently carried out by far more expensive combatants.
• Industrial Base Gap: Despite this recognized utility, the domestic industrial base is not well positioned to produce these valuable small surface combatants.
• Sustainment Strain: The Navy struggles to meet the sustainment demands on its existing force — including maintenance, personnel, and training.
• Skilled Labor Shortages: Both shipbuilding and ship maintenance are heavily impacted by shortages of skilled labor. This skilled labor deficit poses a fundamental bottleneck for both expanding and maintaining the fleet.

Hegseth moves to oust ‘Chinese labor’ from Pentagon cloud services, orders wider review
Carley Welch, Breaking Defense

Defense Secretary Pete Hegseth has ordered an urgent review of the Pentagon's cloud services after a potential vulnerability involving Chinese labor was discovered in the DOD cloud systems.

Army awards $100M contract for Next-Gen command and control prototype
Mark Pomerleau, DefenseScoop

The U.S. Army has awarded a significant $99.6 million Other Transaction Authority (OTA) contract to Anduril and its team for the Next Generation Command and Control (NGC2) prototype, a top priority aimed at revolutionizing battlefield communication and data sharing.

• Contracting Innovation: The NGC2 initiative emphasizes continuous competition and innovative contracting to rapidly deliver advanced capabilities, backed by nearly $3 billion in planned future investment. More OTAs are expected in fiscal 2026.
• Fostering Competition: To prevent vendor lock-in, the Army supports increased competition by using an open commercial solutions offering. This ensures continuous onboarding of new vendors and offboarding of underperformers.

ARP and NPS News

Strategic Space Acquisition: Research, Production, and Agile Practices
Chaired by Maj Gen Steve "Bucky" Butow, USAF, Military Deputy and Director, Space Portfolio, Defense Innovation Unit (DIU), Office of the Secretary of Defense

How can DOD fully leverage the commercial sector when it comes to space acquisition?

That's the question tackled by the "Strategic Space Acquisition" panel at "Creating Synergy for Informed Change: Transitioning Technology to the Warfighter," the NPS 22nd Annual Acquisition Research Symposium and Innovation Summit."

Panel chair Maj Gen Steve “Bucky” Butow introduced the session by challenging the traditional primacy of exquisite systems:

"The greatest innovations in space technology today are privately funded and accelerating at commercial pace. [...] Exquisite solutions do not scale and are most vulnerable and difficult to replace. The rate of change of technology today is too steep to simply sustain acquisition and production practices of the past."

Panelists included:

• Vince Squitieri, Technical Director with Navy Communications and GPS Navigation Programs, on how the PEO partnered with NPS to develop an acquisition strategy that leveraged commercial technology to extend enhanced communications capability to ships operating in blue ocean.
• Andrew Berglund, Senior Analyst at The Aerospace Corporation's Center for Space Policy and Strategy, who examined how DOD can strike a balance between vendor competition and predictable demand to support overall industry health.
• Robin Yeman of Leidos, who shared a model for applying Agile to satellite hardware development -- slashing costs and cutting project timelines in half. 

Presentations were followed by a lively conversation about how DOD balances efficiency and speed, with Discussant Gary "Grinch" Thomason, Chair Space Systems Engineering & Acquisition at NPS, reiterating a common thread from the presentations: that DOD might wish to retain some duplication of effort and capability so as to inject more stability and resilience into the system.

Watch the full panel discussion here.

Keeping RADM Meyer's Teachings Alive at Naval Postgraduate School
CAPT John Hammerer, USN (Ret), Naval Engineers Journal

The Naval Postgraduate School (NPS) is actively preserving the legacy of Rear Admiral Wayne E. Meyer, known as the "Father of Aegis," through its thriving Meyer Scholar program, which trains a new generation of combat system specialists crucial for the rapidly evolving naval warfare landscape.

• Combat System Specialization: Program graduates are awarded the formal Additional Qualification Designator (AQD) of Combat System Specialist, established by the Navy in recognition of the program's ability to develop highly skilled experts.
• Dynamic Learning: Meyer's spirit of continuous improvement and adaptation to the rapid advancements in naval technology is carried forward by the program's scholars, who are actively involved in building and testing quickly evolving combat systems.

Learn more about the Meyer Scholar program at NPS.

Acquisition

U.S. General Services Administration

GSA's vision for procurement is about having 'one wallet'
Ross Wilkers, NextGov

The General Services Administration (GSA) is spearheading a transformative "OneGov" strategy, aiming to consolidate federal purchasing of common goods and services.

• Retail-like Procurement: GSA's acting administrator Stephen Ehikian envisions federal purchasing of "common goods and services" operating like retail giants such as Costco and Walmart, where the U.S. government uses its buying power to achieve better value. 
• Eliminating Cost Gaps: A primary objective to eliminate the substantial variance in costs that currently exists between different agencies -- as, for example, in the case of a Microsoft Office license, which can have a $200-per-seat price discrepancy between a large agency and a small one.

Related: New OMB memo lays out GSA's plan to consolidate contracts 

Breaking Barriers to Accelerate Defense Acquisition with Allies and Partners
LeAnne Noelani Howard, DMgt, MITRE

MITRE's Breaking Barriers Acquisition Summit urged immediate action for accelerating defense acquisition reform through deeper collaboration with allies and partners. This white paper outline the recommendations and next steps that emerged from the summit.

• Streamlined Sales: There's a critical need to make Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) less burdensome and increase their speed to delivery, aiming to reduce FMS wait times from potentially upwards of 10 years for certain capabilities.
• Collaborative Funding: Participants recommend normalizing multinational funding pools for research, development, and experimentation to foster better collaboration across commercial, government, and non-profit sectors.
• Empowered Commands: Combatant Commands (CCMDs) should be empowered to advise and accelerate FMS, DCS, and ITAR by requesting exemptions, unlocking opportunities for enhanced collaborative R&D, prototyping, experimentation, and rapid-fielding initiatives with partners and allies.

Related: Allied Arsenal: Building Strength Through Shared Production 

VIEWPOINT: Protecting IP, Data Rights In Other Transaction Agreements
Jeremy Burkhart, National Defense

Other Transaction Authority (OTA) agreements are increasingly favored by the Department of Defense for their speed and flexibility in acquiring innovative solutions. Unlike traditional procurement contracts, OTAs are exempt from Federal Acquisition Regulations (FAR), making the careful negotiation of intellectual property (IP) and data rights critical for contractors.

Innovation

Advanced manufacturing machines on Hadrian’s production floor at its headquarters in Torrence, Calif. (Hadrian)

Manufacturing startup Hadrian to expand to Arizona, and into defense primes’ own factories
Valerie Insinna, Breaking Defense

Manufacturing startup Hadrian is significantly expanding its operational footprint and service offerings, including a new "factories-as-a-service" model for defense primes and a dedicated maritime division. The company is leveraging AI and robotics to address critical manufacturing challenges and workforce shortages in the defense and aerospace sectors.

• New Model: Hadrian is launching a "factories-as-a-service" model, allowing defense primes and other companies to bring Hadrian in to optimize their own facilities or stand up new production for parts, assemblies, or entire products.
• Maritime Focus: A new maritime division aims to deploy Hadrian's model of 80 to 90 percent automation to address the critical workforce problem in the shipbuilding industry.
• Specialized Products: Hadrian plans to delve into more specialized areas of defense manufacturing, including munitions and drones. 

Defense & Strategy

Air Force personnel load Humvees onto a Boeing 747 at Joint Base Charleston, S.C., Oct. 16, 2022. (Photo by Air Force Airman 1st Class Caleb Parker)

Readiness and the Logistics Deterrent Effect
Patrick Kelleher, War on the Rocks

A robust and visible logistics architecture is as crucial for deterring conflict as it is for enabling military operations, helping to convince potential adversaries that the US can sustain protracted engagements. This piece from the Deputy Assistant Secretary of Defense for Materiel Readiness argues that, to counter decades of underinvestment, DOD must fundamentally transform its approach to logistics, focusing on sweeping improvements in data visibility, strategic forward posturing, supply chain resilience, and workforce development.

Affordable Cruise Missiles Move Into The Mainstream
Steve Trimble, Aviation Week

The Air Force planning a significant shift towards acquiring a new class of subsonic, networked, long-range weapons known as the Family of Affordable Mass Missiles (FAMM). This initiative aims for unprecedented quantities and leverages non-traditional launch platforms, transforming how long-range strike capabilities are deployed.

• Massive Scale: The Air Force intends to acquire 3,010 FAMM weapons in fiscal 2026 alone, a quantity equivalent to over half the decades-long acquisition of the much pricier Lockheed Martin JASSM program. This ambitious scale is a departure from traditional thinking in munitions procurement.
• Simplified Integration: Palletized FAMM missiles can be treated as cargo, bypassing the time-consuming process of integrating weapons into an aircraft's safety-critical operational flight program.
• Cost Efficiency: FAMM weapons are designed for affordability, with an expected average cost of about 10-17% that of other cruise missiles. 

Industry

Foundry artisans fill a mold to manufacture cast parts, March 31, 2022, at Stainless Foundry and Engineering in Wisconsin. (Photo by Nutan Chada, Defense Logistics Agency)

Titans, Trailblazers, and Translators: Forging a Unified Defense Industrial Paradigm
Austin Gray and Stephen Rodriguez, War on the Rocks

The American defense enterprise faces a critical challenge defined by a false dichotomy between traditional defense industrial "titans" and venture-funded tech "trailblazers". To counter adversaries like China, the U.S. must forge a unified industrial ecosystem by integrating the industrial might of titans, the digital velocity of trailblazers, and the crucial integration expertise of "translators".

• Translators' Bridge: Digital integrators bridge the gap between titans and trailblazers by translating between Pentagon program offices and Silicon Valley engineering teams to integrate innovative software into military workflows.
• Bureaucratic Obstacles: A primary obstacle to unification is a bureaucracy that incentivizes division, marked by a siloed acquisition system, a "valley of death" where innovations fail to transition, and a structure that favors buying ships over software subscriptions.
• Reforms Needed: Meaningful reform requires demanding open systems architectures on major platforms, creating contracting mechanisms that facilitate partnerships, and fostering a cultural shift that rewards program managers for speed, adaptability, and successful integration.

Space Force Releases Principles for Space Access Resourcing Decisions
Secretary of the Air Force Public Affairs, US Space Force

The U.S. Space Force has released its "Principles for Space Access Resourcing Decisions," an annex to its Commercial Space Strategy, to guide its decisions on utilizing and investing in the commercial space sector. This move underscores the Space Force's recognition of the commercial industry as a vital force multiplier for national security.

Strategy: USSF Commercial Space Strategy

Annex: Principles for Space Access Resourcing Decisions Annex to the Commercial Space Strategy 

Navy’s shipyard revamp strategy evolves amid obstacles, years into $20B effort
Justin Katz, Breaking Defense

The Navy's multi-billion-dollar Shipyard Infrastructure Optimization Plan (SIOP) is underway to modernize its four public shipyards, aiming to significantly reduce maintenance times for submarines and aircraft carriers and ensure the availability of ready forces. Despite acknowledging that initial cost and timeline estimates are no longer viable due to factors like construction escalation and the pandemic, the service remains committed, citing ongoing benefits and a clearer understanding of the challenges.

• Core Objective: SIOP's goal is to return submarines and aircraft carriers to the fleet up to three months faster than current timelines.
• Evolving Costs: Senior officials acknowledge that the initial $20 billion and 21-year timeline estimates are no longer viable. 
• Tangible Progress: Despite obstacles, SIOP has already delivered 45 facilities projects worth over $1.2 billion, with an additional $6 billion invested in 47 more initiatives currently underway.

Congress & Government

U.S. Air Force Tech. Sgt. Jonathan McCauley, 60th Civil Engineer Squadron explosive ordnance disposal (EOD) operations section chief, prepares to cut a zip tie securing a simulated explosive attached to a drone during a combat readiness exercise at Travis Air Force Base, California, July 9, 2025. (U.S. Air Force photo by Gary Edwards)

Lawmakers Push Pentagon to Speed Small Drone Use—and Counter Threats
Rachel Cohen, Air & Space Forces Magazine

Lawmakers are pressing the Pentagon to rapidly deploy counter-drone technologies and offensive small drones to U.S. forces, driven by recent effective drone attacks. 

• Persistent Hurdles: Current counter-UAS efforts are hampered by policy, legal, and technological gaps, hindering effective identification, tracking, or destruction of unfamiliar drones. Unresolved incidents, like the December 2023 incursions at Joint Base Langley-Eustis, highlight these systemic issues.
• Legislative Action: Proposed House legislation includes a pilot program with the FAA for civil airspace monitoring near domestic military bases, mandates anti-drone defense acquisition for four facilities within a year, and formalizes the Joint Counter-Unmanned Aircraft Systems Office (JCO) for military-wide coordination.

‘Significant impact’: Senators warn White House over Reciprocal Defense Procurements
Valerie Insinna, Breaking Defense

Senators Tammy Baldwin (D-Wisc.) and Jim Banks (R-Ind.) have issued a letter warning the White House that Reciprocal Defense Procurement (RDP) agreements pose a significant risk to the U.S. defense industrial base. 

• RDP Function: RDP agreements allow the Pentagon to bypass "buy national" rules for defense contracts when dealing with foreign governments. 
• Strategic Over Expediency: Baldwin and Banks stress that decisions to enter or renew RDP agreements "should be guided by strategic imperatives, not expediency". This is critical to ensure these agreements do not inadvertently weaken the U.S. industrial base.

Bipartisan ARMS Act Aims to Expedite Defense Capability Delivery to Allies
Miles Jamison, ExecutiveGov

The bipartisan Accelerate Revenue for Manufacturing and Sales (ARMS) Act has been introduced by U.S. Representatives to streamline the delivery of American-made defense capabilities to allies. 

Addressing Imbalance: The proposed legislation is a response to a growing disparity in defense procurement, where the total value of FMS and Direct Commercial Sales (DCS) has surpassed domestic defense procurement budgets. International demand for U.S. defense products is nearly double that of domestic acquisition.

Dual Benefit: Sponsors of the bill highlight its benefits for national security abroad and the domestic defense industrial base.

Research

Aviation ordnance sailors connect a "pogo stick" to an MH-60S Sea Hawk helicopter during an ammunition offload aboard the aircraft carrier USS Dwight D. Eisenhower in the Atlantic Ocean, June 21, 2017. (Navy photo by Seaman Jessica L. Dowell)

Integration and Innovation Challenges in U.S. Navy Logistics
Ira Lewis and Nicholas Dew, Expeditions with Marine Corps University Press

Logistics plays a central role in ensuring the lethality and readiness of the U.S. Navy. However, management practices and organization structure associated with the peripheral situation of logistics in the Navy make it difficult to exploit information and build knowledge that could lead to improved institutional performance. This research from NPS professors Ira Lewis and Nicholas Dew argues that, in both acquisition and sustainment, the Navy needs to better exploit logistics knowledge and significantly modernize the information systems that support the creation of that knowledge. The Navy should also consider a greater degree of integration between operations and logistics.

Cooperative, Secure Data Science Environments and Repositories 
Dr. Stephen Adams, Mr. Scott Lucero, Acquisition Innovation Research Center

The Defense Acquisitions Research, Collaboration and Innovation Environment (DARCIE) 2.0 is a secure data science platform designed to facilitate innovative research in defense acquisition by providing extramural researchers with controlled access to sensitive DOD acquisition information. The goal is to enhance analytical capabilities and inform new acquisition policies and practices. DARCIE helps fulfill a requirement contained in the original AIRC legislation (10 U.S.C. § 4142) for establishing data repositories and analytic environments.

The Next Great Engine War Was Not What You Thought It Was
Col James Rodriguez, Defense Acquisition Research Journal 

The history of U.S. fighter engine development, particularly the "Great Engine Wars" between Pratt & Whitney and General Electric, highlights the critical interplay of intense competition, technological innovation, and the strategic maintenance of the industrial base. While the initial "Great Engine War" successfully yielded two world-class engines and significant cost savings, subsequent attempts faced considerable budget constraints and platform integration challenges, underscoring the imperative for a refined strategy to secure future propulsion dominance.

Bid Protests: Key Features and Trends
Government Accountability Office

Congress is considering reforms to the bid protest process, including modifying the pleading standard for disappointed offerors seeking access to agency procurement records and potentially shifting costs of other parties to the protester when a protest is unsuccessful. This report from GAO covers current trends in bid protests, as well as analysis of and recommendations for possible reforms.

Acquiring Generative Artificial Intelligence to Improve U.S. Department of Defense Influence Activities
William Marcellino, Jonathan Welch, et al, RAND

DOD is pursuing generative Artificial Intelligence (AI) to enhance influence activities, a key component of its modernization drive. This effort, however, faces systemic inefficiencies and a lack of unified strategy, necessitating a flexible acquisition approach, increased investment, and coordinated development of capabilities, training, and ethical guidelines.

Events

Navy and Marine Corps Procurement Conference
American Defense Alliance
29-30 July 2025
Norfolk, VA

2025 Air and Space Summit
Potomac Officers Club
31 July 2025
McLean, VA

Ground Vehicle Systems Engineering & Technology Symposium & Modernization Update (GVSETS) 
National Defense Industrial Association (NDIA), Michigan Chapter
12-14 August 2025
Novi, MI

MODSIM World 2025
National Training and Simulation Associations (NTSA)
18-20 August 2025
Norfolk, VA

Fed Supernova
Capital Factory
19-21 August 2025
Austin, TX

2025 Navy Summit
Potomac Officers Club
26 August 2025
McLean, VA

Intelligent Ships Symposium
American Society of Naval Engineers
26-28 August 2025
Philadelphia, PA

2025 Space Warfighter Forum: Peace Through Strength
National Defense Industrial Association (NDIA)
26-28 August 2025
Colorado Springs, CO

2025 Emerging Technologies for Defense
Emerging Technologies Institute
27-29 August 2025
Washington, DC

Creative Disruptors by the Lakes
Creative Defense Foundation
11-12 September 2025
Eagan, MN

2025 Undersea Warfare Fall Conference
National Defense Industrial Association (NDIA)
15-17 September 2025
Groton, CT

Fleet Maintenance and Modernization Symposium (FMMS) 2025
American Society of Naval Engineers
23-25 September 2025
San Diego, CA

2025 Future Forces Capabilities Conference & Exhibition
National Defense Industrial Association (NDIA)
30 September - 3 October 2025
Fort Worth, TX

28th Annual Systems & Mission Engineering Conference
National Defense Industrial Association (NDIA)
Tampa, FL
27-30 October 2025

I/ITSEC 2025: Optimizing Training: Ensuring Operational Dominance
National Training & Simulation Association (NTSA)
1-4 December 2025
Orlando, FL

Creative Disruptors in the Desert
Creative Defense Foundation
20-21 February 2025
La Quinta, CA

One more thing...

helicopter hovering over a aircraft carrier flight deck covered with creates. two people in red stand below holding a stick with loop at the end

Marine Week Chicago: A Windy City Welcome
Sgt. Tawanya Norwood, U.S. Marine Corps

Marine Week Chicago, held from June 9 to 14, 2025, showcased the U.S. Marine Corps' 250 years of service through extensive community engagement and direct public interaction. Marines assigned to Special Purpose Marine Air-Ground Task Force (SPMAGTF) 250 traveled from across the country to connect with the local community.

• Community Immersion: Marines engaged extensively through volunteering, outreach, visiting the local Boys & Girls Club, hosting morning physical training sessions with locals and Chicago Police Department members, and performing city-wide.
• Wish Fulfilled: A particularly meaningful partnership with Make-A-Wish Illinois fulfilled young Chicagoan Jamaria Peters' dream to meet Marines at a special ceremony at the iconic Willis Tower. SPMAGTF-250 Marines met with Jamaria alongside appearances from the Marine Corps Silent Drill Platoon, the Quantico Marine Band, and Marine Corps Drill Instructors.
• Showcasing Readiness and Connection: Marine Week is intended to foster a direct understanding and appreciation between the military and the public it serves.

Maureen Lauder, PhD, Communications Manager
Karey Shaffer, MBA, Program Manager
Acquisition Research Program
Naval Postgraduate School
e: ARPEditor@nps.edu 

Note: Article summaries were generated with the help of AI tools.

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