Acquisition
Image Credit: Matt Needle
JUST IN: Pentagon Stuck in Acquisition ‘Cul-de-Sac,’ New Report Finds
Josh Luckenbaugh, National Defense
A new report from CNAS finds the Defense Department is trapped in a "developmental cul-de-sac," characterized by rising R&D spending that fails to deliver major weapon systems quickly or in scalable numbers, thereby eroding U.S. deterrence and capability against threats like China. This "developmental cul-de-sac" prioritizes innovation over deterrence.
- Slower Delivery: This focus on expensive R&D has resulted in major weapon systems frequently failing to enter production on time or in large enough numbers to make a difference for warfighters.
- Scale Missing: Many systems receiving significant R&D funds are designed for very low production rates (dozens or hundreds), which are inadequate given current threats. Experts emphasize that scalability must be "baked into the beginning of programs," especially for munitions.
- Flagship Delays: Even programs meant to accelerate innovation are not achieving speed. The Air Force’s F-47 jet fighter (formerly NGAD) took 10 years just to award a contract and will likely take another five years before operational delivery, resulting in a 15-year cycle time from initial funding.
- Budget Flexibility: The budgeting process needs reform to account for programs that require iterative development and deployment, which differ from traditional acquisition programs focused on "exquisite technologies."
Full Report: Stuck in the Cul-de-Sac: How U.S. Defense Spending Prioritizes Innovation over Deterrence
A new DFARS rule could block defense contracts for firms with foreign consulting ties
Terry Gerton, Federal News Network
The Department of Defense is implementing a new Defense Federal Acquisition Regulation Supplement (DFARS) rule that will tighten restrictions on who can receive consulting contracts. The rule specifically targets firms that also advise certain foreign governments, requiring them to meet a high standard for conflict mitigation.
- Broad Scope: The rule focuses on advisory and assistance services. It explicitly applies to NAICS code 5416, which covers management, scientific, and technical consulting services, potentially encompassing many large multinational consulting firms.
- Complex Tracking: The rule requires contractors to track the activities of their subsidiaries and affiliates, which presents practical challenges due to the complex corporate structures of multinational consulting firms.
Pentagon begins enforcing CMMC compliance, but readiness gaps remain
Mikayla Easley, DefenseScoop
The Pentagon has officially begun enforcing the Cybersecurity Maturity Model Certification (CMMC 2.0), mandating that all Defense Department solicitations and contracts include CMMC requirements. Despite the rule change being enacted, significant readiness gaps and misconceptions persist among defense contractors, fueling concerns about the industrial base's ability to prove compliance quickly enough to avoid losing contract opportunities.
Meet the White House pick to conquer the ‘Valley of Death’
Lauren C. Williams, DefenseOne
James Caggy, the nominee for assistant defense secretary for mission capabilities, aims to overhaul how the Pentagon fields new technology by closing the "Valley of Death," the gap where lab-tested innovations fail to achieve broad operational use.
- Industry Guidance: Caggy stated that most American tech companies want to deliver capabilities but often "don't always understand" the military's key operational problems. His goal is to provide industry partners "a threat-informed picture" of current and near-future operating environments.
- Speed with Credibility: The primary metric Caggy cares about is "speed with credibility," measuring how quickly the military can prove a technology works and field it at scale without compromising effectiveness or safety.
FAR Updates
Finalized Increases to Micro-Purchase, Simplified Acquisition, and Other Thresholds
John Holtz, SmallGovCon
The Federal Acquisition Regulation (FAR) Council implemented finalized increases to statutory acquisition thresholds across the federal government, adjusting figures for inflation as required every five years under 41 U.S.C. § 1908. Effective October 1, 2025, the Micro-Purchase Threshold has been increased from $10,000 to $15,000, and the Simplified Acquisition Threshold has been increased from $250,000 to $350,000.
- Set-Asides Expanded: This threshold increase is highly significant for small businesses because purchases above the Micro-Purchase Threshold but not over the Simplified Acquisition Threshold shall be set aside for small businesses if at least two small business offerors are expected to compete. The increase to $350,000 means approximately 5,000 more awards annually could fall into this set-aside category.
FAR 2.0 Update: Part 12 – Acquisition of Commercial Products and Commercial Services
Shane McCall, SmallGovCon
FAR Part 12, which covers streamlined procedures for acquiring commercial products, COTS items, and commercial services, has been consolidated and reorganized.
- Threshold Change: Simplified procedures for commercial acquisitions up to $9 million have been moved from Part 13 to the revised Part 12. This reflects the recent increase in FAR thresholds that went into effect on October 1.
- Solicitation Simplified: A new section on Simplified Procedures (12.201-1) will require a request for quotations (RFQ) followed by a purchase order, with only the contractor's acceptance of the purchase order creating a binding contract.
- SAM Exception: For acquisitions at or below the Simplified Acquisition Threshold (SAT, currently at $350,000), contracting officers may choose to solicit quotations directly from suppliers. This appears to allow solicitations below the SAT to not be posted to SAM (System for Award Management).
- Innovation Encouraged: New Section 12.201-1(d) encourages contracting officers to employ "additional innovative approaches to the maximum extent practicable when soliciting quotations" to promote efficiency and the use of small businesses.
FAR 2.0 Update: Small Business Rule of Two Lives on in Part 19
Shane McCall, SmallGovCon
Updates to the FAR Part 19 – Small Business will retain and streamline the "rule of two," which mandates setting aside contracts for small businesses when two or more capable firms are expected to offer fair market prices.
Innovation
Soldiers in the 4th Infantry Division head out on a patrol during a field training exercise, demonstrating Next Generation Command and Control AN/PRC-166 radio technology on Fort Carson, Colorado, September 18, 2025. (U.S. Army photo by Sgt. William Rogers)
From AROC to CORA: Army uses AI-enabled tool to slash scores of acquisition requirements
Carley Welch, Breaking Defense
The Army has launched an initiative, dubbed CORA, to aggressively streamline and modernize its acquisition process by leveraging an AI-enabled tool to identify and eliminate hundreds of outdated or redundant requirements.
- Requirements Slashed: Senior Army leaders were challenged to reduce the amount of active requirements by a third during the summer. So far, the Army has inspected 3,577 requirements, identifying 1,500 as inactive and 2,077 as active. Of the active requirements, 516 have been identified for inactivation, with 215 already officially deactivated.
- Consolidation Focus: Deactivating standalone active requirements does not necessarily mean the need ceases to exist; instead, many are being consolidated into broader program of record documents. The goal is to prevent standalone requirements from driving "stovepipes" in the procurement process, by instead focusing on a broader problem statement.
“Transformation never ends”: Applying lessons from the Marine Corps to AI adoption
Daisy Thornton, Federal News Network
The Marine Corps’ culture of experimentation, innovation, and mission-centricity offers valuable lessons for civilian agencies seeking successful IT modernization and Artificial Intelligence (AI) adoption, according to the NPS AI Task Force lead Randy Pugh.
- Mission Central: The Marine Corps is fundamentally oriented around the mission, which sits in the center of an organizational structure that is collaborative rather than strictly hierarchical. Regardless of position or rank, the reason for existence is mission accomplishment, requiring cooperation and collaboration among personnel.
- Culture First: Successful modernization requires a people-centric philosophy, meaning the organizational culture must be prioritized over the technology itself. Pugh stated that the ideal priorities are people first, then ideas, with technology last.
- Intelligent Failing: Leadership must empower all levels of the organization to try—and sometimes fail at—new ideas. This failure must be "failing intelligently," meaning efforts are mini true experiments with a hypothesis and controlled conditions, where both failure and success provide valuable learning.
- Endless Transformation: Pugh noted that the capabilities of AI are improving exponentially, meaning that even after implementing a transformation, "the transformation never ends," as the only constant is change.
Industry
Workers strike outside of the Lockheed Martin facility in Orlando, Florida, on May 15, 2025. | Phelan M. Ebenhack via AP
America Doesn’t Have Enough Weapons for a Major Conflict. These Workers Know Why.
Christopher Leonard, Politico
America faces a growing national-security problem due to severe labor unrest and the defense industry's prioritization of Wall Street demands over production capacity, resulting in critical weapons shortages and eroded manufacturing expertise.
- Shareholder Focus: Instead of hiring more workers or increasing pay to retain them, major defense companies like Lockheed Martin are focused on enticing investors by cutting costs and using billions in revenue for dividends and share buybacks.
- Experience Drain: The defense and aerospace industry is struggling to find qualified employees, with 75 percent of companies reporting difficulties, and annual turnover reaching 13 percent in 2023 (compared to a 3.8 percent U.S. average).
- Munitions Shortages: The lack of industrial capacity has created a crisis, leaving the U.S. and its allies running short of missiles, munitions, and battleships.
- Too Small: Experts warn that the current defense industrial base, despite being the largest and most expensive in U.S. history, is now "too small to surge" capacity to meet the demands of conflicts involving "near peer" nations like Russia and China.
Related: The Empty Arsenal of Democracy: How America Can Build a New Defense Industrial Base
Related: HASC members beg Boeing to negotiate end to ‘disruptive’ fighter-jet worker strike
Hanwha Hires Former PEO Ships to Lead American Shipbuilding Enterprise
Mallory Shelbourne, USNI News
Korean-owned Hanwha has appointed former U.S. Navy Rear Admiral Tom Anderson, who previously served as the Program Executive Officer (PEO) for ships, to lead its American shipbuilding enterprise. This strategic hiring comes as Hanwha invests $5 billion into the recently acquired Hanwha Philly Shipyard, with plans to rapidly expand the production of both military and commercial ships in the U.S.
‘Cautious’ optimism follows top warship builder’s productivity, workforce wins
Lauren C. Williams, Defense One
The country’s largest builder of warships, HII (Huntington Ingalls Industries), cautiously optimistic about its workforce and productivity gains after investing in higher wages to attract and retain experienced shipyard workers.
- Hiring Efforts: HII has hired over 4,600 shipbuilders year-to-date. About 50 percent of the hiring at Newport News is coming from "the pipeline," which includes regional workforce development centers, apprentice schools, and high school programs.
- Production Increase: HII is on track for an overall 15 percent throughput increase compared to 2024. This projected increase is partially attributed to the labor improvements and an increase in outsourcing.
Research
Crystal May, deputy for Small Business with the U.S. Army Corps of Engineers Louisville District, assists Alex Ramirez during the 6th Annual Small Business Industry Day at the Tennessee Small Business Development Center at Tennessee State University in Nashville, Tenn. Photo by Leon Robert, U.S. Army Corps of Engineers
Exploring Successful U.S. Department of Defense Small Business Innovation Research Program Outcomes and Corresponding Public Sector Commercialization Success Factors
Sarah Maria Rovito,George Washington University
The U.S. Department of Defense's Small Business Innovation Research (SBIR) program, which supports R&D for firms with fewer than 500 employees, was analyzed to determine the factors leading to successful public sector commercialization outcomes, such as securing a Navy Phase III contract or gaining an overall SBIR Success designation. Using machine learning, researchers successfully identified firm-level characteristics—including total investment and employee count—that predict future commercialization, providing strategic insights for small businesses navigating government acquisition pathways.
From Procurement to Production
Jordan Miller, Canadian Global Affairs Institute
Canada needs to move beyond simply reforming its inefficient defense procurement system to adopting a broader defence production approach that actively manages national industrial capacity and supply chains to reduce foreign dependence and ensure timely materiel availability. This shift, which involves centralizing procurement and defining clear priorities for domestic production, is crucial for meeting increased NATO spending targets and supporting allied requirements like ReArm Europe.
A Classification Model for Early Estimation and Validation of US Government R&D Program Costs
Matthew Lape, George Washington University
U.S. government research and development (R&D) programs routinely underestimate costs by 20–120% during early planning phases, leading to inefficient resource use, funding reallocations, and program cancellations. This research introduces a novel classification model utilizing a metric called Total Financial Reserve (TFR), which employs Reference Class Forecasting (RCF) to provide the Department of Defense (DoD) and program managers with significantly more accurate cost predictions.
Events
Defense TechConnect Innovation Summit and Expo
19-21 November 2025
National Harbor, MD
I/ITSEC 2025: Optimizing Training: Ensuring Operational Dominance
National Training & Simulation Association (NTSA)
1-4 December 2025
Orlando, FL
CCM Institute Academic Symposium 2025
Commerce & Contract Management Institute
2-4 December 2025
Virtual
2026 Naval Nuclear Submarine and Aircraft Carrier Suppliers Conference
NDIA Delaware Valley
21-22 January 2026
Philadelphia, PA
36th Annual NDIA Special Operations Symposium
NDIA
17-18 February 2026
Washington, DC
40th Annual National Logistics Forum
17-19 February 2026
Tampa, FL
Creative Disruptors in the Desert
Creative Defense Foundation
20-21 February 2025
La Quinta, CA
One more thing...
American War for Independence re-enactors from the West Jersey Artillery fire off a cannon salute from Red Bank Battlefield Park, National Park, New Jersey, during the Navy 250th Birthday parade of ships on Oct. 9, 2025. Photo by Bryan J. Dickerson
Coast Guard, Navy Ships Sail Up Delaware River for Navy’s 250th Birthday in Philadelphia
Bryan J. Dickerson, USNI News
The U.S. Navy kicked off its seven-day 250th birthday celebration in the Philadelphia area on October 9, 2025, with a massive Parade of Ships up the Delaware River, featuring modern and historic vessels, flyovers, and cannon salutes.
- Aerial Showcase: The parade featured impressive flyovers conducted by Navy F/A-18 Super Hornets and F-35 Joint Strike Fighter Lightning IIs, along with a Marine Corps MV-22B Osprey.
- Public Access: Following the parade, the ships berthed at multiple locations - including the Philly Navy Yard, Penn’s Landing, and sites in Camden and Gloucester City, New Jersey - with daily tours available to the public.
- Legacy Display: A temporary display aboard the battleship USS New Jersey unveiled featured the stern plate of the legendary aircraft carrier USS Enterprise, the most decorated ship in U.S. Navy history.`
- Philadelphia Roots: The U.S. Navy’s 250th birthday marks the Continental Congress’s resolution, on October 13, 1775, authorizing the first armed sailing vessels. The Department of the Navy was established in Philadelphia on April 30, 1798, and the U.S. Marine Corps was also founded in the city.
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