Acquisition
Secretary of the Air Force Troy Meink and Chief of Space Operations Gen. B. Chance Saltzman listen to opening remarks during a budget hearing with the Senate Appropriations Defense Subcommittee in Washington, D.C., June 26, 2025. U.S. Air Force photo by Eric Dietrich
Air Force, Space Force Introduce First Acquisition Portfolios in Reform Push
Courtney Albon, Air & Space Forces Magazine
The Departments of the Air Force and Space Force have established five mission-focused portfolio acquisition executives (PAEs) for itself, covering critical areas such as propulsion, weapons, and space-based sensing and targeting.
- Legislative Approval Needed: Although the strategy emphasizes rapid deployment, the essential authority for PAEs to shift funding requires statutory approval from Congress. Although lawmakers are generally supportive of the PAE structure, many lawmakers are concerned that this flexibility could enable executive overreach.
Army’s noncommittal procurement strategy is creating quandaries for vendors
Meghann Myers, Defense One
The Army's "Continuous Transformation" acquisition strategy — prioritizing small, frequent purchases over large long-term contracts — is creating significant friction for drone manufacturers attempting to scale production and sustainment. This "buy fast, buy small" approach forces vendors to guess at future demand while trying to bridge critical production and supply-chain gaps.
CMMC DFARS clause explained: The KO’s checklist contractors never see
Jacob Horne, Federal News Network
The newly active DFARS 252.204-7021 clause instructs contracting officers (KOs) to follow explicit procedures for Cybersecurity Maturity Model Certification (CMMC) enforcement and verification. KOs are not permitted to award or extend a contract (or exercise an option) if the offeror is not CMMC compliant. Thus, defense contractors must align their internal security posture with the specific checklists KOs use to ensure compliance throughout the life of a contract.
Defense & Strategy
USS Iowa (BB-61) Fires a 16-inch shell toward a North Korean target, in mid-1952. Official U.S. Navy Photograph, now in the collections of the National Archives.
Why the U.S. Navy Doesn’t Build Battleships Anymore
Trent Hone, War on the Rocks
The operational utility of battleships was surpassed decades ago by carriers and long-range missiles, but battleships have historically been of national power and prestige. President Trump’s proposed "Trump-class" USS Defiant aims to revive the battleship's place in the US Navy.
- Costly Inefficiency: At 35,000 tons, the USS Defiant is projected to carry only 128 vertical launch cells, whereas three 10,000-ton Arleigh Burke destroyers offer 125 percent more firepower (288 cells) for less expense.
- Strategic Misallocation: Critics suggest that building a new battleship risks repeating Imperial Japan's mistake with the battleship Yamato, where investing in a single massive platform limited the flexibility and fighting power of a balanced fleet.
- Funding Magnet: The battleship proposal may be embraced by leaders not for its combat merit, but as a tool to raise visibility for naval challenges and boost shipbuilding budgets.
Related: Navy hopes Golden Fleet battleships will solve capacity limits of destroyers
Related: SECNAV: Shipbuilders Need to Hire 250,000 Workers Over the Next Decade for ‘Golden Fleet’
Choke Points: Critical Minerals and Irregular Warfare in the Gray Zone
Dino Garner, Irregular Warfare
The United States faces a critical national security threat due to an engineered dependency on China for the processing of essential minerals. While the West has focused on extracting raw ore, the true strategic bottleneck is the midstream refining and separation capacity required for high-tech defense applications. To counter this gray zone warfare, the article advocates for a doctrine of industrial deterrence that includes building domestic processing hubs, utilizing government price guarantees, and implementing environmental taxes to offset foreign subsidies.
Related: Predatory Pricing: How the Chinese Communist Party Manipulates Global Mineral Prices to Maintain Its Dominance
Industry
The Pentagon said its investment will support L3Harris's Missile Solutions division's effort to expand production capacity on critical missile programs like the pictured Patriot Advanced Capability-3. (Darrell Ames/U.S. Army)
Pentagon to invest $1B in L3Harris spinoff rocket motor firm
Stephen Losey, Defense News
The Pentagon is executing a first-of-its-kind $1 billion investment to spin off L3Harris’s Missile Solutions division into an independent, publicly traded company dedicated to solid rocket motor production. By becoming an anchor investor, the government seeks to stabilize the defense industrial base through multiyear procurement frameworks.
- Market Competition Risks: Industry experts suggest this government backing might give the spinoff an unfair advantage over its primary rival, Northrop Grumman’s Orbital ATK, in future weapons competitions. Furthermore, the company’s viability remains tied to current high demand, leaving it vulnerable if munitions orders "whipsaw" or decline in the future.
Trump Executive Order Puts Pressure on Defense Companies, Seeks to Halt Stock Buybacks
Mallory Shelbourne, USNI News
President Trump has issued an executive order prohibiting defense contractors from engaging in stock buybacks or dividend payouts until they meet strict production and budget benchmarks.
- Ending Delay Rewards: The administration is phasing out cost-plus contracts for late programs and offering larger, more stable deals to firms that invest in capacity rather than CEO salaries.
- Accelerated Shipbuilding: While firms like HII have already halted buybacks and invested billions in shipyards, the administration is demanding even faster production for upcoming projects like the 30,000-ton surface combatant and Block VI submarine contract.
- Shipyard Criticism: Former Navy Secretary Carlos del Toro called the buybacks "unforgivable," condemning shipbuilders for spending billions on buybacks while taxpayer-funded production lines remained stagnant.
Related: Reed: Congress ‘would have to’ codify Trump’s defense industry stock buyback mandates
Government Reports
The USS Wayne E. Meyer arrives at Naval Surface Warfare Center, Port Hueneme Division. The Arleigh Burke-class guided-missile destroyer carries the 100th of the Aegis Weapons Systems that has been delivered to the Navy. The ship is named after the Navy Rear Admiral Wayne E. Meyer, who is known as the "Father of Aegis." US Navy photo by Eric Parsons.
Navy Aegis Ballistic Missile Defense (BMD) Program: Background and Issues for Congress
Congressional Research Service
Defense Primer: Emerging Technologies
Congressional Research Service
Coast Guard: Actions Needed to Address Law Enforcement Mission Challenges
Government Accountability Office
Research
Workers at Force Protection Industries make Cougar H 4x4 mine-resistant, ambush-protected vehicles in Ladson, S.C., Jan. 18, 2008. (DOD photo by Cherie A. Thurlby)
Maintaining a Healthy U.S. Defense Industrial Base: Risk Sharing and Contract Design in the Major Defense Acquisition Program Setting
Gregory Besser, Naval Postgraduate School
Major defense contractors have recently expressed reluctance to participate in fixed price contracts for Major Defense Acquisition Programs (MDAPs), citing an inequitable allocation of risk. If unresolved, this challenge risks undermining both the health of the DIB and the nation’s warfighting readiness. This thesis proposes an alternative profit function and contract-design framework that better aligns firms’ profit-maximization incentives with the government’s objectives of cost control and truthful cost estimation.
Military Innovation: An Analysis of the Role of Defense Technology Startups
Elise Lefeuvre, PhD, Expeditions with MCUP
Defense technology startups are revitalizing military innovation by providing rapid prototyping and specialized AI-driven solutions that complement the production capacity of established primes. While facing significant financial and manufacturing hurdles, these agile firms leverage partnerships and targeted digital strategies to transition cutting-edge tech from academic "sprints" to the front lines. This article examines the public-private synergy required for success, highlighting how national governments, NATO, and the EU provide the essential funding and testing grounds necessary to move innovation from the laboratory to the battlefield.
Mapping Industrial Strength: US Machine Tool Production and Consumption
Trelysa Long, Information Technology & Innovation Foundation (ITIF)
The United States has experienced a significant decline in its machine tool industry, shifting from the world's leading producer in 1981 to a nation with a substantial trade deficit and specialization levels well below the global average. As machine tools form the underlying foundation for advanced manufacturing and national power, this weakness threatens the country's long-term global competitiveness and industrial health.
Arsenal of Policy: Defense Industrial Base Wargame Final Report
Sarah Fusco, et al, Center for Naval Analysis
CNA's "Arsenal of Policy" wargame series concludes that strengthening the defense industrial base (DIB) requires transitioning from fragmented initiatives toward integrated strategies focused on consistent demand signals and improved stakeholder communication. By prioritizing actionable steps in hiring, outreach, and supply chain resilience, the Department of Defense can better prepare the munitions industrial base for the demands of high-intensity conflict.
Events
Understanding the SBA Mentor-Protégé Program
APEX Accelerator Idaho
22 January 2026
Webinar
Beyond the Spark: The Holistic Business Case for Robotic Welding in Naval Shipbuilding
NDIA Emerging Technologies Institute
22 January 2026
Webinar
Project Converge
Naval Postgraduate School & NPS Foundation
28-30 January 2026
Monterey, CA
CMMC Academy
NDIA Great Lakes Chapter
28 January 2026
Pewaukee, WI
What is Digital Transformation for Acquisition (DxA) and Why is it the Answer to Speed?
NDIA Emerging Technologies Institute
28 January 2026
Webinar
36th Annual NDIA Special Operations Symposium
NDIA
17-18 February 2026
Washington, DC
40th Annual National Logistics Forum
NDIA
17-19 February 2026
Tampa, FL
Creative Disruptors in the Desert
Creative Defense Foundation
20-21 February 2025
La Quinta, CA
Generative And Agentic Artificial Intelligence Workshop
US Marine Corps
9-12 March 2026
Quantico, VA
2026 Artificial Intelligence Summit
Potomac Officers Club
19 March 2026
Reston, VA
Accelerating Warfighting Capabilities
NPS 23rd Annual Acquisition Research Symposium & Innovation Summit
6-7 May 2026
Monterey, CA
One more thing...
The Trident Room at the Hotel Del Monte, where Navy Grog was recently revived. Photo credit: Hotel Del Monte
Nautical By Nature
Dan Linehan, Edible Monterey Bay
Navy Grog started out as a low-cost sailor’s ration before evolving into a sophisticated tiki cocktail created by Donn Beach. Beach's recipe was recently revived at The Trident Room at the Hotel Del Monte - preserving a bit of Navy culture in the process.
- Sailor’s Ration: For centuries, maritime "grog" was merely a watered-down mixture of bad rum and questionable fortifications.
- The Beachcomer’s Legacy: In the 1930s, tiki pioneer and WWII veteran Donn Beach reinvented the drink as an "exotic and potent" cocktail dedicated to the Navy. Beach's Navy Grog blends Demerara, Jamaican, and Puerto Rican rums to create a complex flavor profile.
- Grog Revival: Spirits expert John Radley recently taught a mixology class that included instruction on how to make Beach's Navy Grog.
- Historic Hotel: The mixology class took place on the NPS campus, at the Hotel Del Monte. Originally a resort built by a railroad magnate, the hotel was sold to the Navy in 1948. NPS moved in in 1951.
- Navy Time Warp: The Trident Room, located in the hotel basement, is filled Navy memorabilia and nautical decorations.
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