Acquisition
Image credit: Sgt. Alfonso Livrieri, US Marine Corps
Build at Scale, Innovate at the Edge, Close the Feedback Loop Fast: Transforming Acquisition for the Drone Age
Rachael Hoagland, Modern War Institute
To survive the "drone age," the U.S. military must replace its slow, centralized acquisition process with a decentralized innovation ecosystem that prioritizes mass production and frontline agility. By empowering tactical units with direct funding and real-time feedback loops, the Department of Defense can adapt at the speed of modern conflict.
- Funding the Edge: To drive demand and innovation, tactical commanders need dedicated "unit drone funds" and the authority to purchase vetted systems directly through simplified acquisition thresholds.
- Instant Feedback Loops: Placing QR codes on hardware creates a direct, 24-hour bridge between soldiers and manufacturers, allowing for design iterations based on unfiltered combat data in days rather than years.
- Performance-Based Rewards: A proposed "warfighter incentive program" would grant top-performing units in military competitions credits for drone technology, transforming peacetime training into an engine for tactical proficiency.
Related: Beyond Technology: Ukraine’s Innovation Advantage
Many acquisition reform efforts focus on policies and regulations. DIU is betting on workforce changes.
Terry Gerton, Federal News Network
The Defense Innovation Unit (DIU) is shifting the focus of acquisition reform from policy changes to workforce empowerment through its Immersive Commercial Acquisition Program (ICAP).
- Workforce Transformation: DIU identifies the primary bottleneck in acquisition speed as a lack of workforce confidence, leading to the creation of ICAP to develop "change agents" who can champion modern authorities within their home military departments.
- Immersive Learning: The program blends classroom instruction with on-the-job experience, allowing fellows to execute real-world DIU prototype projects using Other Transaction (OT) authorities and Commercial Solutions Openings (CSO).
- Cultural Shift: Fellows are encouraged to move away from a compliance-heavy, checklist-based culture toward a risk-based approach that prioritizes speed and treats the Department of Defense as a fast, serious customer.
- Recruiting Grit: DIU is specifically seeking GS-13 to GS-14 level professionals who possess the "grit" necessary to challenge the status quo and push the envelope of traditional defense contracting.
- Commercial Synergy: By embedding with DIU, acquisition professionals learn to meet industry halfway, leveraging private-sector investments in AI and software to modernize both new and legacy defense platforms.
Innovation
Image credit: Sgt. Jean Sanon, US Army
If Adaptability Is Our Competitive Advantage, Why Don’t We Invest in It?
Jeff DeGraff, Modern War Institute
While military leaders frequently claim that human adaptability is America’s primary strategic advantage, a significant “adaptability gap” exists because institutional investments and promotion systems continue to prioritize rigid execution over systematic innovation. To maintain a competitive edge against rapidly evolving threats, the military must move beyond rhetoric and deliberately fund, measure, and reward the ability to adapt at scale.
- Measure the Unexpected: Evaluation systems must shift from measuring compliance and doctrine-based execution to assessing how leaders recognize changed conditions and update their assumptions under uncertainty.
- Practice Changing Plans: Training exercises should move away from merely practicing the execution of a plan and instead focus on deliberately invalidating critical assumptions to force teams to rethink their approach in real time.
- Reward Learning Culture: To shift the culture, organizations must recognize and reward teams that identify flawed assumptions or conduct successful experiments as much as those that achieve flawless execution.
- Systematic Scalable Innovation: Producing adaptive leaders by chance is insufficient in the age of AI; the military must treat adaptability as a strategic requirement that is deliberately built into recruiting, evaluation, and command-selection processes.
Defense & Strategy
A man poses for a photo next to a fallen rocket half-buried in the ground on the outskirts of Jericho on June 8, 2026, following Iranian and Iran-backed Houthi rebel attacks. AHMAD GHARABLI / AFP via Getty Images
Report: US doesn’t have enough interceptors for war with China
Patrick Tucker, Defense One
The United States faces a critical shortage of missile interceptors following heavy expenditures in the war with Iran, leaving the nation with less than 10% of the inventory required to deter or prevail in a conflict with China. While the government has launched aggressive efforts to triple production, experts warn these measures are insufficient to close a "window of vulnerability" that will persist for several years.
- Window of Vulnerability: Experts suggest the U.S. will remain in a high-risk period for several years until stockpiles return to baseline levels, with even more time required to reach the levels desired by war planners.
- Production Scaling: The White House has initiated deals to triple annual PAC-3 production to 2,000 units and quadruple THAAD output, supported by a $3 billion investment in solid rocket motor manufacturing with Lockheed Martin and Northrop Grumman.
- Misaligned Timelines: Military commanders note that manufacturing schedules are fundamentally disconnected from the speed of operational expenditures, especially as adversaries like China may employ low-cost drone warfare to further strain defenses.
- Global Shortfall: The interceptor shortage is also hindering allies; for instance, Ukraine is exploring licensing agreements to build its own Patriot version, though this would not yield usable missiles until 2030.
Full Report: Theater Missile Defense Inventory: Inadequate for a U.S.–China Conflict
Related Report: Reindustrialization and Great Power Competition: Deterrence by Capacity
Related: US has used 'virtually all' of its long-range precision missiles during Iran war, sources say
Industry
Defense Dept. photo
COMMENTARY: Rebuilding U.S. Surge Capacity Through the Defense Production Act
Felix Faerber & P. Lee Smith, National Defense
The U.S. government has shifted toward a proactive industrial policy by revitalizing the Defense Production Act (DPA) to ensure domestic capacity for strategic needs ranging from munitions to clean energy. This transformation intertwines national security with economic development, using government demand and financing to de-risk private investment in critical supply chains.
- Revitalized Cornerstone: Originally enacted during the Korean War, the DPA has reemerged as a central tool for mobilizing industrial capacity and shaping modern investment incentives in the contemporary economy.
- The Powerhouse Provision: Title I of the DPA acts as the "workhorse," allowing the government to legally require suppliers to prioritize federal delivery dates over commercial customers to secure entire supply chains.
- De-risking Investment: Title III enables direct interventions such as co-financing and purchase commitments, effectively lowering the financial hurdle for companies to add new production lines for critical military components like artillery shells and rocket motors.
US Air Force jet engine manufacturing plagued by ‘significant challenges’
Michael Peck, Defense News
The U.S. Air Force is seeking new manufacturers and innovative production methods to address chronic production delays and quality issues within the current jet engine industrial base.
- Major Program Setbacks: Chronic engine issues have severely impacted key aircraft programs; F-35 deliveries remain delayed by engines that fail to meet specifications, while B-52 modernization has faced a $3 billion cost increase and a 15-month delay.
- Strategic Procurement Shift: The Air Force is moving toward a new procurement model based on "five foundational pillars" that prioritize total lifecycle costs and increased vendor accountability over the initial purchase price.
- Ambitious Scaling Targets: The government is looking for partners capable of scaling production to deliver over 180 engines annually by 2034 to support both U.S. requirements and Foreign Military Sales.
- Resource Security Risks: Manufacturers must prove they can secure critical raw materials, such as specialized titanium and nickel alloys, despite intense global competition and export restrictions on rare earths imposed by China.
- Modernization Incentives: The RFI asks companies to identify the production volumes necessary to justify private capital investments in advanced automation and facility expansions to structurally lower long-term unit costs.
RFI: Fighter Engine Re-competition
Congress & Government
A mockup of the potential Trump-class battleship. (U.S. Navy)
First Trump-class Battleship Could Cost $23.4B, Says CBO
Sam LaGrone, USNI News
The Congressional Budget Office (CBO) estimates that the Navy's proposed Trump-class nuclear battleship will cost approximately $23.4billion for the lead vessel and $275 billion for the 15-ship program.
- Staggering Costs: Adding the battleship in the Navy's long-term shipbuilding plans would would more than double the surface combatant budget to $15.2 billion per year from $6.9 billion in FY 2025.
- Colossal Scale: At a full displacement of 35,000 tons, these nuclear-powered battleships (BBGN) will be more than three and a half times the size of current Arleigh Burke-class destroyers.
- Political Resistance: While the administration has requested $1 billion in advanced funds for 2027, Congress remains skeptical, urging the Navy to continue developing smaller next-generation destroyers alongside the battleship program.
Related: Senate’s stopgap funding bill rejects special requests for Trump battleship, munitions
CBO Report: The Navy’s New Battleship Program: Costs and Implications for the Shipbuilding Industrial Base
Government Reports
An Air Force crew chief helps prepare a B-52H Stratofortress for takeoff during training operations at Royal Australian Air Force Base, Darwin, Australia, April 3, 2018. (Air Force photo by Staff Sgt. Alexander W. Riedel)
B-52 Bomber: Air Force Actions Needed to Improve Major Modernization and Sustainment Efforts
Government Accountability Office
Priority Open Recommendations: Department of Defense
Government Accountability Office
U.S. Marine Corps Ground Combat Element (GCE) 2040 Initiative
Congressional Research Service
Transfer of Defense Articles: Direct Commercial Sales (DCS)
Congressional Research Service
Transfer of Defense Articles: Foreign Military Sales (FMS)
Congressional Research Service
The Navy’s New Battleship Program: Costs and Implications for the Shipbuilding Industrial Base
Congressional Budget Office
Research
A crane moves the lower stern into place on the nuclear-powered aircraft carrier USS John F. Kennedy at Newport News Shipbuilding in Virginia, June 22, 2017. Navy photo by John Whalen
From Rusted Hulls to Rising Tides: Revitalizing U.S. Shipbuilding in the Age of Global Competition and Maritime Security
Joseph Morrison, Naval Postgraduate School
The U.S. shipbuilding industry, once a global leader, faces significant challenges from foreign competition, workforce deficiencies, and outdated infrastructure. These issues threaten national security and economic sustainability. This project explores strategies to revitalize the U.S. shipbuilding industry through innovative techniques, including modular design and workforce development, while analyzing the root causes of its decline. By examining global shipbuilding practices, policy impacts, and historical trends, this research aims to provide actionable recommendations to enhance efficiency and competitiveness. The study employs a mixed-methods approach, integrating comparative analysis, policy review, and case studies to address questions about mitigating foreign subsidies, improving production methods, and learning from global leaders. Findings from this research are expected to inform policymakers and industry stakeholders, offering solutions that balance economic goals with national defense priorities.
A Portfolio Assessment Approach to Inform Resource Allocation Decisions
Sara Stullken, Jim Mignano, et al, RAND
The U.S. Department of War (DOW) uses the annual Planning, Programming, Budgeting, and Execution (PPBE) process to determine which missions, capabilities, and programs it will fund each year. However, cross-cutting portfolios—those that indirectly support multiple missions—are often underfunded, in part because the PPBE process is not structured to defensibly articulate and prioritize their critical role in mission success. The authors of this report developed an approach to guide the assessment of cross-cutting portfolios, along with a tailorable, prototype Excel workbook that implements this approach. They then tested and iteratively refined the evaluation approach through a pilot assessment of a subset of the enterprise information technology (EIT) portfolio. The approach structures the evaluation of capability gaps and associated investments, and informs the selection and prioritization of investments within a portfolio. It is designed to ensure that investments credibly address capability gaps and align with mission and strategy.
Risk and retention: learning from Heathrow Terminal 5 for defence procurement
Nigel Williams & Matthew Powell, Defense & Security Analysis
This article argues that the central distinction in complex defence procurement is not public versus private risk in the abstract. It is retained risk versus governable risk. Governments remain residual bearers of strategic, integration, political, operational, and fiscal exposure in major defence programmes, even where contracts appear to transfer liability. The problem is not solved by tougher wording, better pricing, or more elegant incentives alone. It depends on whether the public owner can absorb the managerial work created by retained risk. Via three case studies, this paper analyzes how retained risk is and isn't transferred and develops the defence capability owner framework, a diagnostic tool to identify where the state retains risk and whether it has the capabilities to govern that risk.
Events
Space and Missile Defense Symposium
AFCEA
11-13 August 2026
Huntsville, AL
TechNet Augusta 2026
AFCEA
17-20 August 2026
Augusta, GA
MODSIM World 2026
National Training & Simulation Association (NTSA)
18-19 August 2026
Alexandria, VA
Fed Supernova
STATION Austin
18-20 August 2026
Austin, TX
DIB Accelerator 2026
Advanced Technology International (ATI)
25 - 27 August 2026
Philadelphia, PA
Prodacity 2026: Uncharted
Rise8
25-27 August 2026
Nashville, TN
Emerging Technologies for Defense Conference & Exhibition
NDIA
8 – 10 September 2026
Washington, DC
OCEANS 2026 Monterey
IEEE Oceanic Engineering Society (OES)
21-24 September 2026
Monterey, CA
BlueTech Nexus
Naval Postgraduate School & FLEETWERX
22 September 2026
Monterey, CA
One more thing...
Retired Rear Adm. Bryan Compton, commissioning commander of USS Nimitz (CVN-68), on July 31, 2026. USNI News photo
A Last Look at ‘Old Salt’: Former USS Nimitz Sailors Say Goodbye
Sam LaGrone, USNI News
Hundreds of former sailors and their families gathered at Naval Station Norfolk to pay their final respects to the USS Nimitz, the Navy's oldest carrier, ahead of its scheduled inactivation and scrapping in 2027. The reunion celebrated the ship's storied history, from its 1975 commissioning to the many personal lives it shaped over five decades.
- End of Service: Currently the oldest aircraft carrier in the U.S. Navy, the Nimitz is slated for inactivation next year, marking the conclusion of a legendary service life that began over 50 years ago.
- Honored First Captain: Retired Rear Adm. Bryan Compton, the carrier's 94-year-old commissioning commander and a decorated Navy Cross recipient, returned to the ship to greet former crew members and revisit the hangar bay.
- Final Goodbye: Approximately 400 veterans and their relatives toured the vessel for a last look following its recent arrival in Norfolk after a journey around South America.
- Vow Renewal Ceremony: T.C. and Kim Lott, who met aboard the carrier in the mid-1990s, celebrated their 27th wedding anniversary by renewing their marriage vows on the flight deck.
- Breaking Barriers: Kim Lott was the first woman assigned to the Nimitz following the 1994 lift on restrictions for female sailors. She recalls her first arrival on the ship, where she found that it lacked designated berthing for women.
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