On November 7, 2025, Defense Secretary Pete Hegseth referenced his intentions to pursue significant additional changes to the U.S. military’s acquisition system. In a speech held at the National War College in Washington, DC, Hegseth spoke about transforming the defense acquisition system to prioritize speed of delivery of capabilities to warfighters, allies, and partners.
Hegseth’s proposed changes to the military’s acquisition system were outlined in three memorandums, which we summarize below. Together, these documents signal a notable shift in the Department of Defense’s (DOD’s) acquisition and requirements processes aimed at speeding delivery of defense capabilities, cutting bureaucracy, and revitalizing the defense industrial base while creating potential new opportunities and expectations for contractors and subcontractors to deliver innovative solutions faster and more efficiently.
Memo One: Faster Delivery, Increased Production
The first memorandum proposes changes which are tied to Executive Order 14265, titled "Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base," and builds on prior changes pursued by the DOD, such as those related to the department’s requirements development process. The changes in this memorandum are intended to increase the speed of acquisition through a series of near- and mid-term changes to systems and processes of the DOD and, ultimately, increase the delivery speed of capabilities to the U.S. warfighter, allies, and partners.
The memorandum includes an attached appendix that discusses initial directed implementation actions. For example, the DOD initially intends to establish portfolio acquisition executives to replace existing program executive offices. It also intends to flatten chains of command and prioritize speed. The DOD intends to promote changes to management roles to, among other things, tie tenure and incentives to outcomes, and to address DOD performance issues.
The memorandum also includes a lengthy acquisition transformation strategy that addresses the DOD’s approach to "transforming antiquated acquisition processes and revitalizing the atrophied Defense Industrial Base." By implementing this strategy, the DOD aims to deliver developments faster than adversaries, and to increase production and surge capacity for capabilities, systems, weapons, and munitions supporting the U.S. warfighter and allies. The memorandum is effective immediately and takes precedence over any existing inconsistent policies, and establishes various deadlines within a 30 to 180-day window.
Memo Two: Reforming the Joint Requirements Process
The second memorandum, also tied to Executive Order 14265, directs the dissolution of the Joint Capabilities Integration and Development System and a comprehensive reform of the joint requirements process to accelerate delivery of warfighting capabilities. It reorients the Joint Requirements Oversight Council to identify and prioritize key operational problems, establishes a new requirements and resourcing alignment board to link priorities with funding, and creates a mission engineering and integration activity to engage industry and conduct rapid experimentation. It also directs each military department to streamline its own requirement processes. The memorandum emphasizes speed, integration, and accountability, and prohibits creation of new bureaucratic layers that may impede progress.
Memo Three: Streamlining Arms Transfers and Security Cooperation Enterprise
The third memorandum directs the realignment of the Defense Security Cooperation Agency and the Defense Technology Security Administration from the under secretary for policy to the under secretary for acquisition and sustainment. This is intended to unify and streamline the DOD’s arms transfer and security cooperation enterprise.
The reform seeks to accelerate delivery of defense capabilities to allies and partners, enhance transparency, modernize U.S. foreign military sales and direct commercial sales systems, and align exportability and technology protection earlier in the acquisition cycle. It also supports reinstatement of the 2018 Conventional Arms Transfer Policy and Executive Order 14268, emphasizing efficiency, burden-sharing, and revitalization of the defense industrial base.
Immediate Takeaways for Contractors and Subcontractors
Borrowing from the adage that the only constant in life is change, government contractors and subcontractors are likely to continue seeing rapid change in the way the U.S. federal government does business, including but not limited to changes such as those proposed by the DOD in this latest round of memorandums.
Contractors should develop a practice of monitoring for further guidance from the U.S. federal government and, as it relates to updates outlined in this client alert, the changes proposed by the DOD.
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