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Home Acquisition & Procurement

Hegseth Wants Army to Implement Transformation Strategy, Acquisition Reform

by Jane Edwards
May 7, 2025
in Acquisition & Procurement, DoD, News
Defense Secretary Pete Hegseth issues a memo calling for Army transformation and acquisition reform

Defense Secretary Pete Hegseth released a memo directing the secretary of the Army to streamline the service's force structure, reform the acquisition process and accelerate the delivery of war-winning capabilities.

Pete Hegseth, secretary of the Department of Defense, has issued a memorandum directing the secretary of the Army to implement a comprehensive transformation strategy, reform the acquisition process, eliminate wasteful spending and streamline the military branch’s force structure.

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  • Army Future Warfare Preparation
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Army Future Warfare Preparation

In the memo dated Wednesday, Hegseth, a 2025 Wash100 awardee, is directing the secretary of the Army to advance the deployment of long-range missiles designed to strike moving ground and maritime targets by 2027; achieve electromagnetic and air-littoral dominance by 2027; and extend advanced manufacturing to operational units by 2026.

By 2027, artificial intelligence-driven command and control should be enabled at theater, corps and division headquarters.

The DOD secretary also calls for the modernization of the organic industrial base to produce ammunition stockpiles to sustain national defense during wartime through the implementation of 21st-century production capabilities. Hegseth expects the measure to achieve full operational capability by 2028.

According to the document, the Army should boost its forward presence in the Indo-Pacific region by expanding rotational deployments, prepositioned stocks and exercises with allies to improve basing, strategic access and overflight.

Army Acquisition Reform

The secretary of the Army should accelerate modernization and acquisition efficiency by working with the Office of the Under Secretary of Defense Comptroller, to consolidate budget lines and transition to capability-based funding across critical portfolios to ensure rapid technology adaptation.

The memo directs the Army to expand the use of other transaction authority agreements to facilitate rapid prototyping and fielding of critical technologies, including software and software-defined hardware; implement performance-based contracting to minimize waste; and expand multiyear procurement agreements when cost-effective.

Hegseth also wants the Army to identify and propose contract modifications for right to repair provisions where intellectual property matters restrict the service branch’s ability to perform maintenance and access the necessary maintenance tools, technical data and software.

Join us at the Potomac Officers Club’s 2025 Army Summit on June 18. Hear notable leaders and experts as they share their insights into modernization imperatives, force structure optimization, national security missions and more. Save your spot today!

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