The Defense Logistics Agency used its latest industry meeting to outline a strategic transformation effort meant to reshape acquisition, modernize supply chains and accelerate how the agency supports warfighters in contested logistics environments, the agency said Monday.
During the Demand Forecast and Industry Association Leadership Meeting on Nov. 17, DLA Vice Director Bradley Bunn said the agency is aligning with the Pentagon’s new acquisition transformation strategy, which calls for shifting from a compliance-driven model to one centered on speed, commercial offerings and rapid capability delivery. The approach is designed to help the department field technology faster than adversaries, expand production capacity for critical systems and munitions, and move the defense acquisition system toward a wartime footing.
Bunn said structural changes across the department will focus on how major defense systems are procured, sustained and delivered. “A focus on speed and a sense of urgency around velocity to bring capability to bear” will guide the reforms, he told attendees.
How Is DLA Modernizing Its Supply Chain?
DLA leaders highlighted efforts to digitize all segments of the agency’s global supply chains, with new investments in advanced data analytics to improve demand forecasting, scenario analysis and risk mitigation.
Army Brig. Gen. Sean Kelly, commander of DLA Troop Support, said digitization will likely be the agency’s most significant area of partnership going forward.
What Demand Trends Is DLA Seeing?
According to DLA’s acquisition director, Matthew Beebe, contract obligations rose in fiscal year 2025 and are expected to continue climbing in FY 2026, driven largely by increased activity within DLA Weapons Support and DLA Troop Support. Supplier participation also expanded, with more than 8,500 industrial base suppliers supporting DLA this year—the first increase since 2016.
Demand remains volatile due to COVID-19 impacts, working capital fund constraints, operational support to Ukraine and Israel, and U.S. disaster response efforts.
For FY 2026, DLA projects:
- A 13 percent increase in demand for weapons support
- An 11 percent decrease for troop support
- A 4 percent increase in energy demand
Service contract spending is expected to reach about $5 billion during the period, led by facility services, logistics and IT.
How Is DLA Engaging Industry as Requirements Grow?
Leaders emphasized that collaboration with suppliers will be essential as the agency reforms acquisition processes and digitizes its logistics enterprise. DLA urged companies to participate in data-sharing efforts, wargames and exercises, and to provide feedback on DLA processes.
“We can’t do our mission without you,” DLA Director Lt. Gen. Mark Simerly told attendees.
