Defense Secretary Pete Hegseth, a 2025 Wash100 awardee, unveiled sweeping reforms to the Department of Defense’s weapons acquisition system during his speech Friday at the National War College in Washington, D.C.
“Speed to delivery is now our organizing principle,” Hegseth said in his speech titled the “Arsenal of Freedom.” “It is the decisive factor in maintaining deterrence and warfighting advantage.”
Following Hegseth’s announcement, the Potomac Officers Club’s 2026 Defense R&D Summit on Jan. 29 offers a timely opportunity to engage with the leaders shaping the future of U.S. military capabilities. Don’t miss your chance to connect with decision-makers and innovators driving the next generation of defense technologies — and see how your organization can thrive in an era of faster, more agile acquisition. Book your spot now!
According to Federal News Network, Hegseth said defense contractors willing to take risks and adapt to DOD’s faster, more competitive acquisition model will find new growth opportunities, while companies resistant to change may be left behind.
He added that the Pentagon intends to “make defense contracting competitive again” and that firms “too comfortable with the status quo” will no longer be welcome.
Days before Hegseth’s address, a six-page draft memo detailing key DOD acquisition reforms circulated.
Table of Contents
What Are the New Defense Acquisition Reforms?
- Transition to a Warfighting Acquisition System: The Pentagon has redesignated the Defense Acquisition System as the Warfighting Acquisition System to prioritize the urgent delivery of operational capabilities to warfighters. The change seeks to recognize acquisition as a warfighting function and enable the continuous improvement of warfighting capabilities, according to a memo signed by Hegseth on Friday.
- Appoint Portfolio Acquisition Executives or PAEs: PAEs will replace program executive officers, manage weapon portfolios and reallocate funding to high-priority efforts.
- Adopt commercial-first practices: According to the Air and Space Forces Magazine, the secretary stated that the DOD will prioritize commercial off-the-shelf technology, accept imperfect platforms that can be iterated and delivered more quickly, and expand competition and modularity in procurement.
- Introduce portfolio scorecards: The department will hold companies accountable by tracking program performance, including how much commercial capability a program contains and whether it meets schedule targets.
- Reform industrial base production: New incentives will encourage manufacturers to scale production at “wartime speed.” The department will also negotiate contracts on faster timelines.
- Streamline foreign military sales: The Defense Security Cooperation Agency will relocate from the Pentagon’s policy shop to its acquisition office to expedite the sale of weapons to foreign governments.
How Does the Potomac Officers Club View Hegseth’s Reforms?
Jim Garrettson, founder of the Potomac Officers Club and CEO of Executive Mosaic, praised Hegseth’s initiative, saying:
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