The Department of the Navy is restructuring its acquisition enterprise by establishing five additional portfolio acquisition executive organizations as part of a push to reduce bureaucracy, accelerate capability delivery and align procurement with operational needs.
The Navy’s shift to a new PAE structure underscores the urgency of faster, more accountable defense procurement. Attend the 2026 Navy Summit on Aug. 27 to join defense leaders and industry executives as they discuss naval modernization efforts and other developments shaping the service’s future priorities. Sign up today to secure your spot!
The Navy said Monday the move formalizes the PAE model as the service’s new acquisition standard and builds on earlier acquisition reform efforts, including the establishment of the DON Rapid Capabilities Office, or DON-RCO, and the creation of a PAE for robotics and autonomous systems in December.
“In a time where our warfighters are on the frontline and the nature of warfare is changing at a rapid pace, the Department of the Navy needs a warfighting acquisition system that better responds to those at the tip of the spear,” said Secretary of the Navy John Phelan.
“Every acquisition decision ties directly to deterrence, and if deterrence fails, decisive victory. With the establishment of PAEs, we are instilling a war-fighting mindset to accelerate delivery to the fight,” added Phelan, a 2026 Wash100 awardee.
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Who Will Serve as Interim PAEs?
The Navy has appointed five senior acquisition leaders to serve as interim PAEs.
- Christopher Miller — PAE Maritime
- Lt. Gen. Eric Austin — PAE Marine Corps
- Vice Adm. James Downey — PAE Industrial Operations
- Vice Adm. Johnny Wolfe — PAE/DPRM Strategic Systems Programs
- Vice Adm. Robert Gaucher — PAE Undersea / DRPM Submarines
Each PAE will act as the single accountable official for their respective portfolio, overseeing program execution and associated acquisition functions.
What Is the Navy PAE Model?
Under the PAE construct, leaders are responsible for making trade-offs across schedule, performance and cost, with priority placed on accelerating time to field. They will also manage industrial base considerations, including supply chain risk, production capacity and supplier diversification.
“PAEs will have direct authority not only for program offices but also over associated technical, contracting, and sustainment functions, providing true cradle-to-grave control to deliver fully integrated capability,” said Jason Potter, who is performing the duties of assistant secretary of the Navy for research, development and acquisition, or ASN(RDN). “We are moving from a compliance-based bureaucracy to having outcome-focused organizations, fundamentally changing how we do business.”
Each PAE organization will include a dedicated rapid capability cell linked to the DON-RCO. These cells will focus on conducting rapid prototyping, integrating commercial technologies and accelerating fielding in response to urgent operational requirements.
“Each PAE will operate with a digital first mind-set – we will align on data and eliminate non-value-added layers of program reviews and bureaucracy to identify risks earlier and enable faster and more informed decision making,” said Vice Adm. Seiko Okano, principal military deputy to ASN(RDA).
The Navy is also continuing transition studies across aviation, industrial infrastructure, mission systems and munitions programs, with additional organizational updates expected.
How Does the Navy PAE Model Align With DOW Acquisition Reform Effort?
The Navy’s PAE model, which supports a key tenet of Phelan’s Golden Fleet initiative, aligns with the Department of War’s effort to transition toward a warfighting acquisition system by emphasizing speed, accountability and operational outcomes, while empowering leaders to make faster, data-driven decisions across portfolios.
The Department of the Air Force is also transitioning to the PAE structure as part of its shift to the warfighting-focused acquisition model.
In November, the Army created six PAEs as part of an acquisition reorganization.
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