The Defense Department Acquisition Executive Order

On April 9, 2025 President Trump issued an executive order on Department of Defense (DoD) acquisition, “Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base.”

While the executive order recognized the importance of the defense acquisition workforce, the order also called for the Defense Department to “right-size” that workforce. The order called for streamlined procurement methods, for example under FAR Part 12 (commercial goods and services) and Other Transactions Authority. Finally, the order called for reviews of major weapon systems and processes, to cull overdue and over-budget systems and to reform the processes used to purchase major systems.

Introduction

The executive order called for enhancements in Defense Department procurement and in the defense acquisition workforce, which the President termed “a national strategic asset that will be decisive in any conflict.” The order called on the Department to “modernize the duties and composition of the defense acquisition workforce,” and to “incentivize and reward risk-taking and innovation from these personnel.” The order also called for accelerating defense procurement and revitalizing the defense industrial base.

Acquisition Process Reform

The order called for a plan from the Department of Defense, within 60 days, to reform the Department’s acquisition processes, including:

• Use of existing authorities to expedite acquisitions, including (1) giving a first preference to commercial solutions (including commercial products and services under FAR Part 12 and DFARS 212.2, commercial solutions opening (DFARS 212.70), and “other industry solutions funded by private investment”); (2) giving a general preference to Other Transactions Authority, Rapid Capabilities Offices’ policies (Air Force, Space Force, Army, Marines, Navy) “or any other authorities or pathways to promote streamlined acquisitions under the [Adaptive] Acquisition Framework.” In his memorandum of March 6, 2025 on software acquisition reform, Secretary of Defense Hegseth called for similar approaches when the Defense Department purchases software.
• While the plan is being formulated the DoD is to prioritize use of these authorities in all pending Department of Defense contracting actions and, where appropriate and lawful, require their application. (See chart below comparing Commercial Solutions Opening vs. Other Transactions Authority.) In the bill that he introduced in the last days of the prior Congress, S. 5618, the FoRGED Act (Fostering Reform and Government Efficiency in Defense), and in his accompanying report (Restoring Freedom’s Forge), now-Chairman of the Senate Armed Services Committee Roger Wicker called for a similar emphasis on commercial solutions and streamlined acquisition methods. In many ways, this executive order aligned the Trump administration with Senator Wicker’s agenda for reform. More broadly, these efforts parallel efforts in the European Union to encourage “procurement for innovation,” though in the EU the focus is on civilian acquisition, not defense.
• A detailed review of the acquisition process and personnel to eliminate unnecessary or redundant tasks and approvals, and to centralize decision-making.
• Developing a process by which the Under Secretary of Defense for Acquisition and Sustainment, Service Acquisition Executives, and Component Acquisition Executives can manage risk for all acquisition programs through the Configuration Steering Board, a formal steering board which would undertake an annual review of potential requirements changes, critical intelligence parameter changes, and any significant technical configuration changes per Department of Defense Instruction 5000.85.
• Undertaking a review to streamline DoD regulations and guidance and to promote faster acquisition (with any new regulations or guidance subject to the ten-for-one rule which requires ten deleted regulations for every new one, per EO 14192, “Unleashing Prosperity Through Deregulation” (Jan. 31, 2025)).

Acquisition Workforce Reform

Within 120 days, the Defense Department is to submit a plan to “reform, right-size, and train the acquisition workforce.” The plan is to include performance metrics to encourage acquisition officials to give first consideration to commercial solutions (defined above). The plan is also to review appropriate staffing levels. The plan is to establish “field training teams,” led by senior managers, to train on innovative acquisition authorities and commercial solutions. Finally, the plan is to produce policies and procedures to incentivize acquisition officials to use innovative acquisition authorities and to “take measured and calculated risks.” Senator Wicker’s “Restoring Freedom’s Forge” report (see above) called for similar reforms to the Defense Department’s procurement structure.

Major Reviews

Under the executive order, the Defense Department is to undertake a comprehensive review of all major defense acquisition programs (MDAPs), to identify those over budget, behind schedule or inconsistent with current policy — and those will be considered for cancellation. After the MDAP review, the Defense Department is to review other major systems. Finally, the Department is to review the Joint Capabilities Integration and Development System “with the goal of streamlining and accelerating acquisition.”

Editor’s Note: This summary was prepared for the Procurement Reform seminar taught as part of George Washington University Law School’s Government Procurement Law Program.