Acquisition Reform: Accelerating Government Access to Innovative Technologies

In 2025, under the Trump Administration, the federal government's acquisition landscape is undergoing a dramatic transformation, emphasizing agility, innovation, and efficiency. These reforms, particularly within the Department of Defense (DoD), represent a pivotal shift away from legacy processes toward a model that mirrors the rapid pace of commercial technological advancement. Most notably, Secretary of Defense Pete Hegseth's April 30, 2025 directive ordering a comprehensive Army transformation and acquisition reform initiative highlights the urgency of these changes (U.S. Department of Defense, 2025a).

Agile Integration: The Software Acquisition Revolution

A cornerstone of current reforms is the Software Acquisition Pathway (SWP). Established under the National Defense Authorization Act for Fiscal Year 2020, the SWP mandates a faster, more iterative approach to software development, intending to deliver Minimum Viable Products (MVPs) within 12 months (National Defense Authorization Act, 2019). This model sharply contrasts with traditional multi-year acquisition cycles, which often failed to keep pace with evolving technologies. By adopting agile methodologies, federal agencies can better evaluate emerging technologies in real-world settings and pivot as necessary. For technology providers, this creates opportunities to engage earlier, iterate collaboratively, and deliver solutions that evolve alongside mission needs.

Harnessing Flexibility: New Contracting Avenues

Complementing faster software delivery, the government has expanded its use of flexible procurement mechanisms. Other Transaction Authorities (OTAs) and Commercial Solutions Openings (CSOs) have emerged as key tools for forging partnerships with nontraditional vendors. OTAs, authorized under 10 U.S.C. § 4021, allow agencies like the Defense Innovation Unit (DIU) to bypass traditional Federal Acquisition Regulation (FAR) requirements, enabling innovative contracting strategies (Government Accountability Office [GAO], n.d.). CSOs, in turn, allow agencies to solicit commercial technologies without traditional solicitation complexities, lowering barriers for startups and emerging firms to enter federal markets. This "innovation-first" approach is helping to diversify and invigorate the government’s technology base.

Reinventing Security Verification Processes

Recognizing that lengthy cybersecurity assessments can impede rapid deployment, the DoD has intensified efforts to streamline security certification processes. Executive Order 14028, Improving the Nation’s Cybersecurity (Executive Office of the President, 2021), laid the foundation for reforms emphasizing zero trust architecture, continuous validation, and standardized security frameworks. Building on these principles, recent DoD initiatives propose a "fast pass" cybersecurity certification model, allowing secure, pre-vetted software to move more swiftly through approval processes while maintaining high assurance standards. Vendors investing in strong cybersecurity from the outset are better positioned to meet accelerated deployment demands.

Optimizing Procurement Efficiency Across Government

Beyond the DoD, broader procurement reforms continue to reshape federal acquisition strategies. The Office of Management and Budget (OMB) issued a 2023 memorandum directing the centralization of certain procurement activities under the General Services Administration (GSA) to promote standardization, cost efficiency, and faster technology adoption (Office of Management and Budget [OMB], 2023). This consolidation reflects a broader trend toward using procurement as a strategic tool to strengthen the resilience and modernization of federal operations. Organizations offering scalable, interoperable technologies stand to benefit from new multi-agency acquisition models.

Army Transformation: A Case Study in Reform

The comprehensive Army transformation strategy announced by Secretary of Defense Pete Hegseth on May 1, 2025, exemplifies the administration's commitment to "build a leaner, more lethal force" through accelerated transformation (U.S. Department of Defense, 2025b). This directive establishes three key focus areas: delivering critical warfighting capabilities, optimizing force structure, and eliminating waste and obsolete programs. In Hegseth's words, the Army "must transform at an accelerated pace by divesting outdated, redundant, and inefficient programs, as well as restructuring headquarters and acquisition systems."

‍
This initiative aligns with President Trump's April 9, 2025 executive order on Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base, which establishes a "first preference" for commercial solutions and a "general preference" for Other Transaction Authority (OTA) in defense procurement (White House, 2025). The directive requires the Defense Department to "prioritize use of these authorities in all pending Department of Defense contracting actions" while longer-term reforms are developed.
‍

For technology providers, these changes create unprecedented opportunities to engage with defense agencies through more flexible procurement mechanisms. The reforms reshape traditional vendor relationships by emphasizing performance-based and capabilities-based funding tied to deliverables and mandating "right to repair" clauses that empower military units to maintain their own systems without relying on lengthy vendor support cycles.

Strategic Insights: Key Considerations for Success

To thrive amid these reforms, corporate and government innovation leaders should prioritize several strategic considerations:

Consistent Engagement: Early and continuous dialogue with acquisition officials can influence requirements to favor emerging technologies.
Security as a Differentiator: Embedding cybersecurity rigor into product development accelerates approval timelines and builds long-term trust.
Commercial-First Approach: With the administration's "first preference for commercial solutions" mandate, providers should emphasize commercial applications and adaptability of their technologies for defense use cases.
OTA and CSO Readiness: As Other Transaction Authorities and Commercial Solutions Openings become "default solicitation and award approaches," companies should structure their offerings and engagement strategies accordingly.
Internal Readiness: Continuous investment in workforce education ensures teams understand and can leverage modern procurement pathways.
Mission Alignment: Framing solutions in terms of mission impact, rather than technical specifications alone, will resonate more strongly with federal buyers increasingly focused on operational outcomes.

Conclusion

The acquisition reforms we have seen so far in 2025 represent more than procedural updates; they embody a philosophical shift in how the federal government sources, evaluates, and integrates technology. Organizations that track these reforms carefully, embrace agility, prioritize security, and frame their offerings through the lens of mission success will be best positioned to deliver transformative solutions that advance national interests.

‍

References

Defense One. (2025, March 7). Pentagon aims to accelerate acquisition of new tech through software contracting change. https://www.defenseone.com/technology/2025/03/pentagon-aims-accelerate-acquisition-new-tech-through-software-contracting-change/403598/

Executive Office of the President. (2021, May 12). Executive Order 14028: Improving the nation’s cybersecurity. https://www.federalregister.gov/documents/2021/05/17/2021-10460/improving-the-nations-cybersecurity

Federal News Network. (2025, April 18). Pentagon to establish secure software assurance program. https://federalnewsnetwork.com/defense-news/2025/04/pentagon-to-establish-secure-software-assurance-program/

Government Accountability Office. (n.d.). Federal contracting. U.S. Government Accountability Office. Retrieved April 29, 2025, from https://www.gao.gov/federal-contracting

GovCIO Media. (2025, A). Pentagon pushes for faster acquisitions to match industry speed. GovCIO Media & Research. https://govciomedia.com/pentagon-pushes-for-faster-acquisitions-to-match-industry-speed/

National Defense Authorization Act for Fiscal Year 2020, Pub. L. No. 116-92, 133 Stat. 1198 (2019). https://www.congress.gov/bill/116th-congress/senate-bill/1790

Office of Management and Budget. (2023, June 26). Administration cybersecurity priorities for the FY 2025 budget (OMB Memorandum M-23-18). Executive Office of the President. https://www.whitehouse.gov/wp-content/uploads/2023/06/M-23-18-Administration-Cybersecurity-Priorities-for-the-FY-2025-Budget-s.pdf

Secretary of Defense directed review of Army transformation and acquisition reform. (2025, May 1). U.S. Department of Defense. https://www.defense.gov/News/Releases/Release/Article/4171008/secretary-of-defense-directed-review-of-army-transformation-and-acquisition-ref/

U.S. Department of Defense. (2025, March 10). Modern software acquisition to speed delivery, boost warfighter lethality. https://www.defense.gov/News/News-Stories/Article/Article/4114775/modern-software-acquisition-to-speed-delivery-boost-warfighter-lethality/

White House. (2025, April 9). Executive Order 14192: Modernizing defense acquisitions and spurring innovation in the defense industrial base. https://www.whitehouse.gov/presidential-actions/2025/04/modernizing-defense-acquisitions-and-spurring-innovation-in-the-defense-industrial-base/