The biggest story this week out of the Department of Defense is Secretary Pete Hegseth’s game-changing announcement on defense acquisition reform. On November 7th, Hegseth unveiled the “Transforming the Warfighting Acquisition System” strategy, marking what he calls “a fundamental shift” in how the Pentagon will develop and deliver new capabilities. The headline: speed to capability is now the DoD’s north star—every acquisition must demonstrate how it gets technology and tools into the field faster.
This shift comes as part of President Trump’s executive order to overhaul procurement, and the implications are sweeping. In Hegseth’s words, the Pentagon will no longer be “modernizing at the speed of bureaucracy but at the speed of need.” For Americans, this means the DoD is restructuring everything from buying advanced drones and AI-powered software to updating how it works with commercial partners.
Here’s what’s changing. First, risk tolerance is up, with the Pentagon openly accepting more risk on new programs so that critical tech reaches the warfighter quicker. Next, outdated rules are getting slashed through a “ten-for-one” cut to acquisition regulations, and the DoD will increasingly leverage commercial practices, rapid prototyping, and modular system designs.
Major deadlines are coming fast: within 45 days, new implementation guidance goes out; within 60 days, each military branch must submit transition plans; and all major programs must shift to this new model within two years. There’s also a big push for performance-based personnel management. Program managers and procurement agents will now serve four-year minimum terms, and their compensation depends directly on delivery speed. Hegseth was blunt, saying “chronic underperformers will no longer be shielded by process.”
For businesses, this opens doors for more nimble and innovative players to serve the Pentagon. The favored contracts now use flexible funding models—think grants, purchase commitments, even options—allowing startups direct engagement through so-called Other Transaction Authorities.
Key budget changes are already rolling out. According to internal DoD memos, 8 percent of the defense budget is being shifted away from legacy projects, with new money flowing to border security, nuclear modernization, missile defense, and cutting-edge munitions. Congress is in the mix too: lawmakers are shaping the defense bill with a focus on speed and competition, and they just passed $153 billion in defense and veterans’ infrastructure upgrades, with $19.7 billion for military construction and $1.5 billion for modernizing naval shipyards. Lawmakers like Tom Cole and John Carter say these decisions “uphold our nation’s promise to veterans and strengthen military families.”
The new acquisition reforms will affect state and local governments and international partners as well, especially with an increased focus on strategic deterrence in the Indo-Pacific. According to RegScale, preventing a Chinese military move on Taiwan is now a top priority, with defense funds and partnerships shifting accordingly.
On the regulatory front, the Cybersecurity Maturity Model Certification 2.0 streamlines cyber compliance for businesses, simplifying requirements but making enforcement tougher—a move meant to secure sensitive tech and protect the defense supply chain from growing threats.
Looking ahead, listeners should watch for the military departments’ implementation plans by year’s end, new contracting guidelines within six months, and monthly Pentagon reviews that publicly score how fast new tools are reaching troops. For businesses or organizations hoping to work with the new DoD, now’s the time to track opportunities, build agile teams, and prepare for greater accountability and higher performance standards. Citizens can stay informed on changes and public input opportunities at war.gov.
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