Is the Pentagon Putting Defense Acquisition on a Wartime Footing?

The Department of War is undertaking one of the most aggressive acquisition overhauls in decades, and the implications for government contractors could reshape the defense industrial base for years to come.

Driven by Executive Order 14265 and a sweeping new acquisition transformation strategy, defense leaders are moving to fundamentally redesign how military capabilities are developed, procured and delivered. The department’s message to industry is clear: speed is now the organizing principle.

According to Secretary of War and Wash100 winner Pete Hegseth, the Defense Acquisition System has officially been redesignated as the “Warfighting Acquisition System”, or WAS, reflecting a broader shift toward rapid capability delivery, production scalability and operational urgency. For GovCon executives, the transformation signals significant changes in acquisition authority, contracting structures, industrial base expectations and technology adoption priorities.

As the Department of War accelerates its transformation toward a Warfighting Acquisition System, understanding how these reforms will impact contracting, modernization and industrial base engagement will be critical for GovCon executives. The 2026 Army Summit on June 18 will provide direct insight into the acquisition priorities, operational requirements and modernization strategies reshaping the defense landscape. Reserve your seat now. 

Why Is the Department of War Overhauling the Acquisition System?

Defense and GovCon leaders alike argue the current acquisition environment is too slow, too fragmented and too compliance-driven to compete against near-peer adversaries.

The department identified three core problems driving the overhaul:

• Fragmented accountability across acquisition programs
• Incentives that prioritize exhaustive requirements over timely delivery
• Procurement approaches that discourage industrial growth and innovation

The DOW’s strategy calls for acquisition organizations to adopt a “wartime footing” capable of accelerating modernization, increasing munitions production and scaling manufacturing capacity in preparation for potential conflict scenarios. 

The transformation also reflects growing concern over strategic competition, supply chain resilience and the ability to rapidly field operationally relevant technologies across all domains.

What Does the Warfighting Acquisition System Mean for Industry?

The redesignation of the Defense Acquisition System into the Warfighting Acquisition System represents more than a branding change. It is meant to signal a philosophical shift in how defense acquisition will operate moving forward.

Under the new model, acquisition is formally recognized as a warfighting function, with authority concentrated in fewer leaders empowered to make rapid tradeoffs involving cost, schedule and performance. 

For contractors, this likely means:

• Faster acquisition timelines
• Greater emphasis on production readiness
• Increased use of modular open architectures
• Expanded opportunities for commercial technologies
• More flexible contracting mechanisms
• Greater pressure to demonstrate scalability and delivery speed

The Pentagon also intends to prioritize “commercial-first” acquisition approaches wherever possible, including expanded use of commercial solutions openings, other transaction authorities and non-FAR-based procurement methods. 

How Might Portfolio Acquisition Executives Change the Procurement Landscape?

DOW’s Acquisition Transformation Strategy intends to “rebuild the Arsenal of Freedom.” One of the most consequential reforms is the establishment of portfolio acquisition executives, or PAEs.

These officials will serve as the single accountable authority for portfolio outcomes and will have expanded authority to:

• Structure programs around schedule-driven capability increments
• Make rapid cost, schedule and performance tradeoffs
• Implement capability trade councils
• Waive non-statutory technical standards
• Align contracting officers directly within acquisition chains of command

The department says the PAE structure is intended to flatten bureaucracy and empower faster decision-making. 

For GovCons, this could significantly alter engagement strategies by consolidating authority and accelerating acquisition cycles. Contractors that can rapidly iterate, deliver modular solutions and scale production may gain competitive advantages under the new framework.

The 2026 Army Summit will bring together senior acquisition officials, including the deputy executive director of one of the largest U.S. Army Contracting Commands, Katie Thompson, 

to discuss the evolving acquisition environment and what it means for contractors supporting mission-critical programs. Attendees will gain insight into key priorities such as accelerated fielding timelines, AI-enabled capabilities, commercial technology adoption, resilient supply chains and modular open systems architectures.

Why Is Speed Becoming the Pentagon’s Top Acquisition Priority?

The DOW emphasized that “speed to capability delivery” is now the central metric for acquisition success. 

Defense leaders argue that modern conflict environments evolve too quickly for traditional procurement timelines. In response, the department is directing acquisition professionals to prioritize timely fielding over exhaustive perfection.

The strategy includes:

• Competitive prototyping in place of lengthy analyses
• Reduced documentation requirements
• Persistent testing pipelines for continuous updates
• Modular architectures enabling faster integration
• Production strategies designed for wartime surge capacity

The Pentagon is also pushing to reduce “sensor-to-shooter” and operational deployment timelines by accelerating software acquisition and enabling iterative upgrades.

How Is the Defense Industrial Base Expected to Evolve?

The acquisition overhaul places major emphasis on rebuilding and expanding the defense industrial base.

According to the Acquisition Transformation Strategy, the department plans to establish a wartime production unit to coordinate with industry on manufacturing optimization, supply chain visibility and surge production readiness. 

As the DOW’s guidance calls for new contracting incentives tied directly to delivery speed, production capacity and operational outcomes, this creates new opportunities for defense companies capable of rapidly scaling manufacturing, integrating commercial innovation and supporting resilient supply chains.

What Does the Transformation Mean for Defense Technology Providers?

The department’s strategy strongly favors companies capable of supporting agile development, software-driven modernization and rapid deployment cycles.

Recent directives already position the Software Acquisition Pathway as the preferred mechanism for software procurement across the department. 

Emerging priorities include:

• Artificial intelligence-enabled capabilities
• Modular software architectures
• Autonomous systems
• Digital engineering
• Open systems integration
• Rapid prototyping and experimentation

The Pentagon is also prioritizing acquisition flexibility to accelerate adoption of innovative commercial technologies that can quickly transition from prototype to operational capability.

How Could Acquisition Workforce Reforms Affect GovCons?

The transformation effort also targets the acquisition workforce itself.

The department plans to:

• Extend program manager tenures
• Tie compensation to mission outcomes and delivery speed
• Expand direct-hire authorities
• Increase exposure to commercial industry practices
• Transform the Defense Acquisition University into the Warfighting Acquisition University

These changes are designed to create a more operationally focused acquisition culture centered on execution and accountability rather than compliance. 

For GovCons, the reforms could lead to acquisition teams that are more empowered, commercially oriented and focused on measurable operational outcomes.

Why Should GovCon Executives Pay Attention Now?

The Department of War’s acquisition transformation strategy represents a major structural shift in defense procurement priorities, operational expectations and industrial base engagement.

Future success for executive-level defense contractors will depend on the ability to move faster, scale production, integrate commercial innovation and deliver operational capability at speed.

As the Pentagon restructures acquisition around urgency, modularity and wartime readiness, companies that adapt early may be best positioned to compete in the next era of defense modernization.

For contractors navigating evolving acquisition models, compressed procurement timelines and increasing demand for scalable solutions, the 2026 Army Summit offers a valuable opportunity to engage directly with decision-makers shaping the future of defense acquisition. Register today to position your organization at the forefront of Army modernization and industrial base transformation.