In its first report of 2025, the Pentagon’s Defense Innovation Board is recommending an expansion of the Defense Department’s (DoD) Defense Innovation Unit (DIU) to provide “end-to-end concierge services” aimed at simplifying interactions with both traditional and non-traditional vendors.
The Scaling Nontraditional Defense Innovation report – released publicly on January 14 – highlights the challenges faced by vendors, particularly non-traditional ones, in navigating the complexities of the defense acquisition process.
The report states that, without a clear entry point, vendors find it difficult to navigate the complex defense landscape, often hindered by unfamiliarity with DoD requirements and priorities. Additionally, limited access to key stakeholders – such as buyers, funders, and end-users – restricts their ability to build relationships and secure contracts.
“This lack of access and understanding is exacerbated by the DoD’s internal acquisition processes, which can be opaque and difficult to navigate,” the document reads.
To address this ongoing challenge, DIU is well-positioned to drive the DoD’s future engagement with nontraditional vendors, bridging the gap between innovation and defense needs.
But first, the advisory group writes, DIU needs to expand its capabilities to effectively support and integrate a broader range of vendors into the defense ecosystem.
“With DIU enjoying robust bipartisan support on Capitol Hill, the next Secretary of Defense should seize this opportunity to capitalize on Congress’s enthusiasm for DIU’s mission,” the document reads. “Rather than scaling back investments, the DoD should build on the momentum of DIU’s [2024 budget] to further expand its capabilities and connections to the nontraditional vendor ecosystem.”
The fiscal year 2024 defense budget allocated $946 million to the DoD’s commercial technology arm to ensure that DIU accelerates DoD’s investments in innovative and commercial technologies for the warfighter.
“However, DIU still requires additional staffing and infrastructure to provide an end-to-end ‘concierge service’ for nontraditional vendors at scale,” the document reads.
Specifically, the board recommends that DIU evolve into a central hub for nontraditional vendors, including startups, small businesses, and investors.
This expanded DIU would also be equipped with data and AI tools to conduct commercial market research, staffed with cross-service and independent acquisition and technology experts, and empowered to identify and procure commercial solutions to address urgent end-user needs. The board also calls for DIU to recognize and reward innovation professionals, assess innovation efficiency, and evaluate the DoD’s innovation ecosystem using tangible key performance indicators.
“An enhanced and fully resourced DIU would dramatically open [the] Office of the Secretary of Defense contract administration to new solutions and approaches for removing the barriers to entry facing nontraditional vendors,” the document reads.
