The U.S. Army expects to finalize some initial agreements under its new strategic capital initiative by summer 2025, focusing first on projects officials describe as more easily attainable.
The Army Strategic Capital Initiative seeks to partner with private industry to co-invest in Army installations, technology, energy infrastructure, and the industrial base, aiming to accelerate modernization while leveraging commercial expertise and diversifying funding sources.
Dave Fitzgerald, deputy undersecretary of the Army, said during a media roundtable today that early agreements will likely center on what he called “lower-hanging fruit,” while more complex, “meatier” efforts will require additional assessment.
“Some of these projects might require more diligence than others,” he said.
Ultimately, he said, timelines will depend on the volume and “nature of the responses” to the recent request for information (RFI) launching the initiative.
Fitzgerald described the effort as proceeding on a rolling basis as the Army evaluates submissions and aligns them with internal studies of its organic industrial base and transformation strategy.
The RFI, published Friday, invites industry leaders, investors, and innovators to propose co-investment models and public-private partnership structures to support modernization across Army installations, energy infrastructure, technology, and the industrial base. Responses are due April 2.
The initiative calls for commercially sustainable proposals diversified across commercial and government markets, rather than relying solely on Army appropriations.
Fitzgerald said the service intends for appropriated funds to serve as a backstop, not a guaranteed final purchase. The goal is to encourage long-term partnerships and reduce risk for both taxpayers and industry, he noted.
“Ultimately, the model we’re hoping for is that appropriated funds are not the final backstop,” he said. “It is commercial markets in conjunction with not just the Army, but other military, other government customers.”
The Army identified six focus areas for the initiative: energy resilience and dominance, the organic industrial base, logistics and supply chains, real assets and facilities utilization, advanced manufacturing and technology adoption, and critical minerals and resource development.