President Donald Trump signed an executive order on Wednesday aimed at modernizing the Department of Defense’s (DoD) acquisition process – an overhaul that could lead to the cancellation of costly or delayed military programs.
The order directs Defense Secretary Pete Hegseth, along with other Pentagon leaders, to complete a comprehensive review of all major defense acquisition programs (MDAPs) within 90 days.
“It is the policy of the United States Government to accelerate defense procurement and revitalize the defense industrial base to restore peace through strength,” the order says. “To achieve this, the United States will rapidly reform our antiquated defense acquisition processes with an emphasis on speed, flexibility, and execution.”
Under the order, any program more than 15 percent behind schedule or 15 percent over budget will be considered for cancellation. Additionally, any program “unaligned” with Hegseth’s mission priorities will also be at risk of being canceled.
Following the review, Hegseth must submit a potential cancellation list to the Office of Management and Budget (OMB), which will use the list “for future budget determinations.” The order also calls for a review of other major systems outside of the MDAP category.
Within 60 days, Hegseth is also required to submit a plan to Trump to reform the DoD’s acquisition processes. The plan must outline how the Pentagon will prioritize commercial solutions, leverage other transaction authority, apply Rapid Capabilities Office policies, and utilize “other pathways to promote streamlined acquisitions.”
Workforce Reform
The order also looks to modernize the defense acquisition workforce, incentivizing risk-taking and innovation from employees.
Within 120 days, Hegseth and Pentagon leadership must provide Trump with a plan to “reform, right-size, and train the acquisition workforce.” The plan will include a restructuring of performance evaluation metrics, an analysis of acquisition workforce staff levels, and the establishment of field training teams “with expertise in innovative acquisition authorities and commercial solutions.”
“America’s defense acquisition workforce is a national strategic asset critical to maintaining military superiority, and its personnel must deliver on enhancing warfighting capabilities rather than being bogged down with bureaucratic procedures,” the White House said in a fact sheet on the order.