Defense Acquisition Reform: Challenges, Progress, and the Path Forward

Estimated reading time: 8 minutes

Key Takeaways

• Defense acquisition reform aims to accelerate and improve the way the US military procures technology and services.
• Efforts span decades of historic laws and oversight changes.
• Major challenges include bureaucracy, cost overruns, and delays.
• Modernization needs and rapid technological change increase urgency for reform.
• Congressional hearings and annual defense laws drive accountability, but constant oversight is required.
• The future points to streamlined rules, commercial integration, and data-driven results.

What Is Defense Acquisition Reform?

Defense acquisition reform is the ongoing process of improving how the Department of Defense (DoD) procures weapons, technology, and services. Its aims? Speed, efficiency, and cost-effectiveness.
Since World War II, every administration has tackled problems like high costs, slow deliveries, and inflexible systems. Notable legislative moments include:

• Truth in Negotiations Act (1962)
• Federal Acquisition Streamlining Act (1994)
• Clinger-Cohen Act (1996)
• Weapon Systems Acquisition Reform Act (2009)

Approaches to reform have oscillated between tight controls (adding oversight steps) and cutting bureaucracy to nurture innovation. Leaders like William Perry and Harold Brown championed rapid adaptation of commercial tech and empowered small, agile teams.

Recent Highlights: US Defense Committee Hearing, July 2025

Hearing Insights: Acquisition Reform and Barriers

In July 2025, the House Armed Services Committee convened to probe why, despite major reforms, military procurement still lags in speed and results.

• Acquisition speed is critical amid global rivalries and fast-moving technology change. For more on why speed matters, see
  this guide.
• Bureaucratic red tape remains a major drag on approvals and funding.
• Calls increased for simplified budgeting and greater use of commercial-sector inventions in defense.

Key Congressmembers aired frustration at multi-year delays and emerging tech locked in endless review. The consensus: Modernization can’t wait.
Military Procurement Challenges and Inefficiencies

Entrenched Problems in Procurement

Key acquisition challenges are deeply embedded in the current system:

• Years or decades-long approval cycles
• Cost overruns on major projects
• Repeated schedule delays
• Contractor incentives misaligned with efficient outcomes
• Private-sector innovation blocked by rigid oversight
• Overly complicated compliance checks

Iconic systems from fighter jets to next-gen networks often face public scrutiny for overruns and late delivery, prompting new reform pushes.

Pentagon Modernization and Acquisition Reform

Modernization Depends on Acquisition Change

To keep pace with today’s emerging threats, the Pentagon must modernize—requiring fast, flexible acquisition. Reform is vital for:

• Addressing AI, hypersonic, and cyber threats by adapting quickly.
  See more about AI’s disruptive impact at
  AI Automation Guide.
• Moving cutting-edge technology out of labs and into frontline units fast

Without reform, competitors like China and Russia can outpace US military innovation.

Acquisition Speed in Military Procurement

Speed as a Competitive Advantage

Acquisition speed is a strategic asset. Moving quickly means:

• Rapid fielding of new weapons and communications tech
• Agile responses to changing threats on the battlefield
• Reduced advantages for adversaries modernizing swiftly

But increased speed must not sacrifice essential oversight or quality. See more on speed and implementation at

Congressional Defense Hearings and Policy Direction

Congress’ Crucial Role in Acquisition Reform

Congress shapes reform through:

• Policy hearings and reviews
• Revising annual defense laws (NDAAs)
• Piloting new procurement methods
• Continuous demand for data, evidence, and results

Their focus: Accountability, alignment with strategy, and technological leadership.

Defense Spending Policy and Reform Outcomes

How Budgets Shape Acquisition Reform

Defense budgets and spending decisions steer reform direction:

• Project funding—which programs advance or stall depends on Congressional allocation
• Oversight—routine progress reviews required for continued mandates
• Managers must balance ambition with legislative cycles

Likely and Recommended Future Actions

Reform Strategies for the Next Decade

The next stage in defense acquisition reform will feature:

• New rules to streamline and speed procurement
• Expansion of rapid prototyping, commercial off-the-shelf (COTS) adoption, and more flexible pathways
• Greater integration of commercial and defense R&D
• Data-driven oversight of program pilots and outcomes

Ongoing best practices:

• Open communication and transparency
• Accurate cost and risk prediction
• Tailored approaches for unique program needs

Comprehensive Outlook: The Future of Defense Acquisition Reform

Why Ongoing Reform Matters

Defense acquisition reform isn’t a one-time effort. Lessons from decades of attempts show that:

• Balanced reform delivers both speed and fiscal responsibility
• Modern, responsive procurement boosts national security
• Continuous improvement is essential to adapt and prevent failure or fraud

Sustained oversight by Congress, plus Pentagon and industry partnership, are keys.
Summary Table: Defense Acquisition Reform at a Glance

Theme	Challenges	Solutions/Trends	Congress’ Role
Acquisition Speed	Slow approvals, delayed deliveries	Streamline rules, rapid prototyping	Authorize pilot programs
Cost and Budget	Overruns, waste	Strong oversight, statutory controls	Budget allocation and review
Modernization	Outpaced by adversaries	Integrate commercial innovation	Align procurement with strategy
Policy Direction	Complex, fragmented processes	Comprehensive statutes, adaptive paths	Hearings, NDAAs, reporting
Future Outlook	Unpredictable threats, legacy platforms	Ongoing reform, lessons learned	Sustain oversight, drive results

Conclusion: Why Defense Acquisition Reform Is More Urgent Than Ever

Defense acquisition reform will shape the US military’s future.
As technology races forward and threats intensify, faster, smarter procurement becomes critical—not optional.
Real improvements demand:

• Steadfast commitment from Congress, DoD, and private partners
• Continuous learning from field experience and data
• Agility, accountability, and transparency—together

The decisions and reforms of 2025 are set to impact national defense for decades.

References

• Center for Strategic and International Studies (CSIS) – Cycle Times and Cycles of Acquisition Reform
• Every CRS Report – Defense Acquisition Reform: Background, Analysis, and Issues for Congress
• Stimson Center – Acquisition Reform at a Crossroads, 2025
• Defense Acquisition University – Historical Acquisition Reform

FAQ

• What is defense acquisition reform?
  
  Defense acquisition reform refers to a series of efforts, rules, and process changes aimed at making the Department of Defense’s purchasing and procurement smoother, faster, more transparent, and cost-effective. It spans legislation, oversight, and process innovation to avoid overruns and slowdowns.
  
• Why does military procurement have so many delays?
  
  Delays typically arise from complex approval chains, strict regulatory requirements, risk-averse review boards, and slow adaptation to new technologies. These issues have persisted for decades, as detailed in leading research and oversight reports.
  
• How does Congress influence acquisition reform?
  
  Congress shapes reform by holding hearings, writing rules into law (such as NDAAs), requiring Pentagon reporting, and mandating pilot programs for innovative contracting and acquisition.
  
• What’s the main goal of current reform efforts?
  
  The primary goal is to bring speed, value, and adaptability to defense procurement—delivering better technology to the military faster, while maintaining accountability and cost controls.
  
• Will reforms really make military buying faster?
  
  If paired with effective oversight and modern approaches (such as rapid prototyping and commercial adoption), reforms have substantial potential. Full success depends on sustained focus, agile processes, and open communication across Congress, DoD, and industry.
  
  

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