The U.S. Army is overhauling its acquisition strategy, moving away from traditional prime contractors in favor of smaller, innovative vendors, as articulated by Army Secretary Dan Driscoll during a media roundtable on November 7, 2023. This shift aims to expedite the delivery of weapons systems and adapt to the rapidly changing landscape of military needs.
Driscoll emphasized a significant change in the Army’s procurement approach, stating that historically, 90 percent of acquisitions were tailored for military use, while only 10 percent were commercially available products. He criticized the defense industrial base for misleading the American public and military leadership into believing that military-specific solutions were essential. “In reality, many commercial solutions are equal to or better,” he remarked, suggesting that this mindset has hindered the Army’s effectiveness.
In pursuit of a more agile acquisition process, Driscoll outlined a vision where 90 percent of purchases would utilize commercially available products, reserving military-specific items for exceptional cases. He noted that the ability to scale commercially available solutions is crucial in large-scale conflicts, contrasting it with the limitations of one-off, bespoke military solutions.
While acknowledging the challenges posed by prime contractors, Driscoll admitted that the Army has contributed to inefficiencies in the procurement process. He stated, “We created and incentivized characteristics that make it difficult for primes to build against our demand signals,” highlighting the need for the Army to improve its relationship with contractors. Driscoll and Army Chief of Staff Gen. Randy George have conveyed this message to industry leaders, emphasizing the necessity of adapting to the Army’s new procurement landscape.
The restructuring of the Army’s acquisition strategy marks a significant transformation, which includes a reduction in the number of general officers overseeing acquisitions and the consolidation of the 12 Program Executive Offices (PEOs). This strategic shift is designed to streamline operations and enhance collaboration with commercial entities.
In a related address, Defense Secretary Pete Hegseth reiterated the importance of engaging with commercial vendors, even if their offerings do not fully meet Army specifications. He advocated for a willingness to accept what he termed the “85 percent solution,” with the goal of refining products through iterative development. Hegseth emphasized the need to “increase acquisition risk in order to decrease operational risk,” underlining the department’s commitment to evolving its procurement practices.
As part of this initiative, the Army has already begun integrating commercial products into its operations. General Motors’ engines have been adopted for the Army’s infantry squad vehicles, and discussions are ongoing regarding the use of Caterpillar engines for the next-generation M1E3 Abrams tank. Gen. George affirmed the Army’s commitment to leveraging commercial technologies, stating, “There are companies out there that do this that we can definitely take advantage of.”
The Army’s acquisition overhaul represents one of the most significant changes to its procurement framework in years. By fostering partnerships with innovative vendors and adopting commercially available solutions, the Army aims to enhance its operational readiness and responsiveness. As these changes unfold, the emphasis on speed and efficiency is expected to redefine the Army’s approach to equipping its personnel for future challenges.
