Full Committee Hearing: Reforming Defense Acquisition to Deliver Capability

Committee on Armed Services

2025-07-23

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Source: Congress.gov

Summary

This meeting focused on the urgent need for defense acquisition reform to address the United States' most dangerous security environment since World War II, characterized by China's rapid military expansion and slow U.S. procurement processes [ 00:24:48 ] . Participants discussed the challenges facing the current system and highlighted the Bipartisan Speed Act as a critical step toward modernizing defense capabilities and strengthening the industrial base [ 00:26:06 ]

. The discussion covered a range of topics from fostering innovation and cultural change to improving international collaboration and congressional oversight [ 00:26:51 ] [ 00:39:34 ] .

Themes

Challenges in Defense Acquisition [ 00:25:02 ]

The current U.S. defense acquisition system is failing the American warfighter, taking over a decade to deliver new capabilities while threats evolve rapidly [ 00:25:02 ]

[ 00:24:54 ] . This is exacerbated by bureaucratic delays, red tape, a risk-averse culture, and a declining number of prime contractors, deterring innovation and leaving game-changing technologies in a "valley of death" [ 00:25:16 ] . The resulting hollowed-out industrial base is considered a national security emergency [ 00:25:37 ] .

The Bipartisan Speed Act [ 00:26:07 ]

Introduced by Chairman Rogers and the Ranking Member, the Speed Act is central to the FY26 NDA and aims to drastically cut red tape and accelerate delivery to warfighters [ 00:26:07 ]

. It will reduce the requirements process from years to months, empower program executive officers, prioritize commercial solutions, and modernize regulations to bridge the "valley of death" [ 00:26:15 ] . The Act also promotes a "data as a service" model, creates the Defense Industrial Resilience Consortium, and seeks to foster a culture of agility and responsible risk-taking within the Department of Defense [ 00:26:26 ] .

Role of Commercial Solutions and Industrial Base

There is a strong emphasis on leveraging commercial solutions and rebuilding a resilient defense industrial base, tapping into startups and non-traditional vendors to fuel competition and innovation . A significant challenge lies in balancing the protection of privately funded intellectual property with the DoD's need for technical data to sustain systems organically [ 00:37:35 ]

. Strategies include multi-year contracts for munitions to stabilize demand and strengthening critical sectors like microelectronics using the Defense Production Act . Efforts are underway to address the over-consolidation of prime contractors and integrate underutilized DoD facilities for new production, such as UAS components .

Cultural and Workforce Changes

A fundamental cultural shift is deemed necessary across the Pentagon, Congress, and defense contractors, moving away from compliance and risk-aversion towards agility and responsible risk-taking [ 00:59:13 ]

. This involves empowering the acquisition workforce with greater authority and flexibility, and recognizing that a "culture of compliance" often slows progress [ 01:10:05 ] [ 01:01:12 ] . Extending program executive officer terms from three to six years, as proposed in the NDAA, aims to incentivize long-term vision and calculated risk-taking [ 01:00:07 ] .

International Collaboration and Partnerships [ 00:39:34 ]

The meeting stressed the importance of international collaboration, including co-production agreements with allies to build capacity and enhance interoperability [ 00:39:34 ]

. The AUKUS agreement was cited as a model for breaking down defense export controls and fostering joint production, with Australia investing significantly in the U.S. industrial base . Balancing domestic content demands with the necessity of leveraging foreign partners is a key consideration to meet global defense needs .

Communication and Oversight

Concerns were raised about communication breakdowns between the DoD and Congress, with calls for improved information sharing and transparency . Members emphasized the importance of congressional oversight and the role of independent review organizations like the GAO, urging caution against "gutting" internal DoD review bodies . The Undersecretary committed to better communication and timely delivery of requested reports [ 01:14:38 ]

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Tone of the Meeting

The tone of the meeting was primarily urgent and collaborative, reflecting a shared understanding of the critical need for defense acquisition reform given the evolving global security landscape [ 00:24:48 ] . While acknowledging past failures and expressing concern about the current state of the defense industrial base and communication gaps, there was a palpable sense of optimism regarding the Bipartisan Speed Act and the potential for meaningful change through joint efforts between Congress and the Department of Defense [ 00:28:47 ]

. Members were direct in their questions and expectations, underscoring the seriousness of the issues at hand .

Participants

Transcript

The committee will come to order.  The United States faces the most dangerous security environment since World War II.  China is rapidly expanding its military power.  It can field advanced systems in a matter of months.  By contrast, in the United States, it takes more than a decade to deliver needed new capability to our war fighters.   By that time, the threat has changed, the cost had ballooned, and the solution is outdated.  The reality is that our defense acquisition system is failing the American warfighter.  That's not just my view.  Nearly every combatant commander who's testified before this committee this year said the same.  Moreover, defense companies of all sizes tell us they face a maze of red tape, bureaucratic delays, and a risk-averse culture at the department that deters innovation.   This helps explain why the number of prime contractors in our country has dropped from 51 to now six.   Meanwhile, excessive regulations and fears of losing privately funded IP are driving away commercial firms and startups and making VCs think twice about investing in defense tech.  And for those that do press ahead, too often the game-changing technologies languish in the notorious valley of death, never reaching full-scale production.   The cumulative effect is a hollowed out, uncompetitive defense industrial base.  This is a national security emergency.  If we're serious about achieving President Trump's peace through strength agenda, it's not enough to spend more.  We have to make every dollar count.  The reconciliation package that President Trump recently passed in the law was a critical first step in restoring the level of investment that our defense industry needs.   But even if we raise defense spending to 5% of GDP, as I've urged, it won't make a difference unless we fix this broken acquisition system.
That's why, along with my good friend the ranking member, I introduced the Bipartisan Speed Act, which is now the cornerstone of the FY26 NDA passed by this committee last week.  The Speed Act will cut through layers of red tape and deliver for the warfighter at a speed and scale.   It accelerates the requirements process from nearly three years to as few as 90 days.  It empowers program executive officers and gives them greater budget flexibility.  It prioritizes commercial solutions and fosters an environment where innovation can flourish by removing barriers to entry and bridging the valley of death.   It modernizes outdated and overly burdensome regulations that slow delivery and inflate costs.  It promotes a data as a service model that gives the department access to the technical data it needs to sustain its systems while preserving the intellectual capital of the American industry.  It creates the Defense Industrial Resilience Consortium, bringing industry to the table to address challenges from supply chain fragility to restoring surge capacity.   And most importantly, it drives much needed cultural change.  No more rewarding paper pushers over problem solvers.  The Speed Act fosters a culture of agility and responsible risk taking where failing fast and learning quickly is seen as progress, not as a career killer.  Let's be honest, past reforms have failed.   However, I believe this time is different.  The White House, the Pentagon, Congress, and industry are all demanding change.  I commend President Trump for calling on the Department to urgently modernize defense acquisition and streamline overly burdensome regulations.  Mr. Duffy, we want to hear from you on how the Department is acting on that directive to deliver to the warfighter, and I look forward to   discussing how we can align our efforts to fix the defense acquisition system and ensure the U.S.