• The Pentagon's acquisition reform plans were criticized for being watered down after a leaked memo and a public speech by Secretary Pete Hegseth.
• The final memo dropped several key provisions, including time-fixed development and production, flexible budget resources, and non-traditional participation in the industrial base.
• The changes may hinder innovation and progress in the acquisition process.
• The final memo also eliminated performance metrics to encourage alternative sources and the Modular Open Systems Approach (MOSA).
• The revised memo gives the Service Acquisition Executive (SAE) the ability to waive MOSA for new programs.

The watered-down final memo may indicate a lack of commitment to innovation and speed in the acquisition process. The elimination of flexible budget resources and non-traditional participation in the industrial base may stifle competition and limit the department's ability to adapt to changing needs. The lack of performance metrics to encourage alternative sources may also lead to a return to traditional procurement methods.