Pentagon Overhauls Acquisition, Production and Procurement Processes

January 7, 2026 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2026-1767828702272-1769

US Defense Industrial Base Seeks to Build Capacity Amid Supply Chain Challenges

The US Pentagon is overhauling its acquisition, production and procurement processes to rebuild the industrial base. This comes after COVID revealed weaknesses in the supply chain and highlighted the need for greater capacity and resilience. The new approach aims to create a more modular and open systems architecture, with a focus on incentivizing new entrants and creating opportunities for smaller companies. However, implementing these changes will be challenging, and their success will depend on the government’s ability to create demand signals that allow for more competition throughout the life cycle of programs.

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Key Takeaways

The US defense industrial base faces challenges in supply chain management.
COVID revealed weaknesses in the supply chain.
Rebuilding the industrial base requires an overhaul of acquisition, production and procurement processes.

Pentagon Lockheed Martin Raytheon

Strategic Implications

The Pentagon’s efforts to rebuild the industrial base may indicate a shift towards more modular open systems approaches (MOSA) and increased competition among contractors. This could lead to improved capacity and reduced bottlenecks in the supply chain. However, implementing these changes will require significant effort and investment. The success of these initiatives may also depend on the government’s ability to create demand signals that allow for more competition throughout the life cycle of programs.