US to streamline Pentagon's weapons acquisition amid global threats

The reforms aim to fix “slow procurement” caused by poor accountability and incentives, official says

Anduril flies its unmanned drone YFQ-44A for the first time at an unspecified location in California, US, Oct 31, 2025 in this handout image. Anduril/Handout via REUTERS

US Secretary of Defense Pete Hegseth is expected to unveil sweeping changes to how the Pentagon purchases weapons on Friday, allowing the military to more rapidly acquire technology amid growing global threats.

Hegseth plans to address industry leaders, military commanders and officials at the National War College, where he will detail the transformation of the Defense Acquisition System in accordance with an executive order signed by President Donald Trump in April, according to a draft memorandum seen by Reuters.

The reforms target what Pentagon officials call "unacceptably slow" procurement, which they blame on fragmented accountability and misaligned incentives that have hampered the military's ability to field new technology quickly.

Legacy defence contractors like Lockheed Martin and RTX are expected to attend alongside newer defence entrants like Palantir Technologies, Ursa Major Technologies, maritime drone maker Saronic and electronic warfare company Epirus.

The restructuring creates Portfolio Acquisition Executives who will have direct authority over major weapons programmes to eliminate bureaucracy. The acquisition chain will run directly from programme managers to these portfolio executives to military service branch acquisition leaders, with no intermediate approval layers.

The reforms require at least two qualified sources for critical programme content through initial production.

This is the latest in a series of reforms. Earlier in the year, the Pentagon changed how it purchased software.

Commercial products will become the default acquisition approach, streamlining the solicitation process, the memo says. The changes also call for time-indexed contract incentives that reward early delivery and penalise delays proportionally.

The Under Secretary of Defense for Acquisition and Sustainment, the Pentagon's chief weapons buyer, will chair monthly Acquisition Acceleration Reviews to track implementation, remove barriers, and monitor defence industrial base competition.