Experts see promise, risk in Pentagon's draft acquisition reforms

"Some experts see promise in the sweeping acquisition reforms prescribed by a draft Pentagon memo that is circulating ahead of the defense secretary's planned Friday speech on the topic, but others see risk. Defense One reviewed and verified a copy of the six-page draft on Tuesday, which pitched the overhaul as a "historic opportunity to restore deterrence in the face of an increasingly dangerous security environment" by cutting internal review processes, reorganizing acquisitions efforts, and doling out harsher punishments for companies that go over budget"

"The draft memo, addressed to combatant commanders and senior Pentagon leaders, says, "Today's unacceptably slow acquisition fielding times stem from three systemic challenges: fragmented accountability where no single leader can make trades between speed, performance and cost; broken incentives that reward completely satisfying every specification at significant cost to on time delivery; and procurement patterns that disincentivize industry investment, leading to constrained industrial capacity that cannot surge or adapt quickly.""

A draft Pentagon memo proposes sweeping acquisition reforms intended to restore deterrence by shortening internal review processes, reorganizing acquisition responsibilities, and increasing penalties for contractors that exceed budgets. The memo identifies three systemic challenges: fragmented accountability, incentives that prioritize perfect specifications over timely delivery, and procurement patterns that discourage industry investment and surge capacity. Proposed initiatives include creating Portfolio Acquisition Executives with greater autonomy, using scorecards to evaluate portfolios, levying time-indexed incentives for contractors, and directing acquisition leadership to issue cross-cutting transformation guidance within 45 days. Military departments must submit implementation plans within 60 days. The Pentagon declined to comment on the pre-decisional document.

Read at Nextgov.com