Source: U.S. Department of War, Acquisition Transformation Strategy
The Acquisition Transformation Strategy marks a structural shift toward a wartime production posture—one that prioritizes speed, industrial scale, supplier diversification, and commercial integration. This is not incremental reform; it is a comprehensive modernization effort designed to correct decades of supply chain fragility, contracting delays, and over-reliance on a small number of prime contractors.
For CEOs, this transformation signals an expanded competitive landscape, new market entry points, accelerated procurement pathways, and a heightened emphasis on digital engineering and operational readiness. Companies that can deliver rapidly, scale production, and integrate digital approaches will be strongly positioned to capture emerging opportunities across the defense ecosystem.
The defense environment is defined by converging pressures: the need to replenish munitions at scale, the emergence of multi-theatre operational demands, and an increasingly contested technological landscape. The strategy acknowledges that traditional acquisition methods—slow, rigid, and heavily process-driven—are incompatible with current geopolitical realities.
The document’s intent is clear: introduce structural reforms that enable industry to produce, innovate, and field capabilities at the speed demanded by modern conflict. This includes unlocking private capital, strengthening industrial resilience, and driving collaboration across a broader array of suppliers, including allies.
A central component of the strategy is the deliberate expansion of the defense industrial base. The decline from 51 major contractors to just five has left the system vulnerable to bottlenecks, single points of failure, and limited competition. The new approach aims to broaden participation across the entire value chain, creating meaningful entry points for commercial firms, dual-use technology providers, small and mid-sized companies, and international partners.
In this environment, companies with advanced manufacturing capabilities, digital engineering expertise, or strong prototyping pipelines will benefit. The emphasis on a high-low mix of capabilities—pairing exquisite, long-cycle systems with rapidly fieldable technologies—creates opportunities in munitions, sensors, autonomy, space systems, and cyber-enabled infrastructure.
The strategy places a strong focus on stabilizing procurement cycles through multi-year demand signals. Historically, fluctuating orders created systemic underinvestment, especially in munitions and key subsystems. By issuing predictable, high-volume procurement commitments, the government aims to unlock capital investment, modernize production lines, and rebuild labour and supplier networks.
This new predictability is expected to attract private equity, long-horizon capital, and strategic investors. For CEOs, the shift presents an opportunity to accelerate facility expansion, workforce scaling, and forward investment in emerging capabilities that align with long-term procurement patterns.
One of the most consequential cultural shifts within the strategy is the transition from a rigid, requirements-first model to a more flexible, solutions-driven approach. Instead of dictating specifications, the government intends to present operational challenges and encourage industry to demonstrate answers through prototypes, modelling, simulations, and field demonstrations.
This transformation reduces barriers for smaller and nontraditional firms that can iterate rapidly and bring forward technologies that were previously excluded for not aligning with legacy requirements frameworks. For established firms, the new approach rewards agility and penalizes slow, sequential development cycles.
Contracting reform sits at the heart of the strategy’s execution. The expanded use of Other Transaction Authorities (OTAs), Commercial Solutions Offerings, and direct-to-supplier contracting represents a decisive move toward acquisition pathways that drastically shorten timelines and reduce compliance burdens.
The commitment to streamline major regulatory frameworks—including targeted reductions to the FAR, DFARS, and application of the Truth in Negotiations Act—creates a more agile and competitive environment. Contracts that once took months or years may now be issued in weeks, benefiting firms that have positioned themselves to respond quickly with production-ready offerings.
The creation of the Warfighting Acquisition University signals a fundamental reorientation of acquisition culture. Program managers and contracting leaders will be trained to operate with speed, mission-focus, and a higher tolerance for calculated risk. Scenario-based learning, integrated cross-functional teams, and exposure to commercial innovation cycles will shape a new generation of acquisition professionals capable of making faster and more informed decisions.
This shift is reinforced through the introduction of digital tools—AI-enabled assessments, model-based engineering, and real-time performance dashboards—that allow government and industry to collaborate more closely and maintain continuous visibility across program lifecycles.
Perhaps the most transformative organizational element is the creation of the Wartime Production Unit. Designed to break bottlenecks, accelerate throughput, and intervene directly in production challenges, the unit will act as a catalyst for scaling industrial output. It combines production analytics, supply chain oversight, and specialized contracting support to help programs achieve the surge capacity required for modern conflict.
For industry, this introduces a new partnership model—one that expects transparency, production readiness, and measurable performance improvements, but also provides direct support in resolving structural challenges.
The transformed environment favors companies that can innovate quickly, demonstrate capabilities early, and scale efficiently. Opportunities are particularly strong in munitions, energetics, ISR, electronic warfare, autonomy, space architecture, digital logistics, and cyber-secure cloud environments.
Allied companies—especially those in Canada, Europe, and the Indo-Pacific—stand to gain from this diversification push, provided they meet interoperability, security, and compliance requirements. Competition among traditional primes is likely to intensify as government oversight increases and under-performing programs face restructuring or reallocation.
To compete effectively in the emerging landscape, industry leaders should consider several priority moves. First, aligning internal processes with rapid prototyping, iterative development, and modular designs will position portfolios for accelerated pathways. Second, investments in digital engineering, simulation environments, and automated test capabilities will be essential to remaining competitive. Third, companies should strengthen supply chain visibility and resilience, extending oversight to tier-two and tier-three suppliers.
In parallel, organizations should evaluate opportunities to expand their U.S. presence, enhance contractual agility, and engage more deeply with private capital partners to support growth. The competitive advantage will shift to companies that can deliver quickly, scale confidently, and partner seamlessly with government programs operating at a much faster tempo.
The Acquisition Transformation Strategy represents a generational pivot toward industrial mobilization, accelerated innovation, and broader supplier integration. For CEOs and boards, the implications are profound: new markets, faster cycles, more diverse competitors, and rising expectations for delivery and resilience.
Samuel Group D.C. will continue to provide forward-looking analysis and tailored strategic guidance as this transformation reshapes the competitive landscape across North America, NATO, and the wider defense ecosystem.
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