On Tuesday, June 3, 2025, the United States Senate confirmed Michael Duffey as the Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) in a 51–46 vote, reaffirming the Department of Defense’s enduring commitment to acquisition reform and national industrial base resilience. Nominated earlier this year by former President Donald Trump, Duffey assumes leadership of one of the Pentagon’s most consequential directorates, with direct oversight over the Department’s $400B+ annual acquisition portfolio.
This appointment comes at a critical juncture in U.S. defense posture, as Washington accelerates its pivot toward strategic competition with near-peer adversaries while simultaneously seeking to de-risk supply chains, modernize procurement pathways, and integrate dual-use innovation from the private sector.
During his confirmation process, Duffey outlined a vision grounded in four principal objectives:
1. Rebuilding Military Readiness
Duffey emphasized the imperative to rebuild and modernize force capabilities, reinforcing Secretary Austin’s broader call to reverse readiness erosion and recalibrate force projection capacities across Indo-Pacific and European theatres.
2. Repatriating and Securing Supply Chains
In line with recent bipartisan legislation on critical minerals, microelectronics, and defense manufacturing, Duffey pledged to “repatriate” vulnerable defense supply chains—a term signaling aggressive onshoring or near-shoring of essential industrial inputs.
3. Modernizing the Acquisition Ecosystem
Duffey’s commitment to modular open systems architecture (MOSA), adaptive acquisition frameworks (AAF), and capability portfolio management (CPM) suggests a shift from linear platform development models to more dynamic, interoperable ecosystems—critical for AI-enabled systems, hypersonics, and C5ISR modernization.
4. Attracting Private Capital and Non-Traditional Entrants
Perhaps most notably, Duffey has articulated a desire to institutionalize mechanisms for scaling private capital flows into defense innovation pipelines, a move that could reshape acquisition financing and align with emerging Public-Private Partnership (PPP) models seen in dual-use tech accelerators.
From the perspective of defense primes, integrators, and new market entrants, Duffey’s appointment portends a continuation—and possible acceleration—of recent efforts to diversify the defense industrial base and reduce bureaucratic friction. In particular, his endorsement of Other Transaction Authority (OTA) contracting and CMMC 2.0 review may create near-term windows for commercially-oriented firms with agile, secure platforms to compete in previously inaccessible domains.
Additionally, Duffey’s prior experience in the Office of Management and Budget (OMB), and his roles supporting the Secretary and Under Secretary of Defense for R&E, position him uniquely to bridge budgetary processes with R&D priorities—particularly alongside Emil Michael, the newly appointed USD(R&E), as both directorates work to field next-generation capabilities under unified technical and programmatic governance.
The confirmation of Duffey reinforces the U.S. Department of Defense’s intention to recalibrate its acquisition framework for strategic resilience and competitive advantage. For allied defense firms, particularly those seeking entry through ITAR-aligned cooperation, the emphasis on interoperability, supply chain security, and modular systems presents both challenges and opportunities.
Canadian firms with a proven track record in secure software systems, advanced manufacturing, and dual-use AI should assess alignment with Duffey’s emerging priorities. Samuel Group’s Washington, D.C. office continues to monitor and engage with these shifts, supporting clients across North America and Europe in adapting to this evolving defense landscape.
Michael Duffey’s appointment is not merely administrative—it is emblematic of a broader transformation in how the United States will procure, sustain, and evolve military capabilities in an era of high-stakes geopolitical competition. His emphasis on innovation, agility, and partnership will shape the next generation of defense-industrial relations. At Samuel Group, we look forward to helping clients position effectively within this dynamic environment.
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