Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base

Executive Order 14265 of April 9, 2025

Modernizing Defense Acquisitions and Spurring
Innovation in the Defense Industrial Base

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, it is hereby ordered:

Section 1. Purpose. As Chief Executive and Commander in
Chief, I am committed to ensuring that the United
States military possesses the most lethal warfighting
capabilities in the world. America's defense industrial
base is central to this effort. Similarly, the defense
acquisition workforce is a national strategic asset
that will be decisive in any conflict, where the
factory floor can be just as significant as the
battlefield.

Unfortunately, after years of misplaced priorities and
poor management, our defense acquisition system does
not provide the speed and flexibility our Armed Forces
need to have decisive advantages in the future. In
order to strengthen our military edge, America must
deliver state-of-the?art capabilities at speed and
scale through a comprehensive overhaul of this system.

Sec. 2. Policy. It is the policy of the United States
Government to accelerate defense procurement and
revitalize the defense industrial base to restore peace
through strength. To achieve this, the United States
will rapidly reform our antiquated defense acquisition
processes with an emphasis on speed, flexibility, and
execution. We will also modernize the duties and
composition of the defense acquisition workforce, as
well as incentivize and reward risk-taking and
innovation from these personnel.

Sec. 3. Acquisition Process Reform. Within 60 days of
the date of this order, the Secretary of Defense shall
submit to the President a plan to reform the Department
of Defense's acquisition processes that, to the maximum
extent possible, incorporates the following:

    (a) Utilization of existing authorities to expedite
acquisitions throughout the Department of Defense,
including a first preference for commercial solutions
and a general preference for Other Transactions
Authority, application of Rapid Capabilities Office
policies, or any other authorities or pathways to
promote streamlined acquisitions under the Adaptative
Acquisition Framework. Starting upon issuance of this
order, and during the formation of the plan, the
Secretary of Defense shall prioritize use of these
authorities in all pending Department of Defense
contracting actions and require their application,
where appropriate and consistent with applicable law,
for all Department of Defense contracting actions
pursued while the plan directed by this section is
under consideration.
    (b) A detailed process review of each functional
support role within the acquisition workforce to
eliminate unnecessary tasks, reduce duplicative
approvals, and centralize decision-making. These
reviews should also include evaluations of program
managers, contracting officers, engineering
authorities, financial managers, cost estimators, and
logisticians.
    (c) A detailed process by which the Under Secretary
of Defense for Acquisition and Sustainment, Service
Acquisition Executives, and Component Acquisition
Executives can effectively manage risk for all
acquisition programs through a formal steering board
known as a Configuration Steering Board.

Sec. 4. Internal Regulations Review. The Secretary of
Defense shall oversee the review of and, as
appropriate, propose revisions to relevant Department

of Defense instructions, implementation guides,
manuals, and regulations relating to acquisition to:

    (a) Eliminate or revise any unnecessary
supplemental regulations or any other internal
guidance, such as relevant parts of the Financial
Management Regulation and Defense Federal Acquisition
Regulation Supplement.
    (b) Promote expedited and streamlined acquisitions.
Where new supplemental regulations or internal guidance
is proposed, the Secretary of Defense shall apply the
ten-for-one rule as described in Executive Order 14192
of January 31, 2025 (Unleashing Prosperity Through
Deregulation).

Sec. 5. Acquisition Workforce Reform. Within 120 days
of the date of this order, the Secretary of Defense, in
coordination with the Secretary of the Army, the
Secretary of the Navy, the Secretary of the Air Force,
and Component Acquisition Executives, shall develop and
submit to the President a plan for consideration to
reform, right-size, and train the acquisition workforce
that includes the following components:

    (a) The restructuring of performance evaluation
metrics for acquisition workforce members to include
the ability to demonstrate and apply a first
consideration of commercial solutions, adaptive
acquisition pathways through the Adaptive Acquisition
Framework, and iterative requirements based on the
perspective of the end user.
    (b) An analysis of acquisition workforce staff
levels required to develop, deliver, and sustain
warfighting capabilities.
    (c) The establishment of field training teams by
the Under Secretary of Defense for Acquisition and
Sustainment, led by senior acquisition executives or
managers with expertise in innovative acquisition
authorities and commercial solutions, and modeled after
field training teams authorized by section 832 of
Public Law 118-159 (10 U.S.C. 1749). These teams should
provide hands-on guidance, deliver templates and case
studies of successful approaches for implementing
innovative acquisition authorities, and should assist
integrated functional program teams in completing
acquisition and sustainment tasks.
    (d) The development and implementation of policies,
procedures, and tools to incentivize acquisition
officials to, in good faith, utilize innovative
acquisition authorities and take measured and
calculated risks.

Sec. 6. Major Defense Acquisition Program Review. (a)
Within 90 days of the date of this order, the Secretary
of Defense, acting through the Deputy Secretary of
Defense, in coordination with the Secretary of the
Army, the Secretary of the Navy, the Secretary of the
Air Force, the Under Secretary of Defense for
Acquisition and Sustainment, and Component Acquisition
Executives, shall complete a comprehensive review of
all major defense acquisition programs (MDAPs), as
defined in section 4201 of title 10, United States
Code, to determine if any such programs are
inconsistent with the policy objectives set forth in
section 2 of this order. As part of the review of all
MDAPs:

(i) any program more than 15 percent behind schedule based on the current
Acquisition Program Baseline (APB), 15 percent over cost based on the
current APB, unable to meet any key performance parameters, or unaligned
with the Secretary of Defense's mission priorities, will be considered for
potential cancellation. The Secretary of Defense shall submit the potential
cancellation list to the Director of the Office of Management and Budget
(OMB) for future budget determinations.

(ii) the Secretary of Defense shall provide a listing of all MDAPs
contracts, along with performance against original and approved Government
cost estimates to the Director of OMB for review within 90 days from the
date of this order.

    (b) Following this comprehensive review of MDAPs,
the Secretary of Defense shall provide the Director of
OMB with a plan for reviewing all remaining major
systems, as defined in section 3041 of title 10, United
States Code, that are not MDAPs.

Sec. 7. Requirements. The Secretary of Defense, acting
through the Deputy Secretary of Defense, in
coordination with the Secretary of the Army, the
Secretary of the Navy, the Secretary of the Air Force,
and the Joint Chiefs of Staff, shall complete a
comprehensive review of the Joint Capabilities
Integration and Development System within 180 days of
the date of this order, with the goal of streamlining
and accelerating acquisition.

Sec. 8. Definitions. For purposes of this order:

    (a) The term “Adaptive Acquisition Framework”
means the series of acquisition pathways that enable
the workforce to deliver “effective, suitable,
survivable, sustainable, and affordable solutions to
the end user in a timely manner,” as stated in
Department of Defense Instruction 5000.02.
    (b) The term “Acquisition Program Baseline” means
the formally established cost, schedule, and
performance baselines of a program, as described in
Department of Defense Instruction 5000.85.
    (c) The term “commercial solutions” means any of
the methods for procurement of a commercial product or
service described in part 12 of the Federal Acquisition
Regulation, subpart 212.2 of the Defense Federal
Acquisition Regulation Supplement, or subpart 212.70 of
the Defense Federal Acquisition Regulation Supplement;
or other industry solutions funded by private
investment that meet military needs.
    (d) The term “Configuration Steering Board” means
an annual review of potential requirements changes,
critical intelligence parameter changes, and any
significant technical configuration changes as
described in Department of Defense Instruction 5000.85.
    (e) The term “innovative acquisition authorities”
means Other Transactions Authority, commercial
solutions, application of Rapid Capabilities Office
policies, or any other authorities or pathways to
promote streamlined acquisitions under the Adaptive
Acquisition Framework.
    (f) The term “Joint Capabilities Integration and
Development System” means the formally established
Department of Defense process used to identify, assess,
and prioritize joint military capability requirements
across the Department of Defense.
    (g) The term “Other Transactions Authority” means
the ability of the United States Government to enter
into contracts other than standard contracts, grants,
or cooperative agreements.
    (h) The term “Rapid Capabilities Office” means
the Army Rapid Capabilities and Critical Technologies
Office, Naval Air Warfare Rapid Capabilities Office,
Department of the Air Force Rapid Capabilities Office,
or Space Force Rapid Capabilities Office.

Sec. 9. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or
the head thereof; or

(ii) the functions of the Director of OMB relating to budgetary,
administrative, or legislative proposals.

    (b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.

    (c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.

    (Presidential Sig.)

THE WHITE HOUSE,

    April 9, 2025.