Pentagon Launches ‘Calculated Risk’ Culture to Transform Weapons Buying

Pentagon Launches ‘Calculated Risk’ Culture to Transform Weapons Buying

The U.S. Department of Defense has unveiled a major overhaul of its acquisition system, introducing a “calculated risk” culture aimed at accelerating weapons procurement and empowering acquisition leaders to make faster, mission-focused decisions.

Senior officials said the initiative is part of a wider effort to shift from a compliance-heavy bureaucracy to one that rewards informed risk-taking and flexibility. The policy reform, announced Monday, reflects the Pentagon’s growing recognition that rigid processes often delay urgently needed technologies.

Background: A Push to Modernize Procurement

The Pentagon’s acquisition system has long faced criticism for inefficiency and excessive oversight, with weapons programs frequently suffering from years-long delays and cost overruns.

This reform is part of the department’s continuing attempt to modernize its acquisition framework to respond to evolving threats and rapid technological change. The initiative draws lessons from recent procurement challenges, including emerging hypersonic systems, next-generation aircraft, and integrated command-and-control programs that struggled to transition from development to fielding.

Empowering Portfolio Acquisition Executives

A central feature of the reform is the creation of Portfolio Acquisition Executives (PAEs)—senior officials who will oversee groups of programs rather than single projects.

These executives will have greater authority to shift budgets and modify requirements within their portfolios, allowing them to redirect resources to the most urgent priorities.

Michael Duffey, the Pentagon’s Under Secretary for Acquisition and Sustainment, described the change as a move toward “delegating decision authority to those closest to the mission.”

“We’re emphasizing speed, not mandating it,” Duffey said. “Program leaders must have the judgement to know when 85 percent capability delivered now is better than 100 percent delivered too late.”

From Compliance to Calculated Risk

The DoD’s new approach replaces rigid compliance with a culture of calculated risk-taking.

In practical terms, program managers will be encouraged to accept partial capability—what Duffey referred to as “the 85 percent solution”—if it means faster delivery of weapons to the field.

This shift also empowers leaders to use more flexible contracting tools, such as Other Transaction Authorities (OTAs), and streamlines reporting requirements for smaller programs.

Legislative Support: SPEED and FoRGED Acts

Two legislative measures—the SPEED Act (HR 3838) and the FoRGED Act (S 5618)—have been incorporated into the upcoming National Defense Authorization Act (NDAA).

These acts are designed to cut red tape in procurement, allowing acquisition executives to bypass traditional regulatory hurdles for smaller or emerging technologies. They also authorize broader experimentation with rapid prototyping, digital engineering, and commercial off-the-shelf technologies.

Together, these legislative updates form the backbone of the Pentagon’s new acquisition doctrine, institutionalizing a faster, more adaptive system that mirrors private-sector innovation cycles.

Industry and Policy Perspectives

Industry advocates, including the Aerospace Industries Association (AIA), have long pressed the Pentagon to reform its acquisition regulations. In June 2025, AIA urged the removal of more than 50 redundant requirements that delay contract execution and discourage smaller suppliers from competing.

Policy analysts see the Pentagon’s reform as an acknowledgment that the United States can no longer afford decade-long acquisition timelines in an era defined by rapid technological evolution and near-peer competition.

By allowing acquisition leaders to make risk-based decisions, the DoD aims to bridge the capability gap faster—particularly in domains such as space, electronic warfare, and missile defense—where adversaries like China and Russia are advancing quickly.

Leadership Continuity and Accountability

The reform also emphasizes leadership continuity, calling for program executives to remain in their positions longer to ensure consistent oversight and accountability.

Historically, frequent personnel changes in acquisition management have led to fragmented decision-making and inconsistent program direction. Retaining experienced leaders for extended tenures aims to improve execution stability and performance outcomes.

What Comes Next

The success of this reform will hinge on implementation. Analysts expect the Pentagon to begin applying its “calculated risk” model across select pilot programs in early 2026, focusing on mid-tier weapons systems where flexibility can yield faster results without jeopardizing major investments.

The DoD will also monitor whether acquisition executives use their new authorities effectively—and whether the new model genuinely accelerates fielding timelines without inflating costs or compromising quality.

If successful, this policy could mark the most significant shift in U.S. weapons procurement culture in decades, potentially redefining how the Pentagon manages innovation, oversight, and delivery across its multibillion-dollar acquisition portfolio.

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