EXCLUSIVE: Hegseth draft memo lays out software acquisition reform push
A memo obtained by Breaking Defense outlines changes to how the Pentagon acquires software — and potentially presages more changes to come.
US Secretary of Defense Pete Hegseth visits Joint Task Force North, US Northern Command, to see the efforts military men and women are undertaking in support of US Customs and Border Protection to secure the southern border at Fort Bliss, Texas, Feb. 12, 2025. (US Army/Sgt. 1st Class Andrew R. Sveen)
WASHINGTON — Pentagon leaders are crafting a plan to shake up how they buy and field technology, with Defense Secretary Pete Hegseth starting things off by potentially directing that the department adopt the Software Acquisition Pathway (SWP) as the preferred method for software development.
In a draft memo obtained by Breaking Defense, Hegseth calls on the department to adopt the Software Acquisition Pathway, a practice created in 2020 to accelerate software development by implementing best practices from the private sector. At its core SWP is a streamlined method for procuring software programs bespoke to DoD requirements. Through the SWP organizations can deploy capabilities into platforms within six months or less, DoD has previously stated that the goal is to speed this process up into hours or days.
The memo also directs the use of Commercial Solutions Openings and Other Transactions as the “default solicitation” and award avenue for acquiring capabilities.
“Software is at the core of every weapon and supporting system we field to remain the strongest, most lethal fighting force in the world. While commercial industry has rapidly adjusted to a software- defined product reality, DoD has struggled to reframe our acquisition process from a hardware- centric to a software-centric approach,” the memo reads. (As the memo has not been signed out, it is possible wording could change in the final version of the document.)
“When it comes to software acquisition, we are overdue in pivoting to a performance-based outcome and, as such, it is the Warfighter who pays the price.”
Speaking on background, a defense official told Breaking Defense that the department will not comment “on alleged unsigned draft memos” but did not push back on the contents.
“As a general matter, the department is committed to ensuring our warfighters have cutting-edge digital capabilities,” the official said. “Through that lens, we are looking at the best methods to accelerate the delivery of scalable, secure digital solutions by leveraging commercial innovation, removing bureaucratic barriers, and prioritizing performance-based outcomes.”
Commercial Solutions Openings is a solicitation process developed by the Defense Innovation Unit (DIU) that allows the DoD to work with nontraditional defense companies in a more flexible, faster, collaborative manner. Any contracts awarded as a result of this process are handed out as Other Transaction Agreements (OTA).
“This applies to any software pathway program in the planning phase prior to execution. Department Components are prohibited from implementing further guidance on this point that would set out restrictive measures, guidelines, frameworks, directives, or policies other than required by statute,” the memo states.
Furthermore, the Undersecretary of Defense for Acquisition and Sustainment, alongside the DIU director, have to develop and submit an implementation plan on how to best utilize these practices within 30 calendar days of the memo being signed.
Broader Changes To Come
The memo is expected to kickstart a process aimed at getting new technologies and weapons into the field at a faster clip, which is emerging as a focus for the Trump Pentagon, as Breaking Defense previously reported.
Related: DoD acquisition reform guidance expected soon, with focus on rapid prototyping
There has also been speculation, including in a Defense One article earlier this month, on how the new Trump administration may restructure offices, to include possibly combining pieces of the Chief Digital and Artificial Intelligence Office, DIU and Strategic Capabilities Office. (It may be notable that DIU is called out in the memo, potentially as a sign that the organization’s approach and use of OTAs will have greater usage as the Pentagon seeks to increase ties to the commercial sector.)
However, the defense official cautioned that it is still early days of “pie in the sky brainstorming sessions” designed to explore a variety of options to make the Pentagon “more effective and efficient.”
“I strongly caution against buying into one rumor of how this could go at this point,” the defense official previously told Breaking Defense. “Each of the organizations, like DIU, have strengths that would only make sense to build on.”
Earlier this month, one source that works closely with a broad swath of defense companies described this look at acquisition as par for the course anytime a new secretary enters the Pentagon.
“With all new administrations, there is a pretty much ‘stop, relook and clarify priorities period,’” the source said. “And right now there is a sense of urgency with acquisition reform.”
Many of the non-traditional tech companies, the source added, are ecstatic with the “rumored frenzy” of acquisition change. That could potentially include revamping the DIU and funneling more work its way, with companies who focus on software, autonomous systems and capabilities that do not rely on GPS, given the ever-increasing threats from electronic warfare, hoping to cash in.
“They don’t need to recreate the wheel, [but they] need strong leadership with a determined focus,” the source added, referring to the DoD.
