Every so often, the call goes out for major Pentagon reforms. For years, restructuring how the Department of Defense (DOD) does its business has garnered scrutiny with an eye toward transformation and major structural reorganization. More frequently, the emphasis is on attempting to get the Pentagon to acquire weapons efficiently and effectively – though such schemes often fall short.
The timing for the most recent initiative to reform the Defense Department may have more momentum and potential for success. The Senate version of the FY2026 National Defense Authorization Act (NDAA) incorporates key elements of Senator Roger Wicker’s (R-MS) 2024 legislation, the Fostering Reform and Government Efficiency in Defense (FORGED) Act, including several reforms aimed at modernizing Pentagon management procedures and operations. Specific emphasis is placed on the acquisition and budgeting systems.
The National Defense Reorganization Act of 1986, better known as the Goldwater-Nichols Act, attempted a wall-to-wall scrubbing of the Defense Department. Whether the legislation did all it was designed to do is a question military historians have wrestled with for nearly 40 years. Goldwater-Nichols was, however, landmark legislation that went further to change some fundamental warfighting and leadership doctrines. Key elements of the law were that it strengthened leadership roles and centralized and streamlined inter-service coordination.
The overall reforms of Goldwater-Nichols addressed deficiencies in military coordination and a command structure that led to operational, costly missteps in Vietnam and the failed Iran hostage rescue attempt in 1980. What the act did not do was solve the weapons buying problems leading to countless overcost, behind schedule, and non-performing procurement programs. That is where the FY2026 NDAA comes in.
As Federal News Network explains, there are five formative modernization and streamlining directions in the Senate’s FY2026. First comes prioritizing commercial procurement versus the standard developmental programs. The bill mandates the Pentagon prioritize the procurement of off-the-shelf commercial products and services, eliminating the more costly, complex, and time-consuming non-commercial contracting procedures.
Streamlining commercial solutions openings simplifies the approval processes and thresholds, reducing layers of review that slow down contract awards and establishing sole-source follow-on authority based on successful commercial prototype deliveries.
It also seeks to support nontraditional defense contractors by easing regulatory burdens on well-defined new-to-defense contractors. BreakingDefense provided an example of how a prime contractor could be considered “nontraditional,” explaining, “The thinking, the official said, is that if a prime is willing to make larger corporate investments to develop new products — the way most commercial or nontraditional defense firms do — they can be designated as a nontraditional for that program.”
Finally, reform the process for deciding requirements, will be broadened to include higher-level capstone requirements instead of program-specific procurements. The program acquisition executive can continuously compete and evaluate various capabilities, for example, selecting between different drone systems within the larger category of unmanned aircraft systems. By granting the program acquisition executive this authority creates opportunities for innovation throughout the program lifecycle.
What affords these reforms some potential for success is the momentum and enthusiasm already present in the Pentagon for change that benefits the warfighter. The elimination of non-value-added organizations and positions is a step in the right direction. Secretary Pete Hegseth has begun culling DOD leadership who have indicated an obstructionist point of view, clearing the way for change.
“Hegseth’s orders halt additional non-DoD IT or consulting contracts without prior review by Deputy Secretary of Defense Steve Feinberg, heavily restrict the use of executive assistants, and streamline weapons testing and review at the Office of the Director of Operational Test and Evaluation,” the Daily Caller reported. Combining congressional direction with DOD’s willingness to improve could be the ticket for real Pentagon reform.
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