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Executive Order 14265
Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base
Signed April 9, 2025, printed at 90 FR 15621. 8 sections of substance, 1,642 words.
This order changes how the military buys things. It aims to speed up deals and back new firms.
Sec. 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.
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.
This sets out the case the order makes. It says the armed forces need the best gear. It says the defense industry is central to that. It calls the buying workforce a strategic asset. It says the system is slow and inflexible. It says a full overhaul is needed.
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.
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.
This states the policy. Buying arms must move faster. The defense industry is to be built up. The buying process is to be reformed. Speed and flexibility are the stated aims. The buying workforce is to be modernized. Staff who take smart risks are to be rewarded.
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,
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,
This asks for a plan in 60 days. Defense must set out how to speed up buying. Off the shelf goods come first. Flexible contract routes are favored. Rapid capability rules are named. Defense must start using those powers at once. That holds for deals already under way.
Sec. 4. Internal Regulations Review
The Secretary of Defense shall oversee the review of and, as appropriate, propose revisions to relevant Department [[Page 15622]] 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).
The Secretary of Defense shall oversee the review of and, as appropriate, propose revisions to relevant Department [[Page 15622]] 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).
This is about internal rules. Defense must review its own guides and manuals. Rules that add needless steps must go. A finance rule and a buying supplement are named. New internal rules face the ten for one test. That test comes from a January 2025 order.
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
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
This is about the buying staff. Defense must plan to retrain them in 120 days. Service secretaries help write it. Reviews would reward use of off the shelf goods. It must weigh how many staff are needed. Field training teams are to be set up.
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,
(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,
This is about big weapons programs. Defense must review them all in 90 days. The test is whether they fit the new policy. A program 15 percent behind schedule is flagged. So is one 15 percent over cost. So is one that misses its key targets.
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.
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.
This is about how needs are set. Defense must review that system in 180 days. Service secretaries and the Joint Chiefs help. The goal is to speed up buying. It also aims to simplify the process.
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
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
This defines the terms. One names the set of buying routes Defense uses. One names the cost and schedule baseline of a program. Commercial solutions means goods bought off the market. It also covers products funded by private money. Each meaning points to a Defense instruction.
Sec. 9. General Provisions
Every order carries this. It is not what the order does.
(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. [[Page 15624]] (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. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, April 9, 2025. [FR Doc. 2025-06461 Filed 4-14-25; 8:45 am] Billing code 3395-F4-P </pre></body> </html>
(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. [[Page 15624]] (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. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, April 9, 2025. [FR Doc. 2025-06461 Filed 4-14-25; 8:45 am] Billing code 3395-F4-P </pre></body> </html>
This is the closing clause that nearly every order carries. It says the order does not change what the law already allows. It also says no one can sue to enforce it.
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