The U.S. Department of Defense is overhauling its software acquisition strategy to open the door wider to commercial and nontraditional software providers.
The memo, part of a series of Pentagon directives aimed at transforming how the department acquires both weapons and support systems, calls for the adoption of the Software Acquisition Pathway (SWP) as the preferred route for all software development components. “It effectively is streamlining the access of those nontraditional commercials so that they can play in the game, that the defense primes are also playing in,” a defense official explained on a call with reporters.
Under the new directive, the DoD will pursue contracting strategies that favor commercial solutions over the traditional hardware-centric and cost-plus contract models. This shift is seen as essential for keeping pace with rapid commercial technology advancements and ensuring faster delivery and iterative improvement of software used in military operations.
Smaller companies, such as Second Front Systems, have made strides in entering Pentagon projects but have long struggled to break through barriers dominated by larger defense primes like Lockheed Martin and General Dynamics. Tyler Sweatt, CEO of Second Front Systems, told Reuters, “Moving away from building custom software using cost-plus style contracts and towards procuring solutions puts better capabilities in the hands of our warfighters.”
To ensure a swift transition, the Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Director of the Defense Innovation Unit, has been tasked with developing an implementation plan within 30 days. The directive reflects the DoD’s commitment to adapting to the reality of software-defined warfare and improving its procurement processes to leverage commercial capabilities effectively.
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