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Pentagon Acquisition System Needs Heavy Dose of Agility, Modernization

Pentagon Acquisition System Needs Heavy Dose of Agility, Modernization
Pictured is an aerial view of the Pentagon on May 15, 2023 (DoD Photo)

By Steve Matthesen, Defense Opinion Writer.

Defense agencies face a stark reality: rapidly evolving threats, geopolitical instability and shrinking budgets demand faster, more efficient delivery of capabilities. As a result, it’s time to rethink how defense operates.

By modernizing systems, accelerating decisions and aligning every investment to mission impact, agencies can reduce the time to results and achieve better outcomes, all while reducing cost.

Adopting agile practices from the commercial sector allows government organizations to deliver the flexibility, innovation and readiness the mission demands while strengthening national security.

Traditional defense acquisition models were designed for a different era—one in which methodical processes were more important than speed. Today, these approaches create strategic vulnerabilities. Siloed planning misaligns priorities, sequential “waterfall” processes delay critical capabilities and rigid hierarchies obstruct decision-making when agility is paramount.

True agility in government means continuously learning, validating assumptions and rapidly iterating with the warfighters to keep solutions aligned with mission needs. By applying lean principles to eliminate waste and optimize flow, agencies can accelerate delivery and maintain a decisive edge.

Modern, lean and agile principles

Some forward-thinking defense leaders are already embracing modern lean and agile principles that deliver value to the warfighter and throughout the entire agency. The results are impressive:

Program Executive Office Enterprise (formerly PEO EIS) has redefined how the Army manages large-scale enterprise systems, recognizing that legacy ways of working no longer support mission needs. Their leadership took decisive action—overhauling contracting strategies, structuring teams around value delivery, and transforming collaboration with industry partners. By embracing lean agile at scale, they have strengthened alignment with mission objectives, accelerated decision-making and ensured warfighters have seamless access to cutting-edge technology when they need it most.

Similarly, the U.S. Navy’s Flank Speed initiative demonstrates agility’s mission impact. Led by Program Executive Office Digital and Enterprise Services, this effort leveraged large-scale agile to reduce software deployment timelines by 75%—from 24 months to just six months—while enabling secure collaboration across 700,000 users. This modernization has strengthened mission readiness by ensuring warfighters have essential digital tools precisely when needed.

When defense agencies modernize strategy and execution, the impact resonates throughout the organization. Intelligence analysts receive critical tool updates in weeks rather than months; logistics operators gain real-time visibility across previously fragmented supply chains; command leadership maintains strategic control while enabling tactical flexibility; and warfighters receive continuous capability improvements aligned with evolving threats.

Strategy for success

National security demands transformation now. The question isn’t whether to evolve, but how quickly you’ll adapt. Defense leaders must ask: Are we delivering capabilities at the speed our mission demands? Are we maximizing the impact of every defense dollar? Are we building the adaptability needed for tomorrow’s threats?

I’ve seen these four success patterns create lasting impact:

Bold leadership: Being agile can seem risky, as the model is based on fast iteration, which means requirements can change as the work evolves. This requires the leader to launch the effort before all parties can review the detailed specifications. It also requires different contracting processes, but the close alignment with warfighters actually reduces the risk of poor outcomes.

Agility as an enterprise capability: Agility is a strategic advantage and the more you use it, the better you will get. By embedding lean and agile ways of working at every level, defense organizations can accelerate response to emerging threats and consistently deliver mission-critical capabilities at the speed of need.

Reimagined partnerships: Traditional contracts can create friction and spur more engineering change proposals that slow delivery and increase costs. Some agencies are already pioneering new contracting models built on shared mission objectives, continuous collaboration, and joint accountability for warfighter outcomes.

Mission-driven metrics: Stop measuring success by milestone reviews and artifacts. Start measuring by the capability advantage delivered to the field. Track how effectively your organization translates requirements into operational impact.

By embracing modern agile approaches that synchronize efforts across the organization, defense agencies can deliver the readiness and responsiveness that national security demands. Our warfighters—and our nation—deserve nothing less.

Steve Matthesen is CEO of Scaled Agile Inc., of Boulder, Colo.


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