Military Leader Battles with Big Contractors
A clash is on the horizon between the Head of Defense and major contractors in the military sector over the way the country purchases its weapons systems. The Defense Head's approach to navigate the Pentagon and his newly proposed policy might limit his potential to succeed.
New Policy to Enhance Efficiency
He unveiled his new policy, encapsulated in a six-page document, at a meeting with top-tier executives, aiming to eliminate the stagnation in bureaucracies within the Pentagon and defense contractors. These bureaucracies have been a setback in the development of weapons programs, escalated their cost, and ignored the needs of the soldiers who would use these weapons.
However, whether this new policy can address these problems and establish structures to supersede bureaucratic and corporate interests is uncertain.
Origins of the Ideas
Many of the Defense Head's ideas can be traced back to the Defense Innovation Unit, a subsidiary of the Defense Department, established in 2015. His vision was to form new partnerships with the private sector to maintain America's technological advantage over rivals. This vision led to the creation of the Defense Innovation Unit, based in Silicon Valley.
The first director of the new unit was a former Air Force pilot, who also had valuable technical knowledge. The director's experience made him the perfect candidate to fulfill the Defense Head's vision.
Defense Innovation Unit's Contributions
The Defense Innovation Unit sought collaborations with small companies with innovations that could be beneficial to the military. The unit's budget was modest, and its specialized staff worked discreetly. They used their contacts to interact with military commanders, discovering what they needed to enhance performance.
Within its first quarter, the Unit signed 12 contracts totalling $136 million. All the products had been designed for the commercial market, and no one in the military knew they existed. The usual time from the initial proposal to a signed contract was 59 days, a groundbreaking improvement compared to traditional Pentagon procedures.
Future of the Defense Innovation Unit
The Defense Head's policy aims to expand the Defense Innovation Unit's revolution to the entire spectrum of weapons procurement. However, it's uncertain whether this is achievable, especially with potentially resistant stakeholders.
Over the past decade, the Defense Innovation Unit faced strong opposition from various actors – the big contractors, Pentagon managers, and congressional leaders. However, the Unit regained momentum in 2022, after the invasion of Ukraine. Many Silicon Valley companies, which had previously resisted military collaboration, willingly offered their skills to aid a democratic country against imperial aggression.
The New Six-Page Memo
Returning to the Defense Head's six-page policy document, it claims to simplify the process of approving weapons programs, assign one office to oversee specific programs, and create room for even startup companies to compete for Pentagon projects.
While the policy appears promising on paper, putting it into action raises concerns. The Defense Head lacks experience in managing any large-scale projects, let alone multibillion-dollar weapons systems. Furthermore, the policy fails to offer specific guidance to the personnel on how they should perform their duties.
Hurdles in Implementation
The Defense Head did not seek feedback or suggestions from the executives but instead informed them of his decision. This approach might not work with defense contractors who are not obligated to comply with these orders.
Moreover, his failure to liaise with the mainstream press and relevant congressional committees may hinder his cause. Most lawmakers will thus be more receptive to industry lobbyists, given that the major contractors' weapons systems provide their districts with plenty of jobs and revenue.
Uncertainties about the Defense Innovation Unit Model
It remains unclear whether the Defense Innovation Unit model, while perfect for drones and software, is well-suited for designing and building combat planes, warships, submarines, missiles, and other major weapons systems. These consume more of the hundreds of billions of dollars allocated each year to the Pentagon's research, development, and procurement accounts.
The conditions have never been better for collaboration between the military and high-tech industry. However, the current senior Pentagon officials may not be the best fit to bring this vision to life.