SASC Chair Wicker’s Report and Bill Take Aim at DOD Inefficiencies
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SASC Chair Wicker’s Report and Bill Take Aim at DOD Inefficiencies

Brownstein Client Alert, Jan. 23, 2025

Just before the holidays, incoming Senate Armed Services Committee (SASC) Chairman Roger Wicker (R-MS) released a new report, “Restoring Freedom’s Forge,” along with a comprehensive new piece of legislation, the “Fostering Reform and Government Efficiency in Defense (FoRGED) Act.” Together they present the chairman’s case for reforming the Department of Defense (DOD) acquisition system.

This report and bill are likely to play a prominent part during the upcoming fiscal year (FY) 2026 National Defense Authorization Act (NDAA) negotiations. They promise significant shake-ups in the defense acquisition industry. Stakeholders involved in national security and arms manufacturing and distribution should make sure they are prepared for the new chairman and his legislative goals.

 

The FoRGED Act

The FoRGED Act introduces significant acquisition reforms aimed at enhancing efficiency, promoting innovation and ensuring accountability within the Department of Defense (DOD). The bill is structured into five major titles, each addressing a critical aspect of defense management. As with other large pieces of legislation moved via the NDAA, we expect this to move through various amendments offered during markup in both the House Armed Services Committee (HASC) and the Senate Armed Services Committee (SASC).

The areas identified in the legislation suggest several policy priorities for the upcoming year:

  • Regulatory Reforms – The FoRGED Act would eliminate obsolete laws to reduce administrative burden and would establish expiration dates for future reporting requirements to maintain legislative relevance (Sections 101-103).
    • Look for HASC and SASC members to offer amendments aimed at reducing unnecessary regulations and streamlining the DOD acquisition process.
  • Incentivizing Innovation – The bill would transition from program executive officers to broader portfolio acquisition executives to better integrate program management. It would also establish a centralized body named the “Joint Requirements and Programming Board” for aligning the requirements and planning process (Title II).
    • Look for HASC and SASC members to prioritize policies that encourage the integration of private sector talent and commercial technologies into defense systems that may include incentives for startups and nontraditional defense contractors.
  • Rapid Acquisition and Enhancing Competition – The bill would support nontraditional contractors and simplify procedures to engage innovative companies and startups unfamiliar with traditional defense procurement. It proposes raising limits for streamlined contracting to expedite decision-making and encourages alternative pricing models that prioritize rapid delivery and technological advancement. The bill would also implement programs to enhance resilience by fostering competition and reducing reliance on single suppliers. The bill would delegate greater authority to program managers in an effort to reduce delays and improve project outcomes (Title III – IV).
    • HASC and SASC members may focus amendments on promoting competitive bidding processes and preventing excessive consolidation in the defense industry or cracking down on what is viewed as anti-competitive practices.
  • Modernize Defense Budgeting – To achieve the goals in other parts of the legislation, the chairman believes the defense budget process must be reformed. The bill would require a review and assessment of the budget structure, it would repeal or amend authorities that are determined to be redundant or obstructive to rapid acquisition, and it would update the utilization of the Defense Modernization Account (Title V).
    • HASC and SASC members may offer a variety of amendments in this area. Parties interested in this issue should review the work and Final Report of the Commission on PPBE Reform, from which many ideas will likely be lifted.

 

Restoring Freedom’s Forge. American Innovation Unleashed

Chairman Wicker’s new report complements the bill described above. It seeks to highlight how the DOD’s existing inefficiencies, outdated processes and lack of innovation jeopardize our national security and why he believes reforms are required.

As readers of this memo will recall, this work follows the House Armed Services Committee’s Field Hearing in Santa Clara, California, in September 2024. The committee’s activities emphasize the growing urgency among committee members in both chambers to modernize the DOD’s acquisition procedures.

Some key theme of the report include:

Excessive Bureaucracy The chairman’s report argues that the DOD’s acquisition system is currently weighed down by layers of bureaucracy, leading to delays and increased costs. The report provides some historical context that since the 1950s, acquisition cycle times have quadrupled due to excessive regulations and approval processes. These delays can hinder the military’s ability to deploy cutting-edge technologies and respond swiftly to emerging threats. With an emphasis on efficiencies from the new Department of Government Efficiency (DOGE) and elsewhere, the chairman believes that reforming these processes is critical to achieving cost efficiencies and increasing operational readiness.

Lagging Innovation – Another area of emphasis the chairman highlights is the gap between commercial innovation and military technology. For example, the report describes the computing power of advanced defense systems, such as the F-35, is behind that of commercially available products such as high-end electric vehicles. The chairman raises this disparity to underscore the need to integrate commercial technologies into defense systems and adopt a more collaborative approach with the private sector.

Promote Competition The chairman’s report raises his concern that the consolidation of defense contractors into sole-source suppliers drives inefficiencies within the department. He believes this trend stifles innovation, increases costs and limits the DOD’s ability to access diverse solutions. Stakeholders should watch for the HASC and SASC to promote competition among contractors to foster innovation and help ensure value for taxpayers.

Reform the Defense Industrial Base – The report criticizes the DOD’s “mismanagement” of the defense industrial base and highlights challenges such as procurement of data rights and lack of innovation. The chairman’s report also advocates for advanced manufacturing, including additive manufacturing, and suggests improving technical data, repositories and qualification procedures to help scale these technologies. Finally, the report proposes a new funding program, generated by withholding 3% of contract procurement/sustainment funds, to enhance industry responsiveness through activities like specification drafting, obsolescence management and reverse engineering.

Empowering Program Managers The chairman also argues that the current acquisition system disempowers program managers and incentivizes them to focus on compliance rather than innovation. The chairman advocates granting program managers greater authority to make decisions to help reduce delays caused by layers of oversight and rigid approval processes.

Modernizing Budgeting Processes – The chairman believes that the outdated Planning, Programming, Budgeting, and Execution (PPBE) process is another significant obstacle. The report recommends transitioning to a portfolio-based resource allocation system, allowing the DOD to respond more flexibly to emerging threats and technological advancements.

 

Next Steps

These proposals put forth by Chairman Wicker promise to change “business as usual” in NDAA negotiations. Interested parties would be wise to determine which of their NDAA requests are consistent with the themes described in the bill and report. Members of both committees are expected to be tuned into these issues during the FY26 NDAA cycle and requests aligned with the chairman’s goals are more likely to be favorably considered.

If you have any questions about how your goals relate to the bill and report, or any other parts or procedures of the NDAA process, please contact the authors of this alert.


THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING SEN. WICKER'S NEW BILL AND REPORT. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.

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