Headlines: Unleashing Drones and Reports
New tech, partnerships, and opportunities abound.
Welcome to the latest edition of Defense Tech and Acquisition.
SVDG Release their NatSec100 List while GMU reports on USG contracting.
SECDEF Unleashes the Drones with a new directive to scale production.
DOD invests in a critical minerals company and ManTech to scale the DIB.
The Army seeks to scale munitions production.
Navy advances unmanned systems to complement the struggling big ships.
The Air Force and Space Force debate the futures of key aircraft and satellites.
HASC, SASC are working on the FY26 NDAA with many acquisition reforms.
Silicon Valley Defense Group (SVDG) 2025 NatSec100 List
Silicon Valley Defense Group, in partnership with J.P. Morgan, identifies the top 100 venture-backed, dual-use and defense technology companies driving forward U.S. national security and provides analysis and recommendations for overcoming systemic barriers to innovation at scale.
Dynamic List Turnover Reflects a Maturing Market
The 2025 NatSec100 cohort saw meaningful movement: new entrants, strategic exits, and companies rising or falling in ranking.
This churn signals real progress. The ecosystem is functioning—companies are scaling, raising capital, hiring talent, and sometimes, turning a profit.
As dual-use technologies continue to mature, particularly in hardware-intensive sectors, the DIB will require new financing models.
DoD Spending is Growing—But Still Lags Private Capital
DoD spending on NatSec100 companies more than doubled from 2023 to 2024 (~2.3x), totaling nearly $4B, or $1.95B excluding SpaceX.
While SVDG was thrilled to discover a ~2.3x YoY increase in DoD spend on 2025 NatSec100 companies, a significant investment mismatch remains.
Non-Traditional Contracting Mechanisms Are Gaining Ground
Roughly 12% of FY24 USG awards to NatSec100 companies (excluding SpaceX) were via non-FAR contracts—representing a 2x increase over last year. 92% of all contracts were fixed-price.
The growing use of Other Transactions (OTs) underscores the limitations of traditional FAR-based procurement when engaging with non-traditional vendors.
Investment Remains Uneven Across Priority Technology Areas
NatSec100 companies are not evenly distributed across the OUSD(R&E) list of 14 critical technology areas - instead continues to be dominated by companies in AI, software, cyber, and space.
Other priority tech areas, such as microelectronics, quantum, hypersonics, and directed energy—remain underrepresented. This concentration presents both a challenge and an opportunity.
SVDG Recommendations
Prioritize innovation adoption over innovation creation
Standardize scalable, incentive-aligned contracts for software
Avoid the Program of Record (PoR) Trap Without Fielding
Signal Demand More Clearly to Industry and Investors
Engage Public Markets and Institutional Investors
Scale Coordination with Allied Innovation Ecosystems
Create PEO Scorecards to Incentivize Adoption
Our Take: We recommend combing through SVDG’s full report with expert data, insights, and recommendations.
GMU 2025 Government Contracting Trends and Performance Index
Jerry McGinn and his expert research team at GMU’s Baroni Center for Government Contracting published a very interesting government contracting trends report that we’re pouring over.
Topline Findings
Measuring innovation outcomes is imperative.
Incentives are the true drivers of innovation.
A need to put the “non” back in nontraditional defense contractors.
Small businesses innovate, but the preponderance of small business work is not in innovation.
Across the spectrum of companies in 2024, industrial base sentiment was strong.
Key Graphics
Related Articles:
The Law That Set The Foundation For Modern Acquisition
The fallout from the so-called “peace dividend” from the end of the Cold War came to a head in the early 2000s. The signs were all around. Agencies were losing too many bid protests because too many experienced acquisition workers left federal service in the late 1990s. The remaining members of the acquisition workforce were struggling.
The Clinton administration’s reinventing government initiative ushered in the use of multiple award and governmentwide acquisition type contracts that gave agencies more control over acquisition programs, and resulted in inconsistencies and variabilities in the application of acquisition rules and regulations.
The buying patterns of agencies tilted with departments spending more money on services than products for the first time ever.
In FY02, agencies spent $135B out of the government’s $200B procurement budget on services, which was a 24% increase since 1990.
By FY24, the GAO said agencies spent $755B on federal procurement with $496B, or 65%, for services.
The solution to these and other problems was the Services Acquisition Reform Act (SARA) which was passed as part of the 2004 NDAA.
A major pillar of SARA was using commercial best practices and performance-based contracting to help agencies overcome challenges in developing requirements.
Experts say this remains one of the biggest problems for the federal government.
FAR Overhaul Targets Risk-Averse Acquisition Culture
The federal government's most ambitious acquisition reform in more than three decades requires fundamental changes to how contracting officers think about risk and is not just about rewriting regulations
The acquisition workforce needs to know that their senior agency management has their back when they make an innovative acquisition decision.
All too often, acquisition teams try something new and get backlash if it does not succeed. They can face the wrath of agency leadership, as well as possible investigations by the agency IG and congressional committees.
Cultural changes have to start at the top and the support for the procurement teams has to be explicit.
The goal is for acquisition teams to feel empowered – and have confidence that their leadership will support smart risk taking and not punish imperfect outcomes.
“We need to support people that make innovative acquisition decisions with the understanding that we're not going to get it exactly right every time. But that's how you learn. It's okay to break out from the norm. It's okay to actually use the flexibilities that are given to you.” Larry Allen, GSA’s Chief Acquisition Officer.
Our Take: We couldn’t agree more. This harkens back to a post made a few years ago where we correlated how acquisition (or perceived contracting) risk is all too often transferred to the warfighter who has to deal with that risk (often with more severe consequences).
Why Defense Is—Now—Eating the World
Nearly fifteen years after Marc Andreessen published his legendary op-ed, Why Software Is Eating the World—August 20, 2011—we find ourselves witnessing another domain shift, this time not in code, but in combat.
This isn’t just a digital revolution anymore. It’s a defense revolution—a full-scale transformation in how nations think, build, and align around security.
The Pentagon is no longer just a consumer of defense technology. It is attempting to become the founder of a global warfighting ecosystem.
But ecosystems aren’t purchased—they’re built. And this new world of defense innovation requires a different blueprint.
If the Pentagon is the founder of this new defense ecosystem, then its role is not simply to adopt innovation, but to architect it. That means shaping not only what defense innovation looks like—but how it behaves.
Here's how the Pentagon might apply Brad Feld’s Boulder Thesis - using his 4 tenets of a viable ecosystem:
1. Entrepreneurs Must Lead
In DoD, “entrepreneurs” include warfighters, program managers, and technologists willing to build from zero. Too often, the feeders—contractors, compliance offices, budget reviewers—lead instead.
2. Take a Generational View
Ecosystems don’t scale in one budget cycle. Defense innovation must take the long view—20 years, not two. As Josh Rogin recently highlighted in Disrupting Defense, the players winning are those with patience and persistence.
3. Practice Secure Inclusivity
Startups thrive through network effects. So too should defense. That means welcoming non-traditional vendors, academic researchers, small primes, and others to the ecosystem—safely, but strategically.
4. Enable Substantive Engagement
It's not about tech expos. It’s about testbeds. Accelerators. Simulations. Real-world iteration. Think SOFWERX, DIU, and AFWERX—not just acquisition offices but platforms for learning-by-doing.
If the Pentagon is now the platform—then every nation, every innovator, every strategist is part of the code. And together, we’re not just building warfighting capabilities. We’re architecting the world’s next operating system for peace, deterrence, and resilience.
Drones and Counter Drones
Hegseth Directive On Unleashing U.S. Military Drone Dominance Includes Deadlines For Major Overhauls
SECDEF issued a new directive Thursday aimed at shaking up the Pentagon’s procurement system and quickly ramping up its arsenal of unmanned aerial systems.
The directive calls for approving hundreds of American products for purchase by the U.S. military, arming combat units with a variety of low-cost drones made by America’s world-leading engineers and AI experts, and more widely integrating UAS into training exercises.
The directive also issued some key deadlines:
Within 30 Days
OSC and DOGE will present options, including advance purchase commitments, direct loans, or other incentives … that outfit combat units with cheap and effective U.S.-made UAS.
Each service will establish, resource, and empower unsubordinated program offices solely focused on UAS, with an immediate priority towards small UAS.
Major purchases shall favor U.S. companies, informed by Blue List ratings and strategic guidance.
Within 60 Days
Military Secretaries will identify programs that would be more cost-effective or “lethal” if replaced by drones.
NLT Sept. 1
Services establish experimental formations purpose-built to enable rapid scaling of small UAS across the Joint Force by 2026, prioritizing initial fielding to U.S. INDOPACOM units.
To maximize these investments, each Military Service will establish, resource, and empower unsubordinated program offices solely focused on UAS, with an immediate priority towards small UAS. These program offices will compete to determine best practices in rapid acquisition and industry engagement with operational units. Drone dominance is a process race as much as a technological race. Major purchases shall favor U.S. companies, informed by Blue List ratings and strategic guidance.
Within 90 Days
Military Secretaries, with USD(R&E), will jointly designate at least three national ranges, with diverse terrain (including at least one with over-water areas) for deep UAS training, with low/no inter-service cost transfer.
NLT Jan. 1, 2026
DCMA will assume responsibility for publication and maintenance of the Blue List of DOD-approved UAS, components and software.
DCMA and the DIU will inform and align vendors on evolving Blue List expectations and develop a ratings system to identify best-in-class systems.
The Blue List will be dynamic, retaining all previous component and supply chain findings, and including updated performance evaluations from testing and key lessons learned from training. The Blue List will be searchable using AI tools.
By 2027
All major training events across the Department must integrate drones.
“Our adversaries have a head start in small UAS, but we will perform a technological leapfrog and establish small UAS domain dominance by the end of 2027. We will accomplish this urgent goal by combining the Nation’s best qualities, including risk-taking. Senior officers must set the tone. Accelerating this critical battlefield technology requires a Department of War culture.” Pete Hegseth
Memo: Unleashing U.S. Military Drone Dominance
Related Articles:
What Trump’s order on ‘unleashing American drone dominance’ means for the U.S. military
Hegseth calls for extensive reforms to Pentagon drone-buying practices
Pentagon Just Made A Massive, Long Overdue Shift To Arm Its Troops With Thousands Of Drones
Pentagon shifts control of Blue UAS List to DCMA in effort to scale secure drone fleet
As Drone Warfare Evolves, Pentagon Sees Its Own Vulnerabilities
American defense companies are pushing new technologies that they say can more effectively intercept drones. The companies are hoping that the billions of dollars the Pentagon is planning to invest in missile defense — the Golden Dome program — will also be used to build up new drone defenses.
Some new technologies aim not to shoot down drones one by one, but use what is known as directed energy, including high-powered microwaves, to take down large swarms of drones at once.
The leaders of Epirus have warned that the rise of new kinds drones means the U.S. military faces a guerrilla war of machines, a style of fighting that is alien to the Pentagon’s traditional way of thinking.
In hearings on Capitol Hill, Pete Hegseth was asked repeatedly by Republican and Democratic lawmakers about America’s vulnerability to drone attacks.
Mr. Hegseth said that cheaper, one-way commercially available drones with small explosives represent a new threat.
The secretary recently approved the creation of a new organization, led by the Army, to address drone warfare and counter-drone measures.
New technologies can detect and identify incoming drones, then take them out more efficiently.
Anduril, which has contracts with SOCOM and the Marine Corps, has a counter-drone system that combines methods for detecting a drone, including cameras and radar, with various ways to take it down, including shooting down the drone and jamming it.
“This is a Sept. 11-style problem, and we are still operating in a Sept. 10 mind-set. On the day after a catastrophic attack, there is going to be a string of evidence that we should have seen this coming.” Christian Brose, Anduril Chief Strategy Officer
Lawmakers Want Anti-Drone Systems at US Defense Facilities
The draft defense authorization bill that the HASC plans to mark up in the coming days would require the Pentagon to set up counter-drone defenses at a handful of military-related facilities inside the U.S.
The mandate is one of several ways the measure manifests deep congressional concerns about whether the U.S. military and American society more broadly is responding quickly and properly to advances in warfare in ongoing wars.
Marine Corps Struggling to Fill Drone Gap
The Marine Corps has struggled to keep up with the rapid evolution of UAS technology, and the service is placing a renewed emphasis on developing and fielding drones that could prove critical in a future fight.
The proliferation of armed FPV drones has been a major theme of the Ukraine conflict, and the Marine Corps— in response to its observations there and elsewhere — launched an Attack Drone Team to refine its small UAS tactics.
The team will serve as the service’s subject matter experts on FPV drone employment and represent the Marine Corps in inter-service, national and international competitions.
Compared to more expensive weapons systems with less capability, first-person view drones can provide squad-level lethality up to 20 kilometers for under $5,000.
However, the Marine Corps’ small drone programs have taken budgetary hits in the past so the service could fund other modernization projects.
That may be changing in FY26 though.
“From the conflicts in Ukraine and Israel to the geopolitical tensions in the Indo-Pacific, we are in the midst of a revolution of military affairs, which is something that happens maybe once in a generation.” Maj. Gen. Farrell Sullivan, director of the Capabilities Development Directorate.
Made-in-America Drone Maker Neros Awaits Its Big Pentagon Break
When Neros Technologies was founded in 2023, there wasn’t much demand in the U.S. military for small, first-person-view drones.
But the company believed strongly there was military utility for small, cheap, attack drones — so, in the firm’s early days, they traveled to Ukraine to better understand how the systems were being used and what capabilities were needed.
Those visits helped sharpen the company’s focus in three areas: production, supply chain and rapid iteration.
In February, Neros won a contract from the International Drone Coalition to provide 6,000 drones to Ukraine over six months.
Neros is now building about 1,500 of its Archer drones per month, an 8-inch quadcopter that has a range of over 12 miles and can carry a 4.5 lb. payload.
Two-thirds of those systems go to Ukraine and the remaining 500 to the Marine Corps, Army, and SOCOM.
Fixing Munitions Shortages Demands Better Hardware and Software
The U.S. will run out of strike missiles in a protracted conflict against China. The Pentagon can use commercial tech — hardware and software — to accelerate munitions output.
America’s anemic production rates of these and other crucial munitions loom large in deterring aggression in the Indo-Pacific.
A conflict in the Taiwan Strait would consume multiple thousands of long-range strike munitions that would exhaust available U.S. inventories within three weeks.
America’s traditional defense industry continues to make the world’s advanced weapons with often spectacular results.
Each advanced munition — from long-range strike missiles to missile-defense interceptors — costs millions of dollars to produce and several years to build.
In recent months, the DoD provided seed funding under the Defense Production Act for more suppliers of solid rocket motors and energetics, stood up a “Munitions War Room,” and engaged the prime contractors directly and pointedly to boost production rates.
The Pentagon should take advantage of non-traditional technology companies — hardware and software makers alike — to furnish a constant flow of actionable options, alternatives, and expanded output.
New industry entrants are stepping forward with alternative offerings. Others are taking advantage of 3D printing and modular design to produce cheaper missiles that can still get the job done.
Defense supply chains are still mostly tracked and managed as individual programs, often in manual spreadsheets, without the relevant puts and takes on the broader industrial base.
What defense planners need is the AI capability to track and prioritize scarce items across the broader munitions supply chain enterprise, and enable action. The good news is: that AI exists today, out-of-the-box.
By opening the door to new partners, better utilizing our existing industrial bases, and enabling speed and affordability, America can regain its strategic edge and ensure its forces are never left wanting for the munitions they need to win.
Beyond the Internet: The AI Industrial Revolution
The Collapse of Legacy Workflows and the Dawn of AI-First Factories
The internet had an incremental impact on the industrial sector, whereas AI will force a wholesale restructuring of it.
The internet changed how companies communicate, exchange information, and by extension, how supply chains and distribution networks are managed.
We believe AI will impact everything. Hardware companies are going to be fundamentally disrupted as AI changes how we design, build, and operate hardware.
Today's manufacturing leaders are software-first companies. They designed their hardware around software, offering seamless integration. As software became an important component of every product, we saw legacy manufacturing companies generally struggle with software development and deployment.
The big disadvantage incumbents have is, ironically, their well-functioning business units. If those organizational workflows work, why change them?
AI-first companies are not just about integrating AI into workflows; they are about completely changing workflows and product life cycles.
Product design, manufacturing, and product operations will all be data-driven. Insights from the physical world (operations layer) will be quickly integrated into manufacturing and product design software.
Industrials in the S&P 500 account for approximately $3.4T in market capitalization and generate $1.1T in annual revenues. As new AI-first industrials emerge, whole markets will be disrupted, and ultimately current S&P industrials will be replaced by newcomers.
Trump Taps Former AWS Exec for Senior Role in DoD R&E Directorate
President Trump nominated James Caggy to be ASD for mission capabilities, as the administration moves to fill key roles in the Pentagon’s R&E directorate. ASD MC is still considered new in bureaucratic parlance because it’s never been filled by a Senate-confirmed official. Other Trump nominees for senior positions in the R&E directorate are still going through the Senate confirmation process. These include Michael Dodd, Joseph Jewell, and James Mazol.
Our Take: Substack Subscribers can see the latest administration nominees and status at our DoD Political Appointee Tracker. With dozens of key leaders in the queue for some time, it would be ideal if the Senate confirmed most of them before the August recess so they can get to work.
Pentagon to Become Rare-Earth Mining Company's Largest Stockholder
The DoD will buy a 15% stake in MP Materials and fund the construction of a magnet-making facility, all to reduce its reliance on China.
Rare earth minerals are not a technology in and of themselves, but are underlying ingredients for some of the most complex systems across the planet including military platforms and automobiles.
China supplied about 70% of the U.S.’ rare earth imports in 2023.
The DoD is taking matters into its own hands, agreeing to acquire a 15% stake in MP Materials and become the company’s largest shareholder.
MP focuses its production on the neodymium-praseodymium-oxide that is used in high-strength permanent magnets that power complex motors. The company’s Mountain Pass, CA, mine is currently the U.S.’ only rare-earths operational hub.
MP will put much of that capital toward the construction of a second U.S. magnet-manufacturing facility dubbed "10X."
As part of the arrangement, DOD will buy all magnets made at 10X for its first decade of operation. DOD will also buy neodymium-praseodymium oxide minerals from 10X at a minimum price of $110 per kilogram for those 10 years
Related Articles:
MP Materials won a big rare-earth contract with DoD and the stock rockets
How China’s new rare-earth export controls target the Pentagon—and the world
Energy Dominance Critical to AI Dominance
The U.S. is working to sustain its global leadership in AI amidst competition from other peer and near-peer nations such as China, and just as important as the AI models themselves is the energy infrastructure that will support them.
Anthropic called for the government to build 50 additional gigawatts of power dedicated to the industry by 2027.
Anthropic co-founder Jack Clark said the only way for the U.S. to achieve AI dominance is a large-scale, almost unprecedented infrastructure build-out to ensure that we have energy dominance as well.
To build the 50 additional gigawatts for AI, Anthropic recommends:
Task federal agencies with streamlining permitting processes by accelerating reviews, enforcing timelines and promoting interagency coordination
Direct federal agencies to expedite transmission line approvals to rapidly connect new energy sources to new data centers
Work with state and local governments to reduce permitting burdens for new energy and data center construction
Consider allocation of existing federal funding toward strategic energy infrastructure projects
Explore opportunities to leverage federal real estate for co-locating power generation facilities and next-generation data centers.
DOD ManTech Program Grows U.S. Military Industrial Base
The mission of the DoD Manufacturing Technology Program is to reduce the cost and time to manufacture critical defense weapons and systems through the development and application of advanced manufacturing technologies.
The program is designed to increase military readiness and lethality, and to rebuild America's defense industrial base with tech that are second to none.
"Each institute is a public-private partnership designed to overcome the challenge of developing state-of-the-art solutions, applied research and manufacturing technology ecosystems that are otherwise beyond the reach of most businesses," Keith DeVries, ManTech Director
DARPA Picks Bell Textron for New Runway-less Drone X-Plane
A Bell Textron drone design prevailed over a competing fan-in-wing offering from Boeing’s Aurora Flight Sciences unit for DARPA’s Speed and Runway-Independent Technologies (SPRINT) project.
The X-Plane will demonstrate its capabilities for special operations forces, while also offering the characteristics the Air Force seeks for its Agile Combat Employment model of force dispersion.
The down-select begins Phase 2 of the program, which covers completion of the design, fabrication, ground-testing and certification of the drone.
Flight testing could begin as soon as 2027 or 2028, and DARPA’s FY26 budget request includes just over $55M for the SPRINT project.
The goal of the program is to create an X-plane drone with the ability to cruise at speeds from 400 to 450 knots at relevant altitudes and hover in austere environments from unprepared surfaces.
Aurora designed a high lift, low drag, fan-in-wing X-plane to enable a transformational combination of aircraft speed and runway independence.
Related Story: DARPA picks Bell Textron to build runway-independent X-Plane
DARPA Ends Cargo Seaplane Program, Eyes New Uses For Tech
The nearly three-year-old Liberty Lifter program was intended to design and build — and possibly float and fly — a long-range, low-cost seaplane that could take off and land in rough seas.
DARPA said in 2023 that it wanted the plane to have roughly the same size and capacity as a C-17 Globemaster, which can carry more than 170,000 pounds of cargo such as M1 Abrams tanks.
DARPA confirmed it had concluded the Liberty Lifter program in June.
The physics make sense. And we’ve learned we can do so with maritime building techniques and maritime composites. But DARPA said it will not move forward with building an aircraft, which would only be a demonstrator.
Other Defense Tech News:
Grok for gov? GitHub shows GSA interest in Elon Musk AI tool
Special Operators Pursuing Autonomy, Open Architecture for Aircraft, Drones
US firm’s loitering munitions to be more effective, get autonomy with combat-proven tech
Army Aims to Quadruple Patriot Missile Procurement
The acquisition goal for the Patriot Advanced Capability-3 missile segment enhancements would quadruple—from 3,376 to 13,773 based on budget requests.
The Army has been anticipating an increased need for Patriot defense this year, moving two batteries that had been deployed to the Indo-Pacific over to CENTCOM amid U.S. strikes on the Houthis in Yemen.
The investment in Patriots comes as the Pentagon is doing a wider review of its weapons stockpiles, which resulted earlier this month in a temporary pause of promised munitions transfers to Ukraine.
Army Looks to Go Commercial for Assured PNT Chips
The Army has successfully tested using commercially available chips in military GPS receivers and is now working to get the necessary approvals to integrate them into its PNT equipment.
“These chips have been purpose-built for that particular mission. The government oversees the design, implements it through the design process. There is a security approval process to make the [systems] secure — and historically, it has taken about six years. By the time the GPS receivers reach the field, the chips inside them are no longer state of the art.” Chris Manning, DASA for Research and Technology
To speed up this process, the Army in 2022 launched the Anubis Technology Maturation Initiative to see how it could leverage more commercial capabilities.
The Army began conducting demonstrations with GPS receivers featuring Qualcomm’s Snapdragon chips, which are used in many smartphones. The Snapdragon chips were tested on systems for dismounted troops, as well as on a ground vehicle, an aircraft and a maritime platform
Using commercial chips like the Snapdragon would provide the Army cost benefits as well as a more robust supply chain.
In a permissive, friendly environment, I want to take advantage of as much as I can and get the best possible PNT solution, But in a high threat environment where I don't trust certain signals or I'm worried about something being manipulated, I want to be able to adjust that on the fly … and then only trust certain signals or certain pieces to provide our soldiers with the most assured PNT capability.
Introducing commercial chips into military GPS receivers will also require overcoming technological hurdles. The Air Force, the Navy and the Marine Corps have all expressed interest in the commercial chips.
Why Service Members Deserve the Right to Repair
Military right to repair means giving service members the ability to fix their own gear — on base, in the field or downrange — without having to wait on outside contractors. That includes access to the tools, parts and manuals they need to do the job. Right now, private companies can put restrictions on military equipment that block troops from making even basic repairs. That slows everything down, costs taxpayers more, and in the worst cases, puts lives at risk.
Mission readiness depends on the ability to make repairs in the field. Service members need the tools, parts and authority to make immediate fixes themselves, without having to navigate red tape.
When our military relies too heavily on private contractors for basic maintenance, that dependence gives outside companies leverage over military operations, introducing profit motives into urgent repair decisions. Our armed forces should operate on military timelines — not corporate maintenance schedules.
Warfighter safety is directly tied to the reliability of our gear. In high-risk environments, a delay in repairing a critical piece of equipment can mean the difference between life and death.
When troops are blocked from doing basic repairs, costs increase and transparency disappears. That’s a waste of taxpayer dollars.
Finally, repairing our own equipment is critical to inculcating and maintaining a military culture of adaptability and self-reliance.
Other Army News:
Army maturing counter-drone C2 architecture at Project Flytrap exercise
Patriot Missile Stockpile Concerns Grow, Pentagon Claims It Has Enough
Army multiplies PAC-3 MSE missile production by four to support long-term air defense strategy
U.S. Military is on the Hunt for Killer UUVs
DIU released a new CSO for UUVs, including one-way attack systems.
DIU is trying to find solutions that meet the U.S. military’s need for undersea kamikaze drones and UUVs that can be launched from submarines.
To address the first challenge, the organization is looking for hunter-killer systems that can be deployed from a government-provided platform or pier.
To address the second challenge, DIU is also on the hunt for UUVs that can be launched and recovered via a torpedo tube without the need for drivers.
DIU noted that the DOD has a critical need for affordable small and medium UUVs that can perform ISR and expeditionary missions.
Trying to enter the defense industrial base? Here’s four steps to follow
CDR Adam Stein
Solve A Real Problem
The most successful companies start with observed lethality gaps or unfilled requirements and accept the challenge of resolving them, often investing their own Independent Research and Development (IRAD) dollars to connect a mature solution to a valid requirement.
Build And Align To Your Network
Attend trade shows, AI summits, and industry days, where you should engage with panelists and learn what commands operate in the space you aspire to support. Take some time to review the Navy’s recent budget submissions.
Get Smart On How To Get Funded
There is an array of proven vehicles to seek funding. APFIT, SBIR, TACFI/STRATFI, DIU CSO, Fleet Commander Engagement.
Stay Funded
After launching a pilot, need to sustain funding through the POM.
Our Take: Most industry subscribers to this Substack already know these fundamentals. We have an exciting project in the pipeline to scale this knowledge.
Carriers Could Bring New Capabilities to the Air Force’s ACE Doctrine
Capt David Alman
The aircraft carrier is both an enduring symbol of U.S. power and a physical manifestation of it. Political leaders could question the merits of accepting risk to one of these multibillion-dollar assets, and its thousands-strong crew, during major combat operations.
One area in particular deserves further exploration: better integration of carriers and their air wings into Air Force Agile Combat Employment (ACE) constructs.
Not enough has been discussed publicly about integration with Air Force sustainment or maneuver concepts.
The ability to move forces forward and sustain them is central to military strategy.
Long-range cruise and ballistic missiles, not to mention asymmetric threats such as special operations forces and unmanned systems, are designed specifically to target U.S. forces at their power-generation hubs. Adversaries do not want to fight F-35s in the air, they want to destroy them on the ground or on board a ship.
ACE is about constant movement. It is about distributing combat power away from major hubs to smaller bases, thereby multiplying the number of possible targets for an adversary and making each target on its own less valuable. Each target added taxes an adversary’s surveillance systems and depletes its arsenal.
Better integrating carriers and air wings with shore-based aviation is just one idea DoD leaders should explore in more detail as a way to employ the carrier that benefits the joint force while lessening risk to the carrier.
A carrier that integrates with shore-based assets and facilities would be decoupled from the continuous generation of air power.
This kind of integration would mean that the air wing could fly from the carrier to forward bases, link up with other land-based assets, refuel, rearm, fly combat missions, and then return to the carrier as needed for maintenance, rest, or other requirements.
The carrier is a unique asset and a symbol of U.S. power. Leaders must explore ways to employ the carrier across radically different risk profiles.
Navy’s New Underwater Robot Can Swim, Scan, and Strike Mines Without Tethers
In a recent open-water demonstration in Narragansett Bay, the Raytheon’s Barracuda mine neutralization vehicle executed its first untethered, semi-autonomous mission.
The test was an important advance in technology for removing underwater explosives. It showed that the system can work independently in real-world maritime conditions.
During the trial, Barracuda successfully demonstrated underwater navigation, target communication, threat detection, and identification without physical tethers or continuous operator input.
Barracuda’s capabilities will dramatically improve safety and efficiency for the Navy, keeping sailors out of harm’s way while effectively addressing underwater threats.
It is the first Navy program of record to feature an untethered, semi-autonomous mine neutralization vehicle capable of locating, tracking, and classifying bottom, volume, and near-surface mines.
As Raytheon continues Barracuda’s development, the system is expected to play a central role in the Navy’s evolving mine countermeasure doctrine, emphasizing standoff operations, rapid deployment, and persistent presence in hostile or denied maritime zones.
Tech Startup HavocAI, Lockheed Martin Strike Partnership to Develop, Scale Medium USVs
Defense tech startup HavocAI and the VC arm of Lockheed Martin announced a strategic partnership focused on rapidly developing and scaling medium USVs.
“By collaborating with Lockheed Martin, we can integrate advanced weapons systems and deliver complete solutions that meet the evolving needs of our warfighters. This collaboration is a significant step forward for HavocAI and demonstrates our commitment to innovation and customer satisfaction.” Paul Lwin, HavocAI CEO
“Maintaining superiority in maritime defense is fundamental to ensuring deterrence in contested waters. Autonomous capabilities make investment now more important than ever, to help the U.S. and its allies remain on the cutting-edge of defense technology at sea. The MUSV is a game-changer for maritime defense, offering enhanced range, payload capacity, and mission versatility. By combining HavocAI’s innovative autonomy stack with our ability to integrate the best of American technology and deliver at scale, we can give warfighters a decisive edge in future conflicts.” Chis Moran, VP and GM of Lockheed Martin Ventures
Our Take: Great to see more traditional and non-traditional defense tech partnerships. We hope to see more of these across industry to integrate and leverage the strengths of both sectors.
Corps to Focus on Advanced Weapons and Contested Logistics in Prep for War
Gen. Smith said the 33,000 Marines deployed in the western Pacific are the nation’s expeditionary shock troops that provide rapid and flexible military power to meet the threats of an unpredictable security environment, with China the main danger.
To be ready, the Marines are deploying three Amphibious Ready Groups or Marine Expeditionary Units — two in the Pacific and one from the East Coast.
The units are ready for expeditionary strikes, sea denial, seizure of advanced naval bases, cyberspace operations, and amphibious assaults.
For strikes against enemy targets, the Marines are developing “kill webs” of advanced sensors and EW systems.
Thousands of other lethal attack drones are being deployed through the Pentagon’s Replicator rapid drone procurement program.
New weapons for long-range strikes include the Navy/Marine Expeditionary Ship Interdiction System (NMESIS), a remote-controlled antiship missile system that has been deployed in the Philippines.
Carrier John F. Kennedy Delivery Delayed Two Years
The next Ford-class aircraft carrier is facing a two-year delay that will leave the Navy with ten carriers for about a year.
The future USS John F. Kennedy (CVN-79) will now deliver in March 2027, according to the Navy’s FY26 budget justification documents. The carrier was supposed to deliver this month, according to last year’s budget plans.
The CVN 79 delivery date shifted from July 2025 to March 2027 (preliminary acceptance TBD) to support completion of Advanced Arresting Gear (AAG) certification and continued Advanced Weapons Elevator (AWE) work.
CVN 79 construction was fairly advanced when many Ford lessons were realized, precluding timely implementation of lessons learned for Kennedy.
The Navy in 2020 switched from pursuing a dual-phase delivery approach for Kennedy to a single-phase delivery, a move that added two years of work to the carrier’s detail design and construction contract.
Delays in Navy’s Next-gen Submarine Threaten US Seapower
The Navy hopes its Next-Generation Attack Submarine, currently known as the SSN(X), will be a successful combination of stealth, operational life and autonomous technology — but that idea may not become reality anytime soon.
A CRS Report to Congress said the submarine’s development is projected to be significantly delayed.
The timeline for the attack submarine has not changed since the service delayed its production from the 2030s to the 2040s last year.
The delay of SSN(X) construction start from the mid-2030s to the early 2040s presents a significant challenge to the submarine design industrial base. The Navy that was because of an extended gap between the design programs for its Columbia-class submarine and the future SSN(X).
Like the Columbia and Virginia classes, the vessel will be nuclear-powered. It is projected to be larger than the original design for the Virginia-class submarine, which is about 7,800 tons submerged, and possibly go over 10,100 tons.
The next-gen submarine is currently projected to cost between $7.1B and $8.7B.
More Money for Legacy Yards Won’t Solve the Navy’s Crisis
The recent SECDEF decision to effectively terminate the FA-XX Navy aircraft was a bold and decisive move to fixing the Navy, not just because it stops the Navy from spending money on an aircraft it probably does not need, but because it potentially breaks the hold that naval aviators have on the Navy. Now the DoD’s political leadership must make another bold and decisive move to change the way the Navy builds ships.
“All of our programs are a mess, to be honest. We are behind schedule, over budget. Our best‑performing one is six months late and 57 % over budget.” Secretary Phelan
Despite pouring more money into legacy naval shipyards, the Navy remains unable to meet even its most modest fleet goals.
The new congressional funding is a once in a generation opportunity to build a new industrial base, one that invests in scalable, modular, autonomous, software driven ships and submarines. The current political leadership will be remembered, one way or the other, for the decisions they make now.
Insanity is doing the same thing over and over again and expecting different results. It is time for the political leadership to take the lead and end the insanity that is rotting away the world’s finest Navy.
Many of today’s challenges come from the Navy’s last pivot to aircraft carriers in the 1930s and 1940s. These carriers, costing over $10B each, are the result of the needs of the manned aircraft they are built for.
Scalable sea drones offer a warfighting edge and distributed presence at a fraction of the cost and time, all without the burdens of steel‑heavy shipyards that require a workforce that cannot be found.
Legacy yards are burdened by one‑off custom designs, labor inefficiencies, and rigid facilities. Next, building large surface vessels or subs takes years from steel cutting to delivery. Even with rapid funding, the industrial base cannot surge.
Budgeting more for traditional shipbuilding reduces the incentives for new thinking and ways of doing business. With limited dollars, choosing to invest in the legacy yards is a decision not to invest heavily in new yards.
Automated shipyards, built from the ground up, will enable leaner manufacturing. The shipbuilding revolution needs to learn what others have learned: build the software first, then fit the hardware around it.
We also need true competition. Open-yard battles for unmanned vessel contracts that reward accelerated prototyping, schedule, autonomy, and modularity should be the norm.
Our Take: We fully agree! The Navy needs to shift investments in modern software companies and automated shipyards that can mass produce smaller and unmanned vessels. While the large, legacy shipyards require significant capital investments, we can’t afford to throw billions more on 100-year old shipyards that aren’t structured to accelerate or scale ship deliveries. Operationally we need a broader high-low mix, especially since many of the big, manned ships won’t operate within the island chains.
Other Navy News:
16 Retired 4-Stars Urge Congress to Fund E-7 and More F-35s
Six former Air Force Chiefs of Staff and nine other retired 4-star generals joined in calling on Congress to triple the number of F-35A fighters the Air Force buys in FY26 and to reinstate funding for the E-7 Wedgetail battle management platform.
They noted that U.S. and Israeli F-35s were integral to the success of Operation Midnight Hammer in taking out Iran’s nuclear sites and in making that mission possible by crushing Iran’s air defenses to swiftly achieve air superiority over Iran.
The generals also challenged the administration’s decision to terminate the E-7 Wedgetail program and instead acquire E-2 Hawkeye aircraft as a stopgap measure.
The HAC-D in its budget proposal is taking some steps towards reversing the Air Force’s decision but the generals argue for more.
“The E-2 is unable to meet the combatant command requirements for theater-wide airborne command and control. That is not the mission for which it is designed. Additionally, the E-7 can perform missions different from traditional AWACS roles that will be critical to the China contingency.”
“We have high confidence the U.S. Space Force will develop and deploy a space-based air battle management system. However, the scientific and engineering hurdles to accomplish this goal are daunting and the timeline to success is unclear. Since having a robust tracking and battle management system is fundamental to projecting airpower and winning conflicts, prudence demands we acquire sufficient numbers of E-7s to prevail whenever the next conflict unfolds.”
Related Articles:
Air Force Senior Statesmen Make the Case for E-7, F-35, and Air Superiority
Former Air Force chiefs sound alarm about planned F-35, E-7 cuts
Step Toward Blocking E-7 Wedgetail Radar Jet Program Cancellation Taken By Congress
B-21 Production Is Speeding Up, But How Much and For How Long Is Still Unclear
The $10.3B the Air Force and Congress want to spend on the B-21 in FY26 will fund not only continuing development and fabrication, but increased production capacity, however the Air Force isn’t saying whether that accelerated manufacturing will buy more total B-21s than planned, buy the bombers faster … or both.
Previous budgets have indicated that B-21 production—based on a buy of 100 airplanes—could wrap up in the mid-to-late 2030s, suggesting a production rate of only seven or so airplanes per year.
The Air Force was not immediately able to say whether Northrop could accommodate additional B-21 production at its Plant 42 facilities in Palmdale, Calif., simply with more tooling and workers or whether a separate manufacturing site would have to be set up.
Our Take: We see it very likely, especially given CEO comments that this funding is to add at least additional capacity to portions of the production floor - possibly those that are potential bottlenecks now. Its unlikely that $477M would build an entirely new line given the elevated cost of tooling.
Related Article: Northrop Exec: Industry Can Create Surge Capacity—If It’s in Contracts
GBU-57 MOP’s Results From Iran Strike Will Inform Its Future
Defense Threat Reduction Agency (DTRA) is waiting for comprehensive battle damage assessments (BDA) from last month’s strikes on Iranian nuclear facilities to determine how well they worked and use that data to learn how to improve the 30,000-pound weapons and better design follow-on very deep penetrating bunker busters.
A total of 14 MOPs were dropped by B-2 bombers during the Operation Midnight Hammer raid, 12 on Fordow — six down two holes — and two on Natanz.
There was already intense U.S. military interest in a new Next Generation Penetrator (NGP) when the MOP first began entering service in the early 2010s.
The most recent publicly stated requirements for the NGP come from a contracting notice the Air Force put out in February 2024. It called for a warhead weighing 22,000 pounds or less that would be “capable of blast / frag[mentation] / and penetration effects,
While MOP was designed with Fordow as its primary driver, the weapon is known to also be capable of taking out other targets in adversary countries.
The MOP has been upgraded multiple times already since the munition first began entering service in the early 2010s, particularly with regard to its fuzing which is an especially important aspect of the bunker buster’s design.
Designing the new fuzes has been challenging, especially because of issues finding the proper place to test them.
Read More: TWZ has detailed the fuze development process here.
B-1B To Finally Get New External Pylons Drastically Expanding Missile Carriage Potential
The Air Force is moving ahead to add new external pylons onto its B-1B Lancer bombers after years of experimentation. The pylons will enhance the B-1’s already significant ability to carry large and diverse payloads, with a particular eye toward future hypersonic weapons.
It is also a hedge against potential delays in the arrival of stealthy B-21 Raiders, which are set to replace the remaining Lancers.
The Air Force is asking for ~$50M for the External Heavy-Stores Pylon program,
The Hypersonic Integration Program successfully demonstrated the B-1’s ability to execute a captive carry of a 5,000-pound class store and the release of a proven weapon shape from a Load Adaptable Modular (LAM) pylon.
Its yet unclear how many LAMs each B-1 will be fitted although past efforts have leveraged six existing hard points (for nuclear-tipped cruise missiles).
There are currently 42 B-1s in active service with plans to bring the fleet to 44 - conceptually this upgrade would be retrofitted on the entire fleet.
Air Force Fighters Control Semi-Autonomous Drones in Crucial Test
Pilots of an Air Force F-16C and an F-15E each successfully controlled two XQ-58A Valkyrie drones in an “air combat training scenario.
The flight demonstrated the Air Force’s ability to achieve real-time integration between manned and semi-autonomous systems.
While the Air Force is spending $711M on the CCA program in FY25 and planning another $789M in FY26, the Air Force continues to invest in supporting efforts too.
Its Autonomous Collaborative Platforms program matures technology to reduce risk through development, integration, experimentation, and test activities and is funded at more than $50M in FY25.
Related Article: Air Force advances human-machine teaming with autonomous collaborative platforms
KC-46’s Refueling Boom Damaged While Refueling F-22s
An Air Force KC-46 tanker suffered damage to its boom while refueling F-22 Raptors off the coast of Virginia with reported radio communication from the crew indicating the boom detached. A long-standing problem has been a so-called “stiff boom,” which prevents the aircraft from refueling the A-10 Thunderbolt II. Contractors and the Air Force are working on a redesigned actuator as a fix.
Other Air Force News:
Space Industry Sticks With Single-Use Satellite Model Despite New Technologies
Despite a surge in satellite deployments, the fundamental operating model for spacecraft hasn’t evolved much since Sputnik launched in 1957: build it, launch it, use it, discard it.
This approach persists even as new technologies promise to make satellites serviceable in orbit.
Some ISAM technologies are not new. In 2007, DARPA’s Orbital Express mission successfully demonstrated on-orbit refueling and autonomous satellite servicing.
Yet the program was shelved, as the Pentagon saw no operational requirement.
The military has traditionally designed satellites for single-use missions, avoiding the complexity of in-space logistics.
DARPA’s Robotic Servicing of Geosynchronous Satellites technology is scheduled for deployment in 2026 on a Northrop Grumman SpaceLogistics vehicle that will attempt to attach propulsion modules to satellites.
SpaceLogistics has deployed two Mission Extension Vehicles (MEVs) to extend the life of two Intelsat communications satellites — making it the only U.S. company to provide commercial on-orbit servicing to date.
The Pentagon, meanwhile, continues to view ISAM through an experimental lens, with programs like the Astroscale Prototype Servicer for Refueling (APS-R), Orbit Fab’s fuel depot, and the Tetra-5 demonstration.
As GAO notes in their report, “there are no plans for a meaningful service-wide requirement for serviceability.”
China meanwhile had Shijian-21 and Shijian-25 satellites conducting proximity maneuvers in geosynchronous orbit, believed to be precursors to an in-space refueling test.
The activity signals that China views ISAM as a strategic capability — not merely a scientific or commercial curiosity.
Our Take: Until we can launch with nuclear engines, DoD should be pursing ISAM for its critical mission satellites as it would expand the operational envelope for maneuvering away from threats or optimize its position in the constellation for a particular mission. Right now that usually burns too much fuel and degrades the life of the satellite - ISAM would help solve that.
Space Force Cancels Major Tactical SATCOM Competition
Space Force is cancelling the planned $2B Protected Tactical SATCOM-Resilient, or PTS-R, program, which had aimed to build on the Space Force’s existing Wideband Global SATCOM constellation.
In 2021, the Space Force awarded prototype contracts to Northrop Grumman and Boeing as a preliminary step to PTS-R.
Instead it is choosing to focus on operationalizing two prototypes it plans to launch next year as part of a new, “innovative” approach intended to accelerate getting new tech into operation as quickly as possible.
“We have initiated a new approach to bound cost and technical risk while rapidly delivering incremental capability. The benefits of this innovative approach include saving near-term costs by utilizing lower cost-risk contracts, and providing incremental capabilities faster by operationalizing current PTS-Prototype satellite capabilities after they launch next year.” Cordell DeLaPena, PEO for Military Comms and PNT
Air Force Review Spotlights Risks In Space Agency’s Go-Fast Approach
The Air Force survey — which includes responses from 129 of SDA’s 155 employees — said that while the agency’s boundary-breaking acquisition methods have allowed it to move and grow quickly, there’s a need for SDA to shift away from a personality-driven to a process-driven leadership approach as it looks to scale from handfuls of demonstration satellites to hundreds of operational spacecraft.
The ‘hub and spoke’ leadership model, effective in the early stages, now contributes to information silos and hinders collaboration across the expanding organization.
The report also pointed to a need for more open information flow among capability tranches, which could make it easier to collaborate and improve on performance — key to the agency’s iterative development strategy.
While transparency exists in some areas, decision-making processes often follow a top-down, one-way approach, which risks mistrust and hindering buy-in from some employees.
Our Take: While this review is interesting, it also sounds like the normal growing pains of an organization trying to demonstrate a disruptive model for a space acquisition community that has been slow and plodding - and not commercially focused. We expect SDA will learn from these findings and will be better for it.
Space Force Ponders Shakeup to LEO Satellite Strategy, Potentially Hiring SpaceX for Data Relay
Gen. Chance Saltzman confirmed that the service is reconsidering the future of SDA’s multi-billion-dollar Transport Layer, a network of data relay satellites to rapidly transmit targeting data from US military sensors to shooters.
Multiple government, industry and congressional sources have said that the Space Force study is looking at terminating the Transport Layer after it completes acquisition of satellites currently on contract and potentially moving the data transport mission to SpaceX under the mysterious MILNET program.
Space Force operators described the effort as a government-owned, contractor-operated satellite communications (SATCOM) constellation that ultimately would comprise 480 satellites.
Users will be equipped with the company’s encrypted Starshield terminals to allow them to connect to the MILNET network.
While Starshield terminals can connect to both SpaceX’s militarized Starshield satellites and its commercial Starlink network,
Space Force Adjusts as Commerce Cuts Space Traffic Management Program
The first Trump administration moved to relieve the Space Force of its burden to monitor and warn civilian space operators about potential space traffic hazards.
But now, just as the Commerce Department’s new Traffic Coordination System for Space (TraCSS) program is nearly ready, the second Trump administration is looking to cancel it.
Space Policy Directive 3 issued in June 2018 laid out objectives for the future of space traffic management and commercial space situational awareness, with the idea that a civilian, rather than military, organization should be responsible for advising commercial operators when they are at risk of a collision in space.
A spokesman for Space Operations Command (SpOC) provided a statement that said the command will “continue to advocate” for the objectives outlined in SPD-3. The TracCSS solution was an answer to that policy direction, and without it, the next steps are unclear.
Commerce zeroed out funding for TracCSS in its FY26 budget request at a time when the burgeoning number of commercial satellites is making the domain increasingly congested and potentially less safe.
The administration argues the private sector should be responsible for tracking satellites and warning operators about potential collisions.
Our Take: This is a huge misstep that will leave many constellations in jeopardy or will create a new burden for the Space Force just as it embarks on new mission sets. Commercial users have long relied on the government to provide this service and it cannot just be replaced overnight by the private sector.
Space Force Awards $2.8B Contract for New NC3 Satellites
The Space Force has awarded Boeing $2.8B for the first two satellites, with an option for two more, as part of the Evolved Strategic SATCOM program.
The first two satellites are expected to be delivered by 2031, Boeing said in a release. The Space Force plans to reach IOC by 2032.
ESS will take on the nuclear mission currently being performed by the Space Force’s Advanced Extremely High Frequency satellite constellation.
The AEHF spacecraft provide both tactical and strategic communications, but the service is splitting those missions as part of an effort to proliferate more satellites and increase its resilience.
The program is a key element of the Pentagon’s sweeping modernization program for its nuclear enterprise.
While much of the focus for that effort has been on the Air Force’s Sentinel ICBM and B-21 bomber, officials and experts say NC3—which encompasses a multitude of different systems across the military—is essential and in dire need of upgrades.
Additional satellites are planned to be procured through fixed price contract actions that may be awarded as sole source to support Full Operational Capability and attain global coverage, including enhanced Arctic capability.”
Related Article: Space Force awards Boeing $2.8B deal to deliver next-gen nuclear communication satellites
Other Space Force News:
China’s Two-Seat J-20 Stealth Fighter To Enter Operational Service
For the PLAAF, the J-20 remains the most important tactical jet program, while the future of the J-35 is coming clearer into view.
Since the first flight of the J-20S prototype in November 2021, at least five other prototypes have appeared, the most recent emerging in March of this year.
With no equivalent two-seat stealth fighter in any Western inventory, the exact purpose of the J-20 has long been a source of debate. Some early assessments suggested it might be intended for electronic warfare
More recent analysis suggests, which matches TWZ‘s original analysis, that at least a significant portion of the stealth jet’s mission might be in support of a growing fleet of PLAAF drones.
France Asks FCAS Partners to Rethink Work Share on Fighter Project
France proposed to partners Germany and Spain to “rethink” the work share on the Future Combat Air System project in order to stick to a schedule that would see a future fighter enter into service from 2040 onwards.
While the program has made significant progress, including deciding on the shape of the fighter demonstrator, it’s currently encountering difficulties.
France therefore recently proposed to its partners to redesign their cooperation based on “strengthening industrial leadership.”
The French proposal comes amid reports that plane maker Dassault Aviation is seeking a greater share in some parts of the program.
While Dassault is the lead company for the development of a new warplane within the overall combat system, Trappier has repeatedly complained about delays due to bickering over work share with partner Airbus, representing Germany and Spain for the fighter segment.
Airbus officially still expects FCAS to be fully operational by 2040, whereas Trappier has repeatedly said the delays mean 2045 is more likely for the fighter.
The DGA has previously said it expects phase 2 of FCAS to start early 2026.
Our Take: Its a pretty bad sign to see so much division this early in the program. I’m sure the other partner countries will not appreciate the French proposal especially if it is a play for greater workshare.
EU Militaries Game Out Ukraine-Inspired Resupply Tactics Via Drones
As supplies are rushed to the front line in Ukraine using unmanned aerial and terrestrial platforms, the European Defense Agency has brought manufacturers and militaries together at an Italian training site to ensure Europe has the right kit and doctrine – as soon as possible – to do the same thing.
The first-ever European Defence Innovation Operational Experimentation (OPEX) campaign, was designed to bring what the EDA called the “valley of death,” where industry research and innovation stall and die before getting into the hands of militaries.
The exercise at the Italian army’s Montelibretti facility showed off aerial and terrestrial platforms from six companies.
Portugal’s Beyond Visionbb
Greece’s Altus LSA
Austria’s Schiebel
Spain’s Alysis
Poland’s Piap
Germany’s Arx Robotics
“The war in Ukraine reshaped our understanding of defense innovation, compressing years of development into weeks through rapid prototyping, adaptability, and tight collaboration among armed forces, engineers, and civilians.” André Denk, EDA’s chief executive
Dutch, Norwegian F-35s to Guard Ukraine Supply Lines in Poland
Dutch and Norwegian F-35 fighter jets will be stationed in Poland under NATO command to protect supplies of equipment to Ukraine.
Deploying the Dutch F-35s to monitor airspace above Eastern Europe will protect military equipment intended for Ukraine.
Stationing the jets in Poland will also allow for a quick response to violations or imminent violations of NATO airspace
“It is essential that we contribute to the defense of NATO territory and the security of Europe. We are once again doing so with our most advanced capabilities.” Dutch Minister of Defense Ruben Brekelmans
China is Preparing to Counter U.S. Submarine Surveillance System
While much of the international attention on China’s naval buildup is focused on its rapidly modernizing surface fleet, the People’s Liberation Army Navy (PLAN) is also taking bold steps to field a first-rate submarine force.
By the end of this year, the service could have as many as 25 Yuan-class submarines, which are among the world’s most advanced diesel-electric boats.
Its small-but-growing fleet of nuclear-powered attack (SSN), guided missile (SSGN), and ballistic missile (SSBN) submarines has achieved major technological upgrades, and with the benefit of a massive production facility in Huludao, may be on the cusp of significant expansion.
However, PLAN officers revealed that the peacetime operations of Chinese submarines are highly vulnerable to the U.S. Navy’s undersea surveillance system, raising serious questions about their strategic and operational utility.
China Surveys Seabeds Where Naval Rivals May One Day Clash
Chinese research ships are studying the seas for science and resources, but the data they gather could also be useful in a conflict with Taiwan or the United States.
China’s scientific research ships are ranging farther and probing deeper, gathering information that could expand understanding of marine life and the impact of climate change.
But their findings could also serve China’s naval interests, including how it might deploy its submarines in the Pacific or try to track stealthier American ones.
Over time, the growing research fleet could give Beijing a powerful advantage in maritime competition with the United States.
Japan Gaining Traction Developing Its Defense Innovation Ecosystem
Japan has a problem: None of the world-famous Japanese camera manufacturers are in the defense market.
The problem encapsulates the struggles Japan is having developing its defense industrial base.
Three years into a five-year-long boost in military spending, Japan is seeking to expand its defense industry ecosystem, which lags other nations due to its longtime pacifistic policies.
An assertive China and an aggressive North Korea have prompted Japan to shed its post-World War II peacetime policies and take more responsibility for its own defense.
Japan’s defense budget soared to a record-breaking $55.1B in FY25, the third year in a five-year plan for the nation to reach 2% of GDP spent on defense.
Japan in 2022 released three major documents outlining its goals to bolster its defense: the National Security Strategy, the National Defense Strategy and the Defense Buildup Program.
To help solve this problem, Japan has a new technology incubator similar to the DoD’s DIU.
The Defense Innovation Science and Technology Institute opened its doors for business in October, and according to its director Taisuke Katayama, its staff is still working out how it will break away from conventional thinking of how to do research and development.
The goal is to take a disruptive technology from initial contract to full development in three years.
Other International News:
Senate NDAA to Keep Acquisition Reform Provisions Boosting Nontraditional Defense Firms
Sen. Roger Wicker aims to fold the FORGED Act into the NDAA, but with some changes meant to ease the concerns of major defense primes.
Sen Wicker is shifting his focus to his other major priority: Enacting a sweeping package of acquisition reform measures meant to shake up the way the Pentagon does business — and potentially putting traditional primes in tougher battles with upstart competitors.
While there will be changes to specific elements in language from the FORGED Act, the core tenets are largely there.
Like the original FORGED Act, the draft NDAA contains language that defines a nontraditional defense contractor and exempts them from certain regulations.
The aim is to increase competition between the large defense primes and smaller, more nimble technology startups and lead to more innovation at a lower price for the US military while also freeing startups and other firms built on a commercial sales model from onerous rules that often require them to set up separate financial systems.
The bill also would make commercial procurement processes the default contracting method for the Pentagon, and stipulates that nontraditional firms must be treated like commercial entities.
The bill’s other major pillar would overhaul how the DoD acquisition corps manages weapons development and procurement, moving from processes centered around programs to ones where officials have more flexibility to made cost and schedule trade offs among a portfolio of connected technologies.
The SASC made certain tweaks, particularly to the definition of a nontraditional, that maintained an ability for the traditional to also be considered [nontraditional] under those circumstances, or have business units that could be considered nontraditional. The bill modifies the definition to include business entities that do not have significant R&D or bid and proposal costs reimbursed by the government.
Our Take: After we complete the FY26 Budget analysis, we’ll pivot to NDAA updates.
Other Congressional News
Bipartisan bill seeks to empower military with rights to repair own equipment
Senate panel pushing DOD on strategy to deter Chinese cyber activity on critical infrastructure
Podcasts, Books, and Videos
Building an Autonomous Future for DoD w/Ryan Tseng, AI Policy Pod
From Silicon Valley to Lieutenant Colonel w/Dr. Alex Miller, Crossing the Valley
America’s Defense Tech Renaissance w/Katherine Boyle, Shawn Ryan Show
Israel-Iran Conflict w/VADM (Ret) Kevin “Kid” Donegan, Mission Matters
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Space and Missile Defense Symposium, Aug 5-7, Huntsville, AL
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2025 Space Warfighter Forum, NDIA, Aug 26-28, Colorado Springs, CO
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See our Events Page for all the other events over the next year.
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Defense is eating the world; take the generational view and The Trust Fund ®️of 20-50 years to build planes and ships *maybe* wins.
Certainly the money will be spent, in no way does that mean more drones, munitions, ships, planes.
Means little or none, just as it has for 35 years.
A generational view taken by an existing gerontocracy is failing from the outset and the status quo wins.
We already have a generational view…
Many McMansions the material results.
We can’t fight with McMansions.