Skip to content
Options Trading Report

Options Trading Report

Primary Menu
  • Home
  • Business
  • Domestic
  • Economy
  • Money
  • Top News
  • Newsletters
  • Home
  • 2025
  • March
  • Pentagon software buying process shifts towards more access

Pentagon software buying process shifts towards more access

Editor March 7, 2025 2 minutes read
2025-03-07T202854Z_1_LYNXNPEL260XC_RTROPTP_4_USA-TRUMP-PENTAGON-RETIRE

By Mike Stone

WASHINGTON (Reuters) – The U.S. Department of Defense is shifting how it buys software eyeing greater access to commercial and non-traditional software providers as the Pentagon hopes to rapidly modernize its weapons and business systems.

In a memo dated March 6, Secretary of Defense Pete Hegseth directed the Department of Defense (DoD) to prioritize a new software acquisition effort he hopes will enhance the lethality of the U.S. military. The memo will be a part of a series of Pentagon directives that attempt to change how the Pentagon acquires weapons and support systems.

“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 officials told reporters on a call about the memo.

Defense prime contractors include Lockheed Martin and General Dynamics. Newer and smaller companies like Second Front Systems have made progress but struggled to gain access to Pentagon projects.

The memo emphasizes the need for the DoD to adapt to the reality of software-defined warfare and to overhaul its acquisition processes to keep pace with commercial technology advancements.

Hegseth stated that the current hardware-centric approach to acquisition has hindered the DoD’s ability to rapidly acquire, deliver, and iterate on weapons and business systems software.

To address this, he has mandated the adoption of the Software Acquisition Pathway (SWP) as the preferred route for all software development components within the DoD.

“Driving a focus on commercial capabilities and faster acquisitions is vital for the Department,” Tyler Sweatt, CEO of Second Front Systems, a Pentagon software provider, 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.”

The directive also instructs DoD to pursue contracting strategies that maximize the use of commercial solutions as the default approaches for acquiring capabilities. This applies to any software pathway program currently in the planning phase.

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 to ensure the swift adoption of these changes.

(Reporting by Mike Stone in Washington; Editing by Chizu Nomiyama)

About the Author

Editor

Administrator

Visit Website View All Posts

Post navigation

Previous: Trump’s shipbuilding plan could upend ocean cargo industry, companies warn
Next: Elon Musk’s xAI buys new property in Memphis amid supercomputer expansion

Live Market Pulse

The charting technology is provided by TradingView. Learn how to use theTradingView Stock Screener.

Want More Market News?
Add your email address below to get up to date market news and more!
By submitting your email address, you'll receive a free subscription to Options Trading Report newsletter (Privacy Policy). These newsletters are completely free - and always will be. You will also receive occasional offers about products and services available to you from our affiliates. You can unsubscribe at any time.

Search

Recent Posts

  • Bloom Energy (BE): The Oracle partnership is a power story before it’s an AI story
  • US set to launch tariff refund system on April 20
  • JPM Earnings: Options React Live
  • US existing home sales drop to nine-month low in March amid tight supply
  • Monday Morning Brief — April 13, 2026

Categories

  • Business
  • Market News
  • Newsletters
  • Options
  • Reflections
  • Top News

You may have missed

  • Newsletters

Bloom Energy (BE): The Oracle partnership is a power story before it’s an AI story

Editor April 14, 2026
2026-04-14T184938Z_3_LYNXMPEM3D19B_RTROPTP_4_USA-IMPORTS
  • Market News

US set to launch tariff refund system on April 20

Editor April 14, 2026
  • Newsletters

JPM Earnings: Options React Live

Editor April 14, 2026
2026-04-13T140547Z_2_LYNXMPEM3C0UP_RTROPTP_4_USA-ECONOMY-MORTGAGES
  • Market News

US existing home sales drop to nine-month low in March amid tight supply

Editor April 13, 2026
  • Home
  • Terms of Service
  • Privacy Policy
  • Disclaimer
  • Contact Us
Copyright 2026 © All rights reserved | Options Trading Report | optionstradingreport.com SITE_OK