Pentagon Official Urges Fixing Core Acquisition System

Why this is here: The US outsourced manufacturing to its “greatest strategic competitor,” becoming dependent on foreign firms for vital inputs and losing generations of skilled workers.

Michael Cadenazzi, Assistant Secretary of Defense for Industrial Base Policy, spoke in Detroit about the limitations of Pentagon workarounds. For years, the Department of Defense has attempted to bypass slow acquisition processes with organizations like the Defense Innovation Unit. These efforts brought new companies into the defense sector, but have not fundamentally improved the core acquisition system.

Cadenazzi argues the US cannot effectively compete with China or rebuild its industrial base without addressing systemic issues within the DoD’s buying processes. America outsourced manufacturing and lost expertise in key areas, creating vulnerabilities in supply chains and production capacity.

The Pentagon now funds initial bulk purchases of basic military drones, technology Ukraine adopted years prior. Cadenazzi emphasized that prototypes alone are insufficient; the DoD must focus on scaling production, certification, and supply chain resilience. The realignment of arms trade organizations under the office of acquisition and sustainment is underway, though results are not yet available.