Modernizing Defense: Innovation, Autonomy, and Oversight

Original broadcast 6/29/25

This week's Fed Gov Today explores critical challenges and opportunities shaping the future of defense technology and acquisition. Francis Rose speaks with GAO’s Vijay D’Souza about systemic issues in DOD IT programs, Govini’s Jeb Nadaner on how innovation pathways can accelerate military tech adoption, and the Hudson Institute’s Timothy Walton and former Navy acquisition chief Nick Guertin on aligning Pentagon autonomy strategies with budget realities. The show uncovers how leadership, technology, and procurement policy intersect in building tomorrow’s force.

GAO Report Spotlights Delays and Gaps in DOD IT Programs

Vijay D’Souza, Director of Information Technology and Cybersecurity at GAO, details findings from GAO’s latest annual review of the Department of Defense’s major IT business programs. He reveals that over half of the programs reviewed experienced cost overruns or schedule delays—some with median increases of $173 million and delays averaging 15 months. He underscores the importance of agile development practices and highlights that while 11 programs are using agile methods, not all are fully adhering to DOD’s required tools and metrics. Cybersecurity also remains a challenge, with two programs lacking an approved cybersecurity strategy and four not having formal plans for zero trust adoption by the 2027 deadline. D’Souza stresses that while progress is evident, continued vigilance and execution are essential to improving IT program outcomes across the department.

Key Takeaways:

• 14 of 24 DOD IT business programs had cost or schedule changes—most were delays or overruns.

• Agile development is in use, but implementation quality varies; tracking tools like burn-down charts are often underutilized.

• Two programs still lack cybersecurity strategies, and four have not planned for zero trust integration by 2027.

Driving Innovation in Defense: Lessons from Army Futures Command and DIU

Jeb Nadaner, Senior VP of Government Relations at Govini and former Deputy Assistant Secretary of Defense for Industrial Policy, discusses the evolution of DOD innovation efforts. He highlights how Army Futures Command and the Defense Innovation Unit (DIU) have emerged as successful models for integrating non-traditional companies and accelerating prototyping to production. Nadaner notes the importance of real competition, outcome-driven requirements, and clear pathways to fielding. He also warns of the ongoing “valley of death” challenge for venture-backed firms needing timely procurement decisions. Drawing comparisons to Israel's more agile defense tech ecosystem, he calls on the Pentagon to fully utilize acquisition authorities and follow both congressional law and executive guidance to achieve speed, scale, and readiness.

Key Takeaways:

• Army Futures Command and DIU have led the way in integrating non-traditional vendors into defense programs.

• Venture-backed defense firms need real orders—not just interest—to stay in the game.

• Following acquisition law and using flexible procurement authorities can unlock faster fielding.

Aligning Strategy and Spending for Military Autonomy

Timothy Walton of the Hudson Institute and Nick Guertin, former Navy acquisition leader, explore the strategic and budgetary misalignment surrounding uncrewed military systems. Despite clear strategic intent, the Pentagon’s autonomy investments still lag in procurement. Walton stresses the need to shift from research and testing to actual fielding, especially for medium unmanned surface vessels (MUSVs). Guertin highlights recent budget activity indicating movement in this direction, but also emphasizes the challenges of sustaining and maintaining autonomous fleets. The discussion touches on lessons from Ukraine and Israel, advocating for rapid operational adaptation, modularity, and a heterogeneous fleet architecture that includes surface, underwater, and long-endurance systems. They urge leveraging narco-sub-like designs for cost-effective, mass-producible underwater capabilities.

Key Takeaways:

• A disconnect remains between DOD’s autonomy strategy and actual funding for procurement.

• Recent budget allocations and RFPs suggest progress toward deploying medium unmanned surface vessels.

• The Navy must move beyond one-size-fits-all platforms and embrace scalable, modular, and heterogeneous unmanned systems.