Rebuilding Government: AI, Acquisition, and the Post-Shutdown Comeback

Original broadcast date: 11/16/25

Presented by IBM

This episode of Fed Gov Today with Francis Rose opens with Nick Guertin, former Assistant Secretary for Research, Development, and Acquisition for the Navy, analyzing the Pentagon’s new Acquisition Transformation Strategy. He praises the Department of Defense’s push toward modular open systems, problem-based requirements, and portfolio management — calling it a bold step toward more agile and effective acquisition outcomes. Guertin emphasizes the need for collaboration between leadership, Congress, and the workforce to ensure the transformation’s success, noting that progress will depend on aligning technology, people, and mission needs.

Next, Terry Halvorsen, IBM’s Vice President for Federal Client Development and former DOD CIO, explores how AI is accelerating post-shutdown recovery efforts. He explains that AI helps agencies analyze data faster, reduce backlogs, and make quicker decisions — provided the data is properly curated and structured. He also highlights the need to balance short-term recovery with long-term modernization goals.

Finally, Gary Washington, former USDA CIO and now Chief Strategy Officer at ACT-IAC, discusses opportunities for CIOs to modernize systems, reduce technical debt, and strengthen cybersecurity. He calls for focused priorities, collaboration with business leaders, and leveraging tools like the Technology Modernization Fund to jumpstart innovation.

The Future of Defense Acquisition: Breaking the Iron Triangle

Nick Guertin, former Assistant Secretary for Research, Development, and Acquisition for the Navy, discusses the Pentagon’s new Acquisition Transformation Strategy and its potential to reshape defense procurement. Guertin praises the initiative for emphasizing modular open systems, competition, and problem-based requirements instead of rigid checklists — calling it a bold and necessary modernization effort.

He explains that shifting from program executive offices to portfolio management could allow leaders to make smarter trade-offs across projects, accelerating delivery of impactful capabilities to warfighters. However, Guertin cautions that the strategy’s success depends on implementation, coordination with Congress, and empowering acquisition teams to make flexible, data-driven decisions.

Guertin also advocates for a more agile approach to defense systems, especially software-driven platforms that can evolve continuously. He notes that while hardware like ships and aircraft require long development cycles, mission systems and digital tools should follow an iterative “minimum viable product” model to deliver faster results.

Ultimately, Guertin says transformation will succeed only if leaders engage the workforce, value their expertise, and build a culture of innovation and joy in their work. His outlook is optimistic — viewing these reforms as a long-overdue step toward smarter, faster defense acquisition.

Key Takeaways:

• The Pentagon’s new acquisition strategy aims to speed up innovation through modular open systems, problem-based requirements, and more flexible portfolio management.
• Agile, iterative development is essential for software-driven mission systems, even though major hardware platforms still require long, deliberate cycles.
• Successful transformation depends on engaging the workforce, valuing their expertise, and building a culture that supports continuous improvement and innovation.

From Shutdown to Speed: How AI Is Changing Everything in Government

In his Fed Gov Today interview, Terry Halvorsen, Vice President for Federal Client Development at IBM and former Department of Defense Chief Information Officer, discusses how artificial intelligence is accelerating the federal government’s recovery and modernization after the shutdown. Halvorsen explains that AI allows agencies to analyze massive amounts of data faster, clear backlogs, and make better-informed decisions — not by replacing people, but by amplifying their productivity.

He emphasizes that the greatest advantage will go to agencies that already have AI tools in place, as they can move quickly to restore operations and maintain mission momentum. However, Halvorsen cautions that data quality and structure remain major challenges. Many government datasets are rich but not “AI-ready”, and agencies must focus on curating smaller, cleaner datasets to get accurate, timely results.

Halvorsen also highlights the compressed calendar agencies face following the shutdown, with holidays and staffing challenges leaving limited time to regain normalcy. He urges leaders to take both a short-term recovery and long-term modernization view — using this moment to strengthen data foundations and plan sustainable AI strategies. Ultimately, Halvorsen frames AI as the government’s key to faster decisions, smarter operations, and a more resilient digital future.

Key Takeaways: 

• Agencies already using AI have a major advantage, as it helps them process data faster, clear backlogs, and make quicker decisions after the shutdown.
• AI’s effectiveness depends on high-quality, well-curated data, and many federal datasets need significant cleanup before they’re truly AI-ready.
• Leaders must balance short-term recovery with long-term planning, using this period to strengthen data foundations and build sustainable AI strategies.

Modernize or Fall Behind: the Future of Federal IT

Gary Washington, former USDA Chief Information Officer and now Chief Strategy Officer at ACT-IAC, discusses how federal technology leaders can seize the moment after the government shutdown to accelerate modernization and reduce technical debt. Washington argues that instead of just catching up, CIOs should treat this period as a strategic opportunity to transform IT delivery and strengthen mission outcomes.

He stresses the importance of focus and alignment, urging technology leaders to prioritize core initiatives — like artificial intelligence, cybersecurity, and data consolidation — while avoiding distractions. Washington highlights how success depends on collaboration between CIOs, business partners, and agency leadership to ensure modernization directly supports organizational goals.

Drawing on his USDA experience, Washington shares a major success story: consolidating 17 networks into one, which produced a projected $700 million cost avoidance over ten years and improved security and efficiency. He credits tools like the Technology Modernization Fund (TMF) for helping agencies kick-start critical projects that traditional budgets often can’t support.

Washington concludes that lasting transformation requires both career and political leaders to work together, embrace innovation, and empower employees — turning post-shutdown recovery into a launchpad for a stronger, smarter federal IT future.

Key Takeaways: 

• Post-shutdown recovery should be treated as a strategic opportunity to accelerate IT modernization rather than simply return to normal operations.
• CIOs need to stay focused on top priorities and ensure close collaboration with business leaders and agency leadership to drive successful transformation.
• Smart modernization efforts — such as network consolidation and leveraging tools like the TMF — can deliver major long-term cost savings and stronger mission performance.