Department of War Announces Broad Acquisition Reform Initiatives
Client Alerts
November 21, 2025
By: Moshe B. Broder, David Robbins, Noah B. Bleicher, Matthew L. Haws
On November 10, 2025, the Secretary of War released three memoranda and an acquisition reform strategy directing systemic reform across the defense acquisition landscape. The overarching theme of these reform initiatives is moving with urgency, prioritizing the integration of innovative capabilities, and accelerating a preference for commercial contracting.
The Department of War (DoW) affirmed its commitment to expanding the industrial base to new market entrants and non-traditional vendors to counter decades-long market consolidation. To address variable demand cycles, the DoW promised to award bigger and longer contracts which the DoW hopes will enable greater confidence in the return on capital investment.
The DoW also intends to reform the arms transfer and security cooperation process to reduce regulatory and process bottlenecks, increase transparency, and more efficiently deliver defense articles and services to US allies and partners. Some of these acquisition reform initiatives have been discussed in recent years, including by the Section 809 panel.
These reform directives call for implementation plans to be drafted and approved by the Secretary of War over the coming months.
We are tracking several potential significant policy shifts that may impact daily operations for government contractors:
- Increased use of Other Transaction (OT) and commercial agreements. As part of the re-emphasized preference for commercial contracting, and consistent with the Trump Administration’s focus in this area, the Department intends to provide targeted guidance, training, and resources on “the effective use of Commercial Solutions Offerings (CSOs), other transactions, and related agreements, commercial acquisition, and rapid contracting practices.” At the same time, the DoW will continue to require “high cybersecurity standards” in IT acquisitions, an ongoing compliance challenge industry wide. If implemented, this preference could help avoid seemingly burdensome frameworks and tap into innovative offerings but could also limit transparency by foregoing competition and reduce oversight of contractor costs.
- Overhauling and reducing acquisition regulations. The DoW is currently conducting a complete overhaul of the Federal Acquisition Regulations (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) with the goal of keeping only “vital” regulations and increasing the velocity of contracting actions. The DoW is particularly focused on limiting the applicability of the Truth in Negotiations Act (TINA), a requirement imposed on contractors to submit accurate cost or pricing data under contracts exceeding a specific cost threshold.
- Bid protest reform. The DoW announced that it will advocate for legislative change to reform the bid protest process in the hopes of discouraging “frivolous” bid protests and accelerating processing and adjudication. This reform would include a “loser pay” provision subject to certain conditions, namely: a protest filed by an incumbent contractor that is “dismissed as legally or factually insufficient or for otherwise being procedurally infirm” would result in the Government recouping or withholding profit or fee from that incumbent contractor. Notably, protests filed at GAO in Department of War procurements are already down 48 percent over the past decade (as reported by GAO in July), and the vast majority of procurements are conducted without any protest scrutiny. Moreover, there is no data to support that incumbent contractors file protests at a higher rate than non-incumbents. If implemented, this proposal may discourage prospective protesters from pursuing speculative protest challenges, but it is uncertain whether there will be broader impacts.
- Contracting speed. Nearly every reform initiative emphasizes the need for speed, agility, and accelerated execution throughout the acquisition lifecycle. Fundamentally, the Department is seeking to re-orient itself as a “risk-based decision-making organization, focused on meeting warfighting and operational needs” and not one that is “compliance-based” using a slower “checklist mentality.” At the highest level, a pendulum swing in this direction could open the door for new participants in the government contracting space, but could also lead to increased disputes as accepting higher risk and moving quickly could lead to performance issues.
Jenner & Block continues to monitor these developments and will provide updates and analysis as appropriate.
- Increased use of Other Transaction (OT) and commercial agreements. As part of the re-emphasized preference for commercial contracting, and consistent with the Trump Administration’s focus in this area, the Department intends to provide targeted guidance, training, and resources on “the effective use of Commercial Solutions Offerings (CSOs), other transactions, and related agreements, commercial acquisition, and rapid contracting practices.” At the same time, the DoW will continue to require “high cybersecurity standards” in IT acquisitions, an ongoing compliance challenge industry wide. If implemented, this preference could help avoid seemingly burdensome frameworks and tap into innovative offerings but could also limit transparency by foregoing competition and reduce oversight of contractor costs.
- Overhauling and reducing acquisition regulations. The DoW is currently conducting a complete overhaul of the Federal Acquisition Regulations (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) with the goal of keeping only “vital” regulations and increasing the velocity of contracting actions. The DoW is particularly focused on limiting the applicability of the Truth in Negotiations Act (TINA), a requirement imposed on contractors to submit accurate cost or pricing data under contracts exceeding a specific cost threshold.
- Bid protest reform. The DoW announced that it will advocate for legislative change to reform the bid protest process in the hopes of discouraging “frivolous” bid protests and accelerating processing and adjudication. This reform would include a “loser pay” provision subject to certain conditions, namely: a protest filed by an incumbent contractor that is “dismissed as legally or factually insufficient or for otherwise being procedurally infirm” would result in the Government recouping or withholding profit or fee from that incumbent contractor. Notably, protests filed at GAO in Department of War procurements are already down 48 percent over the past decade (as reported by GAO in July), and the vast majority of procurements are conducted without any protest scrutiny. Moreover, there is no data to support that incumbent contractors file protests at a higher rate than non-incumbents. If implemented, this proposal may discourage prospective protesters from pursuing speculative protest challenges, but it is uncertain whether there will be broader impacts.
- Contracting speed. Nearly every reform initiative emphasizes the need for speed, agility, and accelerated execution throughout the acquisition lifecycle. Fundamentally, the Department is seeking to re-orient itself as a “risk-based decision-making organization, focused on meeting warfighting and operational needs” and not one that is “compliance-based” using a slower “checklist mentality.” At the highest level, a pendulum swing in this direction could open the door for new participants in the government contracting space, but could also lead to increased disputes as accepting higher risk and moving quickly could lead to performance issues.
Jenner & Block continues to monitor these developments and will provide updates and analysis as appropriate.
Related Attorneys
Related Capabilities
© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.
Client Alerts
November 21, 2025
By: Moshe B. Broder, David Robbins, Noah B. Bleicher, Matthew L. Haws
On November 10, 2025, the Secretary of War released three memoranda and an acquisition reform strategy directing systemic reform across the defense acquisition landscape. The overarching theme of these reform initiatives is moving with urgency, prioritizing the integration of innovative capabilities, and accelerating a preference for commercial contracting.
The Department of War (DoW) affirmed its commitment to expanding the industrial base to new market entrants and non-traditional vendors to counter decades-long market consolidation. To address variable demand cycles, the DoW promised to award bigger and longer contracts which the DoW hopes will enable greater confidence in the return on capital investment.
The DoW also intends to reform the arms transfer and security cooperation process to reduce regulatory and process bottlenecks, increase transparency, and more efficiently deliver defense articles and services to US allies and partners. Some of these acquisition reform initiatives have been discussed in recent years, including by the Section 809 panel.
These reform directives call for implementation plans to be drafted and approved by the Secretary of War over the coming months.
We are tracking several potential significant policy shifts that may impact daily operations for government contractors:
- Increased use of Other Transaction (OT) and commercial agreements. As part of the re-emphasized preference for commercial contracting, and consistent with the Trump Administration’s focus in this area, the Department intends to provide targeted guidance, training, and resources on “the effective use of Commercial Solutions Offerings (CSOs), other transactions, and related agreements, commercial acquisition, and rapid contracting practices.” At the same time, the DoW will continue to require “high cybersecurity standards” in IT acquisitions, an ongoing compliance challenge industry wide. If implemented, this preference could help avoid seemingly burdensome frameworks and tap into innovative offerings but could also limit transparency by foregoing competition and reduce oversight of contractor costs.
- Overhauling and reducing acquisition regulations. The DoW is currently conducting a complete overhaul of the Federal Acquisition Regulations (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) with the goal of keeping only “vital” regulations and increasing the velocity of contracting actions. The DoW is particularly focused on limiting the applicability of the Truth in Negotiations Act (TINA), a requirement imposed on contractors to submit accurate cost or pricing data under contracts exceeding a specific cost threshold.
- Bid protest reform. The DoW announced that it will advocate for legislative change to reform the bid protest process in the hopes of discouraging “frivolous” bid protests and accelerating processing and adjudication. This reform would include a “loser pay” provision subject to certain conditions, namely: a protest filed by an incumbent contractor that is “dismissed as legally or factually insufficient or for otherwise being procedurally infirm” would result in the Government recouping or withholding profit or fee from that incumbent contractor. Notably, protests filed at GAO in Department of War procurements are already down 48 percent over the past decade (as reported by GAO in July), and the vast majority of procurements are conducted without any protest scrutiny. Moreover, there is no data to support that incumbent contractors file protests at a higher rate than non-incumbents. If implemented, this proposal may discourage prospective protesters from pursuing speculative protest challenges, but it is uncertain whether there will be broader impacts.
- Contracting speed. Nearly every reform initiative emphasizes the need for speed, agility, and accelerated execution throughout the acquisition lifecycle. Fundamentally, the Department is seeking to re-orient itself as a “risk-based decision-making organization, focused on meeting warfighting and operational needs” and not one that is “compliance-based” using a slower “checklist mentality.” At the highest level, a pendulum swing in this direction could open the door for new participants in the government contracting space, but could also lead to increased disputes as accepting higher risk and moving quickly could lead to performance issues.
Jenner & Block continues to monitor these developments and will provide updates and analysis as appropriate.
- Increased use of Other Transaction (OT) and commercial agreements. As part of the re-emphasized preference for commercial contracting, and consistent with the Trump Administration’s focus in this area, the Department intends to provide targeted guidance, training, and resources on “the effective use of Commercial Solutions Offerings (CSOs), other transactions, and related agreements, commercial acquisition, and rapid contracting practices.” At the same time, the DoW will continue to require “high cybersecurity standards” in IT acquisitions, an ongoing compliance challenge industry wide. If implemented, this preference could help avoid seemingly burdensome frameworks and tap into innovative offerings but could also limit transparency by foregoing competition and reduce oversight of contractor costs.
- Overhauling and reducing acquisition regulations. The DoW is currently conducting a complete overhaul of the Federal Acquisition Regulations (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) with the goal of keeping only “vital” regulations and increasing the velocity of contracting actions. The DoW is particularly focused on limiting the applicability of the Truth in Negotiations Act (TINA), a requirement imposed on contractors to submit accurate cost or pricing data under contracts exceeding a specific cost threshold.
- Bid protest reform. The DoW announced that it will advocate for legislative change to reform the bid protest process in the hopes of discouraging “frivolous” bid protests and accelerating processing and adjudication. This reform would include a “loser pay” provision subject to certain conditions, namely: a protest filed by an incumbent contractor that is “dismissed as legally or factually insufficient or for otherwise being procedurally infirm” would result in the Government recouping or withholding profit or fee from that incumbent contractor. Notably, protests filed at GAO in Department of War procurements are already down 48 percent over the past decade (as reported by GAO in July), and the vast majority of procurements are conducted without any protest scrutiny. Moreover, there is no data to support that incumbent contractors file protests at a higher rate than non-incumbents. If implemented, this proposal may discourage prospective protesters from pursuing speculative protest challenges, but it is uncertain whether there will be broader impacts.
- Contracting speed. Nearly every reform initiative emphasizes the need for speed, agility, and accelerated execution throughout the acquisition lifecycle. Fundamentally, the Department is seeking to re-orient itself as a “risk-based decision-making organization, focused on meeting warfighting and operational needs” and not one that is “compliance-based” using a slower “checklist mentality.” At the highest level, a pendulum swing in this direction could open the door for new participants in the government contracting space, but could also lead to increased disputes as accepting higher risk and moving quickly could lead to performance issues.
Jenner & Block continues to monitor these developments and will provide updates and analysis as appropriate.
Related Attorneys
Related Capabilities
© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.
News and Insights
Podcasts
Partner Laurel Loomis Rimon Discusses Fintech Enforcement, Debanking, and Regulatory Risk on Fintech Layer Cake Podcast
Partner Laurel Loomis Rimon was featured on the Fintech Layer Cake podcast, where she discussed how fintech enforcement and prosecution actually work in practice, and what exposes fintechs and banks to regulatory risk.
July 15, 2026
Publications
Supreme Court Clarifies Scope of Private Rights of Action Under the Investment Company Act, Private Equity Law Report
Partners Charles Riely, Todd C. Toral, and Martin Glass authored a guest article for Private Equity Law Report examining the US Supreme Court's June 11, 2026, ruling on the scope of private rights of action under the Investment Company Act of 1940.
July 14, 2026
Publications
Emily Loeb Discusses Congressional Oversight Preparedness in Bloomberg Law
Partner Emily Loeb, co-chair of Jenner & Block's Congressional Investigations Practice, spoke with Bloomberg Law article about how companies can prepare for potential oversight exposure ahead of this fall's midterm elections.
July 7, 2026
Publications
In New York Law Journal, The True Lender Doctrine and the OppFi Decision
Partners Jeremy Creelan, Michael Ross, Megan Poetzel, and Laurel Loomis Rimon, and Associate Molly Oberstein-Allen authored an article for the New York Law Journal examining the "True Lender" doctrine in light of a May 2026 California decision that provides the most detailed judicial framework to date for evaluating bank-nonbank lending partnerships.
July 1, 2026
Event
Partner Michael Vernick to Speak at NACUA's 2026 Annual Conference
On July 1, Partner Michael Vernick will speak on a panel at the National Association of College and University Attorneys (NACUA) 2026 Annual Conference in Nashville.
July 1, 2026