Report on Defense Acquisition and Industrial Base Developments (August 2-16, 2025)

This report summarizes key developments in defense acquisition policy, major contract awards, legislative activity, Federal Acquisition Regulation (FAR) changes, and efforts to rebuild the defense industrial base between August 2 and August 16, 2025.

I. Executive Summary

The period of August 2-16, 2025, witnessed significant activity focused on streamlining defense acquisition, bolstering the industrial base, and adapting to evolving geopolitical landscapes. A major theme continues to be the implementation of the "Modernizing Defense Acquisition and Spurring Innovation in the Defense Industrial Base" Executive Order, signed in April 2025, which prioritizes speed, flexibility, commercial solutions, and a comprehensive review of existing regulations and programs. Major contract awards during this period included significant investments in ammunition production and sustainment, reflecting a focus on current operational needs and industrial capacity. Legislative discussions continued around appropriations bills, while notable FAR updates aimed at deregulation and efficiency were published. Efforts to rebuild the defense industrial base emphasized leveraging private capital and establishing new coordinating bodies within the Pentagon.

II. Defense Acquisition Policy Memorandums & Initiatives

A central policy driver during this period remains the Executive Order (EO) "Modernizing Defense Acquisition and Spurring Innovation in the Defense Industrial Base," signed on April 9, 2025 [1, 2]. Key aspects of this EO, as they relate to the reporting period, include:

• Emphasis on Speed and Flexibility: The EO directs the Department of Defense (DoD) to accelerate procurement processes, favoring shorter development and delivery cycles. This includes a "first preference" for commercial offerings and increased use of Other Transactions Authority (OTA) agreements [1].

• Regulatory Review and Deregulation: Section 4(a) of the EO mandates the elimination of unnecessary administrative procedures, with a "ten-for-one" rule requiring the repeal of ten regulations for every new supplemental rule adopted [1, 2].

• Acquisition Workforce Reform: The EO calls for modernizing the acquisition workforce, incentivizing risk-taking and innovation, and restructuring performance evaluation metrics to emphasize commercial solutions and adaptive acquisition pathways [1, 2, 3].

• Major Defense Acquisition Program (MDAP) Review: A comprehensive review of MDAPs is underway, with programs 15% over budget or schedule, failing to meet key performance metrics, or misaligned with DoD priorities being considered for cancellation [1, 2].

• Public Comment Period for EO Implementation: A public comment period for EO 14265, "Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base," concluded on August 8, 2025. This sought industry insights on acquisition reform, revisions to DoD regulations, and workforce restructuring, with a particular focus on reducing barriers for small businesses [4].

• Limitations on IT Consulting and Advisory Services Contracts: A DoD memorandum from May 2025, which remains relevant, prioritizes in-house expertise, requiring justification for external contracts in IT consulting and advisory services. New contracts in these areas require prior approval from the Deputy Secretary of Defense, with specific exclusions and thresholds [5].

• Defense Acquisition University (DAU) Credentialing: Updates from the Army Acquisition Support Center (USAASC) highlight new DAU credentials and continuous learning requirements for the Army Acquisition Workforce, aimed at enhancing job-centric skills and overall performance [3].

III. Major Defense Contract Awards

Several significant defense contracts were awarded or modified during the specified period:

• MSM North America: Awarded a $635.2 million fixed-price-with-economic-price-adjustment contract by the U.S. Army to design, build, and commission a load, assemble, and pack facility at the Iowa Army Ammunition Plant. Work is estimated to be completed by August 10, 2029. This was a competitively procured online acquisition with one bid received [8].

• RTX Corp.: Awarded a maximum $50 billion umbrella contract by the Defense Logistics Agency (DLA) for RTX systems and end-item production, spare parts, services, and other support. This is a 20-year sole-source contract with no option periods, with performance locations globally and a July 31, 2045, completion date [7].

• eSimplicity Inc.: Awarded a $99,244,904 firm-fixed-price, indefinite-delivery/indefinite-quantity contract by the Navy for spectrum management support services to the Navy and Marine Corps Spectrum Center and Naval Information Warfare Developmental Center [6, 9].

• Aero Turbine: Received a $228.5 million contract modification from the U.S. Air Force for the continued management of J85 small single-shaft turbojet engine aircraft components. This raises the cumulative value of the contract to $453.4 million, with work extending to December 29, 2032 [10].

• Vigor Marine LLC: Awarded a $46,297,507 firm-fixed-price contract for maintenance, modernization, and repair of USS Savannah (LCS 28) for fiscal year 2025 Docking Selected Restricted Availability [6].

• Lockheed Martin Corp., Missiles and Fire Control: Received an $18,302,843 modification to a previously awarded contract for interceptor component obsolescence of the Terminal High Altitude Area Defense (THAAD) system [6].

• Benaka Inc.: Awarded a $19,679,000 firm-fixed-price contract for design-bid-build construction of an area maintenance support activity and vehicle maintenance shop in Richmond, Virginia, with an estimated completion date of August 14, 2027 [6].

• Noble Supply and Logistics Inc.: Awarded a maximum $90,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for facilities maintenance, repair, and operations supplies [6].

• BAE Systems Land and Armaments L.P.: Received an $11,500,000 modification to a contract for an alternative dispute resolution settlement, bringing the total cumulative face value to over $2.8 billion [6].

• Amentum Services Inc.: Awarded a $9,455,097 modification for global aviation maintenance services, increasing the total cumulative face value to over $197 million [6].

• Defense Logistics Agency (DLA) Awards: Other DLA awards included Valiant Technical Services Inc. for $22.5 million for Chemical Management Services/Third Party Logistics, The Source Group Inc. for $26.5 million for environmental restoration, Peckham Inc. for $12.4 million for fleece undershirts, and Tecmotiv (USA) Inc. for $10.4 million for turbo superchargers [7].

• F-35 Propulsion Systems: Raytheon Technologies Corp., doing business as Pratt and Whitney Military Engines, East Hartford, Connecticut, is awarded a $115,075,000 contract modification to procure long-lead time materials for the future production and delivery of F135 propulsion systems for the F-35.

• The Lockheed Martin Corp., Sunnyvale, California, has been awarded a $29,414,652 modification to provide risk reduction and design activities for the Mobile User Objective System Service Life Extension (MUOS SLE) Phase I

  The Boeing Co., El Segundo, California, has been awarded a $29,368,714 modification for similar MUOS SLE Phase I activities.

• The MITRE Corp., Bedford, Massachusetts, has been awarded a ceiling $583,945,675 cost reimbursement continuation contract for support to the Air Force from MITRE as the administrator of the National Security Engineering Center Federally Funded Research and Development Center.

• The Boeing Co., Ridley Park, Pennsylvania, was awarded a cost-plus-fixed-fee contract for cargo engineering and logistics support services. The amount of this action is $883,122,870. Contract duration: 5 years (through July 31, 2030).

• IMT Defense Corp., Champaign, Illinois, was awarded a $358,766,929 modification (P00009) to contract W15QKN-23-D-0009 for 155mm Artillery M795 Metal Part Assemblies. The modification brings the total cumulative face value of the contract to $749,781,969.

IV. Newly Passed or Pending Legislation Related to Defense Acquisition

• FY 2025 National Defense Authorization Act (NDAA): Signed into law by President Biden on December 23, 2024, the FY 2025 NDAA continues to influence acquisition policy during this period. It authorizes $895.2 billion in funding for DoD and Department of Energy national security programs. Key acquisition-related provisions include:

  • Codification of middle-tier acquisition authority for rapid prototyping and fielding, with objectives for program completion within five years [12, 13].

  • Requirement for DoD to make publicly available standards for modular open system approaches (MOSA) for contracts [12, 13].

  • Extension of temporary authority to modify contracts based on inflation effects until December 31, 2025 [12].

  • Creation of a pilot program for DoD contracting officers to use alternative capability-based analysis for determining fair and reasonable prices from small businesses and nontraditional defense contractors [12].

  • Amendment to the FAR clarifying that organizational conflict of interest waivers must include written justification and cannot be delegated below the deputy agency head level [12, 13].

• Appropriations Bills: As of mid-August, the House has passed the Military-Construction-Veteran's Affairs and Defense Appropriations bills. The Senate passed a package of Military-Construction-VA and Agriculture-FDA appropriations bills and the Legislative Branch appropriations measure. The Senate Appropriations Committee has advanced eight of the twelve annual appropriations bills. A continuing resolution is deemed the most probable path forward to avoid a government shutdown, given the limited legislative days remaining in September [11]. The Defense Appropriations bill specifically provides $851.9 billion in discretionary funding, including $171.3 billion for weapon systems procurement and $140.5 billion for research, development, and testing [11].

• Indirect Cost Cap Injunction: A preliminary injunction was issued by a U.S. District Court in a case challenging the DoD's new policy capping indirect costs for university research awards. This injunction temporarily blocks the DoD from enforcing the 15% rate cap for awards issued on or after June 12, 2025, for the plaintiff universities and their members [11].

V. Updates on Changes to the Federal Acquisition Regulation (FAR)

The Office of Federal Procurement Policy (OFPP) has launched a "Revolutionary FAR Overhaul (RFO)," described as the most significant reform to federal commercial buying procedures in over four decades. During this reporting period, key updates include:

• Immediate Deregulation: Agencies are authorized to immediately eliminate one-third of requirements from future contracts that are not statutorily or executive order mandated. This aims to simplify commercial buying and increase participation by small businesses and new entrants [14].

• Centralization and Streamlining: Outdated requirements, such as paper-based pricing lists and duplicative contract approvals, are being eliminated. Key procedures are being consolidated under a modernized FAR Part 8, and information and supply chain security policies are being centralized into a single FAR part [14]. FAR Parts 38 and 51 have been officially retired [14].

• Government-Wide Contracts: OFPP is directing agencies to utilize government-wide contracts, including "best-in-class" and "preferred" contracts, for common commercial products and services, rather than maintaining their own [14].

• Federal Acquisition Circular (FAC) 2025-05: Published on August 7, 2025, FAC 2025-05 includes technical amendments to 48 CFR Parts 32 (Contract Financing), 43 (Contract Modifications), and 52 (Solicitation Provisions and Contract Clauses) [16].

• Clarification of SAM Preaward Registration: Also effective August 7, 2025, the FAR was updated to clarify System for Award Management (SAM) preaward registration requirements [15].

• New Model Deviation Text: New FAR Council Model Deviation Text related to the FAR Overhaul Initiative was posted on August 1 and August 14, 2025 [17].

VI. Rebuilding the Defense Industrial Base

Efforts to rebuild and strengthen the defense industrial base remain a critical focus, with several initiatives and discussions during this period:

• Leveraging Capital Markets: A key discussion point is how the DoD and Wall Street can collaborate to finance the expansion of defense manufacturing. Given rising national debt and budget deficits, there's an emphasis on harnessing deep and broad U.S. capital markets to fund critical defense investments and relieve pressure on congressional budgets [18].

• "Economic Defense Unit" Proposal: A Senate proposal aims to establish a new Pentagon "Economic Defense Unit" office. This unit would coordinate and harmonize economic competition activities and develop a campaign plan to enhance America's "gray zone" toolkit. This includes leveraging interagency authorities, addressing industrial base shortfalls, identifying investment opportunities, and implementing experimentation breakthroughs [19]. This comes in response to observed cooperation among countries like China, Russia, Iran, and North Korea on technology sharing, industrial capacity, and military equipment [19].

• Focus on Ammunition Production: The significant contract award to MSM North America for the Iowa Army Ammunition Plant facility underscores a direct investment in expanding critical ammunition production capacity, a clear step in rebuilding the industrial base [8].

• Supply Chain Risk Management: The Defense Acquisition University (DAU) and the Under Secretaries of Defense for Acquisition and Sustainment (A&S) and Research and Engineering (R&E) continue to emphasize supply chain risk management, with a guidebook providing an overview of recommended roles, best practices, and strategies [3]. A webinar series co-hosted by DPCAP's Price, Cost and Finance (PCF) directorate and DAU addressed "Supply Chain and Subcontractor Management" in July, indicating ongoing attention to this area [20].

VII. Conclusion

The period of August 2-16, 2025, demonstrates a concentrated effort by the U.S. government to modernize defense acquisition and strengthen the defense industrial base. The "Modernizing Defense Acquisition and Spurring Innovation in the Defense Industrial Base" Executive Order continues to drive policy, emphasizing speed, flexibility, and a shift towards commercial solutions. Major contract awards reflect immediate needs and long-term investments in critical areas like ammunition. Legislative efforts are ongoing to finalize appropriations, while significant changes to the FAR aim to deregulate and streamline the procurement process. Efforts to rebuild the industrial base are exploring innovative financing mechanisms, new organizational structures within the Pentagon, and continued focus on supply chain resilience.

VIII. Citations

[1] "Modernizing Defense Acquisition and Spurring Innovation in the Defense Industrial Base" (White House Executive Order), April 9, 2025.

[2] "Modernizing Defense Acquisition and Spurring Innovation in the Defense Industrial Base" (Burr & Forman LLP Article), [undated, likely reflecting April 9, 2025 EO].

[3] "August 2025 Hot Topics" (USAASC), August 1, 2025.

[4] "Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base" (Regulations.gov Public Comment), Comment Period Ends August 8, 2025.

[5] "DOD Secretary Directs Limitation of IT Consulting and Advisory Services Contracts" (HK Law Insights), May 29, 2025.

[6] "Contracts For Aug. 14, 2025" (Department of Defense), August 14, 2025.

[7] "Contracts For Aug. 1, 2025" (Department of Defense), August 1, 2025.

[8] "MSM North America Secures $635M Iowa Army Ammunition Plant Support Contract" (GovCon Wire), August 18, 2025. (Note: While published on Aug 18, this contract was awarded and funds obligated from FY24/25, falling within the scope of activity for the reporting period).

[9] "Navy Taps eSimplicity for $99M Spectrum Management Support Contract" (GovCon Wire), August 18, 2025. (Note: While published on Aug 18, this contract was awarded and funds obligated from FY24/25, falling within the scope of activity for the reporting period).

[10] "Air Force Taps Aero Turbine for J85 Aircraft Components Management Under $228M Contract Modification" (GovCon Wire), August 18, 2025. (Note: While published on Aug 18, this contract was awarded and funds obligated from FY24/25, falling within the scope of activity for the reporting period).

[11] "August 2025 Federal and Legislative Updates" (UNC Research), August 13, 2025.

[12] "President Biden signs the National Defense Authorization Act for Fiscal Year 2025" (Inside Government Contracts), January 23, 2025.

[13] "National Defense Authorization Act for Fiscal Year 2025 – Procurement Summary" (Public Procurement International), January 8, 2025.

[14] "The Office of Federal Procurement Policy Launches Landmark Update to FAR, Ushering in a New Era for Commercial Buying" (The White House), [undated, likely reflecting a significant FAR overhaul announcement].

[15] "Federal Acquisition Regulation: Clarification of System for Award Management Preaward Registration Requirements" (Federal Register), August 7, 2025.

[16] "Federal Acquisition Regulation; Technical Amendments" (Federal Register), August 7, 2025.

[17] "News and Announcements" (Acquisition.GOV), Various dates in August 2025.

[18] "How Capital Markets Can Revive the Defense Industrial Base" (BENS), July 29, 2025.

[19] "'Economic Defense Unit': How the U.S. Military Wins in the 'Gray Zone'" (American Enterprise Institute), August 18, 2025. (Note: While published on Aug 18, this reflects ongoing discussions and proposals within the timeframe).

[20] "Defense Pricing, Contracting, and Acquisition Policy Announcements" (acq.osd.mil), July 8, 2025.