Complexity and inflexibility in defense acquisition processes seen as the most significant challenge for nontraditional contractors

A survey commissioned by MITRE revealed significant hurdles that remain in the U.S. Department of Defense (DoD) acquisition process, particularly for nontraditional contractors and small- and medium-sized businesses in the aerospace and defense industry.

Of the defense acquisition professionals surveyed, 57% identified the inflexibility and complexity of acquisition processes as the most significant challenge to participation. Other critical barriers include cost-type contracts (36%) and supply chain reliability (34%).

The first-ever Defense Acquisition Survey from MITRE, the not-for-profit operator of federally funded research and development centers, including the National Security Engineering Center, surveyed 1,004 professionals across the defense acquisition ecosystem, such as government and military officials and private sector executives from companies of all sizes, among others. The survey was fielded ahead of MITRE’s Breaking Barriers in Defense Acquisition Summit that is bringing together public and private sector stakeholders to explore defense acquisition solutions.

“The survey data underline the pressing need to reduce bureaucracy and adopt modern digital technologies to ensure an acquisition ecosystem that is agile, effective, and inviting to innovative new entrants, particularly tech start-ups and small businesses,” said Keoki Jackson, senior vice president and general manager, MITRE National Security. “While steps have been taken to engage these businesses in defense innovation, negative perceptions and outcomes of the acquisition process continue to discourage participation. Addressing these systemic challenges is essential for a strong national defense.”

Survey Findings Reflect Diverging Perspectives

While all respondents emphasized the need for reform, small- and medium-sized business (SMB) executives expressed a unique perspective that underscores the disparities within the system. These businesses perceive lower resource efficiency (54%), slower delivery speeds (59%), and diminished confidence in the operational effectiveness of defense acquisition processes (58%), compared to other stakeholders. While a wide majority — around 80% or more — of other respondent groups remarked positively for those three areas, far fewer — or just over half of — SMB executives also indicated positive remarks.

Since the launch of the Adaptive Acquisition Framework in 2020, some extreme negative perceptions of defense acquisition processes have softened. However, the framework has not dramatically changed how stakeholders feel about participating in the defense acquisition process. Negative perceptions of DoD's acquisition processes, often tied to rigid structures and complex contracting requirements, remain a critical concern.

When prompted on what would most improve the speed, responsiveness, or efficiency of defense acquisition, respondents pointed to:

• Reducing bureaucracy (21%)
• Adopting modern digital technologies (20%)
• Streamlining approval layers and simplifying procedures (16%)

Barriers Impacting Innovation and Speed

MITRE’s findings underscore the urgent need to address systemic challenges within several top identified areas:

• Process Streamlining & Bureaucracy Reduction: Calls for cutting red tape and aligning processes with operational outcomes were frequently cited. One respondent noted, “Reducing redundant oversight by aligning reporting to mission outcomes" would transform acquisition efforts.
• Digital Transformation: Many participants highlighted the need for integrated digital platforms, AI-powered tools, and data analytics to speed decision making and modernize acquisition workflows.
• Agile Methodology Implementation: Enhanced flexibility through agile frameworks and rapid prototyping surfaced as opportunities to improve the responsiveness of acquisitions.

Other areas identified for improvement included contracting flexibility, acquisition workforce development, and enhanced collaboration between government and industry.

“By prioritizing modern technology adoption and strategic reforms, we can accelerate the delivery of critical capabilities to U.S. warfighters,” added Jackson. “MITRE remains committed to bridging innovation and national defense, crafting pathways for enhanced partnership and operational overmatch.”

Breaking Barriers Summit to Drive Action

MITRE is actively responding to these challenges at its summit, Breaking Barriers in Defense Acquisition, May 7–8, 2025. The summit brings together senior defense officials, industry innovators, policymakers, and private capital funders to create actionable strategies for revolutionizing acquisition outcomes. Attendees will explore solutions such as accelerating the adoption of commercial technologies, fostering agile acquisition processes, and enhancing collaboration across the defense ecosystem.

Virtual registration for day one of the summit is open today. For more on the event and a series of published analysis and guidance on defense acquisition from MITRE, visit https://www.mitre.org/our-impact/rd-centers/national-security-engineering-center/breaking-barriers-defense-acquisition.

Survey Methodology

The survey, conducted by Atomik Research between April 7 and April 21, 2025, included responses from 1,004 acquisition professionals across various sectors. All were carefully screened for relevant expertise and familiarity with defense acquisition processes. Respondents were partitioned into four groups: military/government, small- and medium-sized business executives, large-enterprise business executives, and the larger defense ecosystem (nonprofits, academia, think tanks, and research facilities).​ The sample yields a statistical margin of error of ±3 percentage points with a confidence level of 95%.

The toplines from the research are available at https://www.mitre.org/news-insights/publication/barriers-defense-acquisition.

About MITRE

MITRE’s mission-driven teams are dedicated to driving solutions to our nation’s most pressing challenges. As a not-for-profit research and development organization, MITRE’s staff leverage our unique multi-sponsor vantage point, systems expertise, and innovative solutions to ensure the health, prosperity, and security of our nation.

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Complexity and inflexibility in defense acquisition processes seen as the most significant challenge for nontraditional contractors, according to first-ever defense acquisition survey commissioned by MITRE.