The Department of Defense (DoD) on July 3 published a detailed progress report of the steps it has taken toward implementing the actions outlined in the department’s first-ever National Defense Industrial Strategy (NDIS).
The NDIS – released in January 2024 by the Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)) – offers a strategic vision and identifies four strategic priorities for modernizing the defense industrial ecosystem. The four priorities are resilient supply chains, workforce readiness, flexible acquisition, and economic deterrence.
The strategy ensures that the defense industrial base (DIB) continues to both strengthen national security, while reassuring and supporting allies and partners, according to Laura D. Taylor-Kale, assistant secretary of defense for industrial base policy.
Recent strides in implementing NDIS priorities include boosting domestic production capabilities, enhancing education and training for the defense industrial workforce, and deepening collaboration with allies and partners.
“This report conveys the commitment that the Department has made to achieving the priorities outlined in the National Defense Industrial Strategy since January,” said Taylor-Kale in a statement.
“Among other activities, we are increasing our domestic production capabilities, educating and training the current and future defense industrial workforce, exploring new ways to lower the barriers to entry for small and non-traditional businesses, and strengthening collaboration with allies and partners,” added Taylor-Kale.
Several initiatives outlined in the report were funded through the Defense Production Act and Industrial Base Analysis and Sustainment programs administered by OASD(IBP).
The department plans to share further details on NDIS implementation later this summer.
Resilient Supply Chains
The NDIS envisions a modernized industrial ecosystem where robust supply chains form the foundation, which ensures the DIB can efficiently produce the necessary products, services, and technologies at scale, speed, and cost – both now and in the future.
According to the report, DoD has advanced significantly in this area through direct investments and cooperative efforts with international partners, including cultivating domestic sources of critical materials to shorten lead times for defense systems, expanding investment in munitions production, and broadening the supplier network.
For example, the DoD’s Office of Strategic Capital (OSC) – established in 2022 to attract and scale private capital in support of DoD priorities – in 2024 announced the release of its first Investment Strategy, which identified critical component technology industries and described how OSC would catalyze private investment in these priority industries.
Workforce Readiness
According to the NDIS, a skilled and adequately staffed workforce, diverse and representative of the nation, is essential. The progress report detailed several measures DoD is making to invest in what it considers its most critical asset: people. This includes enhancements of programs for workforce development, training, and pathways to advancement.
For example, DoD allocated $61.7 million to the DoD Research and Education Program for Historically Black Colleges and Universities and Minority Serving Institutions program to increase the number of underrepresented minorities in defense-related fields.
Flexible Acquisition
According to the NDIS, flexible acquisition capabilities enhance the DoD’s capacity to integrate new technologies and accelerate development timelines to enhance Warfighter readiness. The progress report highlights initiatives aimed at bolstering the DoD’s and industry stakeholders’ readiness to swiftly adopt acquisition pathways that reduce the time from lab-to-prototype and prototype-to-production.
For example, the DoD established the Defense Industrial Base Consortium Other Transaction Authority (DIBC OTA) to accelerate production and enable DoD to adopt state-of-the-art commercial prototypes more swiftly.
Being the first DoD OTA encompassing research, prototype, and production activities, the DIBC OTA serves as a platform for comprehensive government investment aimed at expanding domestic capabilities and diversifying the supplier base in crucial sectors.
Economic Deterrence
The NDIS also seeks to establish equitable and efficient market mechanisms that bolster a resilient defense industrial ecosystem across the United States, its close international allies, and partners, thereby promoting economic security and integrated deterrence.
According to the progress report, the DoD remains committed to collaborating closely with international allies and partners to strengthen U.S. economic security and maintain a robust defense industrial ecosystem.
A recent example of this effort occurred last month when the United States and Japan restructured the Systems and Technology Forum into the Defense Industrial Cooperation, Acquisition, and Sustainment Forum, which allows both nations to leverage their respective industrial bases to establish an allied defense co-production capacity.
