ChinaTalk Second Breakfast: Acquisition Reform? Are We Really Doing It?
26 snips
Nov 15, 2025 
Pete Modigliani, a defense tech and acquisition expert, and Matt McGregor, a practitioner in defense acquisitions, dive into the complexities of acquisition reform. They explore the influx of private capital into defense startups and the struggles of prime contractors to adapt to rapid innovation. Discussions touch on the urgent need for cultural shifts within the Department of Defense, how to streamline supply chains, and the importance of integrating non-traditional vendors. Finally, they ponder the potential impact of software solutions on vendor relationships.
AI Snips
Chapters
Transcript
Episode notes
Acquisition Reform Hasn't Delivered At Scale
- The U.S. acquisition system has been in perpetual reform but still fails to deliver capabilities at required speed and scale.
- This gap leaves combatant commands under-equipped for dynamic threats like those in the Indo-Pacific.
Private Capital Is Driving Defense Innovation
- Private capital now pours into defense tech and is a vital pipeline for innovation and scale over the next few years.
- The department still struggles to leverage that capital and commercial products beyond small prototypes.
Prime Business Models Resist Rapid Change
- Primes maintain venture arms but their business model and overhead slow rapid adoption and scale of new commercial tech.
- Their incentives favor winning large, long-term cost-plus contracts over risky, rapid innovation.