The Army introduces a sweeping reform of its acquisition structure

The Army is initiating massive organizational reforms for how it buys new weapons and capabilities in an effort to drastically shorten procurement timelines and promote innovation, according to top service officials. Announced Friday, the Army’s acquisition portfolio overhaul will consolidate the service’s program executive offices (PEOs) responsible for buying new weapons into six new offices called “portfolio acquisition executives” (PAEs). The plan also creates a new office dedicated to rapidly injecting and scaling emerging technologies into Army formations. The transformation comes after Secretary of Defense Pete Hegseth announced his intent to revamp acquisition processes across the entire Pentagon on Nov. 7, as well as an April directive from Hegseth that called on the Army to consolidate many aspects of the service — including its procurement organizations. Army Secretary Dan Driscoll told reporters Wednesday ahead of the announcement that the new structure aims to mimic best practices from private industry, creating a new system that accepts risk and streamlines capability delivery. The Defense Department’s civilian employees whose pay was impacted by the record-setting government shutdown and lapse in appropriations that ended this week are expecting to receive their missed paychecks retroactively. However, questions are swirling about the Pentagon’s plans as it reopened Thursday — including the timeline for that out-of-cycle backpay process, whether it will arrive in the form of lump sum payments, and more. According to a new policy memorandum from the White House Office of Personnel Management issued Wednesday after President Donald Trump signed legislation to fund the government: “Federal employees who did not receive pay because of the lapse in appropriations that began on October 1, 2025, must receive retroactive pay at the employee’s standard rate of pay for the lapse period as soon as possible after the lapse ends,” pursuant to the U.S. Code. That guidance applies explicitly to the department’s personnel affected by the lapse who were either furloughed or performed excepted work activities. Service members and some DOD civilians designated “essential” reported to work during the shutdown — but only military officials were paid. More than 1 million federal employees reportedly missed one partial and two full paychecks during this shutdown, which caused serious financial strain for public servants across the nation. Several reports surfaced this week regarding when the Pentagon might begin processing paychecks and how soon they could start to arrive. The DOD did not appear to publicly release final, comprehensive guidance with details on its workforce repayment schedule and plans. The Daily Scoop Podcast is available every Monday-Friday afternoon. If you want to hear more of the latest from Washington, subscribe to The Daily Scoop Podcast  on Apple Podcasts, Soundcloud, Spotify and YouTube.