Defense & Aerospace Report DEFAERO Strategy Series [Feb 10, 26] Steve Grundman on Acquisition Reform and Recent DoW Headlines
Feb 10, 2026
Steve Grundman, former Pentagon industrial base chief now with the Atlantic Council, offers sharp takeaways on acquisition reform and industrial policy. He discusses the underperforming contractors list and how pressure drives industry moves. Topics include missile production deals, government equity in suppliers, strategic minerals stockpiles, and shifts in export and transfer rules affecting allied supply chains.
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Listing Underperforming Programs Focuses Action
- The Secretary's unpublished list of underperforming programs focuses executive attention across government and industry.
- That focus can spur collaborative fixes and accelerate production if executed seriously.
Missile Production Deals Are Collaborative Risk-Sharing
- Deals to expand missile production appear to be collaborative investments between industry and the government.
- These agreements likely preserve 'subject to appropriations' limits and share risk to close business cases.
Close The Business Case To Mobilize Capital
- If the Pentagon wants capacity it must 'close the business case' to attract private capital.
- Use government investment to make otherwise unprofitable industrial expansion financially viable.
