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White House Order Sets Lower Threshold For Defense Cancellations

VC-25B

The VC-25B presidential transport.

Credit: Boeing

A new executive order sets a lower bar for canceling major defense acquisition programs that are behind schedule or cost targets.

The executive order calls for scrutinizing or canceling any major acquisition program that is either 15% behind schedule or 15% over budget, according to a fact sheet released by the White House on April 9.

The move exposes several programs to further scrutiny below the traditional 25% cost overrun threshold, also known as a Nunn-McCurdy breach.
The executive order specifically calls out delays on several programs, including the Boeing VC-25B presidential transport, the Northrop Grumman LGM-35 Sentinel intercontinental ballistic missile and the USS John C. Stennis aircraft carrier.

“With adversaries like China and Russia rapidly advancing their own military technologies, it is essential to prioritize speed, flexibility and innovation to deliver cutting-edge capabilities to our Armed Forces,” the White House fact sheet says.

The executive order sets a preference for selecting commercial solutions over bespoke military technologies.

Defense Secretary Pete Hegseth also will seek to eliminate regulations that slow down acquisitions and reform and “right-size” the acquisition workforce, the White House says.

Steve Trimble

Steve covers military aviation, missiles and space for the Aviation Week Network, based in Washington DC.