Source: Government Contracts Legal Forum

Government Contracts Legal Forum provides an analysis of the Fiscal Year 2026 National Defense Authorization Act (NDAA), which was signed into law on December 18, 2025. The act introduces comprehensive reforms to the Department of Defense (DOD) acquisition lifecycle, marking a pivot toward a portfolio-based acquisition model. A primary objective of the legislation is to streamline the requirements process for major systems to ensure that cutting-edge technology reaches service members more rapidly. The NDAA specifically expands preferences for commercial products and services, recognizing that commercial innovation often moves faster than traditional defense procurement cycles, and encourages more flexible contracting models to access this external expertise.

Key provisions include Section 1801, which redefines "best value" in acquisition as the optimal combination of cost, technical capability, and delivery schedule. Furthermore, the act seeks to enhance supply chain resiliency and increase the availability of qualified secondary sources for critical readiness items. It also addresses digital governance by requiring the DOD to establish a digital system for tracking and managing "covered data," including technical data and computer software necessary for maintenance and repairs. These reforms represent a deliberate effort to modernize the defense industrial base and foster innovation while ensuring that the DOD can effectively manage life-cycle sustainment and prevent critical sustainment gaps.