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It's time for PMs to own the supply chain

In a field often paralyzed by the obsession with controlling every line of code and every engineering drawing, a new argument from Defense Tech and Acquisition suggests the Pentagon is looking at the problem backwards. The piece makes a startling pivot: instead of demanding the government "Own the Technical Baseline," program managers should shift their focus to "Own the Supply Chain." This isn't just a semantic shuffle; it is a fundamental reimagining of how the Department of Defense acquires weapons, moving from a static, fortress-like mindset to one that mirrors the fluid, component-based agility of commercial tech giants and Formula 1 racing teams.

The Failure of Total Control

The article opens by dismantling a decade-old doctrine known as "Own the Technical Baseline" (OTB). This strategy was born from the ashes of the TSPR period, a time when acquisition failures were so severe that leaders felt compelled to master every intricate design detail themselves. Defense Tech and Acquisition reports, "The problem was that the prescription is wrong in light of expanded opportunities from new industry players and improved digital processes to ease complex integration activities." The editors argue that this approach forced program managers to become bogged down in endless design reviews and contract data requirements lists (CDRLs), causing them to miss the forest for the trees.

It's time for PMs to own the supply chain

The piece is right to identify that this obsession with total control has yielded diminishing returns. By trying to become engineers themselves, acquisition teams often lacked the deep, specialized knowledge to challenge industry experts on emerging technologies. "PMs were also on a doomed mission with OTB because most acquisition teams do not have equitable knowledge with industry to challenge them on detailed engineering points especially not in emerging tech areas," the article notes. This is a crucial admission of institutional reality: the government cannot out-engineer the private sector at the component level, and trying to do so only slows down delivery.

The overall problem with the OTB concept was that it placed way too much emphasis on the government understanding every intricate design detail that it drove PMs to become too focused on the process... and less on the outcomes.

Critics might argue that without deep technical ownership, the government risks losing leverage over its prime contractors, potentially allowing vendors to lock in proprietary technologies that become impossible to upgrade later. However, the piece counters that true control comes not from knowing how to build the part, but from knowing how to replace it.

Control Through Substitution

The core of the new proposal is a shift in definition: modern defense systems are not single products, but temporary integrations of a vast supply chain. "The system itself is just a temporary integration of those parts," the editors write. This perspective aligns with the historical push for Modular Open Systems Approach (MOSA), which has long been a theoretical goal but rarely a practical reality. The article suggests that the real metric of success is not who owns the design, but "how quickly any part of it can be replaced."

This is where the argument gains significant traction. If a sensor or a software stack cannot be swapped without triggering a massive, years-long integration effort, the system is fundamentally fragile. The piece argues that "Control under OSC comes from knowing what can be swapped, knowing what should be swapped and having the right mechanisms to do it." This approach allows the Department of Defense to leverage the rapid innovation cycles of commercial markets rather than trying to replicate them internally.

By focusing on the supply chain, program managers can act as portfolio orchestrators rather than system administrators. The article draws a compelling parallel to high-performance industries: "This is closer to how leading commercial companies ( and F1 teams ) operate. They don't redesign entire systems every cycle, they upgrade pieces and parts continuously." This analogy is powerful because it highlights the absurdity of the current defense acquisition timeline, where a weapon system is often obsolete before it leaves the factory floor.

The real question is not who owns the system design, but rather how quickly any part of it can be replaced.

The Human Cost of Rigidity

While the article focuses heavily on efficiency and technological adaptability, the implications for human safety and operational resilience are profound. The current rigidity of defense acquisition has real-world consequences. When systems cannot be upgraded quickly to counter new threats, warfighters are forced to rely on outdated technology, increasing the risk of failure in combat. The piece notes that this new mindset "helps move the acquisition process from being a siloed program (single capability) viewpoint to a broader horizon of supply chain opportunities that can drive the fielding of faster capabilities."

The editors point to the conflict in Ukraine as a stark example of why this shift is urgent. "It provides the structure to stay ahead of the technology curve that DoD has in the past usually been at least a generation behind on." In a peer conflict, being a generation behind is not just a logistical disadvantage; it is a death sentence for personnel. The ability to rapidly integrate new autonomy stacks, better sensors, or more resilient communications modules could mean the difference between mission success and catastrophic loss of life.

Furthermore, the article highlights the importance of supply chain resilience. "Single-source suppliers, fragile sub-tier dependencies, and long-lead materials present operational risks both to production scaling (or mobilization) and to maintaining the system." This is not merely an economic concern; it is a matter of national security. If a conflict disrupts the supply of a critical component, the entire fleet could be grounded. By mapping the supply chain, program managers can identify these bottlenecks and proactively address them, ensuring that the tools of war remain available when they are needed most.

Understanding the supply chain is not just about capability but also readiness.

From Theory to Practice

The piece does not stop at theory; it offers concrete examples of this philosophy in action. The Army's new program for affordable interceptors is breaking down the problem into subsegments like seekers and propulsion, inviting competition for each piece rather than a monolithic contract. "If you took what a PAC-3 does and divide it into like, five or six subsegments, what do you actually need?" asks Secretary Driscoll, as quoted in the article. Similarly, the Air Force's Collaborative Combat Aircraft program is using reference architectures that allow different autonomy stacks to be substituted mid-flight.

These examples demonstrate that the shift is not only possible but already underway. The article argues that "The future acquisition system is characterized by steady incremental improvements that provide warfighters with new capability on a reliable cadence in peacetime and that has the flexibility to move even faster in a conflict." This incremental approach stands in stark contrast to the massive, decade-long redesigns of the past, which often resulted in systems that were too expensive and too slow to be effective.

However, the transition will not be without challenges. The piece acknowledges that "the initial phases of adoption will be challenging given the incentives," as both industry and the government have a bias for stability. Changing the culture of acquisition, where risk aversion is often rewarded, will require a concerted effort from leadership. Program managers will need to build new teams, gain access to bills of materials (BOMs) that were previously hidden, and develop the infrastructure to manage this complex data.

The goal is not to chase every new concept pitched by a SBIR company but to gather enough intel from multiple sources to compile a clear view of where the technology and component maturity for the respective portfolio is heading so upgrades can be timed deliberately.

Bottom Line

The strongest part of this argument is its pragmatic rejection of the government's inability to out-engineer the private sector, replacing it with a strategy of leverage and substitution that mirrors successful commercial models. Its biggest vulnerability lies in the cultural inertia of the acquisition workforce, where the shift from managing contracts to managing portfolios requires a fundamental change in skills and incentives. Readers should watch for how the Department of Defense operationalizes these supply chain maps, as the ability to rapidly swap components will soon be the defining factor in military readiness.

Deep Dives

Explore these related deep dives:

  • Modular design

    The article advocates for a MOSA framework to relax design reviews, and this concept explains the specific engineering principles that allow defense systems to swap components like sensors or compute units without redesigning the entire platform.

  • Supply chain

    While the text mentions 'primes' and 'sub-tier vendors,' this article details the structural fragility of multi-layered manufacturing networks, illuminating why the author argues that understanding the entire chain is more critical than controlling a single technical baseline.

  • Private military company

    The piece critiques the 'Own the Technical Baseline' era for forcing government engineers to compete with industry experts; this topic provides the historical context of how private sector dominance in R&D created the knowledge gap that the new 'Own the Supply Chain' approach seeks to navigate.

Sources

It's time for PMs to own the supply chain

Around a decade ago, there was a big push by some acquisition leaders to Own the Technical Baseline (OTB). OTB was the process of maintaining deep, independent understanding and control of a system’s design, performance, interfaces, risks, and evolution so informed decisions can be made throughout its lifecycle. The goal was noble and understandably reactionary after the disastrous TSPR period. The problem was that the prescription is wrong in light of expanded opportunities from new industry players and improved digital processes to ease complex integration activities. A better approach today is to Own the Supply Chain (OSC).

Problem.

The overall problem with the OTB concept was that it placed way too much emphasis on the government understanding every intricate design detail that it drove PMs to become too focused on the process (endless design reviews and CDRL monitoring) and less on the outcomes. In essence, they started missing the forest for the trees. The results showed too as program outcomes did not improve following the period that OTB was implemented. PMs were also on a doomed mission with OTB because most acquisition teams do not have equitable knowledge with industry to challenge them on detailed engineering points especially not in emerging tech areas.

New Approach.

The good news is that PMs today don’t need to own the baseline, they just need to understand their options for the piece parts that comprise a capability. When paired with an intelligently applied MOSA framework, this approach can relax some of the focus that PMs and Chief Engineers had placed on laborious design reviews and instead focus on technology scouting to identify the next candidates for an upgrade. This can include major subsystems or even components that add new functionality or resiliency to an existing system.

Collectively, the OSC mindset and supporting processes helps move the acquisition process from being a siloed program (single capability) viewpoint to a broader horizon of supply chain opportunities that can drive the fielding of faster capabilities.

This also gets us closer to an adaptive acquisition system that can handle the dynamic threat changes like we’ve seen in Ukraine and that we will likely face against a peer adversary. It provides the structure to stay ahead of the technology curve that DoD has in the past usually been at least a generation behind on. It also gives DoW a rare opportunity to start leveraging the talent of small businesses ...