Evaluating Digital Modernization

Enhancing Analytical and Decision Support in Department of Defense Acquisition Management

Brittany Clayton, Jeffrey A. Drezner, Luke Schlake

ResearchPublished Jan 20, 2026

By integrating digital capabilities (e.g., automated data transfer, digital engineering, modeling and simulation) into its acquisition processes, the U.S. Department of Defense (DoD) aims to accelerate the fielding of capabilities, increase agility, bolster its operational effectiveness, and maintain a competitive edge in an increasingly complex and rapidly changing global security environment. Digital acquisition — a strategic objective aimed at enhancing acquisition outcomes by leveraging digital technologies and methodologies — has the potential to accelerate the fielding of capabilities to the warfighter by improving information flows, streamlining review and decision-support processes, and tightening technology development through improved modeling and simulation.

This report fulfills a congressional mandate to assess DoD's progress toward digital acquisition. Through a comprehensive document review and discussions with stakeholders, the authors identified key initiatives and captured insights into the specific activities that various DoD organizations are engaged in to support digital modernization efforts, which include changes to business processes, as well as the challenges organizations face in executing these activities. The assessment results yield a comprehensive perspective on the state of DoD digital acquisition, revealing both successes to date and opportunities for further progress.

Key Findings

  • DoD lacks an up-to-date, overarching strategy for digital acquisition.
  • There is no single owner of digital acquisition policy and strategy.
  • Leadership support and engagement have not been consistent. While there are numerous directives and memorandums on data and digital acquisition–related activities, follow-up and enforcement have been lacking.
  • Digital acquisition stakeholders are working in a stovepiped manner, increasing the likelihood of duplicative work.
  • There is a lack of reliable and consistent funding for both the information technology infrastructure required for digital acquisition and specific applications. Staffing constraints were also noted by some stakeholder organizations.
  • There is no metric or measurement system to track progress toward digital acquisition.
  • The defense acquisition workforce is improving its digital literacy, but additional training and upskilling are required.
  • There remain cultural barriers to sharing data across organizational and functional boundaries. For the most part, these barriers are more important than the technical barriers that constrain progress in moving toward digital acquisition.
  • Efforts thus far have focused on acquisition category I defense programs; smaller programs lack the necessary attention to match progress.

Recommendations

  • DoD should develop, publish, and maintain a digital acquisition strategy that defines terms, goals, roles, and responsibilities. An updated strategy focused on digital acquisition should articulate the desired future state, provide guidance, and enable collaboration and coordination across the DoD enterprise.
  • Implementation of the strategy requires a single senior leader to own both the digital acquisition–related policies and strategy. The Under Secretary of Defense for Acquisition and Sustainment is the leadership position that most aligns with ownership of digital acquisition since that office is responsible for acquisition and sustainment policy and outcomes across the enterprise.
  • The strategy requires sustained leadership engagement and support to make progress, with focused attention on boosting demand for digital products. Related policies, strategies, and processes in other functional areas must also be owned by senior leadership in those areas.
  • DoD should increase coordination across stakeholders by officially chartering the Acquisition Visibility Steering Group and Acquisition Visibility Working Group (established to govern acquisition data with participation of the services) to provide more-formal authority to coordinate digital modernization activities related to acquisition.
  • DoD should prioritize digital acquisition, recognizing it will take years of continued resources to fully implement.
  • DoD should develop a maturity model tailored to digital acquisition to track progress. Metrics should include both digital acquisition capabilities and outcome and mission indicators that provide insight into whether the application of digital acquisition capabilities is having the desired effect.
  • DoD should expand digital acquisition's footprint to all defense acquisition programs.

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Clayton, Brittany, Jeffrey A. Drezner, and Luke Schlake, Evaluating Digital Modernization: Enhancing Analytical and Decision Support in Department of Defense Acquisition Management. Santa Monica, CA: RAND Corporation, 2026. https://www.rand.org/pubs/research_reports/RRA3531-1.html.
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