Defense News Digest: February 2025

Welcome to IDGA’s monthly news roundup. For over two decades, the Institute for Defense and Government Advancement has served as a non-partisan events and thought leadership organization connecting the Defense and Security communities interested in solving high-level challenges. Now, through this weekly series, we look to educate the community on the latest research, program updates, and news in the defense and government sector.

This month, we will examine five stories you might have missed, including Pentagon plans to overhaul its software acquisition process, the first 3-D printed Army barracks, and much more.

Pentagon Planning Software Acquisition Overhaul

On Tuesday, Breaking Defense obtained a draft memo from Defense Secretary Pete Hegseth that signals a major shift in how the Pentagon procures software, emphasizing the Software Acquisition Pathway (SWP) as the preferred approach. SWP, introduced in 2020, aims to streamline software development, potentially cutting deployment times from months to days. The memo also prioritizes Commercial Solutions Openings and Other Transactions (OTA) to accelerate acquisitions, leveraging commercial sector innovation.

The memo mandates that the Undersecretary of Defense for Acquisition and Sustainment, alongside the Defense Innovation Unit (DIU) director, submit an implementation plan within 30 days. This reform aligns with broader efforts by the Trump administration to speed up technology integration and modernize acquisition processes, with potential restructuring of key digital and AI offices under consideration. While specifics remain fluid, industry insiders anticipate increased opportunities for non-traditional tech firms specializing in software, autonomy, and electronic warfare resilience.

Register for AI for Defense Transformation Today!

This May in Austin, Texas, AI for Defense Transformation will bring together leaders and experts from across the U.S. military and allied forces to explore the latest advancements in AI and their applications in defense. Discussions will highlight key initiatives such as Advana, Project Linchpin, Replicator 2, and Project Maven, providing insight into how these programs are shaping the future of military AI.

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Hypersonics, Autonomous Systems Top Priorities for Deputy Defense Secretary Nominee

Stephen Feinberg, President Trump’s nominee for deputy defense secretary, emphasized the urgent need to accelerate hypersonic missile development during his Senate confirmation hearing. Feinberg criticized past underinvestment in the technology, highlighting the growing threat from China’s advancements in hypersonic weapons and aircraft. While the Pentagon’s budget request for hypersonic development has increased from $4.7 billion in FY23 to $6.9 billion in FY25, he stressed that more funding and improved testing infrastructure are necessary to maintain U.S. superiority.

Feinberg also signaled a broader shift away from costly, slow-to-develop defense platforms in favor of rapid production and deployment of advanced technologies, including unmanned and autonomous systems. However, he acknowledged the legal and ethical complexities surrounding AI-driven autonomous weapons. His approach suggests a potential shake-up in defense acquisition priorities, with hypersonics emerging as a key focus for the Pentagon’s modernization efforts.

Army Selects Carnegie, Forterra for Autonomous Logistics Truck Prototyping

The U.S. Army, in partnership with the Defense Innovation Unit (DIU), has chosen Carnegie Robotics and Forterra to advance development of the Autonomous Transport Vehicle System (ATV-S). The initiative aims to deploy autonomous logistics trucks by 2027, pending budget approvals. The program replaces the Expedient Leader Follower (ExLF) initiative, which was phased out in favor of commercial solutions.

Testing of ATV-S prototypes will begin later this year, with trials planned at Project Convergence and Ft. Stewart’s 3rd Infantry Division. However, stalled defense funding on Capitol Hill threatens to delay the final selection and full-scale implementation of these autonomous logistics capabilities.

To hear from military leaders in advancements in logistic trucks and other armored vehicles, be sure to register for IDGA's Armored Vehicle Summit this June 24-25 in Detroit. The two-day event serves as a US centered platform for the comprehensive discussion of everything armored vehicle related, covering strategic issues to the threat environment, to the challenges of MRO and lifecycle management, all the way through to the next generation of ‘optionally manned’ combat vehicles.

DOD Opens First 3D-Printed Barracks at Fort Bliss

The U.S. Army has unveiled the Department of Defense’s first-ever 3D-printed barracks at Fort Bliss, Texas. Lt. Gen. David Wilson, Army G-9, led the ribbon-cutting ceremony on January 29, marking a significant milestone in military construction. Developed by Austin-based ICON, the 5,700-square-foot structures are the largest 3D-printed buildings in the Western Hemisphere and the first to comply with the Pentagon’s updated Unified Facilities Criteria for additive manufacturing.

Built with ICON’s Vulcan printer and Lavacrete material, the barracks were designed to adapt to local environmental conditions and offer a cost-effective, resilient housing solution for soldiers. Three buildings were completed—two in Pershing Heights and one at Camp McGregor—to support Fort Bliss’s Mobilization Force Generation Installation mission, which processes 70,000 service members annually.

Learn More About Advanced Manufacturing For Defense

Join us on June 24-25, 2025, at the Hilton Los Angeles Culver City for IDGA's Advanced Manufacturing for Defense Summit. In our 3rd iteration of the event, we will explore the cutting-edge realm of additive manufacturing, a sector set to surpass a staggering value of USD $76.16 billion by 2030.

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Microsoft Transfers $22 Billion IVAS Contract to Anduril

Microsoft is moving to transfer its $22 billion Integrated Visual Augmentation System (IVAS) contract to Anduril, a defense tech startup founded by Palmer Luckey. The decision, pending Army approval, would see Anduril taking full control of the program, including hardware and software development, staffing, and production.

The IVAS program, originally based on Microsoft’s HoloLens 2, has faced multiple setbacks, including soldier-reported discomfort and reliability issues. While the Army is still evaluating the latest IVAS 1.2 iteration, it is also preparing a new competition, IVAS Next, which could lead to a multi-vendor approach for future mixed-reality combat gear.

By assuming the contract before a critical operational assessment, Anduril positions itself advantageously, gaining access to Army funding and deeper collaboration with military leaders. However, concerns about an unfair competitive edge have been raised by industry insiders.

Anduril’s potential IVAS production could take place at its Arsenal-1 facility in Ohio, with Luckey hinting at a future where soldiers use a range of heads-up displays tailored to their roles. Competing firms like Kopin and Palantir are also eyeing IVAS Next, setting the stage for a high-stakes battle in next-generation augmented reality systems for the U.S. military.