The Promise of the SPEED Act
Every year, the National Defense Authorization Act (NDAA) generates hundreds of pages of legislation that shapes how the Department of Defense operates. Most of it is incremental. Occasionally, something genuinely changes the game.
The FY26 NDAA's SPEED Act—Streamlining Procurement for Effective Execution and Delivery—is being positioned as one of those inflection points. After years of complaints that DoD acquisition moves too slowly to keep pace with technology and threats, Congress is attempting to remove barriers and accelerate timelines.
But for defense tech companies, the question isn't just what the law says. It's what actually changes in practice, and how to position for the transition.
What the SPEED Act Actually Changes
The SPEED Act addresses several chronic pain points in defense acquisition:
Streamlined Contracting Authorities
Program managers gain expanded authority to make procurement decisions without ascending through layers of review. The goal is reducing the time between identifying a need and getting a contract in place.
For defense tech companies, this means:
- Potentially faster contract awards once you're in the pipeline
- More decision-making authority at the program level (know your PM)
- Reduced but not eliminated bureaucratic checkpoints
Middle-Tier Acquisition Expansion
The middle-tier acquisition (MTA) pathway—designed for rapid prototyping and rapid fielding—gets additional flexibility. MTA programs can now transition more smoothly to production without starting the acquisition process over.
Commercial Technology Pathways
New provisions make it easier to acquire commercial technology without forcing it through traditional defense procurement. This is particularly relevant for dual-use companies whose products weren't designed specifically for DoD.
Milestone Decision Authority Delegation
More programs can have milestone decisions made at lower levels, reducing the bottleneck at senior leadership. This should accelerate programs that previously waited months for decision authority scheduling.
The Innovation & Technology Provisions
Beyond the SPEED Act, the FY26 NDAA includes several provisions specifically targeting innovation:
| Provision | What It Does | Opportunity |
|---|---|---|
| DIU Expansion | Increases Defense Innovation Unit authorities and budget | More pathways for commercial tech companies |
| SBIR/STTR Reform | Streamlines transition from Phase II to production | Reduces the "valley of death" for small businesses |
| OTA Clarification | Provides clearer guidance on Other Transaction Authority use | More predictable non-FAR contracting |
| Tech Bridge Authorities | Expands regional technology engagement | Access points outside traditional defense hubs |
The Reality Check: Implementation Challenges
Legislation is one thing. Implementation is another. Defense tech companies should prepare for significant challenges during the transition:
Unclear Guidance Period
Between the law passing and detailed implementation guidance being issued, there will be a period of uncertainty. Contracting officers may interpret new authorities conservatively. Program managers may not immediately exercise new flexibility.
Workforce Adaptation
The acquisition workforce needs to learn new processes. Training takes time. Risk-averse cultures don't change overnight. The companies that succeed will be those that help government partners navigate the transition, not those that demand immediate change.
Budget Constraints Remain
Faster procurement doesn't mean more money. Budget toplines are constrained. The SPEED Act may accelerate some programs at the expense of others. Competition for limited resources will intensify, not decrease.
Oversight Doesn't Disappear
Congress still oversees acquisition. GAO still audits. Inspectors General still investigate. Streamlined doesn't mean unaccountable. Companies that mistake faster processes for reduced scrutiny will face problems.
Ready, Capable, Lethal: Force Readiness Provisions
The FY26 NDAA isn't just about acquisition. The "Ready, Capable, Lethal Fighting Forces" provisions signal priorities that defense tech companies should understand:
- Maintenance and sustainment receive increased emphasis—technology that's easy to maintain in the field has an advantage
- Training systems get attention as the services recognize simulation and synthetic training value
- Interoperability requirements are strengthened, making closed-ecosystem solutions less attractive
- Supply chain resilience provisions favor companies with secure, domestic manufacturing capabilities
Budget Savings & Reforms: The Efficiency Imperative
The NDAA includes provisions aimed at reducing waste and improving efficiency. For defense tech companies, this creates a dual dynamic:
Opportunity: Solutions that demonstrably reduce lifecycle costs, improve efficiency, or eliminate redundancy have a stronger value proposition. "Cheaper and better" sells.
Pressure: Margins may face pressure as DoD seeks more value for each dollar. Companies that have relied on cost-plus contracts may find the environment less forgiving.
What Defense Tech Companies Should Do Now
1. Study the Source Material
Don't rely on summaries. Read the actual NDAA text for provisions relevant to your business. The House Armed Services Committee publishes detailed summaries for each title:
- Acquisition Reform provisions
- Innovation & Technology sections
- Ready, Capable, Lethal Fighting Forces
- Budget Savings & Reforms
Reference: HASC FY26 NDAA Resources
2. Map Your Pathways
Identify which acquisition pathways are most relevant to your offerings. The SPEED Act changes affect different pathways differently. Know where you fit:
- Traditional FAR-based acquisition (still exists, somewhat streamlined)
- Middle-tier acquisition (expanded flexibility)
- Other Transaction Authority (clarified guidance)
- Commercial solutions opening (enhanced commercial pathways)
- SBIR/STTR (improved Phase II transition)
3. Build Relationships Before You Need Them
The transition period will reward companies with established relationships. Contracting officers and program managers will exercise discretion in how they apply new authorities. They'll favor partners they know and trust.
4. Prepare Your Compliance Infrastructure
Faster procurement doesn't mean lower standards. CMMC requirements, cybersecurity compliance, and other regulatory requirements remain in force—and some are strengthening. Companies that can't demonstrate compliance will be excluded regardless of how fast the process moves.
5. Document Your Value Proposition in DoD Terms
The efficiency and readiness provisions mean DoD is looking for specific value: reduced lifecycle costs, improved maintainability, interoperability with existing systems, and supply chain security. Frame your offerings in these terms, with evidence.
Timeline Expectations
Based on previous NDAA implementation cycles, expect the following rough timeline:
| Timeframe | Expected Activity |
|---|---|
| Q1 2026 | Initial implementation guidance from USD(A&S) |
| Q2 2026 | Service-level implementation instructions |
| Q3-Q4 2026 | Workforce training and process updates |
| 2027 | New authorities in regular use |
This means companies positioning for SPEED Act benefits should be planning 12-18 months ahead, not expecting immediate changes.
The Bottom Line
The FY26 NDAA and SPEED Act represent genuine attempts to accelerate defense acquisition. The intent is real. The challenges are also real. Defense tech companies that understand both—and prepare for the transition period—will be positioned to benefit.
Those expecting overnight transformation will be disappointed. Those who use this window to build relationships, ensure compliance, and align their value propositions with DoD priorities will find faster pathways when the new processes mature.
The legislation is a starting point, not a finish line. What matters now is execution—by DoD and by the companies seeking to support national security.