Defense procurement shifts to low-cost mass systems
Modern warfare is shifting from legacy, high-cost platforms to mass-producible, low-cost, and attributable technologies.
The argument
The guest argued that warfare is moving away from $20 billion aircraft carriers that take 15 years to build. Instead, the Department of Defense is looking to procure mass-attributable, low-cost systems from agile, venture-backed defense tech startups.
The thesis, stress-tested
✓ What validates it
- ✓New entrants winning major, non-traditional defense contracts quickly
- ✓Widespread adoption of commercial-style, fixed-cost pricing contracts by the DoD
▸ Risks discussed
- ▸Startups must successfully win and execute large-scale contracts to prove the venture model
- ▸Legacy primes still hold deep expertise in navigating government bureaucracy
Hear it yourself
"Because, generally, I do think warfare is going from big carrier ships that cost $20,000,000,000 and a decade and a half to build to mass attributable, low cost, things. And that's what these new these new entrants can do."
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