WASHINGTON The Department of Defense has launched a new pilot program to implement “Anything-as-a-Service” (XaaS) contracting, marking a major shift in how the Pentagon acquires technology, equipment, and services.
The XaaS initiative introduces a consumption-based procurement model, allowing the military to buy capabilities as needed, rather than committing to long-term ownership contracts. Officials say this model already standard in the tech industry could bring greater flexibility, faster innovation, and significant cost savings to the Pentagon’s sprawling logistics and acquisition system.
The pilot will initially focus on a select set of product and service codes, as the Department tests whether commercial-style subscriptions and leasing structures can work at scale in a defense environment.
“We’re reimagining procurement for the 21st century battlefield,” said a senior official in the Office of the Under Secretary of Defense for Acquisition and Sustainment. “This isn’t just about software it’s about how we deliver everything from drones to cybersecurity to cloud infrastructure.”
The XaaS approach may also help bypass legacy contracting delays and allow smaller tech firms to compete for defense contracts.
