PEO Commercial: A Proposal to Help DoD Buy Startup and Commercial Innovation

We propose that the Department of the Air Force establish a Program Executive Office Commercial to acquire proven commercial technologies for urgent needs not addressed by existing acquisition programs. PEO Commercial would complement existing Program Executive Offices, which are structured to manage large, long-term programs with requirements set years in advance. Examples of technologies PEO Commercial could acquire include counter-drone systems, autonomous platforms, tactical communications tools, AI-enabled logistics software, zero-trust cybersecurity, and expeditionary power. These are all areas where commercial innovation is advancing faster than defense procurement can respond. The Air Force has built strong innovation mechanisms like AFWERX to identify and fund new commercial technologies, but it generally lacks structures at the Program Executive Office level to transition those technologies into fielded capabilities. At the same time, venture capital is investing over $3 billion annually in defense technology companies, and both investors and companies are looking for the Department of Defense to become a more consistent buyer. While Program Executive Offices may have the authority to acquire commercial technology, they are not structured to do so consistently at the scale and speed required for urgent military needs. PEO Commercial aligns with the Administration’s commitment to allocate 8% of the defense budget to high-priority initiatives, including the acquisition of commercial technology. It also supports the principles of the Adaptive Acquisition Framework outlined in Executive Order 14265. PEO Commercial could serve as a blueprint for a future Joint Commercial Office, enabling commercial integration across the Department of Defense and helping DoD buy what startups and commercial companies are already building.