FY 2025 NDAA Highlights: De-coupling from China, PPBE Reform, and AI Advancements
Jan 20, 2025•4 min
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Episode description
Welcome to the Department of Defense (DoD) News podcast, where we dive into the latest developments from the heart of America's defense establishment. This week, we're starting with the most significant headline: the approval of the National Defense Authorization Act (NDAA) for Fiscal Year 2025.
Signed into law on December 23, 2024, the FY 2025 NDAA brings several key changes and updates to the DoD's policies and initiatives. One of the notable provisions is the focus on de-coupling certain sectors of the U.S. economy from China, particularly in the supply chain for small unmanned aerial systems (sUAS) and LiDAR technologies. The act directs the DoD to identify risks in the supply chain for sUAS and develop a domestic and allied supply chain of sUAS component parts. Additionally, it prohibits the DoD from procuring LiDAR directly or as part of a system that uses LiDAR if it's manufactured by a covered LiDAR company or if the manufacturing, software design, or network connectivity occurs in a covered foreign country, such as China, Iran, North Korea, or Russia[2].
Another significant development is the DoD's push for modernizing its financial management systems through the Planning, Programming, Budgeting, and Execution (PPBE) reform. The DoD has submitted six requests to help with PPBE reform, aiming to modernize and simplify one of its foundational decision support systems. This reform is crucial for keeping pace with the production cycles of advanced technologies and strengthening the DoD's strategic advantage[3].
In terms of new initiatives, the DoD is tasked with developing its own advanced AI systems for general-purpose military applications. The NDAA requires the DoD to expand its infrastructure to meet the processing requirements of advanced AI and high-performance computing, considering both on-premises and commercial cloud processing solutions. Furthermore, the DoD must determine the advisability and feasibility of creating a Center of Excellence for Artificial Intelligence-Enabled Weapon Systems to support the development and maturation of autonomous weapon systems[2].
These developments have significant impacts on various stakeholders. For American citizens, the focus on de-coupling from China and enhancing cybersecurity measures means increased national security. For businesses and organizations, the new supply chain restrictions and requirements could necessitate adjustments in their operations. State and local governments may need to collaborate with the DoD on implementing these changes, particularly in areas related to AI and cybersecurity.
As Air Force Maj. Gen. Pat Ryder, Pentagon Press Secretary, emphasized in a recent briefing, the DoD is committed to staying ahead of emerging threats and leveraging technology to enhance national security[1].
Looking ahead, the DoD has several deadlines to meet, including developing a multi-cloud strategy by June 21, 2025, and submitting a plan to transition away from the Joint Warfighting Cloud Capability (JWCC) contract by August 20, 2025[2].
For more information on these developments and to stay updated on DoD news, visit defense.gov. If you're interested in learning more about the NDAA and its provisions, check out the detailed analysis from Crowell & Moring’s Government Contracts group[2].
Thank you for tuning in to this episode of the Department of Defense News podcast. Stay informed and engaged with the latest from the heart of America's defense establishment.
Signed into law on December 23, 2024, the FY 2025 NDAA brings several key changes and updates to the DoD's policies and initiatives. One of the notable provisions is the focus on de-coupling certain sectors of the U.S. economy from China, particularly in the supply chain for small unmanned aerial systems (sUAS) and LiDAR technologies. The act directs the DoD to identify risks in the supply chain for sUAS and develop a domestic and allied supply chain of sUAS component parts. Additionally, it prohibits the DoD from procuring LiDAR directly or as part of a system that uses LiDAR if it's manufactured by a covered LiDAR company or if the manufacturing, software design, or network connectivity occurs in a covered foreign country, such as China, Iran, North Korea, or Russia[2].
Another significant development is the DoD's push for modernizing its financial management systems through the Planning, Programming, Budgeting, and Execution (PPBE) reform. The DoD has submitted six requests to help with PPBE reform, aiming to modernize and simplify one of its foundational decision support systems. This reform is crucial for keeping pace with the production cycles of advanced technologies and strengthening the DoD's strategic advantage[3].
In terms of new initiatives, the DoD is tasked with developing its own advanced AI systems for general-purpose military applications. The NDAA requires the DoD to expand its infrastructure to meet the processing requirements of advanced AI and high-performance computing, considering both on-premises and commercial cloud processing solutions. Furthermore, the DoD must determine the advisability and feasibility of creating a Center of Excellence for Artificial Intelligence-Enabled Weapon Systems to support the development and maturation of autonomous weapon systems[2].
These developments have significant impacts on various stakeholders. For American citizens, the focus on de-coupling from China and enhancing cybersecurity measures means increased national security. For businesses and organizations, the new supply chain restrictions and requirements could necessitate adjustments in their operations. State and local governments may need to collaborate with the DoD on implementing these changes, particularly in areas related to AI and cybersecurity.
As Air Force Maj. Gen. Pat Ryder, Pentagon Press Secretary, emphasized in a recent briefing, the DoD is committed to staying ahead of emerging threats and leveraging technology to enhance national security[1].
Looking ahead, the DoD has several deadlines to meet, including developing a multi-cloud strategy by June 21, 2025, and submitting a plan to transition away from the Joint Warfighting Cloud Capability (JWCC) contract by August 20, 2025[2].
For more information on these developments and to stay updated on DoD news, visit defense.gov. If you're interested in learning more about the NDAA and its provisions, check out the detailed analysis from Crowell & Moring’s Government Contracts group[2].
Thank you for tuning in to this episode of the Department of Defense News podcast. Stay informed and engaged with the latest from the heart of America's defense establishment.
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