Revamping Defense Acquisition: Lessons from Ukraine

In December, US Secretary of Defense Pete Hegseth made a bold statement: “The defense acquisition system as you know it is dead.” This proclamation, made at the National War College to America’s defense-industry leaders, underscores a monumental shift in how the United States approaches defense procurement. Hegseth emphasized the need for a new paradigm where speed trumps process, funding aligns with necessity, and military operations are driven by joint problems and rapid experimentation.

The Need for Speed

“The defense acquisition system must adapt,” Hegseth argued. “Speed replaces process, money follows need, joint problems drive action, experimentation accelerates delivery, and the services move faster and smarter.” In a world of evolving threats, traditional methodologies risk leaving forces unprepared or outmatched. Hegseth’s vision rests on the premise that an “85% solution” that can be deployed swiftly is far superior to a perfect solution that takes too long to materialize.

Ukraine’s Innovative Response

One striking example that aligns perfectly with Hegseth’s principles is Ukraine’s wartime defense industry. Almost four years into a full-scale war with Russia, Ukraine has managed to arm its forces increasingly with domestically produced weapons, currently hovering around 60% of the total arsenal. As President Volodymyr Zelenskyy noted, “The weapons in the hands of our warriors are Ukrainian,” showcasing the effectiveness and modern capabilities of locally manufactured arms.

A Drone Revolution

While Ukraine may lag behind in specific areas such as air-defense missiles and fighter jets, it has emerged as a global leader in long-range strike drones. The country’s drone production, which started with handcrafted prototypes in 2022, has now burgeoned into an industry capable of manufacturing thousands of drones monthly. The scope of this production is impressive, with Ukraine regularly launching over 100 drones per day, at times exceeding 500.

Drones like the FP-2, AN-196 Liutyi, and UJ-26 Bober have been pivotal in targeting Russian infrastructure, successfully striking oil refineries, pipelines, and military supplies. Recent reports reveal that Ukraine’s drone operations have struck deep within Russian borders, nearly 2,000 km from its own, demonstrating both enhanced range and payload capabilities.

Economic Impact on Russia

Experts estimate that Ukraine’s drone campaigns have disrupted Russian oil refining by 25-40%, leading to domestic fuel shortages and even causing Russia to import gasoline. This transformation illustrates how a scaled approach—using numerous affordable drones rather than fewer high-cost missiles—can effectively neutralize an opponent’s capabilities.

Shifts in Military Strategy

Both Ukraine and Russia have learned a vital lesson: overwhelming defenses with a multitude of low-cost drones often proves more effective than traditional missile strikes, which can cost millions each. Russia, for example, has transitioned from firing costly cruise missile salvos to deploying waves of cheaper drones, realizing the tactical advantages that mass drone warfare brings.

Naval Innovations

Meanwhile, a parallel story unfolds at sea. Ukraine’s maritime drones, such as the Sea Baby and Magura V5, have demonstrated their capacity to disable or sink Russian naval vessels. This shift has forced the remnants of Russia’s Black Sea Fleet to retreat from strategic positions, highlighting not just the drones’ effectiveness but also the consequent shifts in naval strategy and operations.

Cost-Effective Alternatives

Unit costs for these long-range drones range between $50,000 and $150,000—substantially lower than traditional cruise missiles. Former President Trump pointed to this discrepancy in a recent discussion, advocating for an affordable drone strategy that the U.S. has yet to fully embrace. The operational advantages are clear; saturating an enemy’s defenses proves more viable with numerous low-cost options.

Collaborative Opportunities

As Ukraine’s defense capabilities evolve, President Zelenskyy has proposed a collaborative approach with the United States, suggesting a trade-off: American weaponry in exchange for access to Ukrainian drone technology and missile systems. Kyiv recently lifted its wartime moratorium on arms exports, opening the door for “managed sales” to foreign partners, indicating a willingness to expand its defense capabilities and collaboration.

European Advancements

Meanwhile, European nations, like Denmark, are moving quickly. The “Danish model” involves funding joint production of Ukrainian drones and missiles within Denmark itself, utilizing simplified certification and procurement processes. This indicates a significant shift towards collaborative defense initiatives that incorporate rapid production from allied nations.

The Need for U.S. Engagement

As this momentum builds in Europe, the United States cannot afford to remain passive. Hegseth’s advocacy for immediate action is clear: American acquisition teams should be integrating with Ukrainian factories, while skilled Ukrainian engineers could invigorate defense contractors. Infrastructure to adapt these affordable, combat-tested drones with American technology could transform battlefield effectiveness.

Future-Proofing Defense

In this evolving landscape, the United States has a prime opportunity—an obligation, even—to integrate Ukraine’s agile defense production with its own military forces. As the conflict continues to shape the nature of warfare, establishing collaborative ties may well yield a strategic advantage over potential competitors.

With these developments, the focus on speed and effectiveness in defense procurement is more essential than ever. The current moment in military history calls for robust adaptations that prioritize practical solutions over bureaucratic processes. The real question is whether America’s acquisition system is ready to embrace this transformative path.