DoD Procurement Bill Jumps Advance Payments to 30%, Prioritizes Commercial Tech Buys

The aptly named Buying Faster than the Enemy Act of 2025 is essentially a massive efficiency overhaul for how the Department of Defense (DoD) buys commercial products—think software, sensors, and off-the-shelf tech, not just custom tanks. The core goal is to speed up the process and cut down on the bureaucratic red tape that often slows down transactions with commercial companies.

The Fast Track to Follow-On Contracts

Section 2 is where the speed really kicks in. Right now, if the DoD wants to buy something commercial, they run a competition. This bill allows them to issue follow-on contracts—even sole-source awards—to the winner of that initial competition without having to provide any extra justification. Think of it like this: If a software company wins a competitive bid to prototype a new logistics system, the DoD can immediately award them the contract for the full production run without running a new competition. This is a huge time-saver and a massive incentive for companies to win that first competitive slot. The DoD must also create 'open topic and enduring general solicitations' across its major commands, meaning they have to keep an ongoing invitation for proposals, which is great news for tech startups looking for an entry point.

Less Red Tape for the Supply Chain

If you run a small business that supplies commercial parts to a defense contractor, Section 3 is your new best friend. It tackles the painful issue of “flowdown clauses.” These are the hundreds of specific rules and requirements the government makes the prime contractor include in their subcontracts. This bill says the DoD generally can’t force prime contractors to include specific clauses in subcontracts for commercial products unless it’s legally required. The Secretary of Defense must streamline all those requirements into just two simple clauses: one for commercial subcontracts and one for noncommercial ones. This means less paperwork and fewer compliance headaches for everyone down the supply chain, which should translate into faster delivery and lower costs.

Commercial First: The New Default

Section 7 fundamentally changes the DoD’s mindset: commercial is now the default. The Secretary of Defense must now assume that anything they buy is a commercial product or service, which means it should be bought using simpler, faster procedures. If a contracting officer wants to label an item as non-commercial—meaning it requires all the complex, slow, defense-specific rules—they have to jump through hoops. They need a detailed memo explaining why, complete with market research, and the program manager has to sign off, confirming that the DoD’s needs absolutely cannot be met by an existing commercial item. This provision is designed to prevent the military from wasting time and money developing something custom when a slightly tweaked off-the-shelf product would do the job.

The Cash Flow Boost

For contractors, Section 6 is a game-changer for cash flow. It raises the maximum advance payment the government can give a contractor upfront from 15% to 30% of the total contract price. This is huge, especially for smaller or nontraditional defense companies that need capital to start production or hire staff immediately. Instead of waiting for reimbursement or milestone payments, a company with a $10 million contract can now receive up to $3 million upfront, providing a significant financial cushion to get the work done faster.

Regulatory Shield Raises Questions

While the bill is mostly about efficiency, Section 4 introduces a significant regulatory firewall. It states that any new defense-unique law or contract requirement passed after 1994 generally won't automatically apply to commercial contracts unless the Under Secretary of Defense for Acquisition and Sustainment specifically approves it in writing. This is meant to protect commercial companies from being hit with surprise regulations, but it also means that beneficial new oversight or safety rules might be easily sidestepped for commercial buys unless a high-level official takes action. This grants a lot of power to one official and could potentially weaken the application of new protections across a growing segment of defense spending.