DOD releases defense industrial strategy implementation plan to guide spending

By Tony Bertuca  / October 29, 2024

(Editor's note: This story has been updated with additional information from a DOD briefing.)

The Defense Department has released an implementation plan for its first-ever National Defense Industrial Strategy detailing planned investments in Army munitions, Navy submarines, and other key areas.

The 93-page report detailing the implementation plan which will be updated annually after each presidential budget submission, “will serve as a guiding framework for resourcing decisions and investments in the coming years,” according to a forward written by Pentagon acquisition chief Bill LaPlante.

“It will inform our budget priorities, shape our research and development focus areas and drive our engagement with industry,” he wrote. “By aligning our resources and investments with the strategic imperatives outlined in this plan, the DOD will build and maintain the robust and responsive defense industrial base our nation requires.”

The implementation plan notes six key areas: Indo-Pacific deterrence, production and supply chains, allied and partner industrial collaboration, capabilities and infrastructure modernization, new capabilities using flexible pathways, and intellectual property.

A classified annex is expected to be shared with Congress in the coming months detailing metrics and vulnerabilities regarding DOD’s industrial base “risk mitigation framework.”

For instance, the report notes that the ongoing war in Ukraine revealed challenges in maintaining U.S. munitions stockpiles

“DOD requires increased capacity to ensure sufficient production of new, advanced munitions,” the report states.

The report, which notes the necessity of future congressional budget support, includes a notional five-year spending plan for increasing Army ammunition production: $644 million in FY-25, $863 million in FY-26, $1.3 billion in FY-27, $672 million in FY-28, and $678 million in FY-29. Army depots would receive $432 million in FY-25, $919 million in FY-26, $386 million in FY-27, $348 million in FY-28, and $288 million in FY-29.

Additionally, the report notes the importance of bolstering the U.S. submarine industrial base and includes a notional five-year spending plan for that area as well: $1.9 billion in FY-25, $3.3 billion in FY-26, $2.4 billion in FY-27, $1.2 billion in FY-28. The amount for FY-29 is “to be determined.”

The report notes that future years numbers are still subject to change.

“Since the FY 2026 budget is still being developed, future updates to the NDIS-IP will have new programs and initiatives developed specifically for the implementation of the NDIS,” the report notes. “This implementation plan provides clarity on funding numbers using FY 2025 and the future year’s defense program (FYDP) numbers to give an estimate of program budgets. However, every year when the President and Congress enact a new budget, the FYDP numbers will need to be revised.”

A fact sheet accompanying the report states that about $38 billion in DOD’s $850 billion budget request from FY-25 related to bolstering the defense industrial base, while nearly $40 billion was spent in FY-24, with most the spending directed at “missiles and munitions.”

The report also highlighted the importance of deterrence in the Indo-Pacific, noting the recent establishment of the multilateral Partnership for Indo-Pacific Industrial Resilience (PIPIR), which is focused on defense industrial capabilities of U.S. allies in the region.

“PIPIR will be a critical factor in the future of deterrence in the Indo-Pacific, focusing on strengthening production of defense capabilities, promoting economic resilience through robust supply chains, and enhancing forward sustainment in the region,” the report states. “By fostering closer collaboration in the development and production of military technologies, such as missiles, uncrewed systems, and advanced manufacturing capabilities, PIPIR will enable Indo-Pacific nations to collectively improve their military readiness.”

Assistant Secretary of Defense for Industrial Base Policy Laura Taylor-Kale, who briefed reporters on the implementation plan today, said it represents a new commitment among DOD’s senior leaders to address DIB challenges.

“I think that’s actually very much new and innovative for the department,” she said. “I think getting everyone on board and sort of focused in a manner that really has leadership sort of invested across the department as well is important.”

Deputy Assistant Secretary of Defense for Industrial Base Resilience Carla Zeppieri said the new implementation plan is evidence of DOD-wide “buy-in” and pointed to the upcoming classified risk mitigation metrics the department intends to share with Congress.

“It’s not just a strategy, it’s going to be tracking, measuring ourselves where we are right now with regard to risk with the defense industrial base and then as the department contributes -- on a regular basis -- updates to the implementation we will be measuring ourselves, measuring our progress and seeing where we have addressed risk and where we have more work to do,” she said. “I think that that is different than previous efforts.”

After speaking with members of Congress, Taylor-Kale also said she believed the momentum the department has achieved on defense industrial policy will be able to survive the coming presidential transition.

“We are confident in the feedback that we’re getting, that this will be a priority regardless of who wins next week in the elections,” she said.