Pentagon Accelerates Tech Evolution: Major Software Overhaul and Billions for Small Business Innovation
The Department of Defense (DOD) is making bold moves to revolutionize its technological landscape, announcing two major initiatives: comprehensive software modernization guidance and a $2.8 billion investment program for small business innovation.
New Software Guidelines Coming Soon
Kevin Mulvihill, acting principal deputy CIO at the Pentagon, revealed that the DOD’s Chief Information Office will soon release new department-wide instructions to speed up software modernization.
Speaking at the Defense Information Systems Agency’s industry forecast event, Mulvihill emphasized that these guidelines will build on existing strategies from 2022 and 2023.
“We’re updating implementation plans for fiscal years ’25 and ’26, focusing on faster adoption of enterprise cloud and expanding our software factory ecosystem,” Mulvihill explained. The Pentagon aims to make software development both more efficient and secure across all military branches.
Christopher Barnhurst, DISA Deputy Director, highlighted a key challenge: changing mindsets about software development. “It’s not just about new tools and policies—we need a shift in thinking toward more agile development methods,” he noted.
Massive Investment in Small Business Innovation
In a parallel development, the DOD has partnered with the Small Business Administration (SBA) to launch a groundbreaking $2.8 billion investment program. This initiative, known as the Small Business Investment Company Critical Technology (SBICCT), targets crucial areas, including:
- Microelectronics
- Space technology
- Advanced computing
- Artificial intelligence
The program has already licensed 13 investment funds, each eligible for up to $175 million in government-backed loans. These funds feature flexible repayment terms, making it easier to invest in typically underfunded, high-cost industries.
Jason Rathje, Director of DOD’s Office of Strategic Capital, explained the program’s significance: “By lowering financial barriers, especially in capital-intensive sectors like semiconductors, we’re redirecting investment toward national security priorities.”
Building on Historic Success
The new initiative builds on the successful SBIC program, which dates back to 1958 and helped launch tech giants like Intel and Fairchild Semiconductor. To date, the program has:
- Invested over $130 billion
- Supported nearly 200,000 small businesses
- Created a proven model for public-private partnership
What’s Next?
The SBICCT program is accepting applications quarterly, with the next deadline set for November 15, 2024. With over 100 funds showing interest, the initiative aims to:
- Direct more than $4 billion into defense-critical sectors.
- Support approximately 1,700 portfolio companies.
- Bridge the gap between laboratory innovation and market success.
These combined initiatives represent a significant push by the Pentagon to modernize its technological capabilities while fostering innovation in the private sector. As these programs roll out, they promise to reshape the defense technology landscape and strengthen America’s technological edge.
For small businesses and investors interested in participating, more information about the SBICCT program can be found through the SBA’s official channels.
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