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The traditional defense industrial base has created its own vulnerabilities by relying on unprofitable sole suppliers building designs bespoke to defense, making commercial-first, producible design essential to resilience.

Duffy says the Pentagon's own acquisition habits — bespoke designs from unprofitable sole suppliers — created industrial fragility, and prioritizing commercial-first, producible designs is key to building resilience. ✦ AI generated

Duffy · a16z Podcast · 2026-05-19 · original ↗

starts at this moment · 8:38

it's really frustrating how much fragility we encounter within the traditional defense industrial base because we have a sole supplier that's not really that profitable that was a feeder to a design that was bespoke for the defense industry. And all of a sudden, we've really created our own set of vulnerabilities here.

verbatim transcript · starts at 8:38

Transcript · around this moment

8:38resilience it provides the industrial base. I mean, it's it's really uh frustrating how many how much fragility we encounter within the traditional defense industrial base because we have a sole supplier that's not really that profitable that was um a feeder to a design that was bespoke for the defense industry. And all of a sudden, we've really created our own set of vulnerabilities here. If we can prioritize commercial first and

9:02producibility as a primary um input to the development of a design, that creates all kinds of resilience and benefits for the Department of as well. So, that's I think key to our success. >> Yeah, on on our team we often say there's no uh defense industrial base without an industrial base. So, the two really go hand in hand. Um Honorable Deputy, this room is filled with PEs and PMs from across the

9:24Pentagon, as well as many founders that are building for the Department. What's one key message you'd like to send this group uh as we look to build together and build faster in 2026? >> Well, let me start with an expression of gratitude for the leaders in this room who are um who are driving innovation, who are fighting through the bureaucracy to deliver the war the the the

9:46capability the warfighter needs on schedule. Um and I think uh the other message I would say is it's really up to everybody in this room, right? Uh we recognize, I think, as a part of this acquisition transformation strategy, the only way for it to to succeed is really to uh let a thousand flowers bloom and ensure that we are removing the obstacles to companies and program leadership to deliver the best

10:11capability the warfighter needs on schedule. And that's going to take time, and it's going to take cooperation. You know, one of the things that we've been trying to do as we try to change culture within the Pentagon is maximum communication throughout the um hierarchy of the acquisition system directly with industry, and ensuring that there's um clear understanding what's getting in the way. We want to continue to to expand on that, and I

10:36invite everybody in this room uh to engage with my team or others and just say, "Hey, this is not working. How can we remove this barrier?" Because we're committed to making sure we can go as fast as possible. >> Thank you. And and and Dino, advice to other builders who might be a click or two a click or two behind you. >> Yeah, find find what you believe in,

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