WASHINGTON — The Army today announced a new “modernization effort” in which it invites private industry to directly co-invest in its installations, tech initiatives and broader industrial base.
“The strategic vision for this is building the Army of tomorrow with private industry today,” David Fitzgerald, who is performing the duties of the deputy undersecretary of the Army said in a press release today. “We know we have to move at the speed of innovation. This initiative is a direct invitation to the private sector to become our partner in a historic modernization effort.”
Reflected in a new Request for Information published Friday evening, the Army said it is looking for various financial models and contracting strategies that can attract “significant investment” for areas such as energy resilience, organic industrial base modernization, supply chain strengthening, advanced manufacturing and more.
“We’re not just seeking funding,” Fitzgerald, who also serves as the Army’s chief operating officer and chief management office, said in the release. “We’re seeking creative, out-of-the-box financial and business models that break the mold. We want joint ventures, long-term leases, and service agreements that align the success of the investor with the soldier and the taxpayer.”
The release added that the plan is to “supplement” traditional government funding with strategic capital so such ventures are self-sustaining without relying on the Army as “the sole source of return on investment” or relying on tax payer dollars for new construction.
In a briefing on Tuesday after this report was originally published, Fitzgerald told reporters that this agreement aims to fix the $150 billion infrastructure backlog he said the Army currently has, which he added is probably only a “baseline number” and could be much higher.
“We’re just never going to get out of that hole unless we approach this problem differently,” Fitzgerald said. “We cannot be solely reliant on congressionally appropriated funds, because there’s just not enough to go around.”
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Fitzgerald explained Tuesday that agreement will involve private leasing of Army facilities. The service is aiming to have the first leasing agreement signed by July 1, he said, adding that agreements will occur on a rolling basis.
One example of such an agreement could look like commercial real estate companies owning the “obligation to maintain” and “upkeep” hangars for the service’s new MV-75 helicopter fleet, with the first aircraft to be fielded at the end of this year.
Another example could be private industry investing in additive manufacturing for the Infantry Squad Vehicle, Fitzgerald said, as 80 percent of the vehicle’s parts are already made commercially, so such private companies would benefit from ISV parts as well.
“It allows us to have [a] more stable demand signal, and then it allows our organic industrial base sites that do the manufacture and the MRO [maintenance, repair and overhaul] stuff for our vehicles. It allows them to have a more steady workflow, so more predictable labor hours and all that,” Fitzgerald told reporters. “But it also allows us to kind of upskill our workforce at the same time as we’re kind of working in some of these joint partnership models.
He added that some agreements may not relate to concrete Army programs, but could be more focused on strengthening the supply chain, or could be geared toward more than one program. For example, he said critical minerals could be used for small drones or the motors that operate car windows.
Regarding the RFI, interested industry partners should respond to the RFI by proposing pilot projects that showcase their current financial and partnership standings by April 2, the RFI states.
“We expect that the most compelling responses will present a clear path to a diversified customer base across commercial and government markets and in which the Army could potentially act as a stable, long-term partner or anchor customer to de-risk the initial investment and help to scale the enterprise,” the RFI reads.
Today’s announcement comes after Army Secretary Dan Driscoll has repeatedly shown he wants to shake up the way the Army does business. Just months after he assumed his position, the Army secretary, a former venture capitalist himself, sent a stark warning to traditional defense vendors saying that he will consider it a “success” if a large prime contractor closes their doors in the coming years if they can’t start operating more efficiently. Then, he promised that the service would adopt a “Silicon Valley” approach to speeding up production and delivery timelines.
A few weeks later, the Army announced a sprawling acquisition reform plan aiming to make the service less risk adverse and to get tools into the hands of soldiers much faster, Driscoll said at the time. He has also said he wants to do 90 percent of the Army’s business with commercial, nontraditional companies, and only 10 percent with traditional prime vendors — the opposite of the way the Army currently does business.
UPDATED 3/3/2026 at 4:44 p.m. to include comments from David Fitzgerald during a media roundtable Tuesday.