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Can the Military Move at Startup Speed? How the Army and Navy Are Rebuilding

When people think about startups working with the government, the phrase “black box” often comes up. But what if that box is finally being pried open? In this episode—recorded live at the American Dynamism Summit in DC—we talk with two Chief Technology Officers at the heart of American defense: Alex Miller, CTO for the Chief of Staff of the Army, and Justin Fanelli, CTO at the Department of the Navy. Along with a16z partner Leila Hay, they break down how the Department of Defense is shifting from decades-old processes to software-speed execution, why the real bottlenecks are cultural, not technical, and how startups can actually navigate and scale within this massive system. From replacing outdated procurement with faster pathways, to getting tech into the hands of warfighters faster, this is a rare look inside the government’s most ambitious efforts to modernize—and what it means for builders on the outside. Is it time to rip up the system and start fresh? Or are the seeds of change already in the ground? Timecodes: 00:00: Introduction 00:46: Meet the CTOs: Alex Miller and Justin Fanelli 03:44: Pathways for Startups in the DoD 04:44: Addressing the Black Box of DoD Processes 08:08: Navigating DoD Program Offices 19:32: Scaling Effective Solutions 20:23: Leveraging Technology for Military Overmatch 27:03: Enterprise Solutions: Concerns, Unique Needs, and Data 32:47: Budget Constraints and Strategic Spending 37:24: Risk Management: Balancing Innovation and Security 43:26: Future Prospects 47:48: Quickfire Questions Resources: DoD Contracts for Startups 101: https://a16z.com/dod-contracting-for-startups-101/ Find Justin on LinkedIn: https://www.linkedin.com/in/justinfanelli/ Find Leila on LinkedIn: https://www.linkedin.com/in/leilahay/ Stay Updated: Let us know what you think: https://ratethispodcast.com/a16z Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://twitter.com/stephsmithio Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

Justin FanelliguestAlex MillerguestSteph Smithhost

Apr 2, 202552mWatch on YouTube ↗

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WHAT IT’S REALLY ABOUT

Army and Navy CTOs Plan to Blow Up Acquisition Bureaucracy

Army CTO Alex Miller and Navy CTO Justin Fanelli describe the DoD as a black box built on decades-old rules, and say they are working to cut through the bureaucracy rather than keep building workarounds.
Fanelli explains the shift from programs of record toward portfolios and buying capability per dollar, while Miller argues PEOs are not in statute and wants to reshape anything below law.
Both describe replacing thousand-page requirements with short capability need statements, citing a Navy process cut from 18 months to three and an electronic warfare system the Army fielded in three months for 300K.
They stress enterprise and shared services across the services, modular vendors, and divesting legacy systems, while reserving unique mission needs for the services themselves.
They argue the main barrier is culture and risk calculus, since acquisition staff are trained to avoid waste rather than lose time, and they invite startups to engage directly with units and bring data and success stories.

IDEAS WORTH REMEMBERING

5 ideas

The problem is culture and process, not technology

Miller says the issue is a culture and process problem that technology can be applied to, and that startups can't fix the department's inability to describe its own problems.

Requirements documents are a major drag

Fanelli cites a 4,000-page requirements document nobody read in full, and Miller describes one whose metrics implied a system that only had to work 51% of the time; both favor short capability need statements.

Programs of record create perverse incentives

Miller argues long-term budgets encourage maintaining inertia rather than improving, and says no startup should have to aim to become a program of record; Fanelli points to portfolio-based buying as a move toward 'military Moneyball.'

Overmatch requires order-of-magnitude improvements

Fanelli says switching is hard for a 15% gain, so vendors should show A/B results proving the old option is no longer viable, which enables divesting legacy systems.

Reuse across services and enterprise services saves effort

Examples include a hyper-converged edge compute box moving to ships and an electronic warfare system painted brown and put on a Humvee, plus Miller's story of 17 mission command programs each with their own mapping stack.

WORDS WORTH SAVING

5 quotes

It is shocking to me how much stuff we buy for soldiers that no one would accept if I handed it to you in your everyday life.

— Alex Miller

This is not a technology problem. This is a culture and a process problem that we can apply technology to.

— Alex Miller

Only superior military technology can credibly deter war.

— Justin Fanelli

If a quarterback was measured on not making mistakes versus throwing touchdowns or winning games, the performances would be 100% different, right?

— Justin Fanelli

The only reason it exists is because the process doesn't work.

— Alex Miller

DoD acquisition black boxPrograms of record vs. portfoliosCapability need statements over long requirementsEnterprise and shared servicesDivestment and legacy systemsRisk culture and venture comparisonsCounter-drone, autonomy, and next-gen command and control

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