Pentagon Launches Elite Defense Innovation Fellowship Program
Disruptive innovation stands at the center of the Pentagon’s latest initiative to revolutionize its approach to technology acquisition. The Department of Defense has officially launched the Innovation Capability (ICAP) fellowship program, designed to transform how military and civilian personnel identify and implement cutting-edge technologies for national security.
The program represents a significant shift in DoD fellowships, specifically targeting the acceleration of commercial technology adoption across defense systems. Through ICAP, participants will gain hands-on experience with modern acquisition methods while working alongside experts from the Defense Innovation Unit (DIU) and Defense Acquisition University. Furthermore, the fellowship aims to create a network of innovation champions who can return to their organizations with valuable skills and methodologies.
This 12-month immersive experience will equip selected individuals with the tools needed to navigate complex procurement processes and implement faster, more efficient technology integration. The Pentagon’s leadership has accordingly positioned ICAP as a cornerstone of broader efforts to maintain technological superiority in an increasingly competitive global environment.
Pentagon Launches ICAP to Modernize Tech Acquisition
The Department of Defense has initiated a strategic move to modernize its acquisition process through the expansion of the Immersive Commercial Acquisition Program (ICAP). This initiative marks a significant shift in how the Pentagon approaches technology procurement, particularly from non-traditional defense contractors.
Fourth Cohort of ICAP Opens for 2026
Pentagon procurement officials seeking to enhance their expertise in acquiring cutting-edge technologies can now submit applications for the 2026 ICAP fellowship cohort. The Defense Innovation Unit (DIU) officially announced the opening of applications on Tuesday, signaling the fourth iteration of this educational initiative. This program represents a substantial investment in developing acquisition talent capable of navigating both defense and commercial sectors.
“We have other acquisition officers from across the department who can apply to the year-long fellowship with DIU — to learn our process, how we work with industry, and then bring that back to wherever they’re going,” explained Liz Young McNally, DIU’s Deputy Director for Commercial Operations, during a panel at the Special Competitive Studies Project’s AI+ Expo.
The application window remains open until July 31, with DIU planning to notify selected candidates in September. The program is scheduled to commence in October, providing a structured timeline for prospective participants. This careful scheduling allows home organizations to prepare for the temporary assignment of their personnel while ensuring a smooth transition into the fellowship.
Eligible candidates must be either permanent government civilians or active component military contracting officers. The selection process identifies professionals who demonstrate potential to become change agents within the defense acquisition community, fostering disruptive innovation through improved procurement methods.
DIU and Defense Acquisition University Lead the Initiative
The program operates as a collaborative effort between the DIU and the Defense Acquisition University, combining practical implementation expertise with educational rigor. This partnership creates a unique learning environment where DoD fellowships can deliver both theoretical knowledge and hands-on experience.
Selected fellows receive the opportunity to work on actual military service-aligned projects alongside DIU contracting officers, project teams, and commercial solution providers. This immersive approach gives participants direct exposure to innovative procurement practices in real-world scenarios rather than theoretical exercises.
“To ensure our warfighters maintain a decisive advantage, we need contracting professionals who are fluent in both the defense and commercial sectors, and who can help their teammates across the department to develop that same fluency. That is what the ICAP fellowship delivers, and we need to keep scaling it — and its impact — for the department’s critical needs,” stated DIU Director Doug Beck.
Moreover, the program aligns with recent guidance from Defense Secretary Pete Hegseth, who directed Pentagon officials to prioritize Other Transaction (OT) authority and Commercial Solutions Opening (CSO) procurement options when purchasing digital assets for military use. These mechanisms help the department operate at speeds more comparable to commercial industry standards.
Internal DIU statistics highlight the program’s success in diversifying the defense industrial base. For approximately 40% of companies that win new CSO deals each year, “this is the first time they ever worked with the DOD,” according to McNally. This demonstrates how ICAP and related initiatives are successfully expanding the Pentagon’s supplier network beyond traditional defense contractors.
Additionally, the DIU works closely with the Office of the Under Secretary of Defense for Acquisition and Sustainment to implement the president’s executive order on acquisition reform. The ICAP fellowship serves as a practical vehicle for this implementation, helping to “upskill, and train, and drive the culture change required so that we bring in more commercial technology,” as McNally noted in a recent statement to DefenseScoop.
DIU Outlines How ICAP Accelerates Procurement
The Defense Innovation Unit has created specialized procurement pathways that allow ICAP fellows to bypass traditional acquisition bottlenecks. These mechanisms form the backbone of how the program accelerates technology adoption across the Department of Defense.
Use of Other Transaction (OT) Authority and CSO Processes
Fellows participating in the ICAP program receive in-depth instruction on flexible contracting mechanisms specifically designed for rapid acquisition of commercial technologies. The centerpiece of this approach is the Other Transaction (OT) authority, which provides an alternative to conventional Federal Acquisition Regulation (FAR) procedures. This specialized authority enables the Department to contract with companies that might otherwise avoid working with defense agencies due to complex bureaucratic requirements.
Complementing the OT authority, DIU’s Commercial Solutions Opening (CSO) solicitation process further streamlines acquisition. Together, these mechanisms allow the Pentagon to operate at speeds much closer to commercial industry standards when procuring certain technologies.
“We’ve built all of these processes [to accelerate acquisition]. So we’re asking for a problem statement as opposed to a requirement. It’s a short response, right — like a few pages or a few slides, as opposed to something more — very rapid,” explained Liz Young McNally, DIU’s Deputy Director for Commercial Operations.
The impact of these streamlined processes is evident in DIU’s internal statistics. For approximately 40% of companies that secure a new CSO deal each year, “this is the first time they ever worked with the DOD,” McNally reported. This statistic highlights how these alternative procurement pathways are successfully bringing new commercial partners into the defense ecosystem.
Recently, Defense Secretary Pete Hegseth issued specific guidance instructing Pentagon officials to prioritize OT and CSO procurement options when purchasing digital assets for military applications. This high-level directive underscores the Department’s commitment to adopting these more agile acquisition methods.
Focus on Rapid prototyping and Commercial Tech Integration
At its core, ICAP teaches fellows how to leverage procurement innovation for rapid prototyping and faster integration of commercial technologies into defense systems. The program encourages a fundamental shift from lengthy requirements documents to concise problem statements that invite creative solutions from industry partners.
Instead of traditional acquisition approaches that can take years to move from concept to implementation, the CSO process enables much faster evaluation cycles. Companies can submit relatively brief proposals—often just a few pages or slides—that address specific defense challenges. This approach reduces barriers to entry for commercial firms while accelerating the Pentagon’s access to cutting-edge capabilities.
The ICAP fellowship subsequently serves as a force multiplier, creating a network of acquisition professionals who understand these alternative processes and can apply them within their home organizations. Each fellow produces a capstone project that functions as a training plan for their organization, effectively spreading these procurement innovations throughout the Department.
“[The ICAP fellowship] is one of the processes that we have built to help not just do it ourselves, but then scale it across the department,” McNally noted. This scaling effect creates lasting change in how the Department approaches technology acquisition.
The program also aligns closely with broader acquisition reform efforts. DIU works “very closely with [the Office of the Under Secretary of Defense for Acquisition and Sustainment] and others in the department to implement the president’s new executive order on acquisition,” according to McNally. Through ICAP, the Department is building a cadre of procurement professionals skilled in both defense and commercial sectors, capable of navigating both worlds to bring disruptive innovation into military applications.
Who Can Apply and How the Fellowship Works
The selection process for the Immersive Commercial Acquisition Program targets specific defense personnel seeking to become innovation champions within their organizations. This carefully structured fellowship provides hands-on experience with commercial procurement methods alongside industry partners.
Eligibility Criteria for Military and Civilian Personnel
ICAP maintains strict eligibility requirements to ensure participants can effectively implement learned techniques upon returning to their organizations. Applicants must be either permanent government civilians or active component military contracting officers. This dual-track approach allows both military and civilian procurement specialists to gain expertise in commercial acquisition practices.
Selected candidates work directly alongside DIU contracting officers, project teams, and commercial solution providers on actual military service-aligned projects. This practical experience differs significantly from theoretical training programs, as fellows engage with real-world procurement challenges throughout their fellowship.
12-Month Program Structure and Capstone Project
The fellowship spans a full year, giving participants comprehensive exposure to disruptive innovation procurement methods. Throughout this period, fellows gain in-depth instruction on flexible contracting mechanisms designed for rapid prototyping and acquisition of commercial technologies.
Primarily, the program focuses on teaching the Other Transaction (OT) authority and Commercial Solutions Opening (CSO) solicitation process. These alternative procurement pathways enable the Pentagon to operate at speeds comparable to commercial industry standards.
Each fellow must complete a capstone project that serves as a training plan for their home organization. This requirement ensures knowledge transfer beyond individual participants, as fellows create actionable implementation strategies based on what they learn throughout the 12-month program. These capstone projects become valuable tools for spreading DoD fellowships’ impact across the department.
Application Deadline and Selection Timeline
For the 2026 cohort, applications remain open until July 31. This timeline gives interested candidates sufficient opportunity to prepare their submissions while allowing their home organizations to plan for their potential temporary assignment.
After the application window closes, DIU conducts a thorough review process to identify candidates with the highest potential for success. The unit aims to notify selected candidates in September, giving them approximately one month to prepare before the program officially begins in October.
This structured timeline ensures a smooth transition for both fellows and their home organizations while maintaining program continuity. Alongside professional development benefits, this fellowship creates a network of acquisition experts fluent in both defense and commercial sectors—professionals who can serve as change agents within their organizations after completing the program.
Defense Leaders Endorse ICAP’s Strategic Value
Pentagon leadership has strongly endorsed the strategic importance of the ICAP fellowship program, positioning it as a critical element of broader defense modernization efforts. High-level support for the initiative reflects growing recognition that traditional acquisition processes must evolve to maintain technological superiority.
Quotes from DIU Director Doug Beck
DIU Director Doug Beck has consistently emphasized ICAP’s vital role in developing acquisition talent capable of navigating commercial technology integration. “To ensure our warfighters maintain a decisive advantage, we need contracting professionals who are fluent in both the defense and commercial sectors,” Beck stated, highlighting the program’s unique value proposition.
Beck further emphasized the need for scaling the program’s impact across the department: “That is what the ICAP fellowship delivers, and we need to keep scaling it—and its impact—for the department’s critical needs.” His endorsement underscores how disruptive innovation through procurement reform represents a strategic priority for defense leadership.
Support from Defense Secretary and Acquisition Officials
The fellowship has garnered substantial backing from the highest levels of Pentagon leadership. Defense Secretary Pete Hegseth recently directed officials to prioritize Other Transaction authority and Commercial Solutions Opening procurement options when purchasing digital assets for military applications. This directive explicitly supports the methodologies taught through ICAP, demonstrating alignment between the fellowship and departmental priorities.
Senior acquisition officials have likewise championed the program as a cornerstone of procurement modernization. The Office of the Under Secretary of Defense for Acquisition and Sustainment works closely with DIU to implement acquisition reforms, with ICAP serving as a practical vehicle for these changes.
Alignment with Executive Order on Acquisition Reform
ICAP represents a concrete implementation of the president’s executive order on acquisition reform. According to DIU Deputy Director for Commercial Operations Liz Young McNally, the unit collaborates extensively with defense acquisition leadership “to implement the president’s new executive order on acquisition.”
This executive action aims to accelerate commercial technology adoption across defense systems by streamlining procurement processes. The fellowship directly supports these objectives by creating a cadre of acquisition professionals skilled in alternative procurement pathways.
McNally specifically noted the program’s role in driving necessary cultural shifts: “We work very closely with [the Office of the Under Secretary of Defense for Acquisition and Sustainment] and others in the department… to upskill, and train, and drive the culture change required so that we bring in more commercial technology.”
Indeed, ICAP exemplifies how DoD fellowships can serve as force multipliers for broader policy initiatives. By developing contracting officers who understand both commercial and defense sectors, the program creates a network of change agents positioned to implement acquisition reforms throughout the department.
ICAP Aims to Scale Innovation Across the DoD
Beyond individual training, ICAP serves as a knowledge multiplication engine for the Department of Defense, creating cascading effects across military acquisition systems. The program’s deliberate design enables broader institutional impact through strategic knowledge transfer and cultural transformation.
Fellows Bring Back Knowledge to Home Organizations
Each ICAP participant produces a capstone project that functions as a comprehensive training plan for their home organization, ensuring knowledge transfer extends beyond individual fellows. This structured approach creates institutional memory and practical implementation pathways for acquisition innovation.
“We have other acquisition officers from across the department who can apply to the year-long fellowship with DIU — to learn our process, how we work with industry, and then bring that back to wherever they’re going,” explained DIU’s Deputy Director for Commercial Operations Liz Young McNally.
This knowledge transfer mechanism enables disruptive innovation to spread organically throughout the defense ecosystem as fellows return to their respective commands equipped with both theoretical understanding and practical experience in commercial acquisition methods.
Program’s Role Driving Cultural Change
ICAP simultaneously addresses both procedural and cultural barriers to innovation within defense procurement. The fellowship represents what McNally described as “one of the processes that we have built to help not just do it ourselves, but then scale it across the department.”
As a catalyst for organizational transformation, the program helps:
- Upskill acquisition professionals in commercial procurement methods
- Train DoD personnel in innovative contracting approaches
- Drive essential cultural shifts required for technology adoption
McNally emphasized that programs like this fellowship are crucial vehicles “to upskill, and train, and drive the culture change required so that we bring in more commercial technology.”
Future Expansion and Impact Measurement
The DIU continues developing metrics to evaluate ICAP’s effectiveness across the defense enterprise. Notably, about 40% of companies winning CSO deals each year have never previously worked with the Department of Defense, demonstrating the program’s success in expanding the industrial base.
Director Doug Beck highlighted the need to continue “scaling it — and its impact — for the department’s critical needs,” suggesting ongoing expansion of DoD fellowships like ICAP.
In parallel, DIU collaborates with the Office of the Under Secretary of Defense for Acquisition and Sustainment to align the fellowship with broader acquisition reform efforts initiated through presidential executive order, ensuring the program evolves to meet emerging defense needs.
Conclusion
ICAP stands as a transformative force within defense acquisition, fundamentally reshaping how the Pentagon identifies and implements critical technologies. Throughout its evolution, this fellowship program has demonstrated remarkable effectiveness in breaking down traditional procurement barriers while building essential bridges between commercial innovation and military applications.
The program’s impact extends well beyond individual participants. Fellows certainly gain valuable expertise during their 12-month immersion, yet the real significance lies in their subsequent ability to implement these practices across diverse defense organizations. This knowledge multiplication effect creates lasting change throughout the acquisition ecosystem.
Defense Secretary Pete Hegseth’s directive prioritizing Other Transaction authority and Commercial Solutions Opening processes undoubtedly strengthens ICAP’s position as a cornerstone of procurement modernization. Likewise, DIU Director Doug Beck’s emphasis on scaling the program highlights its strategic importance for maintaining technological superiority amid global competition.
ICAP addresses a critical need—contracting professionals fluent in both defense and commercial sectors. Accordingly, the fellowship produces acquisition specialists capable of navigating complex procurement landscapes with unprecedented speed and efficiency. Their expertise subsequently filters through the entire department as they return to their organizations armed with practical implementation strategies.
Statistics reveal compelling evidence of success, particularly regarding industrial base expansion. Nearly 40% of companies winning Commercial Solutions Opening deals each year represent first-time Department of Defense contractors. This figure demonstrates how ICAP effectively opens doors to previously untapped innovation sources.
The fellowship program also aligns perfectly with presidential directives on acquisition reform. DIU’s close collaboration with the Office of the Under Secretary of Defense for Acquisition and Sustainment ensures ICAP evolves alongside broader departmental modernization efforts.
Future cohorts will face an increasingly complex technology landscape, though armed with ICAP methodologies, they stand ready to meet these challenges. The program’s focus on rapid prototyping and streamlined acquisition provides essential tools for maintaining America’s military advantage.
ICAP ultimately represents defense innovation at its most practical—translating strategic vision into tactical reality through people, processes, and partnerships. The fellowship creates not just skilled individuals but transformation champions poised to reshape defense acquisition for decades to come.