OSD

OSD sits at the top of the DoD acquisition hierarchy. While the military services (Army, Navy, Air Force, Marine Corps) execute most contracts, OSD sets the rules they follow and retains decision authority over the largest programs.

Key OSD offices for contractors:

• USD(A&S) — Under Secretary of Defense for Acquisition & Sustainment. The top acquisition official in DoD. Sets acquisition policy, oversees major programs (ACAT ID), and manages the defense industrial base.
• USD(R&E) — Under Secretary of Defense for Research & Engineering. Oversees technology development, SBIR/STTR, and the defense innovation ecosystem.
• DCMO / CMO — Chief Management Officer. Oversees business operations, IT, and enterprise services.
• OSBP — Office of Small Business Programs. Sets DoD-wide small business goals and policy.

OSD policy memos and directives (like DoD Directive 5000.01 and DoD Instruction 5000.02) define the acquisition framework that every defense contract operates under. When these policies change — as they did with the Adaptive Acquisition Framework in 2020 — it creates new opportunities and changes how programs are structured.