Major Equipment, OSD

The Major Equipment, OSD line item in the Department of Defense (DoD) budget encompasses a diverse set of procurement programs managed by the Office of the Secretary of Defense (OSD). The overarching goal of this line item is to support the Department's strategic priorities, including building enduring advantage, deterring aggression, defending the homeland, and taking care of people. The programs funded under this line item are designed to enhance analytical capabilities, strengthen the defense industrial base, accelerate the fielding of innovative technologies, improve cybersecurity, and address emerging threats such as unmanned aircraft systems and radiological/nuclear hazards.

The Director, Cost Assessment and Program Evaluation (CAPE) is responsible for providing the DoD with objective analysis on resource allocation and cost estimation. Funding supports the procurement of advanced IT hardware, software, servers, and modeling tools, as well as upgrades to audio-visual systems and network infrastructure. These investments enable CAPE analysts to conduct program reviews, coordinate the Program Objective Memorandum (POM), develop the Future Years Defense Plan (FYDP), and perform sophisticated cost and technical analyses. The objective is to ensure that CAPE can efficiently support departmental decision-making with timely and accurate data.

This segment includes several initiatives. The Mentor-Prot g Program incentivizes major DoD contractors to assist small businesses in becoming competitive suppliers, thereby strengthening the defense supply chain and addressing critical industrial base gaps. The Indian Incentive Program provides rebates to prime contractors who subcontract with eligible Native American-owned businesses, promoting economic development and diversity in the defense industrial base. The Small Business and Academia Cybersecurity Maturity Model Certification initiative, through Project Spectrum, offers free cybersecurity tools and training to small businesses and academic institutions to help them meet DoD cybersecurity requirements and protect against cyber threats.

Funding is also allocated to address emergent threats such as Counter-small Unmanned Aircraft Systems, which are increasingly used by adversaries and pose risks to U.S. personnel and assets. The Radiological/Nuclear Defense Capability Development program procures modern detection and identification equipment for the Joint Force and National Guard Bureau, ensuring readiness to respond to radiological or nuclear incidents. These programs are aligned with the 2022 National Defense Strategy and aim to close capability gaps and enhance resilience against weapons of mass destruction.

Accelerate the Procurement and Fielding of Innovative Technologies (APFIT) is a competitive, merit-based program authorized by Section 861 of the FY 2025 NDAA. It provides procurement funding to accelerate the transition of production-ready, innovative technologies especially those developed by small businesses and non-traditional defense contractors into operational use. The goal is to bridge the gap between technology development and fielding, ensuring that promising capabilities are delivered rapidly to the Services and DoD agencies.

Sustainment Transition Capabilities (F-35 Section 142) supports the statutory requirement to transition F-35 sustainment functions from the Joint Program Office to the Military Departments (Air Force and Navy) by the end of 2027. Funding will be used to establish logistics IT networks, enable asset visibility, and support cataloging and provisioning of F-35 parts. These efforts are critical for achieving full operating capability and meeting audit requirements as mandated by recent NDAAs.

Additional funding supports Advana Support for Ukraine, which focuses on data analytics for Ukraine-related operations, Comptroller Initiatives such as integrated risk management platforms for internal control improvements, and a classified RRMC COOP program. These initiatives aim to enhance the Department's analytical, financial, and operational capabilities in support of both ongoing and emergent mission requirements.