WASHINGTON, June 9 (Reuters) - As the Pentagon overhauls

procurement regulations, an industry group that represents

defense and aerospace companies says it identified over 50

regulatory requirements that discourage companies from doing

business with the government.

The Pentagon has embarked on a renewed attempt to change how

the Pentagon acquires weapons and support systems. One example

was a March memo signed by Secretary of Defense Pete Hegseth

changing how the Pentagon buys software.

In a June 3 letter to Hegseth, the Aerospace Industries

Association, which represents defense companies including RTX

, Boeing ( BA ) and General Dynamics ( GD ), said its

members want to eliminate burdensome regulations that have

frustrated them for years.

"The cumulative growth of these requirements over time has

created a regulatory framework that itself poses an endemic

risk: stifling innovation, diminishing the supplier base,

driving up costs, and delaying delivery," Eric Fanning, head of

the AIA, said in the letter.

Key areas AIA targeted for reform include cybersecurity

compliance, cost accounting standards, intellectual property

rules, and commercial acquisition requirements. Industry leaders

have argued these regulations create unnecessary obstacles to an

expedited acquisition process.

Particularly problematic were the Cybersecurity Maturation

Model Certification requirements, which industry representatives

say place substantial risk and liability on prime contractors

who must verify compliance throughout their entire supply

chains.

Other targeted regulations include cost accounting standards

that force companies to maintain separate accounting systems

from standard commercial practices, and intellectual property

rules that industry claims discourage companies from offering

their best technologies to the Pentagon.

Later on Monday, the House Armed Services Committee revealed

a bill aimed at overhauling the Department of Defense's

acquisition process to deliver military capabilities more

rapidly and cost-effectively.

The Streamlining Procurement for Effective Execution and

Delivery Act of 2025 would restructure how the Pentagon buys

weapons systems and technology, with a focus on aligning

acquisition to Pentagon priorities and operational outcomes.