WASHINGTON, March 7 (Reuters) - The U.S. Department of

Defense is shifting how it buys software eyeing greater access

to commercial and non-traditional software providers as the

Pentagon hopes to rapidly modernize its weapons and business

systems.

In a memo dated March 6, Secretary of Defense Pete Hegseth

directed the Department of Defense (DoD) to prioritize a new

software acquisition effort he hopes will enhance the lethality

of the U.S. military. The memo will be a part of a series of

Pentagon directives that attempt to change how the Pentagon

acquires weapons and support systems.

"It effectively is streamlining the access of those

nontraditional commercials so that they can play in the game,

that the defense primes are also playing in," a Defense

officials told reporters on a call about the memo.

Defense prime contractors include Lockheed Martin ( LMT )

and General Dynamics ( GD ). Newer and smaller companies like

Second Front Systems have made progress but struggled to gain

access to Pentagon projects.

The memo emphasizes the need for the DoD to adapt to the

reality of software-defined warfare and to overhaul its

acquisition processes to keep pace with commercial technology

advancements.

Hegseth stated that the current hardware-centric approach to

acquisition has hindered the DoD's ability to rapidly acquire,

deliver, and iterate on weapons and business systems software.

To address this, he has mandated the adoption of the

Software Acquisition Pathway (SWP) as the preferred route for

all software development components within the DoD.

"Driving a focus on commercial capabilities and faster

acquisitions is vital for the Department," Tyler Sweatt, CEO of

Second Front Systems, a Pentagon software provider, told

Reuters. "Moving away from building custom software using cost

plus style contracts and towards procuring solutions puts better

capabilities in the hands of our warfighters."

The directive also instructs DoD to pursue contracting

strategies that maximize the use of commercial solutions as the

default approaches for acquiring capabilities. This applies to

any software pathway program currently in the planning phase.

The Under Secretary of Defense for Acquisition and

Sustainment, in coordination with the Director of the Defense

Innovation Unit, has been tasked with developing an

implementation plan within 30 days to ensure the swift adoption

of these changes.