On January 7, 2026, the Trump Administration issued the Executive Order “Prioritizing the Warfighter in Defense Contracting.” It’s one of the most significant shifts in defense acquisition policy in decades—and its message couldn’t be clearer: performance, speed, and accountability now outrank short-term financial maneuvers.
“Our Nation can only be at peace if we maintain strength. The performance of America’s defense industrial base is critical to this capacity.”
For defense contractors delivering critical systems, supplies, and equipment, this means the bar just got higher. The Executive Order (EO) demands:
- On-time, on-budget delivery
- Faster production and capacity investment
- Clear prioritization of government contracts
- Transparency into financial and operational performance
Fail to meet these expectations, and the consequences are serious—think restrictions on dividends and stock buybacks, or even enforcement actions under the Defense Production Act.
The good news? Contractors that can prove performance, justify investments, and demonstrate operational discipline won’t just comply—they’ll gain a competitive edge. This is where Deltek Costpoint comes in.
The New Reality: Performance Is Compliance
The EO takes direct aim at past practices where financial priorities overshadowed operational readiness.
“After years of misplaced priorities, traditional defense contractors have been incentivized to prioritize investor returns over the Nation’s warfighters.”
Under the Order, the Secretary of War will continuously identify contractors that are:
- Underperforming on existing contracts
- Failing to invest in production capacity
- Neglecting U.S. Government priorities
- Producing too slowly to meet demand
And here’s the kicker: contractors may have just 15 days to submit a board-approved remediation plan.
“Effective immediately, they are not permitted in any way, shape, or form to pay dividends or buy back stock until they can produce a superior product, on time and on budget.”
Disconnected spreadsheets and siloed systems? They won’t survive this level of scrutiny.
How Deltek Costpoint Helps Contractors Meet EO Expectations
1. Prove On-Time, On-Budget Performance
The EO links contractor eligibility—and executive compensation—directly to delivery performance.
Costpoint gives you real-time visibility into cost, schedule, and Earned Value metrics, so you can spot risks early and produce auditable reports for contracting officers. In short, you can prove you’re delivering on time and on budget—exactly what the EO demands.
2. Show Contract Prioritization
The EO calls out contractors chasing new work while underperforming on existing obligations. Costpoint provides visibility into labor, materials, and indirect costs, so you can demonstrate that U.S. Government contracts come first.
3. Support Capital Investment & Production Expansion
Production capacity is now a national security imperative. Costpoint ties capital projects to production schedules, forecasts capacity needs, and tracks ROI—making it easier to defend remediation plans that accelerate output.
4. Be Audit-Ready—Always
The EO expands the government’s willingness to use enforcement actions under the Defense Production Act. Costpoint centralizes compliance with FAR, DFARS, and CAS, and provides strong audit trails so you can respond with confidence—not crisis management.
5. Align Leadership Behavior
Future contracts will impose strict limits on executive compensation and financial behavior during underperformance. Costpoint’s analytics help boards track the metrics that matter, align incentives with delivery, and reinforce a culture of accountability.
Turning Compliance Into Competitive Advantage
This EO isn’t just about enforcement—it’s about reshaping the defense industrial base for speed, resilience, and readiness.
“The policy of the United States Government [is] to accelerate defense procurement and revitalize the defense industrial base to maintain peace through strength.”
Contractors that move faster, invest smarter, and deliver reliably will gain a decisive edge. Deltek Costpoint helps make that possible by providing:
- A single source of truth for performance and compliance
- Real-time insight into cost, schedule, and production health
- Operational discipline in a high-scrutiny environment
In an era where performance is policy, Costpoint helps contractors stay mission-focused, compliant, and competitive—while ensuring America’s warfighters get what they need, when they need it.
The Bottom Line
Is your organization ready to defend its performance?
Learn how Deltek Costpoint helps defense contractors demonstrate on-time delivery, prioritize government contracts, and withstand increased oversight under the new Executive Order.
👉 Schedule a Costpoint readiness conversation today.