Defense Innovation Unit: Actions Needed to Assess Progress and Further Enhance Collaboration

Abstract

DOD established the Defense Innovation Unit (DIU) in 2015 to create new ways to acquire the innovative commercial technologies needed to address national security problems. In 2023, DIU announced plans—called DIU 3.0—to focus on solving DOD’s most critical needs. Shortly thereafter, Congress substantially increased DIU’s funding to support transition and fielding efforts. GAO examined DIU’s plans to use its process for awarding other transaction agreements to facilitate DIU 3.0 and the extent to which DIU has established a performance management process to assess its progress. This presentation will describe how DIU used its commercial solutions opening acquisition process to prototype and transition commercial technologies to DOD programs from fiscal years 2016 through 2023, and how DIU plans to use the process going forward. It will also examine the key elements of an effective performance management system—including defining goals and using evidence to assess and inform decision-making—and DIU’s progress in establishing these elements so it will know that DIU 3.0 is working. This work is based on GAO’s analysis of DIU data on prototype awards made from fiscal years 2016 through 2023, a more detailed review of agreements awarded for six DIU projects, and discussions with senior DOD and DIU officials.