The Department of the Air Force is advancing a major transformation in how acquisition authorities are structured and executed with the establishment of Portfolio Acquisition Executives (PAEs). This change represents a foundational shift from the traditional Defense Acquisition System toward a warfighting acquisition system, aligning authority and accountability closer to execution and operational outcomes.
Why PAEs Matter
Section 1802 of the FY26 NDAA directed the replacement of Program Executive Officers (PEOs) with PAEs. The statutory language provides expanded authority for PAEs including changes to personnel and resources. On 7 November 2025, the Secretary of War directed the transformation of the Department’s acquisition system to accelerate the delivery of urgently needed capabilities to the warfighter. The creation of PAEs is a central element of that direction. By organizing acquisition leadership around portfolios of capability, rather than discrete programs alone, the Department seeks to improve integration, decision speed, and outcome-focused execution across the acquisition enterprise.
Tranche 1: Initial PAE Implementation for the USAF
On 19 December 2025, Mr. Bailey redesignated five Air Force PEOs as PAEs, forming Tranche 1 of the transition:
- PAE Command, Control, Communications, and Battle Management (C3BM)
- PAE Fighters and Advanced Aircraft (F&AA)
- PAE Nuclear Command, Control, and Communications (NC3)
- PAE Propulsion
- PAE Weapons
Acquisition leadership deliberately selected these portfolios to provide a broad cross-section of Air Force acquisition activities, enabling the Department to apply lessons learned across diverse mission and technical areas as the transformation proceeds.
Over the coming months, remaining Air Force PEOs will transition to PAEs in a phased approach, informed by the experience of Tranche 1.
Implications for the Modernization Process Model (MPM)
The establishment of PAEs has important implications for leveraging and evolving the Modernization Process Model (MPM):
- Informed Process Transformation: The MPM will identify statutory and regulatory intersection points impacted by PAE implementation. The MPM will ensure implementation completeness through a holistic understanding of PAE impacts across and beyond acquisition documents.
- PAE Context-Based Communication: As law, policy, and guidance evolves to implement PAEs, the MPM will provide continual updates to the workforce through a “before and after’ process view of change.
Looking Ahead
SAF/AQ will deliver a comprehensive PAE transformation plan to OSD in January 2026. Over the following year, the Air Force will continue to assess, test, and adjust acquisition authorities to best enable effective PAE execution. As these changes mature, updates to MPM will be required to ensure alignment with the evolving acquisition environment.
The transition to PAEs marks a significant step toward a more agile, integrated, and outcome-driven acquisition system—one that reinforces the core principles of the MPM while adapting them to meet the demands of modern warfighting.
