The Aerospace Industries Association (AIA)—a body representing defence firms such as RTX, Boeing, and General Dynamics—has called on US Defence Secretary Pete Hegseth for regulatory overhaul to boost government contracts.
In a formal letter dated 3 June 2025, and addressed to Hegseth, the industry group expressed its members’ desire to discard regulatory constraints and has pinpointed more than 50 regulatory stipulations that are claimed to deter businesses from engaging in government contracts.
Go deeper with GlobalData
Eric Fanning, president and CEO of AIA, has communicated with Hegseth through the letter, endorsing the US Department of Defense’s initiative to cut down on regulations and to facilitate more efficient acquisition processes.
Fanning said: “AIA has long been an advocate of reducing redundant and burdensome regulations that slow the acquisition process, increase barriers to entry, and inject risk into the defence industrial base. A flexible and agile acquisition system is required to deliver the latest technology and best-in-class capabilities to the warfighter.
“AIA applauds Secretary Hegseth’s renewed focus on removing burdensome overregulation and streamlining the defence acquisition process. We stand ready to partner with the Department of Defense as they work to equip the warfighter, deter our adversaries, and defend our nation.”
However, Fanning pinpointed specific regulatory demands that he believes warrant re-evaluation or elimination.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataKey areas identified for potential reform included cybersecurity protocols, cost accounting standards (CAS), commercial procurement practices, resolicitation requirements, contractor business systems compliance and the management of independent research and development activities.
He explained that AIA acknowledges that each regulation was initially established with good intentions, designed to address particular concerns. However, the collective expansion of these mandates has resulted in a regulatory landscape that now presents a more significant, systemic hazard.
This accumulation of regulations “poses an even greater, endemic risk: stifling innovation, diminishing the supplier base, driving up costs, and delaying delivery of critical materiel and services to the warfighter”, he noted.
This move aligns with US President Donal Trump administration’s broader campaign to reduce regulatory burdens.
Recently, the Office of Management and Budget (OMB) invited public input on rules considered “unnecessary, unlawful, unduly burdensome, or unsound.”
In response to this solicitation, industry representatives have flagged the specific regulations that pose significant challenges and often act as barriers for companies considering government contracts. The AIA anticipates that its contributions will be instrumental in guiding OMB’s efforts to overhaul the federal regulatory framework.
Fanning added: “As outlined in the enclosed, we believe the requirements associated with each of these areas can be reduced in scope or eliminated altogether, while still ensuring proper oversight and prudent use of taxpayer dollars. By streamlining or eliminating these requirements, the Department can promote greater efficiency and innovation across the acquisition system, while lowering barriers to entry, thereby enhancing military lethality and readiness.”
