What industry must get right to accelerate technology adoption in the IC

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To succeed, contractors must align with a mission need, plan for security and integration, understand the budget and contracting path, and identify who will own the capability if it succeeds, writes Shelby Pierson, principal at Deep Water Point Associates.

The U.S. intelligence community is working to improve how it buys and adopts technology. Progress varies across agencies, but the direction is clear: the IC needs faster and more flexible ways to bring commercial software, cloud computing, geospatial intelligence, cybersecurity, and other emerging capabilities into mission workflows.

Commercial technology often moves faster than government budgeting, acquisition, security, and integration processes. Artificial intelligence models and cloud software can evolve in weeks, while government adoption can take far longer. That gap can leave analysts and operators without timely access to the best available tools.

To narrow this gap, IC agencies are using a range of established authorities and acquisition approaches, including commercial solutions openings, broad agency announcements, prize challenges, innovation hubs, and, where authorized and appropriate, other transaction agreements.

These approaches can create faster entry points for commercial technology, but they do not eliminate requirements for competition, security, fiscal discipline, oversight, or accountability.

For mid-market contractors, this creates an important opportunity to contribute to national security missions. Capturing that opportunity requires more than a strong product. Companies must align with a mission need, plan for security and integration, understand the budget and contracting path, and identify who will own the capability if it succeeds.

Lead with Mission Impact, Not Feature Lists

Agile acquisition pathways lower the barrier to entry, but technology companies must bring clear operational value. Advanced technology only gains traction when it directly addresses an immediate, defined mission need.

Contractors must answer two fundamental questions upfront:

  • Does this solve a specific mission problem?
  • Can it be secured, integrated, sustained, and scaled?

Capabilities must account for real-world operational environments, including deployment in tactical settings, low-bandwidth conditions, and strict latency limits.

Additionally, firms should embrace incremental awards rather than holding out for massive, single-award contracts. Smaller, fast-turnaround deliverables allow agencies to collect continuous user feedback. This approach reduces the risk that vendors will spend years building tools that no longer meet user needs by the time they are delivered.

Starting with a clearly defined mission problem gives industry the focus needed to make good product, investment, and capture decisions. It also gives the government a more useful basis for testing whether a capability is ready to move beyond a demonstration.

Treat Security as a Design Feature, Not Paperwork

Flexible acquisition pathways do not eliminate procurement rigor. Standard rules around competition, data rights, and cybersecurity remain fully in force.

One of the most persistent obstacles for commercial vendors is securing an authority to operate. Classification requirements, data access, integration, and deployment environments can create additional barriers. Treating these issues as administrative tasks to address only after winning a contract is a critical mistake.

Security is a design characteristic, not a paperwork event. Companies should build security architecture into product development and capture strategy from day one. When government and industry address security requirements early, they reduce avoidable delays later in the adoption process.

This is not solely industry's responsibility. IC components can make requirements more understandable and predictable by providing approved technical patterns, shared environments, reference architectures, and common control profiles where possible. Giving companies clearer information early helps them design for the actual environment and arrive better prepared for security review.

Prepare for Budget Realities and CR Bottlenecks

Unpredictable federal funding remains a major point of friction for commercial software vendors. Continuing Resolutions (CRs) can restrict new starts, delay planned awards and reduce agency flexibility. For companies built around recurring subscription revenue, those delays can create real business risk.

While broader reforms could make software funding more flexible, mid-market contractors should plan around the system that exists today. Three practical steps can help:

  • Diversify beyond the IC: Avoid relying entirely on niche IC capabilities that lack a broader commercial pathway.
  • Socialize payment realities early: Work with program managers to set payment schedules that reflect actual upfront costs and deliver value in manageable milestones.
  • Maintain budget realism: Treat letters of support, senior champions, and successful demonstrations as positive signals, not fully funded requirements.

Many promising pilots stall out because no single entity takes ownership of long-term funding. A successful transition requires identifying a dedicated mission owner, the office with the "catcher's mitt,” before the pilot begins.

Because agency budgets are tight, scaling a new capability often requires defunding or sunsetting a legacy program. Agencies cannot wait until the end of a multi-year pilot to secure funding. Contractors that clarify their funding source, contract pathway, and transition plan early are best positioned to scale across the enterprise.

Build for Interoperability Out of the Box

As more commercial products enter the national security market, integration is becoming a key differentiator. The IC increasingly expects commercial tools to work within existing architectures, data standards, security boundaries, and analyst workflows.

Instead of waiting for the government to fund extensive systems engineering after an award, vendors should design for open interfaces, portability, and integration from the beginning. The government must also identify the mission owner, funding source, contracting pathway, integration environment, and transition plan before launching another pilot. Faster acquisition helps, but lasting adoption occurs only when a useful capability can be secured, funded, integrated, and sustained at mission scale.