APFIT: A New Blueprint for Defense Innovation
Transforming Defense Acquisition for Emerging Technologies
In 2021, a small drone startup demoed a breakthrough surveillance system for the U.S. Army. The technology worked brilliantly in field tests, but when the demo ended, there was no clear budget or program to actually procure it for the troops. Like so many others, the company found itself staring into what defense insiders call the “valley of death,” the chasm between a promising prototype and a fielded product.
Even the most game-changing technologies often languish for years because of slow, risk-averse acquisition processes. To change that, the Department of Defense launched the Accelerate the Procurement and Fielding of Innovative Technologies (APFIT) program in 2022. APFIT is designed to bridge that valley, providing fast-track funding to get proven innovations off the drawing board and into the hands of warfighters. For startup founders, researchers, and defense policymakers, APFIT signals a new way forward: a mission-driven effort to make the acquisition system as innovative as the technologies it seeks to deploy.
Unlike traditional R&D grants, APFIT provides procurement funding, not research dollars. The program focuses on technologies that have already demonstrated success in prototypes and are ready to scale. This distinction is critical: APFIT picks up where programs like SBIR and STTR leave off, accelerating the transition from prototype to production.
Each APFIT award is a one-time infusion, typically between $10 million and $50 million, aimed at purchasing and fielding new capabilities immediately, not years from now. That funding might cover initial production runs, software licenses, or other deliverables to put the technology into operational use. It is procurement money with a purpose: to close the gap for promising innovations.
APFIT doesn’t just speed things up by a few months. Early results show that it can accelerate adoption by one to two years compared to traditional acquisition. In a world where technological advantage defines national security, that timeline matters.
APFIT is more than a funding tool — it’s a statement about priorities. The program zeroes in on technologies the DoD needs most, aligning with modernization goals like autonomous systems, cybersecurity, AI, advanced sensors, and resilient networks. These aren’t niche upgrades, they’re capabilities that shape the future fight.
By focusing on small businesses and nontraditional defense contractors, APFIT taps into the sector driving much of today’s breakthrough innovation. These companies often lack the capital reserves to wait out the Pentagon’s normal timelines. A well-timed APFIT award can mean the difference between scaling production and shutting down.
Congress seems to agree. After starting with $100 million in FY 2022, APFIT’s budget jumped to $150 million in 2023 and was on track for $300 million by FY 2024. This growth signals bipartisan recognition that defense acquisition needs more agility and that APFIT is part of the solution.
Three key takeaways stand out:
APFIT helps close the valley of death for defense startups. It delivers procurement funding at the right stage, turning prototypes into operational capabilities.
APFIT is mission-driven and aligned with national security priorities. The program focuses on technologies critical to DoD modernization and battlefield advantage.
Entrepreneurs must demonstrate readiness and creditworthiness. Companies need proven prototypes, a clear plan for fast execution, and strong alignment with DoD sponsors.
To qualify for APFIT, a project must be production-ready and backed by a DoD sponsor. A private company cannot submit directly; a military organization must nominate the project to the APFIT office. That means entrepreneurs need to secure a champion – a program manager or service representative – who will advocate for their technology.
Selection criteria focus on speed and impact: Can funds be obligated within the same fiscal year? Will this award significantly strengthen the vendor’s ability to deliver and grow? Does the technology meet urgent mission needs, and can it scale across services? The process moves quickly once selections are announced. In some cases, APFIT-funded contracts have been executed within days, a dramatic departure from the months or years typical in defense contracting.
The program’s first projects funded highlight its potential. One small firm developed an autonomous drone for battlefield reconnaissance. After proving its design in pilots, the company couldn’t fund full-scale production until APFIT stepped in with a multimillion-dollar procurement. Within months, drones were being delivered to the Army, compressing a timeline that might otherwise have stretched years. Another example: a cybersecurity startup with an innovative network defense tool. Normally, introducing new software into DoD systems is a long slog. APFIT funding allowed rapid deployment across multiple installations, closing critical security gaps almost immediately. These cases illustrate what APFIT was built to do: turn tested prototypes into operational capabilities at the speed of relevance.
In April 2025, Domino Data Lab received a one-time $16.5 million APFIT award to scale the U.S. Navy’s Project AMMO (Accelerated Machine Learning for Maritime Operations). Under the award, the Navy procured Domino’s enterprise AI platform as the backbone of an MLOps pipeline for unmanned undersea vehicles to accelerate undersea mine detection. Domino serves as the prime vendor, integrating across several specialized partners to produce a single, governed pipeline for developing, deploying, monitoring, and retraining models. The APFIT procurement built on AMMO’s earlier success: the program’s MLOps pipeline cut model update cycles from roughly six months to just a few days — a ~97% reduction — so sailors can field better models at the speed of operations.
For startups hoping to leverage APFIT, preparation is key. Find a DoD sponsor early. Build relationships with program offices, labs, or innovation hubs. Align with DoD priorities and articulate how your technology addresses an urgent need. Demonstrate readiness; APFIT isn’t for concepts. Show that your product is tested and ready for production now. Plan for fast execution by anticipating paperwork, identifying contract vehicles, and signaling that you can deliver immediately. And if you don’t win in one cycle, keep improving and resubmit.
APFIT is part of a broader shift in defense acquisition. For decades, the DoD has struggled to balance accountability with agility. Programs like APFIT, along with flexible tools such as Other Transaction Authorities and the Middle Tier of Acquisition, show that speed and rigor can coexist. Think of APFIT as the missing link between innovation and adoption. SBIR and similar programs plant the seeds; APFIT helps harvest them. By institutionalizing this model, the DoD can ensure that great ideas don’t wither in the valley of death but instead, make a real difference on the battlefield.
APFIT delivers what startups need: funding at the right time. And it provides what the military needs: cutting-edge capabilities, fast. For entrepreneurs, it’s an opportunity to scale without waiting years for the system to catch up. For the DoD, it’s proof that procurement can keep pace with technology.
The stakes are too high for business as usual. APFIT offers a blueprint for the future: innovative tech fielded at the speed of innovation, not bureaucracy.
To learn more about The Hacking for Defense® Manual by Jeff Decker, PhD, visit Amazon.