Pentagon Deploys Private Sector ‘Deal Team Six’ to Overhaul Defense Contracting

Secretary of Defense Pete Hegseth has officially mobilized an elite task force of private sector experts, known as "Deal Team Six," to dismantle long-standing inefficiencies within Pentagon procurement. Operating under the department’s Economic Defense Unit, this group aims to eliminate the "double-dipping" practices Hegseth claims have plagued defense contracts for decades, where taxpayers were frequently billed for both factory construction and final product delivery. By replacing traditional bureaucratic negotiators with high-level corporate specialists, the Pentagon intends to enforce stricter production timelines and curb the chronic cost overruns that have historically benefited contractors at the expense of military readiness.

The initiative is a cornerstone of Hegseth’s broader transition from the traditional Defense Acquisition System to a new "Warfighting Acquisition System." Under this model, the government offers defense firms long-term, stable contracts in exchange for those companies assuming the financial burden of infrastructure expansion and factory development. While the full roster of the team remains private, the unit is led by former Cerberus Capital Management executive George Kollitides. Supported by over $593 million in the fiscal year 2027 defense budget, the administration has signaled that it will aggressively seek alternative partners if current contractors fail to meet the new, rigorous standards for speed and cost-efficiency.