# How the Pentagon Is Buying Digital Engineering Services Like a Software House

Page: https://stenobird.com/podcast/the-defense-tech-podcast-with-fexingo-government-contracting-aerospace-and-military-tech-7871833/how-the-pentagon-is-buying-digital-engineering-services-like-a-software-house
Text version: https://stenobird.com/podcast/the-defense-tech-podcast-with-fexingo-government-contracting-aerospace-and-military-tech-7871833/how-the-pentagon-is-buying-digital-engineering-services-like-a-software-house.md
Podcast: [The Defense Tech Podcast with Fexingo: Government Contracting, Aerospace, and Military Tech](https://stenobird.com/podcast/the-defense-tech-podcast-with-fexingo-government-contracting-aerospace-and-military-tech-7871833)
Published: 2026-07-16T20:38:39+00:00
Episode link: https://audio.fexingo.com/business/the-defense-tech-podcast/episode-0115.mp3
Audio file: https://audio.fexingo.com/business/the-defense-tech-podcast/episode-0115.mp3
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Duration seconds: 537

## Resource

The Pentagon is shifting from buying hardware specifications to buying digital engineering services — essentially paying contractors for the simulation models, not the physical prototypes. In this episode, Lucas and Luna dive into how that's changing the bidding process for major weapons programs, using the Air Force's Next Generation Air Dominance (NGAD) program as a concrete example. They look at the companies that are adapting fastest — Lockheed Martin, Northrop Grumman, and Boeing — and how the new acquisition model favors firms with mature digital thread capabilities. The conversation also touches on the broader market context, with defense stocks like Lockheed Martin and Northrop Grumman seeing recent declines as investors digest the shift in contracting risk. Plus: a quick note on why listener support matters for keeping this show ad-free. #Pentagon #DigitalEngineering #ModelBasedSystemsEngineering #MBSE #NGAD #DefenseAcquisition #LockheedMartin #NorthropGrumman #Boeing #DefenseTech #MilitaryTechnology #Business #Finance #Podcast #FexingoBusiness #BusinessPodcast #DefenseContracting #DigitalThread Keep every episode free: buymeacoffee.com/fexingo

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