Navy Technology Playbook Offers Agencies a Framework for Modernization

The U.S. Navy’s technology-acquisition approach is informing a government-wide playbook for modernizing enterprise IT. Published by the IBM Center for the Business of Government and the Foundation for American Innovation, the playbook reflects lessons from the Navy’s shift away from building every capability itself toward adopting and testing technology more quickly. Navy Chief Technology Officer Justin Fanelli said other agencies began asking what was different about the Navy’s approach after seeing it address common problems. The resulting framework became a “kit” that the Navy shared and that ultimately helped shape the broader guidance.

The playbook’s first recommendation is for agencies to understand their existing technology portfolios before deciding what to modernize. That means mapping systems and how they communicate, as well as the processes, data, and finances associated with them. Daniel Chenok, executive director of the IBM Center for the Business of Government, summarized the prerequisite: “To do modernization that actually benefits the portfolio, you need to have a picture of that portfolio going in.” For procurement teams, portfolio visibility can help identify duplicative tools, integration dependencies, and the operational or financial baseline against which proposed capabilities should be assessed.

The second recommendation is to evaluate pilots against the systems they are intended to replace, using standardized outcome measures. The Navy’s reported measures include user time saved or lost, adaptability, cost per user, user experience, and operational resilience. The Navy expanded its use of technology pilots tenfold in 2025 to about 25, compared with only a few true pilots per year before then. In 2026, Fanelli said the service had “dozens and dozens” of pilots underway, spanning AI, hosting hardware, edge computing, autonomy functions, and specialized technologies such as float sensors. The broader scope and shared terminology are intended to improve transparency and reduce duplicated, siloed experimentation.

For contractors, the playbook is a signal about how agencies may expect modernization proposals to be framed—not an active procurement opportunity. A persuasive pilot concept should show how success will be measured against the incumbent system, establish a credible plan to scale a successful capability, and explain how an unsuccessful or no-longer-needed legacy system will be retired. Vendors may also consider privately funded pilots to demonstrate mature commercial technology, but the source identifies no solicitation, contract award, or guaranteed follow-on work. The procurement implication is therefore strategic: align solution evidence and transition planning with agency portfolio objectives while continuing to monitor for actual solicitations and acquisition notices.

• The playbook was developed by the IBM Center for the Business of Government and the Foundation for American Innovation, drawing substantially on the U.S. Navy framework.
• Agencies are advised to map systems, interconnections, processes, data, and finances before pursuing modernization.
• The Navy’s pilot scorecard includes user time saved or lost, adaptability, cost per user, user experience, and operational resilience.
• The Navy increased true technology pilots tenfold in 2025, reaching about 25 pilots.
• In 2026, the Navy reported “dozens and dozens” of pilots spanning AI, hosting hardware, edge computing, autonomy, and float sensors.
• Shared technology terminology and greater transparency are intended to reduce duplicated, siloed pilot work.
• Vendors should tie pilot proposals to measurable outcomes, incumbent-system comparisons, and defined enterprise transition criteria.
• Agencies should plan to scale successful capabilities and retire legacy systems when adopting replacements; contractors should address both paths.
• Privately funded pilots may demonstrate commercial technology, but this signal identifies no solicitation, award, or guaranteed follow-on work.