State of Defense 2025 Lessons of the Red Seas Panel

The State of Defense 2025 series, hosted by Defense One, explores how each U.S. military

service branch is adapting to rapidly shifting environments, addressing emerging threats,

technologies, and tactical decisions shaping priorities in 2025. The series features discussions with senior leaders from the Army, Navy, Marines, Air Force, and Space Force, providing exclusive insights into the future of U.S. national defense.

The U.S. Navy is currently navigating one of its most intense periods of sustained combat operations since World War II, particularly in the Red Sea, where it faces escalating threats from Houthi forces and Iranian proxies. As detailed in a recent Defense One panel discussion titled "State of Defense Lessons of the Red Seas," moderated by Patrick Tucker, the Navy is grappling with a complex mix of tactical successes, operational strains, and strategic vulnerabilities. From dwindling missile supplies to an overstretched fleet, the challenges are multifaceted. Enter nGAP's Open Acquisition System (OAS) a game-changer that could address some of these pressing issues by streamlining procurement, enhancing innovation, and bolstering the Navy’s readiness.

The Red Sea: A Testing Ground for Naval Readiness

The Defense One discussion, featuring Vice Admiral (Ret.) Robert Merritt and Professor James Holmes, painted a vivid picture of the Navy’s current predicament. Tactically, the Navy has proven its mettle, successfully countering anti-ship ballistic missiles, cruise missiles, and drone swarms with systems like the Aegis-equipped destroyers. However, this success comes at a cost. Standard Missile-2s (SM-2s), priced at approximately $2.4 million each, and SM-3s, costing upwards of $30 million, are being expended at an unsustainable rate against relatively low-cost threats like drones. Meanwhile, the fleet’s operational tempo (ops tempo) remains unrelenting, with ships like the USS Gettysburg rushed into combat with borderline readiness due to a lack of surplus assets.

Strategically, the Navy faces a broader dilemma: its force structure is too lean to sustain simultaneous operations across multiple theaters, such as the Red Sea, Eastern Mediterranean, and Indo-Pacific. This thinning of resources is compounded by a sluggish defense industrial base, unable to rapidly replenish munitions or expand shipbuilding capacity. As Holmes noted, adversaries like China and Russia are keenly observing these struggles, potentially exploiting them to divide and weaken U.S. naval presence globally. nGAP’s OAS can offer a much-needed lifeline.

The Open Acquisition System

nGAP’s Open Acquisition System is designed to revolutionize how the Department of Defense (DoD) procures technology and equipment. Unlike traditional acquisition models, which are often bogged down by bureaucracy and lengthy timelines, OAS emphasizes agility, transparency, and collaboration. It leverages an open platform where industry partners, small businesses, and innovators can compete to deliver solutions tailored to the military’s needs. By reducing red tape and fostering rapid prototyping, OAS aims to accelerate the delivery of cutting-edge capabilities to the warfighter.

Tackling the Missile Cost Conundrum

One of the most glaring issues highlighted in the Defense One discussion is the economic inefficiency of using multimillion-dollar missiles to counter low-cost drones. Vice Admiral Merritt dismissed concerns about cost in the heat of battle, stating, “Use whatever you got and don’t worry about the price tag.” Yet, he acknowledged the need for post-conflict discussions on more efficient solutions, such as close-in weapon systems or soft-kill measures.

OAS could directly address this by fast-tracking the development and procurement of cost-effective countermeasures. Through its open competition model, nGAP could invite proposals for affordable, scalable alternatives—think directed-energy weapons or low-cost interceptors—capable of neutralizing drone swarms without depleting high-value missile stocks. The system’s emphasis on rapid iteration means these solutions could move from concept to deployment in months, not years, ensuring the Navy maintains its defensive edge without breaking the bank.

Relieving Operational Strain

The Navy’s overstretched fleet is another critical pain point. Holmes pointed to the USS Gettysburg incident as evidence of a Navy too small to afford delays in training or certification, forcing ships into combat underprepared. OAS could alleviate this strain by accelerating the acquisition of unmanned systems—surface, subsurface, and aerial—that augment manned platforms. The Defense One panelists noted the experimental phase of maritime autonomy, with Holmes likening it to the 1920s debate over aircraft carriers. OAS’s collaborative framework could harness this potential, enabling the Navy to quickly integrate drones and autonomous vessels into its force structure, thus reducing the burden on human-crewed ships and allowing more time for training and maintenance.

Moreover, the system’s focus on payloads over platforms aligns with the Navy’s need to do more with less. As Holmes highlighted, innovations like air-launched SM-6s and the TRAM missile-reload system are promising, but their deployment lags. OAS could expedite these efforts by connecting the Navy with agile industry partners capable of delivering payloads and logistical solutions at scale, keeping ships combat-ready without frequent port returns.

Strengthening the Industrial Base

The defense industrial base’s sluggish response to wartime demands—whether replenishing missile stocks or building new hulls—was a recurring theme in the discussion. Merritt cited a recent Defense Science Board study underscoring shipyard limitations and the need for technological growth. OAS could inject vitality into this ecosystem by opening the door to non-traditional suppliers and small businesses, which often lack the resources to navigate conventional DoD contracts. By streamlining acquisition, nGAP could boost production capacity for critical munitions and components, ensuring the Navy isn’t left vulnerable after sustained engagements like those in the Red Sea.

A Strategic Edge Against Adversaries

Finally, the Defense One panel raised alarms about China and Russia exploiting U.S. naval overextension. Holmes warned of a “cultural revolution” needed to shift from an offensive to a defensive posture, while Merritt stressed the inadequacy of current force structure for a two-major-regional-conflict strategy. OAS could provide a strategic advantage by enabling the Navy to adapt faster than its adversaries. Whether it’s deploying next-generation technologies or scaling allied interoperability (another strength noted in the discussion), OAS’s agility could help the U.S. maintain deterrence across theaters, countering the thinning effect adversaries seek to impose.

Conclusion

The lessons from the Red Sea underscore a Navy at a crossroads: tactically proficient yet operationally and strategically strained. nGAP’s Open Acquisition System offers a path forward by addressing the core challenges of cost, readiness, and industrial capacity. By fostering innovation, accelerating procurement, and empowering a broader industrial base, OAS could equip the Navy to meet today’s threats while preparing for tomorrows. As the U.S. faces an increasingly coordinated axis of adversaries, tools like OAS may be the key to ensuring naval dominance endures—not just in the Red Sea, but wherever the flag flies.

Works Cited

This article is based on insights from the State of Defense Panel, which was accessed via a paid ticket. For details on past State of Defense Panels, please reach out to govexec.events@govexec.com.