DIU pushes to scale startups with on‑ramp hubs and new acquisition pathways

The Defense Innovation Unit urged Congress and the Defense Department on Oct. 11 to expand on‑ramp hubs and firm up acquisition pathways so small companies can scale technologies for the battlefield.

At a House Armed Services Committee hearing, DIU representatives said the on‑ramp hubs provide simple access points to DOD and its innovation enterprise and that early, visible success cases are critical to attract founders, funders and service partners. "We've got companies from all 50 states applying for our work. We've already awarded in 36 of the 50 and growing," a DIU official said about on‑ramp participation.

Committee members framed the issue as both a geographic-access and scaling problem: members asked how new hubs will be selected and how DIU will ensure the department converts initial pilots into servicewide programs. A DIU official described on‑ramps as "one of the ways in which we establish kind of presence across the country" and said hubs should be located where there are strong pockets of founders and funders.

Why it matters: Members and witnesses told the committee that without clear routes to scale — including funding, cybersecurity and personnel clearances and an observable pathway into service budgets — small vendors often sell a first prototype and then stall. Committee members said expanding successful reference cases will attract industry investment and lower barriers for future entrants.

How DIU proposes to solve it: DIU witnesses said the office is using flexible funding and closer, frequent coordination with service leadership to identify projects with a defined pathway to scale. "There must be a pathway to scale," a DIU witness said, adding that DIU now meets with service leadership to align strategic projects and clarify what scaling requires from services.

Members asked about new funding streams and authorities. A committee member noted reconciliation language that added $50 million for on‑ramp hubs; DIU said it will continue to work with Congress on priorities and site selection. Members also raised related tools and authorities: Commercial Solutions Openings (CSOs), Other Transaction Authorities (OTAs), and the software acquisition pathway — all discussed as means to speed early contracting and reduce bureaucratic friction.

Concerns and outstanding issues: Members pressed for concrete fixes on recurring barriers such as facility and personnel clearances and cybersecurity standards, and urged DIU and the department to document successful transitions that demonstrate service buy‑in and budgetary uptake. DIU witnesses said they will continue to deliver "significant points on the board" and use those results to attract more partners and funding.

The hearing closed with members urging sustained momentum and continued coordination across DIU, the services and Congress so that on‑ramp investments translate into operational capability rather than one‑off pilot projects.