The U.S. Navy, under the leadership of Chief Technology Officer Justin Fanelli, is actively seeking partnerships with startups to enhance its fleet modernization efforts.

Fanelli encourages entrepreneurs to engage with the Navy, signaling a shift in its approach to innovation and technology adoption.

Over the past two and a half years, Fanelli has worked to streamline procurement processes, making it easier for startups to collaborate with the Navy.

This new approach emphasizes identifying problems rather than prescribing solutions, allowing startups to propose their own methods for addressing Navy challenges.

To evaluate pilot program success, the Navy uses five metrics: time saved, operational resilience, cost per user, adaptability, and user experience.

The Navy's innovation adoption kit is designed to bridge the gap between prototype development and production, transforming traditional government contracting into a more efficient model.

Currently, the Navy is prioritizing advancements in AI, alternative GPS technologies, and the modernization of legacy systems like air traffic control.

Fanelli aims to open doors for companies that previously avoided government contracts, as evidenced by a recent competition that attracted nearly 100 bidders.

Success stories from this initiative include a venture-backed startup that drastically reduced a two-year invoice backlog, improving operational efficiency and morale.

There is a growing willingness in Silicon Valley to collaborate with the military, reflecting a shift from skepticism to a more patriotic approach to technology development.

This collaboration aims to develop innovative and AI-driven naval defense systems, significantly transforming the Navy's technological landscape.

Although specific budget allocations remain undisclosed, Fanelli noted that the Navy currently spends a low percentage on emerging technologies compared to traditional contractors.