The defense supply chain is stronger with continuous, real-time monitoring.
GAO‑25‑107283, a report recently released by the U.S. Government Accountability Office (GAO), highlights critical supply chain vulnerabilities across the Department of Defense’s 200,000+ supplier ecosystem. Areas for improvement include limited traceability of foreign-origin materials, visibility into lower-tier vendors, and streamlined contractual reporting.
The dangers aren’t necessarily what’s visible at the prime supplier level but rather the dangers hidden in sub-suppliers that can wreak havoc on a supply chain before anyone sees the threat coming.
These findings are based on procurement data from fiscal years 2020 through 2024, reviewed DOD documents, and interviewed DOD officials and contractor representatives. Drawing on these insights, GAO issued three recommendations:
-
- Identify resources, priorities, and time frames to implement efforts to integrate and share supply chain data.
- Identify an organization responsible for implementing leading commercial practices.
- Test the use of contract requirements to obtain country-of-origin information from suppliers.
Meeting these recommendations will require DOD to think more broadly than a linear supply chain, to examine and predict the cascading effects across interconnected suppliers. Three foundational capabilities will advance this goal: real-time continuous supply chain monitoring, AI-driven risk detection and predictive capabilities to support scenario planning.
The Critical, Compounding and Escalating Need for Action
Currently, there is no centralized governance within DOD or timeline for executing supply chain visibility reforms. Yet the risks are escalating too quickly to wait. Three vulnerabilities stand out in GAO‑25‑107283:
-
-
- Lack of country-of-origin data in procurement systems obscures exposure to supplier risk.
- Small and lower-tier suppliers remain largely untracked, creating hidden weak links in the supply chain.
- Supplier disclosure clauses remain untested, leaving DOD with low contractual enforceability.
-
GAO‑25‑107283 builds on a long-term objective first identified in September 2018: to reduce the national security risks that come with reliance on foreign sources of supply for weapons systems. In October 2024, DOD reinforced this point, stating that “supply chain visibility is essential for the military services to ensure operational readiness and strategic advantage.”
The risks, however, are accelerating faster than reforms.
Beyond the Numbers: Proof Points Making Headlines
Recent examples demonstrate how vulnerabilities buried throughout the supply chain network can result in difficult-to-anticipate costs and media coverage.
-
-
- Revision Military Ltd. (December 2024) paid $426K to resolve allegations of using foreign-manufactured components in protective eyewear sold under the Berry Amendment, demonstrating how traceability gaps can trigger legal and compliance risk.
- Lockheed Martin (2023-2024) discovered prohibited Chinese‑made magnets within the F‑35 supply chain, prompting a suspension of manufacturing for several months while alternatives were identified.
- CATL (Chinese battery supplier) was disconnected by Duke Energy from a U.S. Marine Corps installation amid national security concerns (December 2023). CATL was later explicitly prohibited from Pentagon procurement under the FY2024 NDAA due to forced labor and espionage allegations.
-
How interos.ai Supports GAO’s Recommendations with Total Supply Chain Transparency
GAO-25-107283 makes clear, visibility alone is not enough. The DOD needs actionable tools that move from reporting problems after the fact to predicting and preventing them before they escalate. That requires real-time data, AI-powered risk detection and enforceable supplier accountability.
interos.ai was built with these needs in mind.
The Knowledge Graph™ provides a living map of global supply chains, including the defense supply chain, while the interos.ai platform layers on continuous monitoring, automated alerts, governance integration and contractual enforcement.
Together, these capabilities deliver on the three foundations GAO’s findings call for: continuous monitoring across every tier, AI-driven detection of emerging risks and predictive insights to support scenario planning.
The Window for Action Is Now
GAO-25-107283 makes the stakes clear: without multi-tier visibility and enforceable supplier accountability, DOD remains exposed to adversarial leverage and cascading disruption.
Revision Military, CATL, and F-35 program disruptions aren’t isolated issues, they are signals of systemic vulnerabilities.
At interos.ai, transparency isn’t the end state. It’s the foundation for predictability and resilience. By operationalizing GAO’s recommendations, we give leaders the tools to act in real time.
The risks are compounding. The window for action is now.
If you’re looking to move from report-dependent awareness to action-oriented risk management, interos.ai is ready to help bridge that gap.