The Undersecretary of Defense for Acquisition, Technology, and Logistics of the Department of Defense seeks comments on the department’s design for the new Challenge program. This program, required in the FY 2000 National Defense Authorization Act, is designed to increase the adoption of innovative technologies in acquisition programs. Consistent with a 1997 Defense Science Board study, the Challenge program design team has found that there is little competitive pressure -- in fact, there are internal disincentives -- for prime contractors to adopt outside, innovative technologies into an acquisition program after award has been made. The Challenge program, then, would foster competition among alternative technological approaches and suppliers wherever possible in the development of subsystems of DOD acquisition programs and to create other incentives and opportunities for insertion of new technology throughout the acquisition cycle.