A Conversation with Andrew Pahutsky, former advisor to the Secretary of Defense

In a CET Sandbox session, Andrew Pahutsky–Vice President at Systems Planning and Analysis (SPA) and a former DoD official with deep experience in Navy, Space, and Joint program offices–offered grounded insights for Israeli startups looking to break into the U.S. defense market. Drawing on two decades of service across critical acquisition and budget roles, he shared how to think like a program manager, navigate timelines, and connect with the people who actually make buying decisions.

Overview

Pahutsky emphasized that understanding the internal incentives of the U.S. Department of Defense is key to any successful startup strategy. Whether it’s navigating budget cycles, mapping stakeholders, or translating tech value into mission outcomes, he laid out a realistic roadmap for startups ready to do the work. His message was clear: if you want to play in the defense space, you need to understand how the system works from the inside out.

Who Actually Buys Tech in the DoD?

The central players in defense procurement are Program Executive Officers (PEOs), Program Managers (PMs), and Requirements Officers. While organizations like DIU or AFWERX can help open doors, it’s these individuals who are responsible for acquisition and obligated funding. Founders should focus on solving defined problems within existing programs of record or modernization lines–that’s where real money lives.

How Do Budget Timelines Affect Startups?

Pahutsky laid out the long arc of U.S. defense budgeting: even if a DoD buyer loves a product, they can’t always fund it immediately. The planning, programming, budgeting, and execution (PPBE) cycle takes years. Understanding when and how to influence that process–ideally through advocacy by a program office–can be the difference between a pilot and a pathway to scale.

What Makes Israeli Startups Stand Out–and Where They Struggle

Israeli companies often bring incredible tech and urgency, but sometimes lack patience with the slow, complex U.S. system. Pahutsky encouraged founders to resist the temptation to expect quick wins and instead focus on persistent, thoughtful engagement. Success often comes from working with integrators, building relationships with program offices, and being honest about where a product fits.

How to Engage Effectively

Instead of broadly pitching technology, founders should identify specific U.S. programs where their product can be a better, cheaper, or faster alternative. That means doing homework, attending targeted events, and understanding TRL (Technology Readiness Level) expectations. Getting a foot in the door through SBIRs or DIU can help, but ultimately companies must work their way into the acquisition ecosystem.

Key Takeaways

• The real buyers in the U.S. defense system are PEOs, PMs, and requirements officers–not just innovation units
• Budget timelines are long; success often requires multi-year engagement and advocacy
• Israeli startups excel in tech and urgency but must adapt to a slower U.S. process
• Concrete positioning within programs of record is more effective than broad tech pitches
• Building relationships with integrators and system primes can accelerate adoption

Conclusion

Andrew Pahutsky’s advice is a reminder that succeeding in defense tech isn’t just about the product–it’s about understanding the system. For Israeli startups looking to build enduring DoD relationships, the path forward is slow but navigable. The ones who win are those who invest in understanding their customer’s incentives, budget constraints, and acquisition pathways.