Current naval satellite-based networks allocate physical layer resources to users based on predetermined requirements analyses.Once the requirements are determined and resources allocated, they cannot be easily changed to adapt as actual situations warrant. A dynamic allocation process allows satellite resources to be reallocated based on the current requirements of the network users. Proposals and designs for next generation satellite systems are beginning to incorporate dynamic resource allocation features into their architectures. In this paper we present a methodology that automatically directs the use of physical layer resources for a satellitebased network according to network demands. The proposed methodology utilizes an "executive" to optimize and control the overall system utilization by incorporating information from transponder load, user prioritization, and real-time network requirements. To demonstrate our methodology we have implemented a non-propriety testbed based on COTS hardware and equipment currently being utilized by the fleet. We also present results from tests that show the benefits of a dynamic architecture over a traditional static architecture.