The incoming Trump administration has sent many signals that it intends to ramp up the Department of Defense’s use of nontraditional acquisition pathways to bridge the “Valley of Death” and bring innovative technologies to the warfighter.[1] This is not a departure from any recent administration, but yet another acceleration of a common trend. Perhaps the most familiar and well‑demonstrated such pathway is DoD’s Other Transactions (OTs) for prototyping projects and follow‑on production efforts. In the last decade, DoD’s use of that authority has steadily grown from a few hundred OTs and less than $1 billion in obligations in FY15[2] to more than 5,000 OTs and $15.5 billion in FY23.[3] Early reports for FY24 indicate nearly $18 billion in OT obligations.[4]
Defense contractors need to be armed with reliable legal resources as they navigate this relatively new and evolving legal landscape. That is why we are compiling here our DoD OTs Desk Reference, with an infographic answering common questions and links to our many writings on the rules and risks of contracting through OTs. Bear in mind, although these references often focus on DoD Prototype OTs, several non-DoD agencies—including NASA, NIH, BARDA, DHS, TSA, and others—have some form of other transaction authority of their own. These agencies issue a variety of other transaction agreements (OTAs) that are likewise exempt from procurement laws and regulations, but are not subject to the same eligibility or other legal requirements of DoD Prototype OTs.
References:
Other Transaction (OT) Bid Protests: A Call for Clarity and Consistency
DoD Dusts Off Other Transactions (OT) Regulations
Court of Federal Claims Potentially Expands Its Other Transaction (OT) Bid Protest Jurisdiction
Has the GAO Opened the Door to Certain Other Transaction (OT) Bid Protests?
DoD Issues Updated Other Transactions (OT) Guide
Another Piece to the Puzzle: Court of Federal Claims Has Jurisdiction Over Bid Protest Where the Disputed Other Transaction Could Lead to a Follow-On Production Contract
New Contractor Insights on ‘Other Transaction’ Bid Protests
Where Can You Protest an Other Transaction Award? Insights from Kinemetrics
Congress, DoD Encourage Use of Other Transaction Authority in Response to COVID-19
DoD’s Other Transactions: Data Rights & Intellectual Property Simplified
[1] See, e.g., Pete Hegseth, Opening Statement, Secretary of Defense Nomination Hearing, Senate Armed Services Committee (Jan. 14, 2025), available at https://www.armed-services.senate.gov/imo/media/doc/hegseth_opening_statement.pdf.
[2] See Rhys McCormick, Ctr. for Strategic & Int’l Studies, Department of Defense Other Transaction Authority Trends 2 (Dec. 2020)
[3]See https://oldcc.gov/sites/default/files/resources/OT%20General%20Presentation%20%28July%202024%29.pdf.
[4] See https://www.acq.osd.mil/asda/dpc/cp/policy/docs/newsletters/2024/Policy_Pulse_Newsletter_(Nov_2024).pdf.
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