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May 15, 2020 By cs

OTAs: Best practices to enable success

Imagine this. The Defense Department had an urgent need for armored vehicles to protect warfighters from new threats during a time of war.

The Mine Resistant Ambush Protected (MRAP) family of vehicles — procured through “other transaction authority” — provides protection from improvised explosive devices, rocket-propelled grenades, explosively formed penetrators, underbody mines and small arms fire threats. Photo credit: U.S. Army

By applying a unique and tailored acquisition approach with specific attention to time and similar solutions already available in the commercial marketplace, it successfully started fielding new vehicles only 18 months after identifying the warfighter need.

The program referenced here was the mine-resistant ambush protected vehicle program, which began in 2006. Was the program a success? Absolutely. Was it a risk-free or perfect solution? No. Although the MRAP program was timely in helping mitigate the threat and associated warfighter casualties, there were challenges related to operating field conditions, training, sustainment, transportation and costs. The program, however, ultimately enabled the creation of other military vehicles that are still widely used today and supports how tailored acquisition approaches can produce successful outcomes.

A popular and continuously growing phenomenon within the department is the other transaction authority, or OTA. It permits Defense Department entities to award OTA agreements for research, prototyping and production efforts critical to national security. They are not an acquisition approach or strategy; however, they are flexible options that can support an acquisition approach or strategy.

Given leadership’s priorities for the increased application of adaptive acquisition methods, it is highly likely OTAs will be a key ingredient for success.

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2020/4/15/other-transactions-best-practices-to-enable-success

May 12, 2020 By cs

Cyber and other transaction agreements

Rapid acquisitions for prototypes and experimental technology will be subject to the Defense Department’s unified cybersecurity standard, according to Katie Arrington, DoD’s chief information security officer for acquisition.

Arrington said DoD’s upcoming implementation of its Cybersecurity Maturity Model Certification will apply to other transaction agreements — a rapid contract mechanism frequently used to help develop and field prototypes.

“In an OTA, in the technical specs, they can actually call it out and say what they want,” said Arrington during an April 29 NextGov webinar on CMMC.

OTAs are meant to speed the government buying process and allow DoD to buy new capabilities faster by allowing officials to sidestep competitive bidding in certain cases. But there’s ample worry of potential overuse, which could invite congressional scrutiny.

Arrington’s comments come as DoD has begun pushing for the use of OTAs to find and execute on solutions that can help treat or prevent the spread of coronavirus. Ellen Lord, DoD’s acquisition chief, issued a memo in early April to ease the OTA process by delegating contracting authorities to heads of agencies and combatant commanders during the pandemic.

Keep reading this article at: https://fcw.com/articles/2020/04/30/cmmc-ota-cyber-williams.aspx

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized. Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

April 27, 2020 By cs

OTAs given greater flexibility to foster innovation in coronavirus response

Defense Department leaders and agencies have been granted much-needed flexibility to respond to the coronavirus pandemic.

**Click on image above to open memorandum.**

Last week, Under Secretary of Defense for Acquisition & Sustainment Ellen Lord delegated approval authority for Other Transaction Agreements (OTAs) related to the coronavirus response, consistent with Section 13006 of the CARES Act.

In an April 5 memorandum, Under Secretary Lord designated approval authorities for OTA prototype projects and follow-on production contracts and agreements as follows:

Above $100 million, and up to $500 million, to the Directors of Defense Agencies/Field Activities with contracting authority, as well as the Director of the Defense Innovation Unit. This authority was otherwise vested in the Senior Procurement Executives (SPEs) of the Military Departments, the Director of the Defense Advanced Research Projects Agency (“DARPA”), and the Director of the Missile Defense Agency (MDA).
Above $500 million, to the SPEs of the Military Departments, and the Directors of DARPA and the MDA. This authority was otherwise restricted to the Under Secretaries for Acquisition & Sustainment and Research & Engineering. Approval authority for OT prototype actions between $100 million and $500 million may now be further delegated by the SPE or Director.

In addition, in lieu of providing 30 days’ advance notice to congressional defense committees of OTAs above $500 million that are related to COVID-19, Section 13006 permits Under Secretary Lord or the Under Secretary of Defense for Research & Engineering to provide notice as soon as practicable after the OTA’s commencement.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2020/04/other-transaction-authorities-given-greater-flexibility-to-foster-innovation-in-coronavirus-response/

April 20, 2020 By cs

Newest DoD industry guidance clarifies repayments, makes prototyping easier

As part of its ongoing effort to bolster the defense industrial base, the Pentagon has issued two new pieces of guidance — one focused on workers, and one focused on prototype contracts.

Overall, the department has now issued 17 different actions, ranging from basic guidance for industry to memos changing how the department pays contractors, since March 5.

In an April 6 memo, acquisition head Ellen Lord changed the rules for issuing prototype contracts through other transaction authorities.

OTAs are small contracts awarded to companies of any size, in theory targeted at nontraditional defense contractors, with the purpose of conducting research or prototype efforts on a specific project; they are not subject to Federal Acquisition Regulation rules. By comparison, SBIR contracts are targeted at small businesses in order to act as seed money for them to conduct research and development efforts; they are subject to the FAR rules.

Keep reading this article at: https://www.defensenews.com/coronavirus/2020/04/09/newest-dod-industry-guidance-clarifies-repayments-makes-prototyping-easier/

April 14, 2020 By cs

Newest DoD industry guidance clarifies repayments, makes prototyping easier

As part of its ongoing effort to bolster the defense industrial base, the Pentagon has issued two new pieces of guidance — one focused on workers, and one focused on prototype contracts.

Overall, the department has now issued 17 different actions, ranging from basic guidance for industry to memos changing how the department pays contractors, since March 5.

In an April 6 memo, acquisition head Ellen Lord changed the rules for issuing prototype contracts through other transaction authorities.

By comparison, SBIR contracts are targeted at small businesses in order to act as seed money for them to conduct research and development efforts; they are subject to the FAR rules.

Keep reading this article at: https://www.defensenews.com/coronavirus/2020/04/09/newest-dod-industry-guidance-clarifies-repayments-makes-prototyping-easier/

Imagine this. The Defense Department had an urgent need for armored vehicles to protect warfighters from new threats during a time of war.

Rapid acquisitions for prototypes and experimental technology will be subject to the Defense Department’s unified cybersecurity standard, according to Katie Arrington, DoD’s chief information security officer for acquisition.

Defense Department leaders and agencies have been granted much-needed flexibility to respond to the coronavirus pandemic.

As part of its ongoing effort to bolster the defense industrial base, the Pentagon has issued two new pieces of guidance — one focused on workers, and one focused on prototype contracts.

As part of its ongoing effort to bolster the defense industrial base, the Pentagon has issued two new pieces of guidance — one focused on workers, and one focused on prototype contracts.

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