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The Pentagon has stated for some time the need for increased innovation, speed, and affordability in defense systems acquisition. The Pentagon, via the Office of the Under Secretary of Defense for Acquisition and Sustainment, now has added additional clarification by issuing a new Other Transactions (OT) Guide. This follows the promulgation, on November 20, of two policy memoranda on their definitions and requirements and the authority to use prototype OTs.

The new guide rescinds the previous guide of January 2017 and addresses both research OTs (10 USC 2371) and prototype OTs (10 USC 2371b), creating more collaboration between the closely related authorities.

The guidance includes case studies and a glossary of definitions. It indicates that OTs are not designed for nontraditional contractors and encourages traditional defense contractors to participate in prototype OTs via a senior procurement executive determination, by teaming with nontraditional contractors, or in other ways.

The guide stresses the need for a cross-functional government team to execute the agreements. Find out more.