On September 4, 2024, the Department of Defense (DoD) released a proposed rule to revise regulations related to other transaction agreements (OTAs) and, most notably, to allow for follow-on production OTAs. The proposed revisions would also align the relevant regulations with the changes in DoD statutory authority that have occurred since the regulations were last updated in 2004. In addition, the proposed rule would impact the following:

• Special circumstances for awarding OTAs to small businesses, nontraditional defense contractors, nonprofit research institutions, and consortia
• Approval requirements for large dollar OTAs (reflects internal DoD approval requirements for prototype projects and follow-on production OTAs and contracts)
• Authority to supply prototypes and production items to another contractor as government furnished items (may be provided to another contractor or performer of an OTA)
• Application of procurement ethics requirements to covered OTAs (post-government employment restrictions)
• Competition to the maximum extent practicable

Comments on the September 4 proposed rule, which can be found here, were due by November 4, 2024.