AFLCMC… Providing the Warfighter’s Edge

Other Transaction

Authority for Prototypes

OTA4P

Ms. V.M. DahlemAFLCMC/LPA13 June 2017

AF Life Cycle Management Center

1Acquisition Insight Days – June 2017

AFLCMC… Providing the Warfighter’s Edge

Overview

• What is Other Transaction Authority?• Why use an OTA vehicle?• When is an OTA appropriate?

– Role of Agreements Officer

• How can my organization do an OTA?– Example: Propulsion Consortium

• Where can I find out more?• Final Thoughts

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AFLCMC… Providing the Warfighter’s Edge

What is OTA?

• As defined in 10 USC 2371– “[OTA] is a transaction other than contracts,

cooperative assessments, and grants to carry out basic, applied, and advanced research”

• 2371b further outlines OTAs for prototyping– “…to carry out prototype projects directly relevant to

enhancing mission effectiveness of military personnel and the supporting platforms, systems, components, or material proposed to be acquired or developed by the DOD…”

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• So?– Not generally subject to acquisition law and acquisition regs including

FAR, DFARS, and AFFARS but can use regs for guidelines

– TINA is not applicable

– Data Rights/IP not mandated by the Bayh/Dole Act

AFLCMC… Providing the Warfighter’s Edge

Why use an OTA vehicle?

• From CSAF’s 10 Principles for Capability Development– “Agility in delivering capability is paramount… includes the use of

experimentation to explore the value of operational concepts and prototyping to mature technologies and reduce risk for future acquisition.”

– “Deliver Incremental Capability sooner rather than Full Capability later.”

– “Continue to forge a strong relationship with both traditional and non-traditional industry.”

• Provide access to innovation from a market that traditionally does not contract with the DOD– Tailor the business arrangements to meet the mutual need and

requirements circumstances

• Streamline RDT&E transition to prototype and production4

AFLCMC… Providing the Warfighter’s Edge

When is an OTA Appropriate?

• Prototypes as useful solution– Novel application of commercial

technology for defense purpose

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• “Prototype project”– Directly relevant to enhancing mission effectiveness of

military personnel and supporting platforms, systems, components, or materials proposed to be acquired or developed, or to improvement of platforms, systems, or materials in use by the armed forces

• “Prototype”– End product that evaluates feasibility or operational utility– Technology demonstrations

AFLCMC… Providing the Warfighter’s Edge

Acquisition Insight Days – June 2017 6

Role of Agreements Officer

• AFMC delegated to AFLCMC the authority to issue warrant for OTAs

• Thresholds– AO may approve up to $50M– SAE approves $50M to $250M– USD (AT&L) approves OT over $250M and

Congressional Notification is required

• AO warrant process is not terrible, no additional board

AFLCMC… Providing the Warfighter’s Edge

How can my org do an OTA?

• Seek PEO approval for Acquisition Strategy– Defend why non-traditional agreement is appropriate– Specifically address prototyping for solution– Not just to avoid the FAR! No easy button!

• Select AO, start OT warrant process – Prepare RFI, host industry day, release solicitation

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• Consider using Consortium– Non-traditional defense contractor– Charters business arrangements with

other entities– Allows greater access to flexible

business/technology partners

AFLCMC… Providing the Warfighter’s Edge

• Propulsion Consortium Construct– Consortium Manager charters membership, seeks and

maintains working relationship (NOT prime/sub) with other contractors

– Handles financial obligations and administrative tasks– Does not bid on projects or select awardees

• Prototypes that benefit PropulsionEnterprise– Integration models– Proof of Concept analysis– Engine component development– Tech maturation of potential new engine

designers and producers or processes8

Example OTA

AFLCMC… Providing the Warfighter’s Edge

OTA Notional Operating Process

Customers submit req’tsto OTA Team

Request white papers through Manager

OTA Team evaluates

white papers

OTA Team selects project

Request Full proposals through manager

AO and member negotiate

project

OTA Team awards

prototype project

Prototype begins

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AFLCMC… Providing the Warfighter’s Edge

Tips from RAND study on OTA

• Objectives should be stated as goals rather than fixed requirements

• Structure project as series of steps with milestone reviews, success triggers payment

• Prototypes often need modifications to original plan– These can be modified by mutual agreement

• Contractor has authority to manage project• Government scope changes will increase cost

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AFLCMC… Providing the Warfighter’s Edge

Where can I find out more?

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Updated Jan 2017

AFLCMC… Providing the Warfighter’s Edge

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Further Information

• Air Force Contracting Central– https://cs.eis.af.mil/sites/10059/afcc/knowledge_center/Pages/5335.aspx

AFLCMC… Providing the Warfighter’s Edge

Final Thoughts

• OTA is a good tool, but not only solution• PM and PK need to educate/advise requirement

owners on appropriateness of OTA• Make sure all stakeholders understand process/plan• Be prepared to think outside the FAR and write your

entire agreement• Talk to legal often, seek advice from SAF/AQ-OTI

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AFLCMC… Providing the Warfighter’s Edge

Acquisition Insight Days – June 2017 14

Questions??