AF Life Cycle Management Center
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1 AF Life Cycle Management Center Other Transaction Authority for Prototypes OTA4P Ms. V.M. Dahlem AFLCMC/LPA 13 June 2017 Acquisition Insight Days June
2 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 2
3 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 So? 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 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 3
4 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 nontraditional 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 production 4
5 When is an OTA Appropriate? Prototypes as useful solution Novel application of commercial technology for defense purpose 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 5
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 Acquisition Insight Days June
7 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 Consider using Consortium Non-traditional defense contractor Charters business arrangements with other entities Allows greater access to flexible business/technology partners 7
8 Example OTA 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 Propulsion Enterprise Integration models Proof of Concept analysis Engine component development Tech maturation of potential new engine designers and producers or processes 8
9 OTA Notional Operating Process Customers submit req ts to OTA Team Request white papers through Manager OTA Team evaluates white papers OTA Team selects project Prototype begins OTA Team awards prototype project AO and member negotiate project Request Full proposals through manager 9
10 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 10
11 Where can I find out more? Updated Jan
12 Further Information Air Force Contracting Central 12
13 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 13
14 Questions?? Acquisition Insight Days June
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