One of the following conditions must be met to award a Prototype OT (Source: USD A&S and USD R&E Memorandum, Definitions and Requirements for Other Transactions Under Title 10, United States Code, Section 2371b):

• At least one non-traditional defense contractor participates to significant extent or
• All significant participants are small or non-traditional defense contractors or
• One third of total cost provided by sources other than gov (if no non-traditional defense contractor participation) or
• The Agency Senior Procurement Executive determines circumstances justify use of a transaction that provides for:
  • Innovative business arrangements not feasible or appropriate under a contract
  • Opportunity to expand defense supply base not practical or feasible under a contract

Conditions for Follow-on Production OT or Contract (Source: USD A&S and USD R&E Memorandum, Definitions and Requirements for Other Transactions Under Title 10, United States Code, Section 2371b)

Prototype OTs must specifically state the possibility for a follow-on production OT or contract in both the Prototype OT solicitation and the Prototype OT agreement. Non-competitive follow-on awards are limited to the participants in the OT prototype project and the following criteria must be satisfied:

• Competitive procedures were used to select the parties to participate in the prototype project; and
• Participants in the transaction successfully completed the prototype project provided for in the transaction

Prototype OTs must include defined conditions for the prototype agreement to be determined successfully completed and thereby eligible for a follow-on production award. Successful completion of a prototype project requires written determination by the responsible approving official stating the efforts under a Prototype OT satisfy the following criteria

• Met the key technical goals of a project;
• Satisfied success metrics incorporated into the Prototype OT; or
• Accomplished a particularly favorable or unexpected result that justifies the transition to production

Approvals and Thresholds (Source: USD A&S Memorandum Authority for Use of Other Transactions for Prototype Projects Under 10, United States Code, Section 4022)

Approval authorities and thresholds for Prototype Project OT Awards:

• As a matter of policy, approval of a follow-on production OT agreement or contract valued in excess of $100 million requires prior coordination with the appropriate Under Secretary.
• The authority of the head of the contracting activity, directors of DARPA, DIU, MDA, or the SPE, as applicable may not be delegated pursuant to section 4022(a)(3).

Approval authorities and thresholds for follow-on Production Contracts and OT Agreements:

• As indicated in section 4022 for all threshold levels, the value shall include all options.
• In determining the value of a given transaction for the purposes of assessing compliance with the authority levels set forth above, OT agreements will be measured based on the value of each transaction, rather than the total value of all OT agreements that might be executed in a prototype project or for follow-on production. That is, a prototype project may consist of multiple transactions to the same or different parties, each of which shall be considered separately when considering dollar thresholds.
• Transaction value shall include all options with prices established in the OT agreement as awarded as well as the amount associated with any cost-sharing borne by the performer where the basis for the OT is subsection 4022(d)(1)(C).
• Regardless of value, a separate OT approval will be required for each phase-prototype or follow-on production-and separately within a phase for each transaction.

Source: USD A&S Memo Required and Recommended Use of eBusiness Tools When Awarding and Administering Other Transactions

REQUIRED:

Federal Procurement Data System (FPDS) 

1. Report each OT for Prototypes or Follow-on Production new award and any subsequent modifications in the Other Transaction module in FPDS within three (3) business days of the action being awarded.
2. Report each Other Transaction for Research and any subsequent amendments in the FAADC module in FPDS within three (3) business days of the action being awarded.
3. Report each Procurement for Experimental Purpose following the policies for the type of award being issued as described above.

System for Award Management (SAM) Entity Information/Reporting

1. Include terms in the OT award that require the awardee to maintain an active registration for ‘All Awards’ in SAM throughout the life of the OT award. Components are encouraged to use a term substantially the same as the one found at FAR Clause 52.204-7.
2. Before modifying the OT award to extend its period of performance (including prenegotiated options to extend), confirm that the OT awardee has an active SAM registration for All Awards.
3. Include terms in the OT award to a Consortium that requires all of its member organizations to obtain and maintain UEIs for the purposes of statutory reporting requirements.
4. Report the UEI of consortium members performing on individual orders under OT agreements in the FPDS OT module.

Government-Furnished Property (GFP) Module

1. Include terms in the Other Transaction award, when government property will be provided (as described above) that require the Other Transaction awardee to use the GFP Module in PIEE to report the following transactions when they occur:
   a. Receipt of GFP
   b. Property loss
   c. Plant clearance
   Components are encouraged to use a term(s) substantially the same as those found at FAR Clause 52.245-1 and Defense FAR Supplement (DFARS) Clauses 252.245-7001 through -7004 and 252.211-7007.
2. Create and approve GFP Attachments within the GFP Module.
3. Use the GFP Module for tracking shipping of GFP.

Wide Area Workflow (WAWF) 

1. Include in the OT awards the requirement for and instructions on how to use WAWF. Components are encouraged to use a term(s) substantially the same as those found at DFARS 252.232-7003 and 252.232-7006.
2. Ensure that the language of the OT designates which activity is going to perform the acceptance and approval processes. Individuals performing these roles within that activity must establish a WAWF account with the appropriate role(s) for receipt,
   acceptance, and payment of invoices.
3. Use WAWF for receiving and approving payment requests and for collecting and accepting evidence of performance except for classified transactions and when a purchase card is being used for payment.

Electronic Data Access 

1. Ensure the agreement and all modifications are posted to EDA. This is sufficient to ensure the required distribution to payment office and contract administration offices.

Purpose Code Module (PCM) 

1. Establish a PIEE account with the appropriate role(s) for PCM Purpose Code Manager. This can be done centrally or can be distributed.
2. Ensure that the DoDAACs that are involved with issuing, administering, or paying the Other Transaction Agreement have the appropriate flags set in PCM.

RECOMMENDED:

System for Award Management Contract Opportunities 

1. While FAR Part 5 requiring use of SAM for posting opportunity notices does not apply to OTs, it is recommended as a best practice for AOs to include a Contract Opportunities posting as a means to reach the maximum number of vendors in addition to other market research methods used.
2. If a solicitation for a requirement, such as a broad agency announcement (BAA), could result in either an OT or FAR-based contract, then SAM Contract Opportunities should be used in addition to other solicitation mechanisms.

AVAILABLE:

Solicitation Portal

1. The Solicitation Portal is not required by policy. However, it does provide a centralized location for sharing solicitations with industry and receiving proposals using standard data.