DoD Dusts Off Other Transactions (OT) Regulations

On September 4, 2024, the U.S. Department of Defense (DoD) issued a proposed rule to update its longstanding but little-known regulations for prototype other transactions (OTs), including new sections that authorize follow-on production OTs. The changes would bring the regulations up to date with the current text of DoD’s statutory authority for prototype OT and follow-on production agreements. 

Much has changed since DoD’s OT regulations were last amended in 2004. In those years, the regulations have largely sat on the shelf (at 32 C.F.R. Part 3), rarely used and collecting dust while Congress repeatedly updated and expanded DoD’s statutory authority. In practice, DoD Agreements Officers and others draw their authority and guidance directly from the statute itself (10 U.S.C. § 4022). We expect that to continue, and the proposed rule is unlikely to effect any substantive change to current law. Nevertheless, it provides a good reminder of where the requirements stand for DoD OTs in a few key respects.

Read the full blog post.