Other Transaction Authority for Prototypes OTA4P...Other Transaction Authority for Prototypes OTA4P...
Transcript of Other Transaction Authority for Prototypes OTA4P...Other Transaction Authority for Prototypes OTA4P...
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
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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??