The hope is that, by working outside the Federal Acquisition Regulation and DFARS, the DOD may acquire cutting-edge technologies at the speed needed to maintain technological superiority. Congress and the DOD leadership encourage contracting offices to take advantage of this nontraditional (i.e., nonprocurement) contracting method. While this Other Transactions Authority is not new, it has received significant attention in recent years. Through the 2016 National Defense Authorization Act, Congress granted the DOD permanent, agency-wide authority to enter into Other Transactions for prototype projects, codified at 10 U.S.C. Context for Sole Source Follow-On Production Contracts Ultimately, the courts and Congress may weigh in. In light of the ongoing rulemaking, the DOD may take the opportunity to provide clarity on this point and amend the proposed rule to confirm the extent to which it agrees with the GAO's interpretation. ![]() Industry should carefully review the proposed rule and consider commenting before the Nov. The GAO's decision in DRS Sustainment, however, seems to hold that the DOD may bypass those statutory requirements by invoking an independent exception to the Competition in Contracting Act. The proposed rule contains interesting insight as to the DOD's view of follow-on production contracts and it emphasizes the importance of the DOD satisfying several specific requirements before transitioning from a prototype Other Transaction to the sole source award of a follow-on production contract. Government Accountability Office's decision in DRS Sustainment Systems Inc. Department of Defense's use of sole source follow-on production contracts arising from prototype Other Transactions 1 - (1) a proposed Defense Federal Acquisition Regulation Supplement rule 2 and (2) the U.S. Two recent developments are significant for the U.S.
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