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In accordance with the provision of 10 U.S.C § 2371b, Section 815 of the 2016 National Defense Authorization Act, Public Law 114-92, which provides the Department of Defense (DoD) authority to enter into transactions other than contracts, grants or cooperative agreements, Government entitites may enter into an agreement that is directly relevant to enhancing the mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed by the DoD, or the improvement of platforms, systems, components, or materials in use by the armed forces.

The Other Transaction Agreement (OTA) is an alternative contract mechanism. OTA's offer greater flexibility in tailoring terms to a particular project and the needs of the participants, achieving the best approach to fulfilling the Government's technology needs, while allowing suppliers streamlined access.

The Ground Vehicle System (GVS) Other Transaction Agreement (OTA) W15QKN-14-9-1002 was awarded under the auspices of Section 845. During the performance of this OTA, changes to the OTA prototype requirements were implemented as a result of the FY2016 National Defense Authorization Act (NDAA), which eliminated Section 845 and created Section 815.

W15QKN-14-9-1002 was modified to change the authority from Section 845 to Section 815, which among other changes, revised the definition of a Nontraditional Defense Contractor. Another significant change to how the OTA currently operates is the ability to enter into follow-on production awards following successful performance of a prototype project, provided the OTA was competed.

OTA W15QKN-14-9-1002 was not considered as having been competed, therefore, follow-on production per the Section 815 guidance is not an available option under the FY14 awarded OTA at this time. Given this limitation and that the OTA was committing more than the estimated $100M per year ceiling, the Government determined there was a need to solicit for a new GVS OTA using competitive procedures. As a result of the competitive process, NAMC was awarded the new GVS OTA, W15QKN-17-9-1025. The new OTA allows for follow-on production in accordance with Section 815 and has a 5 year, $2B ceiling.

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