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Congressional Record, Sept 13, 2018

The conferees support the use of Other Transaction Authority (OTA) pursuant to section 2371b of title 10, United States Code for prototypying projects to enhance the mission effectiveness of the Department of Defense. However, the conferees are concerned  with the lack of transparency surrounding the employment of OTA, particularly for follow- on production. Therefore, the conferees direct the Secretary of Defense to provide quarterly reports to the House and Senate Appropriations Committees not later than 30 days after the close of each fiscal quarter,
detailing the Department’s execution of funds for OTA prototype projects.  Such reports shall be submitted beginning with the first quarter of fiscal year 2-19 and shall include a classified annex, if necessary. The report shall list each active OTA agreement characterized by Service or agency, major command, contracting activity, appropriation, budget line item, minimum and maximum  award value, vendor, obligations and expenditures to date, product service code, and period of performance.  Other Transaction Authority agreements that include an option for follow-on production shall be
clearly annotated in the report and include a description of the scope of the follow-on production, including estimated cost, period of performance, deliverables, delivery dates,
and source of funding.

Further, the conferees direct the Comptroller
General to review the Department’s
use of OTA pursuant to section 2371b of title
10, United States Code to determine whether
the Department’s employment of this authority
conforms to applicable statutes and
Departmental guidelines, to include the
identification of any potential conflicts with
section 1301 of title 31, United States Code.
As part of this review, the Comptroller General
shall also report on the extent that
OTAs have been utilized since fiscal year 2016
and quantify OTA prototype agreements, including
those with options for follow-on production,
by Service or agency, appropriation,
and other characteristics, as appropriate.
The Comptroller General shall provide the
congressional defense committees the assessment
not later than 180 days after the enactment
of this Act.


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