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ARTICLE · 19 DECEMBER 2018

DoD Issues New Other Transactions Guide With More Flexible Terms

On December 3, 2018, the Department of Defense (DoD) issued a revised Other Transactions (OT) Guide to replace the January 2017 Other Transactions Guide for Prototype Projects.

United StatesGovernment, Public Sector

On December 3, 2018, the Department of Defense (DoD) issued a revised Other Transactions (OT) Guide to replace the January 2017 Other Transactions Guide for Prototype Projects. The new OT Guide provides expanded guidance and case studies, and debunks "myths" about OTs. In addition, it includes changes in policy from the prior guide, many of which provide enhanced flexibility that could be beneficial to contractors. However, these changes are not explicitly identified as changes in policy, and contractors with OT experience should accordingly study the new OT Guide carefully to identify new policy.

By way of background, OTs are transactional instruments other than procurement contracts, grants and cooperative agreements. They are not subject to the Federal Acquisition Regulation (FAR), Cost Accounting Standards (CAS), the Truth in Negotiations Act (TINA) or many other regulations that can make federal contracting burdensome—both for contractors and the government. In

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