U.S. Army Prototype and Production Other Transaction Trends and Potential Fiscal Year 2023 National Defense Authorization Act Effects

Abstract

Amid an evolving defense landscape and the U.S. Army’s Army 2030 strategic directive, the Department of Defense (DOD) has accelerated its embrace of Other Transactions (OTs), with the Army at the forefront. Utilizing the System for Award Management (SAM) database, this study analyzes the Army’s prototype and production OT usage from Fiscal Year (FY) 2021 to FY2023, identifying key trends and major contractors. Notably, a gap has been observed in analyzing the Army’s OT engagements post-FY2020, which this study seeks to bridge. The FY2023 National Defense Authorization Act (NDAA) amendments to 10 U.S.C. §4022, an evolution of the previously designated 10 U.S.C. §2371b, is central to this investigation, which eliminates the previously mandated re-competition of prototype OTs as they transition to follow-on production OTs. This pivotal policy change stands to recalibrate the competitive dynamics surrounding prototype OTs, influencing the Army’s choice of partners and collaboration mechanisms. The analysis reveals a significant increase in production OTs, underscoring a strategic shift towards accelerating the fielding of innovations. A diversified vendor base is evident, reflecting an embrace of non-traditional partners. This study aligns OT trends with NDAA’s influence, highlighting a streamlined procurement strategy that anticipates agile technological advancements under Army 2030 objectives.