The U.S. government is pushing for increased use of other transaction agreements at the Department of War to obtain commercial capabilities, but a new MITRE report warned that existing regulations are restricting the Pentagon’s use of OTAs.
In a report published Tuesday, the organization called on DOW to utilize the rulemaking process and rescind a section of the Code of Federal Regulations, or CFR, that imposes limitations and creates protest risk.
Why Should the Pentagon Rescind 2 CFR Section 3?
MITRE specifically flagged 2 CFR Section 3, which authorizes DOW to award OTAs for prototyping projects related to weapons or weapon systems.
According to the nonprofit, the section does not reflect the range of activities permitted under existing statutory authorities for research and development and prototyping projects.
Section 3 also does not cover the potential applications of OTAs that DOW may pursue as it implements the Acquisition Transformation Strategy that War Secretary Pete Hegseth, a two-time Wash100 winner, issued in 2025 to accelerate the acquisition of commercial capabilities.
What Legislative Change Can Expand DOW’s OT Authority?
MITRE also urged Congress to enact legislation that would broaden OT authority beyond its current constraints tied to research and development and prototyping activities. Under the proposal, DOW would be authorized to competitively award OTAs for purely commercial transactions.
The report noted that other federal agencies, such as NASA, the Department of Commerce and the Federal Aviation Administration, are authorized to enter OT agreements without limitations or restrictions.
Making the legislative change will not discourage DOW from entering R&D and prototyping agreements that drive defense innovation, MITRE added.
