The Other Transaction Agreement (OTA) was also used recently by the Department of Defense (DoD) to award Advanced Technology International (ATI) “to serve as the consortium manager for the Defense Industrial Base Consortium (DIBC). This DIBC OTA will enable rapid research and allow access to commercial solutions for defense requirements and innovations from industry, academia, and non-traditional contractors.” As a result, we set out to learn more about the DIBC for the OODA Loop community. Details here.
About the Defense Industrial Base Consortium
“The Defense Industrial Base Consortium Other Transaction Agreement will not only help stimulate the growth of the defense industrial base, but it will also enable more rapid execution of Defense Production Act funding.”
Led by the efforts of the Consortium Manager, this OT Agreement will accelerate Department of Defense (DoD) access to technologies typically reserved for commercial development. The consortium managed Other Transaction Agreement (OTA) will enhance The Manufacturing, Capability Expansion, and Investment Prioritization Directorate’s (MCEIP) mission of addressing defense supply chain issues, developing the industrial workforce, sustaining critical production, commercializing Research and Development (R&D) efforts, and rapidly scaling emerging technologies to build a robust, resilient defense industrial base.
The following sectors are considered to be critical to the defense industrial base:
- Kinetic capabilities (i.e., hypersonics)
- Energy storage and batteries
- Castings and forgings
- Microelectronics
- Critical chemicals and minerals
- Small Unmanned Aerial Systems (sUAS)
- Rare Earth Elements (REEs)
- Critical materials
- Submarine industrial base
- Space industrial base
- Biomanufacturing
The specific sectors deemed critical within the DIB today may change and expand over the life of the Defense Industrial Base Consortium (DIBC).
DIBC Resources
The DIBC offers the following public facing resources:
What is an OTA?
An “Other Transaction Agreement” or “Other Transaction Authority” (OTA) is a streamlined vehicle that brings innovative research findings and state-of-the-art prototypes from industry to the Federal Government. An OTA relieves some of the contractual burdens typically placed on contractors working for federal clients, making it possible for non-traditional contractors – small and emerging companies – to participate in technology development. The Other Transaction (OT) consortium model is an “enterprise partnership” between the government and technology providers in a specific domain. The OT consortium model relieves some of the contractual burdens typically placed on contractors working for federal clients.
Navigating the Defense Market:
Starting around 2015, the Department of Defense (DoD) began to substantially emphasize and expand its outreach to “nontraditional” companies – that is, companies who don’t normally do business with DoD. From new “innovation offices” such as the Defense Innovation Unit (DIU) to initiatives within traditional military labs and program offices (such as the Army’s xTech Search) and beyond, the Pentagon has made it a point to attract and engage companies with limited to no experience winning and performing government contracts. While some of these efforts have made it easier to get a foot in the door, including lower barriers to obtaining relatively small amounts of funding, the bulk of the Defense market remains elusive to new entrants. This guide is a living resource to help further lower barriers, enabling companies to focus their efforts on delivering new capabilities, while minimizing time wasted on discovering basic info, determining which offices to engage, and establishing realistic expectations.
DoD to Accelerate Investments in Defense Industrial Base With New Other Transaction Agreement Vehicle
The Department of Defense today announced the award of an Other Transaction Agreement (OTA) to Advanced Technology International (ATI) to serve as the consortium manager for the Defense Industrial Base Consortium (DIBC). This DIBC OTA will enable rapid research and allow access to commercial solutions for defense requirements and innovations from industry, academia, and non-traditional contractors.
“The Defense Industrial Base Consortium Other Transaction Agreement will not only help stimulate the growth of the defense industrial base, but it will also enable more rapid execution of Defense Production Act funding,” said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. “Additionally, this helps us execute the National Defense Industrial Strategy, address defense supply chain pain points, develop the industrial workforce, sustain critical production, and allow for complementary investments from other federal agencies to build a robust, resilient, and modernized defense industrial ecosystem.”
About Advanced Technology International (ATI)
ATI, a non-profit research institution selected through a competitive process, will serve as the consortium manager. The consortium will execute prototypes under the authority of 10 U.S.C. § 4022, research projects under 10 U.S.C. 4021, and production OTs under 10 U.S.C. § 4022(f). The OTA will have a ten-year period of performance, no funding ceiling, be overseen by the Office of the Under Secretary of Defense for Acquisition and Sustainment, and be administered by the Washington Headquarters Services Acquisition Directorate.
About the Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD (IBP)
The OASD(IBP) works with domestic and international partners to forge and sustain a robust, secure, and resilient industrial base enabling the Warfighter, now and in the future.
Additional OODA Loop Resources
The Future of the U.S. Defense Industrial Base: Challenges and Opportunities: The Congressional Research Service (CRS) is best in class research and analysis, judged against and public or private sector standards. In a recent report, the CRS broke down the vital questions U.S. policymakers need to be asking vis a vis the future of the U.S. Defense Industrial Base – questions which apply to all organizations strategic sensemaking as the U.S. Defense Industrial Base undergoes a transformation that overlaps with many vital industry sectors.
The Inaugural U.S. National Defense Industrial Strategy: The first-ever National Defense Industrial Strategy (NDIS) was released last week by The United States Department of Defense (DoD). THE NDIS “offers a strategic vision to coordinate and prioritize actions to build a modernized defense industrial ecosystem.” Details here.
The Current Debate on ‘Forging the Defense Industrial Base for the Digital Age’: Overall, the war in Ukraine has acted as an accelerant in a clash between a wide range of points of view in the debate surrounding the future of war and the future of the defense industrial base. A sampling of various voices on the issues is captured here which have been curated from an archive of sources from Q422 (a timeframe which appears, in hindsight, to have been a crucial period in the debate) along with a vital hearing from just last week.
The Disintermediation and/or Self-cannibalization of the Defense Industrial Base: A strategic suggestion to organizations if they are experiencing disintermediation is to aggressively self-cannibalize, with ecosystems and platforms as the new value creation and capture architectures of a new business model (or – to start – a standalone, but scalable business unit). Exponential Organizations’ (ExOs), platforms, ecosystems, and sources of new value creation are based on the disintermediation (innovation that undermines established or incumbent structures) of a market, organization, or industry sector.
Designing, Quantifying, and Measuring Exponential Innovation: The Exponentials Framework is a proven framework for the design of a technology ecosystem built to sustain the exponential scale and speed of the current technological and scientific era. Exponentials are not futurist high-level concepts. They are not intellectual bugs, but the central organizing feature of the technological road ahead.
Technology Convergence and Market Disruption: Rapid advancements in technology are changing market dynamics and user expectations. See: Disruptive and Exponential Technologies.
The New Tech Trinity: Artificial Intelligence, BioTech, Quantum Tech: Will make monumental shifts in the world. This new Tech Trinity will redefine our economy, both threaten and fortify our national security, and revolutionize our intelligence community. None of us are ready for this. This convergence requires a deepened commitment to foresight and preparation and planning on a level that is not occurring anywhere. The New Tech Trinity.
The Revolution in Biology: This post provides an overview of key thrusts of the transformation underway in biology and offers seven topics business leaders should consider when updating business strategy to optimize opportunity because of these changes. For more see: The Executive’s Guide To The Revolution in Biology
Quantum Computing and Quantum Sensemaking: Quantum Computing, Quantum Security and Quantum Sensing insights to drive your decision-making process. Quantum Computing and Quantum Security
AI Discipline Interdependence: There are concerns about uncontrolled AI growth, with many experts calling for robust AI governance. Both positive and negative impacts of AI need assessment. See: Using AI for Competitive Advantage in Business.
