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Other Transactions for Construction over $7.5M

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All,

A new policy is in the works to mandate that all construction projects, new and minor, over $7.5M and funded by MILCON, FSRM (O&M), and/or RDT&E appropriations must use Other Transaction Authority instead of traditional FAR based methods. It appears to be a push for the use of Progressive Design Build (PDB) on all projects over $7.5M but they are even mandating OTA on standard, 100% design projects. I'm not a fan of non-contracting leadership mandating an acquisition strategy based on a dollar threshold and not specific to the requirement, specifically as related to OTAs on a project with 100% design, but I'm stupid.

Any thoughts?

My thought is that you are not stupid.

The pending new policy is probably a reaction to the feeling that it takes too long (in their estimation) to award construction contracts under the FAR.

We are living through a time of high anxiety about military affairs. In my subscriptions I am reading a lot of concern that we are falling behind militarily. DOD (DOW) wants to cut the bureaucracy and speed things up. But lead times are long due (1) to the outdate competition in contracting statute ("full and open" competition is an absurd, costly and time consuming policy), outdated contractor selection and contract award procedures and (2) workforce knowledge and competence issues. Going to OTAs is going to stress the workforce, especially considering the fact that construction is a complex and highly litigious industry and process. You might be able to get on contract more quickly, but you are going to get lousy contracts and lots of litigation.

What we really need is: (1) repeal of CICA's "full and open" standard, which is stupid, (2) sensible rules about competition, and (3) better and more intensive and specialized workforce training. It would help if (1) construction contracting were to be considered an acquisition specialty and construction 1102s were given intensive and high quality training and (2) chiefs of military construction contracting offices and contracting officers were experts in the field. But try convincing clueless high-level policy makers and managers.

Innovation by the inexperienced and ignorant will only make things worse. When I was first assigned to procure construction services I received no instruction. I did not know how to read plans and interpret specifications. I bought books about construction practices, cost estimating, and project management, and a dictionary of construction terms, and went to the sites in order to give my reading practical experience. It took me a while to catch on, When I did I found construction contracting to be real fun, but I never became expert. It takes a while.

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