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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle C—Provisions Relating to Other Transaction Authority

P. L. 117-81

Joint Explanatory Statement

(a) In General.--Section 2371 of title 10, United States Code, is amended--

(1) in subsection (e)--

(A) by striking paragraph (2);

(B) in paragraph (1), in the matter preceding subparagraph (A), by striking ``(1)''; and

(C) by redesignating subparagraphs (A) and (B) as paragraphs

(1) and (2), respectively; and

(2) by amending subsection (h) to read as follows:

``(h) Guidance.--The Secretary of Defense shall issue guidance to carry out this section.''.

(b) Conforming Amendment.--Section 2371b(b)(1) of title 10, United
States Code, is amended by striking ``Subsections (e)(1)(B) and
(e)(2)'' and inserting ``Subsection (e)(2)''.

The Senate amendment contained a provision (sec. 213) that would remove the requirement for regulatory implementation of Other Transaction Authority for research projects under section 2371 of title 10, United States Code, and replace it with the more flexible option of Department of Defense guidance.

The House bill contained no similar provision.

The agreement includes the Senate provision.

S. 2792--Senate Report117-39

Modification of other transaction authority for research projects (sec. 213)

The committee recommends a provision that would remove the requirement for regulatory implementation of Other Transaction (OT) Authority for research projects under section 2371 of title 10, United States Code, and replace it with the more flexible option of Department of Defense (DOD) guidance.

The committee notes that the existing regulatory requirement was established at a time when DOD was slow to issue any type of guidance to the workforce on the use of OTs. Since then, DOD has become much more proactive in its guidance. For example, the Office of the Director, Defense Pricing and Contracting, issued a comprehensive OT Guide in December 2018 that it is currently in the process of updating; the Defense Acquisition University has been providing training and education materials online about the proper use of OTs; and the DOD Grants and Agreements Regulations Working Group under the Office of the Undersecretary of Defense for Research and Engineering is developing a Research OT Guide to provide additional guidance on the unique aspects of OTs awarded under section 2371 of title 10, United States Code.