As of this fall, Progressive Design-Build is being procured through Other Transaction Agreements (OTAs). This is a new world for the AEC industry, as OTAs can now be used for facility design, construction and repairs.
DoD leadership has pushed for OTAs and other non-FAR approaches wherever feasible, and the FY26 NDAA widened what OTAs (and their cousin, the CSO) can be used for.
Initially, after the FY26 NDAA expanded the use of OTA for Progressive D-B, we kept wondering, if the agencies our clients work with would use the OT or continue with FAR-based acquisitions. In the last few weeks, the answer has become a resounding YES! In the last month, there have been about a dozen industry days or draft RFPs for Industry to provide feedback and comment prior to the final and at least seven projects in active pursuit/planned pursuit (i.e., they are on SAM in some fashion) for Progressive D-B and CMAR projects.
The OT model has the potential to move federal MILCON much closer to the private-sector PDB/CMAR model where agencies will select the right team by bring the builder and designer together from the start, collaboratively mature the design, continuously price it, establish a GMP, then proceed immediately into construction rather than completing a long government design/RFP process and conducting a conventional FAR source selection.
Next month Andana founder Carrie Ann is on a panel at SAME SBC in Charlotte: OTAs for Small Businesses: Opportunity or Distraction? Our panel includes OT experts from Government and Industry and we want to bring the best guidance to Small Businesses during the event.
If you’ve pursued an OTA, won one, lost one, decided to walk away, or worked with a Consortium, tell us about it in the comments or send a DM.
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