USSF_10_U.S.C._2808a_Construction_OTs Industry Final.pdf

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Facility Design, Construction & Repair under

A comprehensive guide to leveraging new Other Transaction Authority via Commercial Solutions Openings (CSOs) for Civil Engineering and Contracting Squadrons.

10 U.S.C. § 2808a

Classroom Training Policy & Execution Guidance

Space Operational Contracting Brittany Harris

Distribution Statement A: Approved for Public Release

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Presenter Notes Presentation Notes Good morning. My name is Brittany Harris and I work at the Space Operational Contracting headquarters.

Today, we're going to dive into this brand new authority 10 United States Code 2808a. This new authority allows us to do other transactions for construction.

We're also going to talk the USSF commercial solutions opening for construction to award OTs using this new authority.

If you have questions please use the QR code to submit them or for our folks online you can submit them in Teams. We will consolidate the Q&A and post it to SAM.gov under this event.

Statutory Authority

Slide 2

What is the 10 U.S.C. § 2808a Authority?

10 U.S.C. § 2808a – Other Transactions for Repair and Construction Projects Codified in the Fiscal Year 2026 National Defense Authorization Act (NDAA), this authority allows the Secretary concerned to enter into transactions other than contracts, cooperative agreements, or grants to carry out repair and construction projects, specifically including the design, engineering, prototyping, and execution of these projects.

BROAD LIFECYCLE

Directly covers all stages: planning, design, engineering, prototyping, piloting, and execution of repair/construction.

FUNDING

Allows execution utilizing multiple funding lines (O&M, MILCON, and RDT&E) depending on project scope. 10 U.S.C. § 2853 MILCON oversight and Congressional notification thresholds still apply.

Follow-On Production Permits non-competitive follow-on production awards to the parties of the original OT if the initial project utilized competitive procedures and was successfully executed.

An Other Transaction (OT) is a legally binding instrument that is NOT subject to standard acquisition statutes and regulations.

What is an Other Transaction?

Presenter Notes Presentation Notes This is a brand new authority that is just beginning to be used across the Department of the Air Force.

Other transactions are not new, but OTs specifically for construction under this authority are new.

This authority can be used not just for construction, but for design, repair, engineering and prototyping.

And if you're not sure what an other transaction is, it's basically just a legally binding instrument. You don't call it a procurement contract because procurement contracts have to follow the FAR or the revolutionary far overhaul (RFO) and OTs do not have to follow those regulations. We consider OTs agreements, but they are legally binding.

This authority does cover all stages of this process, so the entire acquisition process and the execution of the project.

And then in terms of funding, fiscal law and congressional notifications will still apply, but this specific authority doesn't dictate a certain type of funding, so you're going to use the funding that's appropriate for your project.

This authority also offers follow on production which allows you to take a project that you started on a small scale and if it is successfully completed you can then non competitively award that same project to the same company on a much larger scale.

for example, if the Government needs to repair a roof on one building and that's a successful repair. The Government can award non-competitively to that same company to repair the roofs on all the buildings on base or all of the bases in Colorado or all of the buildings in Space Force. You can scale it all the way up to the Department of War.

We will make sure the company we awarded to can support that level of effort first.

Follow- on production can be in the form of an OT or a FAR/RFO based contract.

To use the follow-on right, the original OT has to be competitive.

Slide 3

ACQUISITION CHALLENGES • MISSION URGENCY

Why 10 U.S.C. § 2808a Exists

Traditional Bottlenecks Traditional MILCON and FAR-based procurement models impose heavy administrative overhead, rigid design-bid-build silos, and long award timelines. These slow down rapid operational requirements and creates a backlog of MILCON projects.

Linear procurement processes frequently lock in obsolete designs before build start.

The 2808a Solution Other Transaction Authority (OTA) for construction lets the government bypass procurement bureaucracy, co-author terms with builders, and align construction with rapid launch pacing.

Bypasses standard FAR Part 15 and 36 procurement delays.

Enables flexible commercial-speed execution models.

More flexible articles results in lower costs.

Provides more flexible funding options for construction projects.

Offers more innovative solutions bringing the designer, builder, and civil engineer together to collaborate.

Allows for scaling successful projects.

Presenter Notes Presentation Notes The point of 10 U.S.C. 2808a is to conduct business in a more efficient manner.

We want to streamline acquisition processes and make the government a more flexible partner to work with.

This authority is faster than source selections, reduces administrative burdens and compliance mandates, Allows for innovative solutions, allows for collaboration throughout the process, and offers the Government the ability to scale successful projects.

Instrument Definition

Slide 4

Understanding Other Transactions (OTs) & When to Use Them

Benefits of Using OTs Does It Make Sense to Use an OT?

OTs may not be appropriate for every acquisition. Consider if an alternative acquisition approach would be faster / more efficient than an OT under these conditions:

Speed & Schedule: Radical acceleration is required to meet warfighter needs.

Cost Efficiency & Risk Reduction: Aligns strictly with goals outlined in the OUSW memorandum.

Collaborative Design: When collaborative development of design, schedule, and milestones (PDB/ADB) is highly beneficial.

Follow-On Potential: Where taking advantage of follow-on non-competitive production is beneficial.

Straightforward Work: Repetitive and routine tasks already optimized under existing MACC/SABER contract channels.

Small Projects: Very small construction projects where the administrative setup overhead of a customized OT outweighs potential speed benefits.

Note: OTs articles are customized in the agreement

Innovative Techniques: Project leverages advanced commercial methods (e.g. 3D-printing, modular development, off-site build).

Speed: Existing contract vehicles may be faster to execute projects than to solicit, evaluate, negotiate, and award an OT

Presenter Notes Presentation Notes Each individual project will be analyzed to determine if an OT is appropriate for that project and this is how the USSF will do that analysis.

We will use OTs when speed, flexibility, cost savings or risk reduction are actually achievable.

We know an OT might not be faster for every project.

If you look on the right hand side for projects that are small, straightforward or repetitive tasks that are already optimized under your SABER or MACCs, we may do a task order.

Regulatory Framework

Slide 5

Legal Parameters: Statutes That Do and Do Not Apply to OTs

STILL APPLIES (Mandatory) Laws unrelated to standard procurement and construction-specific protection statutes remain fully active:

DOES NOT APPLY

Any policy that applies solely to FAR-based procurement contracts, grants, or cooperative agreements does not apply. The following are generally understood to not apply to DoD OTs.

• Competition in Contracting Act (CICA) (10 U.S.C. §§ 3201- 3205)

• Truthful Cost and Pricing Data Act (10 U.S.C. §§ 3701- 3708 and 41 U.S.C. Chapter 35)

• Cost Accounting Standards (CAS)

• Contract Disputes Act (CDA) (41 U.S.C. Chapter 71)

• Davis-Bacon Act and Service Contract Act (wage rates)

• Miller Act (bonding)

• GAO bid protest procedures

• Cost plus a percentage of cost prohibition

• Buy American Act (41 U.S.C. Chapter 83)

• Bayh-Dole Act (35 U.S.C. §§ 202-204)

• Rights in Technical Data (10 U.S.C. §§3781-3786)

• FAR and agency-specific regulations (DFARS, DAFFARS)

• Department of Defense Grant and Agreement

Regulations (DODGARS)

• Commercial law (i.e., Uniformed Commercial Code)

Fiscal law Procurement Integrity Act (41 U.S.C. §§ 2101-2107) Programmatic requirements (DoDI 5000 series) Security Requirements (access to information / facilities /

CMMC)

Tucker Act (28 U.S.C. § 1491) Criminal law (Title 18, including false claims, false statements, etc.)

Ethics laws and regulations (cooling off period) Laws of general applicability and laws that would apply to any entity doing business in the United States (e.g., environmental laws, import/export control, criminal, civil rights, etc.)

Trade Secrets and Defend Trade Secrets Acts (18 U.S.C.

Chapter 90; 18 U.S.C. § 1836) Economic Espionage Act (18 U.S.C. § 1831-39) Freedom of Information Act (FOIA) (5 U.S.C. § 552)4 Privacy Act (5 U.S.C. § 552a)

Presenter Notes Presentation Notes These are the laws that do and do not apply to other transactions.

I got this from the secretary of the Air Force General Counsel for acquisition.

You still have to follow fiscal law.

We will still safeguard your proposal information and evaluation information throughout this process.

We will still sign non-disclosure agreements and conflict of interest statements before conducting evaluations.

We have to follow environmental laws.

We still have to follow security requirements - for access to the base or restricted areas, all of those mandates and DoDIs and DAFIs and all of those processes are still going to apply.

There's a lot of laws that are less applicable to construction, but we listed them there.

Now if you look on the right hand side of the chart, there are some very, very significant statutes that GENERALLY do not apply when awarding another transaction.

Notice construction wage rates, Bonds under the Miller Act, By American construction materials - none of those AUTOMATICALLY apply to OTs.

Keep in mind, the government may still require them or some version of them. If we do, it will be in the solicitation. If you have an issue with those things, I recommend reaching out to the CO and letting them know if there are mandates that will prevent you from submitting.

You will have the opportunity to redline through the terms and conditions, add your own, or negotiate them. Each project will have different requirements.

Continuing down the “does not apply” list - competition is not mandatory.

Now if you want to retain that follow on non competitive production right then then you have to have competition upfront in your original OT. But if it's a one time project we do not have to compete it.

Certified cost or pricing data is not required, but understand price analysis is always going to be required. We may need to ask for data to support your price, so we can make sure it's reasonable.

Cost Accounting standards aren't required, The FAR/RFO, DFARS, and all other supplemental regulations that apply to procurement contracts, DO NOT APPLY to OTs.

That doesn't mean we can't add them into the requirement. We may include bonds or liquidated damages. It will be project specific.

We will make sure if we add in things that don't typically apply but could affect price that we let you know that early in the process.

Slide 6

ACQUISITION EQUITY • SMALL BUSINESS SAFEGUARDS

Leveling the Playing Field

Protecting Small Business Equity Do complex OTA processes favor only large prime contractors?

• No, OTs are flexible and do not require companies to comply with several laws and acquisition regulations, therefore they are easier for small businesses to comply without creating cumbersome company processes.

Review the Area of Interest for specific evaluation criteria for that project.

Ways Small Businesses can leverage OTs

Form mentor-protégé partnerships to leverage prime capabilities.

Offer specialized, turn-key services (feasibility studies, site surveys).

Low cost to entry with short white paper and pitch submittals prior to full proposal development.

Review the AOI to determine past performance or experience requirements – could be open to private sector, commercial, and municipal experience.

Milestone based payments protect small business liquidity throughout performance.

Bonding can be aligned with project phases.

Successful completion of a project can lead to non-competitive future work.

Presenter Notes Presentation Notes We received a question from one of you asking if OTs favor large prime contractors over small businesses.

OTs were originally created to attract small businesses or non-traditional defense contractors - companies that don't want to work with the government due to cumbersome processes, complicated terms and conditions, and added administrative burden that is found in FAR based contracts.

Small businesses can more easily comply with OTs.

There is a lower cost to entry because the initial submittal is just a 5 page white paper - we will get to this process later.

You can review the solicitation to see if you can meet the requirements and if you can't, you can partner with another company that can. Mentor-protégé and teaming arrangements are typically acceptable.

We can allow bonding based on project phases that are aligned with milestones.

We do not get SB credit for OTs awarded to SBs. I have seen some statutory language that mandates reporting of these actions, so this may change in the future.

Solicitation Architecture

Slide 7

USSF Construction Commercial Solutions Opening (CSO)

The USSF Construction CSO is structured specifically to enable 10 U.S.C. § 2808a. A CSO is a long-duration solicitation under which specific, targeted requirements are posted over time as Areas of Interest (AOIs). It actively solicits commercial constructability solutions from industry partners rather than dictating rigid requirements.

FIXED PRICE MANDATE

All agreements awarded must be structured as Fixed-Price Other Transactions only. Cost-reimbursable OTs are strictly prohibited.

INCENTIVES ALLOWED

While cost-plus is prohibited, Fixed-Price Incentive (FPIF) or Fixed-Price Award Fee (FPAF) structures are fully permissible.

RULES DO NOT APPLY

Standard regulatory CSO rules at DFARS 212.70 and 10 U.S.C.

§ 3458 do not apply to this customized 2808a CSO structure.

Presenter Notes Presentation Notes In the USSF if we choose to pursue an OT, we have a commercial solutions opening we can use to solicit competitively.

any agreements officer in the space force can use this CSO.

Other agencies have expressed interest in copying it and using it for their organizations as well.

It is only for construction projects, in accordance with that 10 USC 2808a Authority.

So we can only award an OT when we use it.

A commercial solutions opening is basically an overarching solicitation and it's got all the basic process information in it.

When the Government has a need, a project comes up, then we will post an area of interest for an AOI underneath that CSO.

Now the area of interest has all the specific project information

Your OT award has to be fixed priced. We can do some incentive structures, such as FPIF / FPAF, but it's not required.

keep in mind CSOs are also authorized at 10 USC 3458, which was codified into DFARS 212.70. Those CSO procedures do not apply to OTs.

You may also see other forms of solicitations for OTs. Today we are going to go through the USSF Construction CSO solicitation process.

Acquisition Flow

Slide 8

The Commercial Solutions Opening (CSO) Process Flow

PHASE 0: LAUNCH PHASE 1: CONCEPT PHASE 2: EVALUATION PHASE 3: NEGOTIATE AGREEMENT AWARD PHASE

AOI Posting Focuses strictly on the operational challenge and desired outcome, not prescribing the technical design.

Phase 1: White Paper Submit up to 5-page white paper. CES evaluates based on relevance, high-level merit, and ROM fixed pricing.

Phase 2: Oral Pitch Submit up to 15 slide deck with constructability plans. Specific AOI evaluation criteria are formally assessed.

Phase 3: Proposal SOW is jointly developed between CES and industry.

Proposal is evaluated including pricing. Articles are agreed upon.

Award & Notice Notify Congress of award in 14 days. AO executes the final Fixed-Price OT award.

01 02 03 04 05

Submittals are only accepted in response to an AOI.

Presenter Notes Presentation Notes This is the process using the USSF Construction CSO to award an OT under the new authority.

keep in mind phase one, phase two and phase three are all flexible. So review the area of interest to see how many phases and what the submittal and evaluation criteria are for each phase.

AOI

We will post the base CSO that has all of the general information in it, but keep in mind you

CANNOT SUBMIT ANYTHING UNTIL AN AOI IS POSTED.

The area of interest will be posted and ask for solutions in very broad terms. The government will NOT dictate how you accomplish the project.

YOU WILL NOT SEE A SOW or PWS attached to the AOI.

We state in broad terms what we need and what our desired outcome is and we ask you for those solutions and for the details on how you will accomplish the work.

WHITE PAPER

The first phase asks you to submit a white paper - you have up to 5 pages to explain the construction method to complete the project, the schedule and an estimated price.

The Government will conduct a relevance check first and if your submittal is deemed irrelevant, we will stop there and you will be notified that you are no longer in the competition.

If your submittal is deemed relevant, then the government will evaluate for feasibility and capability.

There may also be experience requirements as well.

If you are not selected to move forward you will receive a notification that you are no longer in the competition.

PITCHES

If you are selected to move forward, you will be asked to submit a pitch.

The pitch is an up to 15 slide deck that provides technical details on the construction method, schedule details, and any information required by the evaluation criteria in the AOI.

The government will evaluate the effectiveness of your solution, the viability of the schedule, and how well you meet additional evaluation criteria requirements.

The beauty of pitches is that this is a much more collaborative process than it is in your FAR / RFO based contracts and the government can sit across the table with every company that is pitching them and ask them questions. Deep dive into things. This can help the government decide which company moves onto the next phase.

PROPOSALS

If you are selected to move forward, you will receive a request for proposal.

You may be asked to submit a full technical and price proposal.

You will jointly develop the Statement of Work, schedule, and milestones which will be attached to the OT.

Once this SOW is developed, you will provide a price and we will evaluate the price. Your price will be based on milestones, since these OTs are fixed price. These milestones need to be defined, so you know exactly what you have to submit in order to get paid.

We will also review your proposal for any changes you requested to the terms and conditions. Those will be negotiated and agreed upon in order to move forward with an award.

We are required to notify congress of every OT award using this authority, then we have to wait 14 days before we can award the OT.

There are also statutory mandates on reporting so the government will be required to keep track of money saved and lessons learned.

Solicitation Architecture

Slide 9

USSF Construction CSO Evaluation Criteria Menu

Constructability & Delivery •Expediting design and delivery using industrialized construction methods, advanced manufacturing, modularization, or novel building techniques.

Schedule & Execution Risk •Realism of the proposed timeline for pre-construction, mobilization, execution, and project closeout, including schedule risk mitigation.

Project Management & Stakeholder Coordination

• The capability of the Company to act as the primary integrator. This includes experience and proposed workflows for coordinating with local municipal utilities, managing specialized subcontractors, scheduling third-party inspectors, and seamlessly collaborating with Base (CE) and Security Forces.

Site Logistics & Disruption Mitigation •Means and methods, staging footprint, traffic control, and operational workflows designed to minimize disruptions to ongoing base operations.

Financial Risk & Bonding •Evaluation of the company's financial health, cash flow stability, and capacity to provide commercial payment and performance[SA1.1] bonds, irrevocable letter of credit, or tri-partite escrow account.

Site Safety & Incident Prevention •Adherence to commercial OSHA standards, strength of the site-specific safety plan, and historical safety metrics (e.g., Experience Modification Rate).

Differing Site Conditions •The proposed risk-sharing model and rapid mitigation strategy for managing unknown subsurface, utility, or hidden structural anomalies.

Environmental Considerations •Mitigation of environmental impact, stormwater pollution prevention (SWPPP), hazardous materials handling, and compliance with local environmental regulations.

Quality & Inspection Criteria •The proposed quality management plan, methods for independent third-party testing, milestone inspections, and procedures for final commissioning and acceptance.

Energy Efficiency & Lifecycle Cost •Incorporation of high-efficiency systems

(e.g., HVAC, building envelope) and durable materials that reduce utility consumption, maintenance requirements, and total cost of ownership.

Commercial Warranties •The breadth, duration, and robustness of standard and extended commercial warranties covering both materials and workmanship. OEM warranties to the Government upon final acceptance.

Cybersecurity •Security protocols for Facility-

Related Control Systems (FRCS), smart building infrastructure, and the safeguarding of digital architectural/engineering data.

Intellectual Property & Data Rights

•The proposed allocation of data rights, digital twins, or design licenses allowing the Government to operate, maintain, and potentially replicate the innovative construction.

Adaptability & Scalability •The degree to which the innovative construction solution can be rapidly scaled or adapted to a variety of geographical locations and environments.

Safety & Infrastructure Standards •Ensuring permanent infrastructure complies with commercial industry building codes (e.g., IBC, NEC) and site-specific hazard mitigation.

DoD Engineering Compliance •Adherence to applicable Unified

Facilities Criteria (UFC) and

AT/FP

Access & Security •Strict adherence to Base access, badging, and security protocols.

Other •Any other evaluation criteria determined necessary.

Presenter Notes Presentation Notes We received several questions about how we will evaluate these projects to award an OT.

Here is the list of evaluation criteria the government can choose from when using the USSF Construction CSO. You can read through them later, as we will be providing this slide deck electronically.

There is one that says "anything else the government wants to include".

The evaluation criteria will be project specific and will be based on the highest risk areas of each project.

Slide 10

MODERN DELIVERY MODELS • PROGRESSIVE DESIGN-BUILD

Progressive Design-Build (PDB)

Agile Design Integration Select awardee based on qualifications. Design and Construction are in a single contract or Other Transaction.

Design is negotiated prior to award, construction is negotiated after the design.

PDB brings the design team, cost estimators, and constructors to the table on day one. This permits collaborative development of layout, schedules, and costs concurrently.

Codified at 10 U.S.C. § 3241 Section 2809 of FY26 National Defense Authorization Act expands usage

Replaces rigid, linear "Design-Bid-Build" procurement handoffs.

A Discussion Priority By operating outside of FAR Part 36 constraints:

Allows collaborative development of design.

PDB Design can begin prior to receiving construction funding. ADB is similar process that allows project to start prior to receiving MILCON funding.

Aligns with commercial-speed constructability and agility by combining the design and construction into one OT / FAR based contract.

Presenter Notes Presentation Notes We received questions on Progressive Design Build. We refer to this as PDB.

PDB is considered a selection method - where the awardee is selected based on qualifications Award is made for both the design and the construction, but only the design is priced up front.

The price for the construction is negotiated after the design is complete.

If a reasonable price cannot be reached, the construction option will not be exercised and the design will be competed to achieve a reasonable price.

PDB is meant to be a very collaborative process It allows for the government to get projects started in design while they obtain funding for the construction.

ADB is similar but is used for MILCON projects

This can be used in conjunction with the CSO to award an OT or it can be used on a FAR / RFO based contract.

Slide 11

AGREEMENT STRUCTURE • CO-CREATING TERMS

Negotiating OT Agreement Articles

No Automatic FAR Protections In the absence of standard FAR clauses, we write tailored articles governing disputes, changes, inspections, and termination. Both parties must actively co-author these terms to ensure a balanced, commercial business relationship.

OT articles are flexible and will be tailored to specific project needs.

Timeline for Requirements We ensure transparent communication of requirements upfront, giving industry ample time to prepare:

OT agreement terms affecting price are provided in the AOI.

Phased evaluations saves time on submittals and evaluations.

Collaborative development in phase 3 ensures industry and government are on the same page prior to award.

Reduces cumbersome government mandates typically found in FAR based contracts resulting in a flexible OT.

Presenter Notes Presentation Notes Some of you asked if we are going to add FAR based clauses into the OTs.

There will be a standard set of terms and conditions - articles that are used.

Most of these are negotiable, unless they are part of a statute that applies to OTs.

Articles will be tailored to each project, so pay attention to this in the solicitation.

Based on the list of laws and regulations that do not automatically apply, we need to discuss some of these key areas to ensure the government receives what they need and that the company agrees with those articles.

If you make it to phase 3, the government will work collaboratively with your company to establish procedures for disputes, changes, inspections, and termination.

We will include non-standard requirements in the AOI if they affect price (things like liquidated damages, construction wage rates, and bonds).

Due to the down-select process, we will likely only request an RFP from one company - we don't want you to put in a bunch of work if we won't be able to award to you.

Since this is a collaborative process, the government may ask you questions along the way and you can ask questions as well.

Execution Management

Slide 12

Post-Award Execution Risks & Management Strategies

Oversight & Payment Risks Mitigation & Termination Strategies

Explicitly incorporate necessary protections into OT articles:

No CPARs: Performance reporting is not required for OTs.

Track performance via technical monitors.

Milestone Triggers: Fixed-price payments are due only upon verifiable completion of work that passes inspection. Poorly defined milestones trigger disputes or misaligned incentives.

Site inspection & acceptance procedures

Dispute resolution mechanisms (mediation/escalation)

Change management & differing site condition processes

Safety, quality, and schedule reporting requirements

PDB Off-Ramps: Government retains design if terminated

Presenter Notes Presentation Notes Due to the lack of regulation of OTs, there are some risks that need to be discussed and agreed upon prior to award.

OTs do not require performance reporting.

The government will verify work is complete prior to approving payment, but you are not required to get a monthly or annual report on your performance.

Because of this, Milestone payments need to be very clear, and explicitly state exactly what must be submitted, completed, and how you will show that work is done in order to be paid.

If you need to order materials or rent equipment to complete the project, make sure you add those costs into your fixed price milestones at the appropriate time.

Be sure to include details in your proposal or in your talks with the government about your assumptions regarding inspections.

Also, discuss dispute procedures and escalation strategy if they cannot be resolved at a lower level.

You might need to discuss other processes or include them in the SOW.

Also, if PDB is used, just know that if we can't reach a reasonable price, you won't receive the construction work.

Slide 13

ACQUISITION PORTFOLIO • CONTRACT VEHICLES

Acquisition Methods

Our Flexible Tool Mix The Space Force is deploying a tailored contracting portfolio based on the need

• OTs under 10 U.S.C. 2808a

• Commercial Solutions Openings (CSOs) – Solicitation method for OTs or FAR Based acquisitions

• FAR Part 12 can now be used for construction to streamline submittals and evaluations

• Progressive Design Build / Accelerated Design Build – selection method and collaborative project execution

Tools are selected relative to complexity, schedule, and innovation.

Preserving Traditional Options While we expand non-traditional pathways, we actively preserve standard tools:

Multiple Award Construction Contracts (MACCs) SABER task orders for routine base sustainment and small repairs IDIQs and GSA-OASIS+ for standard professional support FAR Part 15 still used for large source selections

Presenter Notes Presentation Notes

We received several questions asking about what acquisition methods we will use to award projects in the future.

We understand an OT may not always be appropriate.

We will use all of the tools in our toolbox and choose the most appropriate tool depending on the project.

We may use other innovative methods or we may use more traditional methods.

Some innovative methods include CSOs - those can be used to award OTs or FAR based contracts Now that construction is considered commercial under the revolutionary FAR overhaul, FAR Part 12 can now be used to streamline construction projects below $9M We can also add in PDB / ADB as a selection method on a FAR based contract, OT, or an existing multiple award IDIQ.

We will still use our multiple award construction contracts, SABER contracts, other IDIQs, and source selection procedures.

Slide 14

ACQUISITION PATHWAYS • PROCUREMENT COMPETITION

Sole Source vs. Competition & Consortia

CSOs vs. Consortia Is the SpEC Consortium the "easy button" for construction?

• The Space Enterprise Consortium (SpEC) remains highly effective for 10 U.S.C. 4022 which authorizes prototyping of innovative solutions. This is not appropriate for all construction projects.

• USSF prioritizes the USSF Construction CSO to facilitate follow-on non-competitive awards to scale successful projects.

• Construction consortia can be created and utilized. Our construction teams are exploring this currently.

Acquisition strategy will be based on individual project needs.

Sole Sourcing Strategy Sole Source awards are authorized by 10 U.S.C. 2808a. To retain the follow-on production right, we recommend using the USSF Construction CSO to compete government needs.

First-phase competitions feed follow-on production.

Permits non-competitive downstream scaling to reward performance.

Presenter Notes Presentation Notes We also received questions about sole source and consortia.

Someone asked if the Space Enterprise Constortium will be used as the "easy button" for construction.

The short answer is NO.

The SPEC uses a different OT authority for prototypes that mandates innovative solutions.

Innovation is NOT required under 10 USC 2808a, so it's more flexible.

So USSF intends to use the USSF Construction CSO to maximize competition.

We are also looking into using consortia for construction projects.

We could also do a sole source, because competition is not mandatory under the new authority.

If we want to maintain our right to scale successful projects, the original OT has to be competitive.

Slide 15

PARTNER SELECTION • TECHNICAL CAPABILITY

Successful Partners & Tech Needs

Key Attributes of Success Successful construction partners demonstrate collaborative design integration, transparent cost modeling, supply chain agility to secure long-lead items, and responsive schedule management.

Demonstrate resources, approaches, and willingness to share risk up-front.

Innovative Approaches of Interest We are highly interested in advanced commercial build methods:

Prefabricated, modular, and containerized support facilities.

Sustainable, low-footprint, and energy-resilient construction.

AI-driven automated airfield pavement diagnostics and inspection.

Industrialized Construction that leverages manufacturing for major components and sub-assemblies that are standardized and highly repeatable.

Engineered Tensile Facilities

Presenter Notes Presentation Notes Someone asked what they need to do to be successful and what kinds of innovative construction methods we are interested in.

I thought it was a great question.

We want you to collaborate with us, be transparent about your costs, ensure you secure long lead items early, and ensure the schedule is appropriately managed.

I've listed here some innovative approaches the government is interested in, but these will be project specific, so look for these in the AOI.

Strategic Intent

Slide 16

Key Takeaways

Different Mindset for OTs

• Government is not dictating solutions up front

• Broad is better

• Competition not required, unless follow-on necessary

Other Transactions and Risk

• FAR based protections are missing so OTs are riskier

• Define processes and write into the agreement

Finding Opportunities

• Review the USSF Construction CSO and any Area of Interest posted against it (no unsolicited proposals)

• Check SAM

• Let us know where else we should post

Collaboration is Key

• Joint development of Statement of Work, milestones, and schedule

• Fair and Reasonable Price

• Negotiating articles

Key Differences - FAR and OT

• Applicable Laws

• Applicable Regulations

• Performance Oversight and Reporting

When OTs Would Be Used

• Accelerate delivery schedule

• Collaborate with Industry

• Find innovative solutions / new approaches

• Need for Follow-On production

Presenter Notes Presentation Notes These are going to be your key takeaways.

Understand that OTS are going to require a different mindset. We aren't going to tell you how to do the work, we are going to ask you for solutions. So if you see an AOI that is really broad, that's on purpose.

To find opportunities review SAM.gov or let us know other locations we should post these requirements where you look for work.

We may direct award or we may use the USSF Construction CSO to compete OTs.

Some major differences that we talked about between the FAR and OTs are that several laws and regulations don't apply to OTs that you're used to seeing in FAR based contracts.

OTs are meant to be more flexible.

So OT's inherently have more risk. The Government might want to incorporate FAR protections or ask for things you aren’t used to. Most of this is negotiable.

That's why collaboration is KEY. You will jointly develop the entire agreement with the government – statement of work, schedule, milestone payments, prices, and articles.

OTs will not be used for EVERY project. The government likely will use OTs when we are able to obtain the benefits of speed, collaboration, innovation or replicating a project at scale.

Finding Opportunities:

Register in SAM.gov to receive immediate Construction CSO Area of Interest (AOI) notifications. Form design-build teaming, mentor-protégé arrangements, and prepare modular capability briefs now.

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U.S. SPACE FORCE

Your Action Roadmap

REGISTER ON SAM.GOV

Tell us where you find business opportunities

Building the Future

We are committed to delivering space infrastructure at commercial speeds.

By joining our 10 U.S.C. § 2808a Construction CSO pipeline, you directly co-create future readiness with the U.S. Space Force.

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U.S. SPACE FORCE

Through Strong Partnership

PANEL DISCUSSIONS UP NEXT ONE ON ONES AT 1300

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U.S. SPACE FORCE