DoD is proposing revisions to its regulations on Other Transaction OT agreements for prototype projects to implement changes in statutory authority enacted by Congress since the last update in 2004. The Department is proposing changes in: the authority to provide for follow-on production OTs and contracts special circumstances for award of OTs to small businesses nontraditional defense contractors nonprofit research institutions and consortia approval requirements for large dollar OTs the authority to supply prototypes and production items to another contractor as Government furnished items and applying procurement ethics requirements to covered OT agreements.