# DoW Expands Military Construction OTA Authority

The FY2026 National Defense Authorization Act established 10 U.S.C. § 2808a, expanding the Department of War’s authority to use Other Transaction Authority (OTA) for military facility construction and repair beyond the project and aggregate funding limits of the prior pilot program. The authority can cover work across the project lifecycle, from planning, design, and engineering through prototyping, piloting, and execution. For construction contractors, it broadens potential routes to compete for military facility work, while congressional notification, funding and fiscal-law constraints, variable implementation, and agreement-specific terms remain important considerations. A competitively awarded transaction may support a noncompetitive follow-on award when it delivers a complete and usable facility or improvement.

- Military construction firms should assess OTA procurements as an additional acquisition route for facility construction and repair, including earlier lifecycle phases as well as project execution.
- Companies pursuing these agreements should account for congressional notification and funding and fiscal-law constraints, and evaluate the risks and terms of each agreement.
- Successful performance under a competitively awarded transaction may create a path to a noncompetitive follow-on award, but only when the work produces a complete and usable facility or improvement.

**Jurisdictions:** federal
**Industries:** Defense & Military, Construction & Infrastructure
**Topics:** Contracting Vehicles, Policy
**Published:** October 20, 2026

### Government Entities
- Department of War (DoW)
- Congress

### Sources
- [Expanded OTA Authority Opens New Doors for Military Construction Contractors | The Rise of the OTA in Defense Contracting, Part 6 | PilieroMazza PLLC - JDSupra](https://www.jdsupra.com/legalnews/expanded-ota-authority-opens-new-doors-9791148) - JD Supra