{"id":25,"date":"2026-07-22T02:52:02","date_gmt":"2026-07-22T02:52:02","guid":{"rendered":"https:\/\/fedlaws.org\/?p=25"},"modified":"2026-07-22T02:52:02","modified_gmt":"2026-07-22T02:52:02","slug":"10-usc-4022-dod-prototype-authority-eligibility-and-oversight","status":"publish","type":"post","link":"https:\/\/fedlaws.org\/?p=25","title":{"rendered":"10 USC 4022: DoD Prototype Authority, Eligibility, and Oversight"},"content":{"rendered":"<p>10 U.S.C. 4022 is the federal statute that lets the Department of Defense award Other Transaction (OT) agreements for prototype projects without following the Federal Acquisition Regulation. It gives designated DoD officials a flexible way to work with commercial firms, startups, universities, and nonprofits on projects tied to mission effectiveness or the development of platforms, systems, components, and materials for the armed forces, provided the project meets one of four eligibility conditions in the statute.<sup class=\"modern-footnotes-footnote \" data-mfn=\"1\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-1\">1<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-1\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"1\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:4022%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span><\/p>\n<h2>What the Authority Covers and Who Can Use It<\/h2>\n<p>The statute is limited to prototype projects directly relevant to improving DoD mission effectiveness or to developing platforms, systems, components, or materials for military use. It is not a general-purpose contracting tool.<\/p>\n<p>Only specific officials can enter into these agreements: the Director of DARPA, the Director of the Defense Innovation Unit, the Secretary of each military department (Army, Navy, Air Force, and Space Force), and other officials the Secretary of Defense designates. The DoD&#8217;s Other Transactions Guide sets dollar thresholds on top of that: a military department&#8217;s Senior Procurement Executive or an agency director can approve prototype OTs up to $500 million, with delegation down to $100 million for lower-level officials.<sup class=\"modern-footnotes-footnote \" data-mfn=\"2\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-2\">2<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-2\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"2\">Department of Defense. <a href=\"https:\/\/www.acq.osd.mil\/asda\/dpc\/cp\/policy\/docs\/guidebook\/DoD%20OT%20Guide_July%202023.pdf\" target=\"_blank\" rel=\"noopener\">Other Transactions Guide<\/a><\/span><\/p>\n<p>Follow-on production agreements expected to exceed $100 million carry a higher bar. A &#8220;covered official&#8221; (a service acquisition executive, the directors of DARPA, the Defense Innovation Unit, or the Missile Defense Agency, or the Under Secretaries for Acquisition and Sustainment or Research and Engineering) must determine in writing that the prototype&#8217;s eligibility conditions were met and that the OT authority is essential to critical national security objectives. Congressional defense committees must be notified at the same time.<sup class=\"modern-footnotes-footnote \" data-mfn=\"1\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-1\">1<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-1\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"1\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:4022%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span><\/p>\n<h2>The Four Eligibility Conditions<\/h2>\n<p>Before a prototype OT can be awarded, subsection (d) requires at least one of the following:<sup class=\"modern-footnotes-footnote \" data-mfn=\"1\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-1\">1<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-1\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"1\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:4022%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span><\/p>\n<ul>\n<li>A nontraditional defense contractor or nonprofit research institution participates to a significant extent in the project.<\/li>\n<li>All significant non-federal participants are small businesses or nontraditional defense contractors.<\/li>\n<li>At least one-third of the total project cost comes from non-federal sources.<\/li>\n<li>The senior procurement executive determines in writing that exceptional circumstances justify the OT because a traditional contract wouldn&#8217;t allow the necessary innovative business arrangements or wouldn&#8217;t expand the defense supply base.<\/li>\n<\/ul>\n<p>The cost-sharing option has a common pitfall. Only costs incurred after the agreement takes effect count toward the one-third threshold. A narrow exception allows costs incurred after negotiations began but before the deal closed, if the agreements officer determines they were incurred in anticipation of the transaction and were appropriate to ensure its success.<sup class=\"modern-footnotes-footnote \" data-mfn=\"1\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-1\">1<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-1\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"1\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:4022%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span><\/p>\n<p>&#8220;Nontraditional defense contractor&#8221; has a precise legal definition: an entity that is not currently performing, and has not performed during the year before the solicitation, any DoD contract or subcontract subject to full cost accounting standards coverage.<sup class=\"modern-footnotes-footnote \" data-mfn=\"3\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-3\">3<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-3\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"3\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:3014%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 US Code 3014 &#8211; Nontraditional Defense Contractor<\/a><\/span> In practice, that means firms whose government work has been under simplified contracts, commercial item procedures, or nothing at all. Established defense contractors with cost accounting standards obligations can still take part, but they need a nontraditional partner participating to a significant extent or must satisfy one of the other three conditions.<\/p>\n<h2>How These Agreements Differ From Traditional Contracts<\/h2>\n<p>The point of 10 U.S.C. 4022 is that it sidesteps the FAR. OT agreements are exempt from many procurement laws that govern traditional defense contracts, including the Competition in Contracting Act, the Truth in Negotiations Act, the Contract Disputes Act, the Bayh-Dole Act, the Anti-Kickback Act, and the Cost Accounting Standards.<sup class=\"modern-footnotes-footnote \" data-mfn=\"4\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-4\">4<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-4\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"4\">Congressional Research Service. <a href=\"https:\/\/www.congress.gov\/crs_external_products\/IF\/HTML\/IF12856.html\" target=\"_blank\" rel=\"noopener\">Defense Primer: Other Transactions<\/a><\/span> The parties can negotiate terms that look more like commercial deals than government contracts.<\/p>\n<p>Payment structures reflect that freedom. Traditional government contracts lock parties into rigid formats, while OT agreements allow fixed-price, cost-reimbursement, milestone-based, or hybrid arrangements. Termination provisions are also negotiated, so the government&#8217;s ability to end an agreement early and the contractor&#8217;s right to compensation depend on the specific agreement rather than standard FAR clauses.<\/p>\n<h3>Intellectual Property Rights<\/h3>\n<p>Intellectual property is where OT agreements create the most dramatic departure from traditional procurement. Under a standard FAR contract, the government typically receives broad license rights to any technology developed with federal funding, with statutes like Bayh-Dole layering on additional requirements. None of that applies here. IP and data rights are fully negotiable, much like a commercial deal between two private companies.<sup class=\"modern-footnotes-footnote \" data-mfn=\"2\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-2\">2<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-2\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"2\">Department of Defense. <a href=\"https:\/\/www.acq.osd.mil\/asda\/dpc\/cp\/policy\/docs\/guidebook\/DoD%20OT%20Guide_July%202023.pdf\" target=\"_blank\" rel=\"noopener\">Other Transactions Guide<\/a><\/span><\/p>\n<p>This is the main reason technology startups and commercial firms that would never sign a traditional defense contract are willing to work with the DoD under an OT. A company developing a dual-use AI system can negotiate to keep commercial ownership of its core technology while granting the government limited rights for defense purposes. The specifics come down to what the parties agree to, so contractors should scrutinize IP terms closely before signing.<\/p>\n<h2>Follow-On Production<\/h2>\n<p>Prototype OTs are not meant for mass production, but the statute provides a path from a successful prototype into production without restarting procurement. Under subsection (f), a prototype OT can provide for a follow-on production contract or transaction awarded to the same participants, bypassing competitive procedures, if two conditions are met: the original participants were selected through a competitive process, and they successfully completed the prototype.<sup class=\"modern-footnotes-footnote \" data-mfn=\"1\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-1\">1<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-1\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"1\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:4022%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span><\/p>\n<p>For consortium-run projects, the DoD can award follow-on production for individual subprojects that were successfully completed even if other subprojects in the same consortium are still ongoing. Production awards can be structured as new OT agreements, as traditional FAR-based contracts, or through other procedures the Secretary of Defense establishes.<\/p>\n<p>If follow-on production wasn&#8217;t contemplated in the original agreement, the DoD must use traditional procurement methods governed by DFARS competition requirements.<sup class=\"modern-footnotes-footnote \" data-mfn=\"5\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-5\">5<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-5\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"5\">Acquisition.gov. <a href=\"https:\/\/www.acquisition.gov\/node\/34678\/printable\/print\" target=\"_blank\" rel=\"noopener\">DFARS Part 206 &#8211; Competition Requirements<\/a><\/span> The subsection (d) eligibility conditions do not apply to follow-on production, which removes the nontraditional-participation and cost-sharing requirements at the production stage.<\/p>\n<h2>Oversight Built Into the Statute<\/h2>\n<p>OT flexibility does not mean no scrutiny. The statute builds in several oversight mechanisms, though they look different from what applies to traditional contracts.<\/p>\n<h3>Comptroller General Audit Access<\/h3>\n<p>Every prototype OT with total payments exceeding $5 million must include a clause allowing the Comptroller General to examine the records of any party to the agreement.<sup class=\"modern-footnotes-footnote \" data-mfn=\"1\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-1\">1<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-1\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"1\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:4022%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span> This is the primary external audit tool. Where traditional FAR contracts see routine Defense Contract Audit Agency review, OT agreements rely on this statutory GAO access instead.<\/p>\n<p>The audit right has limits. For entities whose only prior government agreements were OTs or cooperative agreements, the Comptroller General can only examine the same types of records that were accessible under those earlier agreements. The head of the contracting activity can waive the audit requirement entirely if doing so serves the public interest, provided Congress and the Comptroller General are notified before signing. The audit window closes three years after the government&#8217;s final payment.<sup class=\"modern-footnotes-footnote \" data-mfn=\"1\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-1\">1<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-1\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"1\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:10%20section:4022%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span><\/p>\n<h3>Congressional Reporting<\/h3>\n<p>The DoD must provide Congress with an annual report on its use of OT authority for prototype projects during the preceding fiscal year.<sup class=\"modern-footnotes-footnote \" data-mfn=\"6\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-6\">6<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-6\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"6\">govinfo.gov. <a href=\"https:\/\/www.govinfo.gov\/link\/uscode\/10\/4022\" target=\"_blank\" rel=\"noopener\">10 USC 4022 &#8211; Authority of the Department of Defense to Carry Out Certain Prototype Projects<\/a><\/span> Individual transactions carry their own notice rules, including advance notice to the congressional defense committees for higher-dollar agreements and notice at the time of exercise for follow-on production over $100 million.<\/p>\n<h3>Limited Bid Protests<\/h3>\n<p>Companies that lose an OT award have a much narrower path to challenge the decision than under traditional procurement. The GAO generally does not review protests of OT awards because they are not procurement contracts.<sup class=\"modern-footnotes-footnote \" data-mfn=\"7\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-7\">7<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-7\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"7\">eCFR. <a href=\"https:\/\/www.ecfr.gov\/current\/title-4\/section-21.5\" target=\"_blank\" rel=\"noopener\">4 CFR 21.5<\/a><\/span> The GAO will review a protest alleging that an agency is improperly using an OT to acquire goods or services that should go through a standard contract. Federal courts retain jurisdiction over cases involving fraud, constitutional violations, or other claims outside the procurement protest framework.<\/p>\n<h2>Consortia: The Practical Entry Point<\/h2>\n<p>Most contractors do not deal with the DoD directly when pursuing OT agreements. The DoD often works through defense consortia, organized groups of companies, academic institutions, and research organizations managed by a Consortium Management Firm. The DoD awards a base OT agreement to the consortium manager, who then manages individual project awards to consortium members under that umbrella.<\/p>\n<p>The consortium manager handles much of what a contracting office would otherwise do: developing solicitations, communicating opportunities to members, facilitating proposals and demonstrations, running evaluations, negotiating project-level agreements, and tracking deliverables and payments. The government sponsor approves selections, but the consortium manager runs the administrative lifecycle.<\/p>\n<p>Dozens of consortia operate across different defense technology areas, including the Countering Weapons of Mass Destruction Consortium, the Defense Electronics Consortium, and the Defense Industrial Base Consortium. Membership fees range from nothing to $50,000 depending on the consortium and the member&#8217;s revenue. For companies trying to enter the defense market through OTs, joining a relevant consortium is typically the first practical step.<\/p>\n<h2>When Things Go Wrong<\/h2>\n<p>The Procurement Integrity Act, which restricts the exchange of source selection and bid information, applies to prototype OTs even though most other procurement statutes do not.<sup class=\"modern-footnotes-footnote \" data-mfn=\"2\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-2\">2<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-2\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"2\">Department of Defense. <a href=\"https:\/\/www.acq.osd.mil\/asda\/dpc\/cp\/policy\/docs\/guidebook\/DoD%20OT%20Guide_July%202023.pdf\" target=\"_blank\" rel=\"noopener\">Other Transactions Guide<\/a><\/span> Enforcement layers up from administrative action to civil litigation to criminal prosecution.<\/p>\n<h3>Administrative Actions<\/h3>\n<p>Noncompliance usually draws an administrative response first. The DoD can issue a cure notice requiring corrective action within a set period, and continued problems can lead to withholding payments, terminating the agreement for default, and requiring repayment of improperly spent funds. The most consequential administrative penalty is debarment, which blocks the contractor from all future government contracts and agreements for a specified period. The DoD Inspector General investigates suspected mismanagement and fraud, and its findings can trigger any of these actions.<\/p>\n<h3>Civil Enforcement<\/h3>\n<p>The False Claims Act is the government&#8217;s primary tool for recovering money lost to contractor fraud or misrepresentation. Anyone who knowingly submits a false claim faces treble damages plus a per-violation civil penalty currently ranging from $14,308 to $28,619, adjusted annually for inflation.<sup class=\"modern-footnotes-footnote \" data-mfn=\"8\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-8\">8<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-8\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"8\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=granuleid:USC-prelim-title31-section3729&#038;num=0&#038;edition=prelim\" target=\"_blank\" rel=\"noopener\">31 USC 3729 &#8211; False Claims<\/a><\/span><sup class=\"modern-footnotes-footnote \" data-mfn=\"9\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-9\">9<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-9\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"9\">eCFR. <a href=\"https:\/\/www.ecfr.gov\/current\/title-28\/chapter-I\/part-85\" target=\"_blank\" rel=\"noopener\">28 CFR Part 85 &#8211; Civil Monetary Penalties Inflation Adjustment<\/a><\/span> A contractor who self-reports within 30 days, fully cooperates, and discloses before any investigation begins may see damages reduced to double the government&#8217;s losses. Contractor employees who discover fraud can file suit on behalf of the government and share in any recovery.<sup class=\"modern-footnotes-footnote \" data-mfn=\"10\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-10\">10<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-10\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"10\">Department of Justice. <a href=\"https:\/\/www.justice.gov\/civil\/false-claims-act\" target=\"_blank\" rel=\"noopener\">The False Claims Act<\/a><\/span><\/p>\n<h3>Criminal Prosecution<\/h3>\n<p>Serious misconduct draws investigation by the DoD Inspector General, the FBI, and the Department of Justice. Common charges include procurement integrity violations, which carry up to five years in prison along with civil penalties of up to $50,000 per violation for individuals and up to $500,000 per violation for organizations, plus twice any compensation received;<sup class=\"modern-footnotes-footnote \" data-mfn=\"11\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-11\">11<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-11\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"11\">govinfo.gov. <a href=\"https:\/\/www.govinfo.gov\/link\/uscode\/41\/2104\" target=\"_blank\" rel=\"noopener\">41 USC 2105 &#8211; Penalties and Administrative Actions<\/a><\/span> bribery of a public official, which carries up to 15 years and a fine of up to three times the value of the bribe;<sup class=\"modern-footnotes-footnote \" data-mfn=\"12\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-12\">12<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-12\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"12\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:18%20section:201%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">18 US Code 201 &#8211; Bribery of Public Officials and Witnesses<\/a><\/span> and wire fraud, which carries up to 20 years, rising to 30 years and a $1 million fine when a financial institution is affected.<sup class=\"modern-footnotes-footnote \" data-mfn=\"13\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-13\">13<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-13\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"13\">Office of the Law Revision Counsel. <a href=\"https:\/\/uscode.house.gov\/view.xhtml?req=(title:18%20section:1343%20edition:prelim)\" target=\"_blank\" rel=\"noopener\">18 US Code 1343 &#8211; Fraud by Wire, Radio, or Television<\/a><\/span><\/p>\n<p>Cases involving classified or export-controlled technology can escalate further. Unauthorized transfer of defense articles regulated under the International Traffic in Arms Regulations can bring both criminal penalties and permanent exclusion from defense work.<sup class=\"modern-footnotes-footnote \" data-mfn=\"14\" data-mfn-post-scope=\"00000000000001670000000000000000_25\"><a href=\"javascript:void(0)\"  role=\"button\" aria-pressed=\"false\" aria-describedby=\"mfn-content-00000000000001670000000000000000_25-14\">14<\/a><\/sup><span id=\"mfn-content-00000000000001670000000000000000_25-14\" role=\"tooltip\" class=\"modern-footnotes-footnote__note\" tabindex=\"0\" data-mfn=\"14\">eCFR. <a href=\"https:\/\/www.ecfr.gov\/current\/title-22\/chapter-I\/subchapter-M\/part-120\" target=\"_blank\" rel=\"noopener\">22 CFR Part 120 &#8211; Purpose and Definitions<\/a><\/span> For companies, exposure can include lost future revenue, repayment of received funds, multimillion-dollar False Claims Act judgments, and debarment. For individuals, convictions bring prison time measured in years and the loss of security clearances that effectively ends a defense career.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how 10 USC 4022 governs DoD prototype Other Transaction agreements, from eligibility and how they differ from contracts to oversight and enforcement.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-25","post","type-post","status-publish","format-standard","hentry","category-business-trade-federal-regulation","article","has-excerpt","has-avatar","has-author","has-date","has-comment-count","has-category-meta","has-read-more","thumbnail-"],"_links":{"self":[{"href":"https:\/\/fedlaws.org\/index.php?rest_route=\/wp\/v2\/posts\/25","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fedlaws.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fedlaws.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fedlaws.org\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fedlaws.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25"}],"version-history":[{"count":0,"href":"https:\/\/fedlaws.org\/index.php?rest_route=\/wp\/v2\/posts\/25\/revisions"}],"wp:attachment":[{"href":"https:\/\/fedlaws.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fedlaws.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fedlaws.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}