Dotted Line: Faster Military Construction Creates Opportunities, Risks for Contractors

By: Sebastian Obando

Government Contracting Partner Stephen Tobin was recently quoted in Construction Dive, discussing the federal government’s push to accelerate military construction projects. Stephen highlights the expanded use of Other Transaction Agreements (OTAs), the new opportunities they present for contractors, and the importance of understanding contractual risks and negotiating protective provisions under these alternative procurement methods.

The U.S. Army announced a military construction reform initiative in October aimed at delivering infrastructure up to 50% faster and at 30% lower cost. The initiative emphasizes design-build delivery and industrialized construction methods, such as modular construction, as alternatives to traditional project delivery

“The biggest change is a move toward faster, more flexible military construction procurement,” said Trent Cotney, Tampa, Florida-based partner at law firm Adams & Reese. “This represents a significant shift in how military construction projects may be awarded and completed.”

The 2026 National Defense Authorization Act expands the Department of Defense’s authority to use Other Transaction Agreements, or OTAs, for facility repairs or construction projects, said Stephen Tobin, a government contracts partner at Cohen Seglias, a Philadelphia-based law firm. Previously, OTA use in military construction only applied to a pilot program focused on new construction technologies, with restrictions on the number and total value of projects.

“This new authority is much broader, allowing MILCON OTAs for repair and construction projects for facilities, including the planning, design, engineering, prototyping, piloting and execution of such repair and construction projects,” Tobin told Construction Dive. “Additionally, [it] provides construction contractors the opportunity for a noncompetitive follow-on production contract or transaction.”