--- title: OTA & Rapid Prototyping — Matter + Energy Government description: "AI and technology rapid prototyping for federal and defense programs under OTA (10 U.S.C. § 4022): defined success criteria, working prototypes and evidence for the production decision." image: https://www.matternenergy.com/hubfs/matter-energy/og-default.jpg --- [![Matter + Energy home](https://www.matternenergy.com/hs-fs/hubfs/matter-energy/logo/me-logo-horizontal.png?width=273&height=32&name=me-logo-horizontal.png)](https://www.matternenergy.com/) - [Home ▾](https://www.matternenergy.com/) [Who we are](https://www.matternenergy.com/company) [Technology Ecosystem](https://www.matternenergy.com/technology-ecosystem) [Teaming & Partnerships](https://www.matternenergy.com/teaming) - Solutions ▾ [Overview](https://www.matternenergy.com/solutions) [Technology Value Management](https://www.matternenergy.com/it-financial-management) [AI Adoption & Productivity](https://www.matternenergy.com/solutions/ai-adoption-productivity) - Services ▾ [Our Approach](https://www.matternenergy.com/services) [Maturity Assessment](https://www.matternenergy.com/services/maturity-assessment) [Proof of Value](https://www.matternenergy.com/services/proof-of-value) [Integration & Data Architecture](https://www.matternenergy.com/services/integration-data-architecture) [Retained Operations](https://www.matternenergy.com/services/retained-operations) - Government ▾ [Federal Capabilities](https://www.matternenergy.com/government) [Commercial Solutions Openings (CSO)](https://www.matternenergy.com/government/commercial-solutions-offerings) [OTA & Rapid Prototyping](https://www.matternenergy.com/government/rapid-prototyping) [Solutioning as a Service™](https://www.matternenergy.com/solutioning-as-a-service) [Book a Lab Session](https://www.matternenergy.com/schedule-lab-sessions) - [Insights](https://www.matternenergy.com/insights) - [Events](https://www.matternenergy.com/events) [Schedule a Call](https://www.matternenergy.com/discovery) [![Matter + Energy home](https://www.matternenergy.com/hs-fs/hubfs/matter-energy/logo/me-logo-horizontal.png?width=205&height=24&name=me-logo-horizontal.png)](https://www.matternenergy.com/) Home ▾ [Home](https://www.matternenergy.com/) [Who we are](https://www.matternenergy.com/company) [Technology Ecosystem](https://www.matternenergy.com/technology-ecosystem) [Teaming & Partnerships](https://www.matternenergy.com/teaming) Solutions ▾ [Overview](https://www.matternenergy.com/solutions) [Technology Value Management](https://www.matternenergy.com/it-financial-management) [AI Adoption & Productivity](https://www.matternenergy.com/solutions/ai-adoption-productivity) Services ▾ [Our Approach](https://www.matternenergy.com/services) [Maturity Assessment](https://www.matternenergy.com/services/maturity-assessment) [Proof of Value](https://www.matternenergy.com/services/proof-of-value) [Integration & Data Architecture](https://www.matternenergy.com/services/integration-data-architecture) [Retained Operations](https://www.matternenergy.com/services/retained-operations) Government ▾ [Federal Capabilities](https://www.matternenergy.com/government) [Commercial Solutions Openings (CSO)](https://www.matternenergy.com/government/commercial-solutions-offerings) [OTA & Rapid Prototyping](https://www.matternenergy.com/government/rapid-prototyping) [Solutioning as a Service™](https://www.matternenergy.com/solutioning-as-a-service) [Book a Lab Session](https://www.matternenergy.com/schedule-lab-sessions) [Insights](https://www.matternenergy.com/insights) [Events](https://www.matternenergy.com/events) [Schedule a Call](https://www.matternenergy.com/discovery) [Home](https://www.matternenergy.com/) / [Government](https://www.matternenergy.com/government) / OTA & Rapid Prototyping OTA & Rapid Prototyping # Prove the capability before committing *to scale.* Matter + Energy helps federal organizations turn defined operational and technology challenges into working prototypes that can be evaluated against measurable mission requirements. Our approach emphasizes clear success criteria, practical implementation, early technical validation and evidence-based decisions. [Discuss a Prototyping Requirement](https://www.matternenergy.com/contact) [Explore a Teaming Opportunity](https://www.matternenergy.com/teaming) OTA Prototype Authority Defined Success criteria agreed before the prototype is built Evidence Measured results to inform the production decision 10 U.S.C. § 4022 OTA Prototype authority — DoD agencies 10 U.S.C. § 4021 Research and development OTA authority 10 U.S.C. § 4022(d) Participation conditions for prototype projects 10 U.S.C. § 4022(f) Follow-on production, when the statute's conditions are met Validate Before Scaling Build Working Prototypes Mission-Based Testing Clear Success Criteria Reduce Deployment Risk Negotiable Data Rights Path to Production Validate Before Scaling Build Working Prototypes Mission-Based Testing Clear Success Criteria Reduce Deployment Risk Negotiable Data Rights Path to Production Prototype With a Purpose ## A prototype that answers *the production question.* For eligible Department of Defense projects, Other Transaction authority under 10 U.S.C. § 4022 provides an acquisition approach for prototype projects directly relevant to defense mission effectiveness. OT agreements are not governed by the Federal Acquisition Regulation; terms are negotiated within the limits of the statute and DoD's Other Transactions Guide. Agencies can also solicit prototype OTs through a CSO-style process. FAR-based Commercial Solutions Opening contracts are a separate authority. [See how CSOs work →](https://www.matternenergy.com/government/commercial-solutions-offerings) The key distinction from a [traditional pilot](https://www.matternenergy.com/insights/ai-pilots-dont-scale) or proof of concept is what happens after it succeeds. A prototype that meets its agreed success criteria gives the agency the evidence to decide on production. Under 10 U.S.C. § 4022(f), a successfully completed prototype project may qualify for a follow-on production contract or transaction without further competition, when the statute's conditions are met. The government decides whether to pursue a follow-on award; successful prototyping does not guarantee production funding or an award to any participant. Instead of committing to a full program on the strength of a written specification, an agency can fund a working demonstration, evaluate it against real mission requirements, and decide on production with evidence in hand. **Lower risk and better-informed decisions, in a single statutory framework.** Prototypes under OTA authority are not limited to physical systems. Software platforms, AI and machine learning systems, data architectures, agentic automation and decision-support tools can all qualify, provided the project is directly relevant to enhancing mission effectiveness and can be evaluated against agreed success criteria. Statutory Definition "The term 'prototype project' includes a project that addresses a proof of concept, model, or process, including a business process; reverse engineering to address obsolescence; a pilot or novel application of commercial technologies for defense purposes; agile development activity; the creation, design, development, demonstration of technical or operational utility; or combinations of the foregoing." The definition is broad. It covers business processes, commercial technology pilots and agile development, not just hardware. Program offices that associate OTA only with defense materiel may be overlooking eligible prototyping approaches. 10 U.S.C. § 4022(e) · DoD Other Transactions Guide How It Works ## Our rapid prototyping approach. Each phase has defined entry criteria, deliverables and a clear decision gate before the next phase begins. Phase 01 ### Define the Mission Need Agreement Identify the problem, operational requirements, stakeholders, constraints and measurable success criteria. Matter + Energy responds with a solution approach and prototype plan. The agreement sets scope, timeline, data and IP rights, payment milestones and the criteria that define successful completion. Outputs Executed OTA prototype agreement Defined prototype success criteria IP ownership and data rights framework Payment milestones and any cost-sharing terms Phase 02 ### Build and Validate Active Performance Develop a working prototype or demonstration, connect the necessary data and systems, and evaluate performance against the agreed requirements. Development is iterative, with defined checkpoints for government review. The prototype is evaluated against the agreed success criteria, not a moving target. Outputs Working prototype in target environment Technical documentation and reference architecture Evaluation report against success criteria Risk and gap register for production transition Phase 03 ### Inform the Production Decision Production Decision Document performance, implementation considerations, risks and lessons learned. If the prototype meets the agreed criteria, the agency can move to production through the route the agreement and statute allow, including a follow-on production contract or transaction under 10 U.S.C. § 4022(f) where its conditions are met. Production covers full deployment, integration, training and managed services as required. Outputs Transition and implementation recommendations Documented risks, lessons learned and implementation considerations Supporting documentation for the agency's production decision OTA Considerations ## Flexible, *requirement-driven* execution. Program managers evaluating a new technology capability face a structural problem under traditional FAR procurement: they are required to specify what they want in exhaustive detail before they know whether the capability works in their environment. The statement of work precedes the proof. Requirements are locked before the technology is tested. The result can be a program that delivers what was specified rather than what the mission needed. OTA prototype authority inverts this. The agency defines a *problem*, not a solution. The contractor proposes an approach. The prototype either works or it doesn't — and the determination is made against operational reality, not a paper specification. If it works, the agency has the evidence to move to production. If it doesn't, the agency has spent a fraction of what a full-scale program would have cost to learn a critical fact. Other Transaction agreements offer flexibility in structuring project terms. Technical scope, funding, deliverables, data rights, intellectual property and other requirements are set in the agreement and by governing law. Matter + Energy aligns technical execution with the agency's mission requirements, operating environment and agreed measures of success. Authorizing Statute 10 U.S.C. § 4022 · Other Transaction Authority for Prototype Projects · Applies to DoD components · Other agencies use their own statutes, such as 42 U.S.C. § 7256 for the Department of Energy Not governed by the FAR OT agreements are not subject to the Federal Acquisition Regulation. Terms are negotiated directly, within the limits of the statute, fiscal law and DoD's Other Transactions Guide. Negotiable IP and data rights IP and data rights are negotiated in each agreement rather than set by FAR default clauses, and pre-existing commercial IP can be protected. Favors non-traditional and small business The participation conditions in § 4022(d) can be met when a nontraditional defense contractor participates to a significant extent, when all significant non-government participants are small businesses or nontraditional defense contractors, or through a one-third cost share. They were designed to open defense prototyping to commercial and smaller companies. Faster learning cycles A prototype tests a capability against real requirements early, so decisions rest on observed performance. In fast-moving areas such as AI and agentic systems, that matters. Risk is phased The government decides on production only after the prototype is evaluated. Scope, funding and success criteria are defined up front, so the cost of learning is limited to the prototype phase. Why Matter + Energy ## Specialized technology expertise. *Mission-focused prototypes.* A successful prototype requires more than an acquisition pathway. It requires the right technical expertise, a clearly defined mission need, and measurable evidence that the proposed solution can deliver value. Matter + Energy brings expertise in Technology Business Management (TBM), IT financial management, FinOps, data integration and AI adoption to help federal organizations develop and evaluate practical technology solutions. Federal Participation & Qualifications Based on its contracting history, Matter + Energy meets the definition of a nontraditional defense contractor under 10 U.S.C. § 3014; status is determined relative to the applicable DoD solicitation. This may support participation in qualifying Department of Defense prototype Other Transactions under 10 U.S.C. § 4022, depending on the project structure and participation requirements. Our small-business qualifications and technology partnerships provide additional avenues for collaboration with federal agencies and industry partners. IBM Business Partner · Listed by the TBM Council among its [Top TBM-as-a-Service Providers](https://www.tbmcouncil.org/framework/foundations/tbm-tools/) What is a nontraditional defense contractor? A "nontraditional defense contractor" is an entity that is not currently performing and has not performed, for a period of at least one year prior to the solicitation, any contract or subcontract for the Department of Defense that is subject to full coverage under the cost accounting standards prescribed pursuant to section 1502 of title 41 and the regulations implementing such section. 10 U.S.C. § 3014 01 Technology Cost Intelligence Connect technology spending to applications, services, organizational requirements and mission priorities through transparent cost models and financial analysis. 02 Data Integration & Solution Architecture Bring together financial, cloud, asset, configuration and operational data to develop testable solutions that fit the agency's existing environment. 03 AI Adoption & Intelligent Automation Identify opportunities to improve operational workflows, evaluate appropriate automation approaches, and build in performance measurement and human oversight. 04 Evidence-Based Prototyping Define success criteria, validate capabilities against representative requirements, and document the results needed to inform decisions about broader implementation. WOSB / EDWOSB SDB SWaM UEI KFTRUXU6KYA4 CAGE 9TFF7 SAM.gov Active CMMC Level 1 (Self-Assessment) Sample Use Cases ## Five prototype areas built on our core expertise. Each area is a defined operational need suited to prototype development: the capability can be validated against agency requirements and real data before a broader rollout is committed. 01 Financial Management ### IT Cost Transparency & Budget Defense A cost transparency model that maps technology spend to mission outcomes, program elements and appropriation categories, producing the defensible view of IT costs that CIOs and CFOs need for OMB reporting, oversight reviews and budget justification. Prototype: a working cost model for one program or directorate, built on real agency financial data. Production: enterprise-wide, TBM-aligned cost model. 02 FinOps ### Cloud & Infrastructure Cost Intelligence Allocation of cloud and infrastructure consumption to programs, missions and owners, with optimization opportunities identified and tracked. Prototype: one cloud environment or program. Production: the full cloud and infrastructure estate. 03 Data Integration ### Financial & Operational Data Integration A governed model connecting financial, cloud, asset, CMDB and ITSM data, so cost, usage and performance can be analyzed together. Prototype: two or three source systems for one component. Production: enterprise data pipelines with reconciliation and governance. 04 AI Adoption ### AI Workflow Automation with Governance Automation of structured, rules-based workflows (approvals, document routing, data consolidation, reporting) with human oversight, audit trails and controls aligned to OMB guidance and the NIST AI RMF. Prototype: one or two high-volume workflows with a governance framework. Production: a broader workflow portfolio. 05 Decision Support ### Predictive Analysis & Forecasting Predictive modeling on operational, financial or mission data to forecast outcomes, flag leading indicators of program risk, and support budget variance and planning decisions. Prototype: forecast accuracy tested on 12–24 months of historical agency data. Production: integrated into planning cycles. Why Prototype First ## The acquisition case for prototype-led technology investment. For program managers and contracting officers making the case to leadership, these are the outcomes that distinguish OTA prototype-first acquisition from traditional program office approaches. Defined Success Criteria Before Build Each prototype starts with measurable success criteria agreed with the program office, so evaluation is objective. Phased Scope, Funding and Criteria Up Front The prototype phase has its own scope, funding and success criteria, so the decision to scale comes after the evidence, not before. Negotiated IP and Data Rights IP and data rights are negotiated in each agreement rather than set by FAR default clauses, and pre-existing commercial IP can be protected. Flexible Terms Fit the Requirement OT agreements are not governed by the FAR; terms are negotiated within the limits of the statute and DoD's Other Transactions Guide. ✓ Mission-Validated Before Commitment The production decision is based on observed prototype performance against real operational requirements — not a paper specification. The government knows it works before committing full program resources. Measured Results Against the Baseline Performance is reported against the agreed baseline and criteria, giving leadership a documented basis for the production decision. A negative result is still useful: far less expensive than finding the same issue mid-program. For Federal Program Teams Discuss a defined technical challenge, prototype concept or mission requirement. [Discuss a Prototyping Requirement](https://www.matternenergy.com/contact) For Prime Contractors Explore specialist TBM, FinOps, data integration or AI workflow support for a prototype effort. [Explore a Teaming Opportunity](https://www.matternenergy.com/teaming) Start Here ## Bring your operational challenge to the *discovery session.* The fastest way to assess whether a rapid prototyping approach is right for your requirement is a structured working session. Bring your team and a defined problem. We'll work through it live — scoping the prototype, identifying the right OTA approach, and giving you a clear picture of what a successful prototype would look like before any agreement is in place. Sessions run half a day (3 hours) or a full day (6 hours) and are available in person or virtually. Limited availability each quarter for qualified federal and defense teams. [Book a Lab Session](https://www.matternenergy.com/schedule-lab-sessions) [How CSO procurement works →](https://www.matternenergy.com/government/commercial-solutions-offerings) Ready to go further? Bring your team to a hands-on working session, in person or virtual. Half-day or full-day — you leave with a draft use case, architecture options and a clear path to a prototype. 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