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This regulatory action proposes to revise the DoD rule on Transactions Other Than Contracts, Grants, or Cooperative Agreements for Prototype Projects in order to reflect changes in 10 U.S.C. 2371b. Part 3 to title 32 of the Code of Federal Regulations was established to codify policy pertaining to Other Transactions (OT) agreements for prototype projects that have a significant impact on the public and are subject to rulemaking. The purpose of this action is to propose a rule to implement the amendments made by the codification of OT agreements for prototype projects in 10 U.S.C. 2371b. The proposed revisions reflect the intent to use OT agreements for prototype projects to spur innovation and attract non-traditional and small businesses with leading-edge technologies to enable acquisition of innovative technologies more rapidly.