The mistake that costs the follow-on
Innovation portals, open calls and warfare center announcements use the same few words, and those words hide two separate decisions. The first is how the government selects a winner. The second is the instrument the winner signs. The instrument sets the rules for intellectual property, audit and protest. The selection method decides whether a successful prototype can move to production under 10 U.S.C. 4022(f) without a second competition.
A fast sole-source OT on an unsolicited proposal feels like a win. If production is the goal, it may be the move that closes the door.
What the paper answers
- When does a CSO end in an OT, and when does it end in a fixed-price FAR contract?
- What did section 1823 of the FY2026 NDAA change about the statutory CSO?
- Which of the four 4022(d) conditions does your project meet, and does a large teammate change the answer?
- Who signs an OT, and why does the buyer's agreements officer matter?
- What has to be true at the start for a noncompetitive production award at the end?
- What does an awardable rating on Tradewinds or Platform One let a buyer do?
- How does the March 6, 2025 software memo change the default for software companies?
A look inside
One of four reference tables in the paper. The authority a solicitation cites, not the label on it, decides what a company signs.
| Model | Authority cited | What the company signs | Follow-on production |
|---|---|---|---|
| Statutory CSO | 10 U.S.C. 3458; DFARS 212.70 | Fixed-price FAR contract | Follow-on production contract, including sole source with 3204(e) approval, or a 4022 follow-on |
| DIU-style CSO | 10 U.S.C. 4022 | Prototype OT | 4022(f) follow-on OT or contract, if the prototype succeeds |
| Hybrid solicitation | 3458 and 4022 together | Either, chosen at award | Follows the instrument actually awarded |
Table 3 from the paper. CSO models and the instruments they produce.
What's inside
- Plain-language treatment of research OTs (4021), prototype OTs (4022), follow-on production (4022(f)) and the statutory CSO (3458).
- Four reference tables: OT authorities, routes to a prototype OT, CSO models, and DOW marketplaces.
- Six recommendations for companies working the OT and CSO front doors, and what the same rules mean for primes.
- 22 references, each linked to its public source.
The directory
Appendix A is a selected directory verified as of October 28, 2026:
- 31 government portals, hubs and scouting platforms
- 40 standing CSO and OT announcements on SAM.gov, by notice number
- 41 OT consortium, agreement and program entries, with status notes
- The activities checked where no standing CSO was found
Who it's for
- Small businesses and nontraditional defense contractors pursuing DOW work through open calls and portals.
- Commercial and software firms answering CSO-style calls.
- Primes weighing a teaming arrangement that can make a prototype OT available.
- Business development and capture leads who need to read an announcement correctly the first time.
About the author
Chris A. Grable is founder and CEO of Up Doppler Consulting LLC, a Veteran-Owned Small Business in Leonardtown, Maryland. A Navy veteran with more than 45 years in DOW operations and acquisition, he retired from federal service as Senior Experiment Designer at the Naval Air Warfare Center Aircraft Division. UDC helps technology companies find, shape and win DOW work.
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Questions
- Is this legal advice?
- No. It is a practitioner's guide. The agreements officer and counsel decide how the rules apply to a particular award.
- How current is it?
- The paper reflects the statutes as amended through the FY2026 NDAA and the directory as verified on October 28, 2026. It also notes where DFARS Subpart 212.70 has not yet caught up with the statute. Portals open and close often, so confirm any directory entry before relying on it.
- I already subscribe to Closing Rate. Do I need to buy it?
- No. Paid Closing Rate subscribers get the full PDF with the Closing Rate article.
- Can I talk to someone about a specific opportunity?
- Yes. Contact Up Doppler Consulting.