Senior military program managers will sign “Performance Contracts” and be held accountable for how they spend DOD money according to legislation poised for passage later this year.  This is just one feature of sweeping procurement reform legislation that will shift the stage away from central office organizations and toward decentralized military leaders.  As a result, contractors will have to focus more on developing, deepening and maintaining strong program manager relations in each service branch.  Another provision of the defense authorization measure contractors should take note of is enhanced language surrounding “Other Transaction Authority”.  While not new, Congressional overseers aren’t happy that this flexible means of acquisition has not been used more.  The intent of the changes is to fix that.  Companies should favor OTA-related procurements because they typically carry with them far fewer rules, allowing for maximum innovation and relationship-based business.  The final version of the FY’16 authorization bill has yet to be agreed upon, but the provisions here are likely to be part of it.  Companies should start planning now on how to leverage the changes coming to their important customers.