Defense acquisition does not lack authority. It lacks confidence. That tension sits at the center of a candid conversation between Chris Hamm and David Rothzeid on the Optimize Podcast. You can listen to the full episode at episode of the Optimize Podcast.
When New Authorities Met Old Instincts
When the Defense Innovation Unit began using Other Transaction Authorities and Commercial Solutions Openings, the goal was simple. It wanted to move faster and reach companies that would never accept traditional FAR-based contracts.
Chris reflects on how disruptive this felt at the time. These tools favored collaboration and iteration over documentation. Yet they clashed with habits built around avoiding risk.
David explains that OTAs and CSOs rest firmly on legal authority. Still, many organizations treated them as suspect because they challenged familiar processes.
The result was tension. New authorities existed, but cultural instincts pulled teams back toward slower, safer paths.
The Protest That Changed Behavior
Raincloud wasn’t theoretical for David. At the Defense Innovation Unit, he helped guide the effort from prototype to production using Other Transaction Authority exactly as Congress intended. The team moved fast, proved the capability worked, and prepared to scale without resetting the process.
Then Oracle protested.
GAO sustained the protest based on how the agency framed the opportunity, not on performance or fairness. That distinction mattered to David, and it frustrated him. A large, traditional vendor had challenged a pathway designed to bring in nontraditional solutions. In his view, the protest missed the point of OTAs entirely.
The impact was immediate. “That protest really cooled a lot of the enthusiasm,”
Momentum stalled. Teams hesitated. Leadership went quiet.
The deeper damage was cultural. The message many teams absorbed was simple: even when you follow the law, moving fast can still cost you. Chris captures it well. When teams take a big swing and still lose, confidence drains. After that, speed stops feeling strategic and starts feeling dangerous.
“That protest really cooled a lot of the enthusiasm"
Why Leadership Decisions Matter More Than Policy
After the Raincloud protest, the rules didn’t change. The authority to use OTAs and CSOs remained intact. What changed was behavior. Leaders grew cautious. Decisions slowed. And voices pushing for speed found themselves isolated.
David describes this moment candidly. As he continued advocating for OTAs and commercial-first approaches, he was labeled a “heretic.” This revealed something deeper. He was challenging an unspoken belief system. It equated safety with strict adherence to familiar processes, even when the law allowed more flexibility.
"Some lieutenant colonel stood up and called me a heretic and said, what you're doing is illegal. He turned to the audience, said we should not do this at all… and he stormed out of the room.”
OTAs disrupted long-standing norms. They reduced documentation. They relied on judgment. And they shifted accountability upward, toward leaders who had to defend outcomes rather than hide behind process.
Without leadership willing to absorb that pressure, teams retreated. They chose paths that felt safer, even if slower. Not because policy required it, but because leadership signals made caution the default.
This is why leadership decisions matter more than policy. Authorities create possibility. Leadership determines whether anyone uses them. When leaders defend lawful execution, teams follow. When leaders stay silent, fear fills the gap.
From Inside Government to Shaping Markets
After leaving active duty, David moved into venture capital at Shield Capital. The shift changed his vantage point.
Access to policymakers became easier. Conversations grew more direct. Stories from the field finally reached people who could influence markets.
That access now shapes his views on SBIR reform. He challenges companies that treat SBIR awards as a business model rather than a bridge to scale.
The lessons he learned inside government now guide how he evaluates innovation from the outside.
"What shocked me leaving uniform was how easy it is to reach senior leaders and Congress.”
Speed as the Real Signal
Compliance has always mattered in federal acquisition. That won’t change. But compliance alone does not deliver capability. Speed does. And speed sends a signal the workforce understands instantly.
David and Chris agree on this point. Teams watch what happens when things go wrong. They see who leaders protect and who they expose. They quickly learn which behaviors earn rewards and which carry risk.
Recent guidance prioritizing speed sends the right message on paper. It reinforces what Congress has said for years about commercial preference and rapid delivery. But memos only go so far. The real signal comes later, when someone challenges a decision or GAO sustains a protest.
If leaders stand behind teams who moved quickly and acted lawfully, speed becomes acceptable again. If they don’t, the workforce learns a different lesson. Innovation becomes optional. Delay becomes safe.
Speed isn’t recklessness. It reflects disciplined execution backed by confident leadership. When leaders make that clear, behavior changes. When they don’t, acquisition slows, no matter how many authorities exist.
Listen for the Full Story
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