Military Off-The-Shelf (MOTS)

Military Off-The-Shelf (MOTS) is a procurement approach in which the buyer acquires an existing, commercially available military equipment or design rather than developing a new one or substantially modifying an existing one. A Canadian defence publication in the Maritime Engineering Journal uses the term in this sense when it describes a naval platform acquisition.

Canadian defence research describes typical MOTS equipment as already in service, built in an established production facility, and not a new design. At most it needs minor modifications so it works with Canadian or allied systems, as set out in a Government of Canada defence publication. MOTS is the military counterpart to Commercial Off-The-Shelf (COTS), and the two terms are often used together.

What MOTS covers and what it excludes

The same defence research lists the characteristics that define a MOTS item:

• It is already established in service, either with another country's armed forces or with the acquiring country's forces.
• It is not a new design.
• It comes from an established production facility.
• It is subject only to minor modifications for interoperability.

MOTS does not describe a project that integrates several off-the-shelf components together for the first time into a new system. That kind of work is development, even when every individual part is available commercially.

Buyers turn to MOTS to reduce acquisition cost, development risk and delivery time, and to support interoperability with allies. The Evaluation of the Munitions Supply Program identifies COTS and MOTS acquisition as a means of reducing cost, risk and cycle time while facilitating interoperability. A Government of Canada audit report also notes that MOTS and COTS acquisitions commonly involve payment on delivery, because the vendor is not incurring substantial development costs.

How Treasury Board and CanadaBuys classify MOTS

Treasury Board guidance on limitation of contractor liability treats standard COTS and MOTS equipment as Model 1 procurements. It describes these as generally standard, commonly available goods or services. The guidance also draws the line clearly: if significant development or modification is required, the product or service is not considered "off the shelf" for that policy. The text is in the Treasury Board implementation guide.

CanadaBuys applies a similar logic in its procurement complexity guidance. Readily available COTS and MOTS goods fall within Complexity Level 1, where the good is commercially available in the marketplace, possibly with manufacturer-supplied customization. See the characteristics of procurement complexity levels.

How MOTS appears in Department of National Defence solicitations

The term shows up across equipment categories, and the wording of each requirement differs:

• Special operations vehicles: a CanadaBuys request for proposals for light observation and surveillance vehicles required offered products to be COTS or MOTS, currently in production and in use by specified allied special operations forces.
• Ammunition: a request for information for 12-gauge breaching rounds required MOTS or COTS products available for immediate procurement and currently in production.
• Equipment modernization: a statement of work for an improved galley allowed modernized elements to be custom-designed, MOTS or COTS. It required evidence from prior qualification testing for any product or component classified as MOTS or COTS.

What MOTS means for a supplier bidding on Canadian public contracts

In a Canadian solicitation, MOTS is a requirement that can be tested, not a label. Depending on the solicitation, a bidder can be asked to:

• offer an existing product rather than a newly developed design;
• show that the product is currently in production;
• show that it is already in operational use, including by named Canadian or allied forces;
• limit proposed modifications to those the solicitation permits, such as interoperability changes;
• provide prior qualification-test procedures and results; and
• meet the stated delivery and production-availability requirements.

A supplier whose offer needs significant development or modification should expect it to fall outside the MOTS category. Bid teams should read the mandatory criteria closely and assemble proof of production status, existing military use and test history before the bid closes.