According to several authoritative sources, including the reference book U.S. Army Patches, Flashes and Ovals: An Illustrated Encyclopedia of Cloth Unit Insignia by insignia expert Barry Jason Stein, this style oval (officially called Airborne background trimming) worn by members of Headquarters and Headquarters Company, 3rd Brigade, 101st Airborne Division was replaced in 2002 with an oval consisting of an outer band of blue, a thinner middle band of white, and a red interior.
Ovals are worn by members or Airborne-designated units or organizations who have qualified for a Parachutist and/or Air Assault badge. The main portion of the badge (i.e., excluding the star and wreathed star of the Senior and Master Parachutist badges) is centered on the oval before it is placed on the coats of the AGSU and ASU (including ASU Dress variation), the shirt of the Class B ASU, and the green or blue Army Maternity Tunic (female Soldiers only).
The oval and badge are considered a single item when worn together on one of the authorized uniforms, with the edge of the oval (and the top of the Senior and Master Parachutist badges) used when measuring distances between the badges and other devices. If the badge-oval combination is worn above medals or ribbons and is obscured by the lapel of a Service/Dress coat, it may be moved so that it is aligned with the left edge of the medals or ribbons.
Rules regarding placement of these Skill badges are different for each of the authorized uniforms and can be found in
Chapter 22-16 (b) of the January 2021 edition of DA PAM 670-1.