What is an OTA?
The Department of Defense has many procurement authorities to procure the goods, services, equipment, and systems it requires. Most of the authorities require adhering to Federal Acquisition Regulations (FAR). There are some non-FAR authorities focused on research and development, which allow more streamlined procurement processes. Other Transaction Authority (OTA) is one of these.
The OTA is a procurement authority that allows the government to enter into agreements with non-traditional defense contractors, such as small businesses, research institutions, and nonprofit organizations.
The OTA can bypass certain Federal Acquisition Regulation (FAR) requirements, which can speed up the acquisition process and make it more flexible.
Accelerating R&D and Prototyping
The OTA can be used for prototyping, research and development, and follow-on production.
The procurement vehicle is used for projects that are innovative, Medium to High-risk, or have a short timeline.
The tool can be beneficial for both the government and contractors, as they can be faster and more flexible for the development and acquisition of new technologies and capabilities.