The Other Transaction Authority (OTA) is responsible for issuing other transaction (OT) agreements to support projects of interest to the United States Department of Defense (DoD). The OTA helps the DoD adopt and incorporate commercial standards and best practices into its operations by giving the government access to technology solutions from non-traditional and traditional defense contractors.
OT agreements are meant to promote:
- The development of new relationships and practices of non-traditional and traditional defense contractors, even with contractors not interested in Federal Acquisition Regulation (FAR) based government projects
- The expansion of the industrial base accessible by the United States government
- The success of dual-use projects
- A more flexible, quicker, and less expensive project execution and design process
- The leveraging of commercial investments in technology development through DoD partnerships to include DoD requirements in the development of future products and technologies
- Opportunities for collaboration in innovative projects
OT agreements are not meant to:
- Be part of, or replace, FAR based contracts
- Be grants
- Be cooperative agreements
- Be Cooperative Research and Development Agreements (CRADAs)
Research OTs, also referred to as 'original' or science and technology (S&T) OTs, are for supporting basic, applied, and advanced research projects. They are authorized under 10 U.S.C. §2371 - Research projects: transactions other than contracts and grants.
Research OTs are meant to take advantage of dual-purpose/use research and development projects performed in the private industry that the US government has a national security interest in. They are designed to help the government take advantage of economies of scale in the private sector without burdening companies with regulatory overhead costs that would harm the company's ability to remain competitive in the private non-defense related sector. Traditional defense contractors are also encouraged to participate in research OTs if they are seeking to adopt new commercial standards or practices, diversify their commercial product and service offerings, or to partner with non-traditional defense contractors (NDCs).
Prototype OTs, also referred to as prototype project Ots or 237b, are for supporting the development and acquiring of prototypes and prototype capabilities and ease the transition of prototypes into production OTs. Prototype OTs support prototypes which have dual-use and defense specific purposes and are encouraged and authorized under 10 USC §2371b - Authority of the Department of Defense to carry out certain prototype projects.
Prototype OTs give companies a streamlined method of transitioning their prototypes into follow-on production without competition through the granting of production OTs laid out in each individual prototype OT agreement. The possibility of future production OTs are laid out in prototype OTs to increase competition for prototype OTs and reduce the risk of companies protesting against prototype and production OTs. Government organizations planning on leveraging prototype production efforts use prototype OTs to gain greater operational flexibility planning, and technological capabilities.
Production OTs are follow-on non-competitive OTs for successful competitively awarded prototype OTs. They are authorized under 10 U.S.C. §2371b(f) to facilitate the production of successful prototypes made from an awarded prototype OT.
