Other Transaction Authority(OTA)
The statutory authority that allows agencies to enter into Other Transactions — flexible agreements outside standard procurement rules.
Overview
Other Transaction Authority (OTA) is the legal authority — granted by Congress to specific agencies — to enter into Other Transactions. DoD has the broadest OTA; NASA, DHS, DOE, and others have limited OTA. OTA enables agencies to use flexible agreements for research, prototyping, and production in circumstances where traditional contracting would be impractical.
Why It Matters in GovCon
OTA has reshaped how DoD engages with commercial technology firms. Companies that would not consider a FAR-based contract may find OTA arrangements palatable. For traditional contractors, OTA represents both competition (new entrants) and opportunity (consortium participation, prototype projects).
Key Details
- DoD: Broad authority for research (2371) and prototype (2371b) OTs; production (2373) has conditions.
- Other Agencies: NASA, DHS, DOE have OTA with varying scope.
- Consortia: DIU, MD5, and others manage OTA consortia; membership can open OT opportunities.
- Follow-On Production: Prototype OTs can lead to follow-on production without further competition under certain conditions.
How GovCon Data Can Help
Search for OT and OTA opportunities alongside traditional solicitations. GovCon Data helps you identify consortium-managed opportunities and track which agencies are actively using OTA for your technology domain.
Related Terms
- Other Transaction (OT)
- Defense Innovation Unit (DIU)
- Prototype
- Federal Acquisition Regulation (FAR)
More Contracts Terms
A simplified method of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified vendors.
A numbered item in a contract that identifies a specific deliverable, service, or unit of work along with its quantity and price.
A contract type where the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit.
An order placed against an existing contract for the delivery of supplies or materials.
A contract type where the price is set at award and does not change regardless of the contractor's actual costs, placing maximum risk on the contractor.
Long-term government-wide contracts with commercial firms that provide federal agencies access to products and services at pre-negotiated prices.
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