WHAT IS AN OTA?

An “Other Transaction Agreement” or “Other Transaction Authority” (OTA) is a streamlined purchasing vehicle that brings innovative research findings and state-of-the-art prototypes from industry to the federal government. OT-based collaborations are not subject to some of the regulations that apply to Federal Acquisition Regulation (FAR)-based acquisitions. OTAs enable fast acquisition of critically-needed technologies in areas as diverse as shipbuilding, armaments, satellites, medical devices, and electromagnetic spectrum technologies.

•  Unlike the FAR, the OT-based consortium model allows government and industry to communicate more openly, from requirement generation to the proposal stage
• OTAs affords greater technology and prototype acquisition speed, getting solutions to end users sooner
• OTAs emphasizes engaging a diverse range of technology suppliers of all sizes, casting a wider net for capturing ideas and innovations
• OTAs enable faster contracting through long-term agreements between industry and Government that establish baseline terms and conditions (with the flexibility for negotiated modifications on a project-by-project basis)

The OT authority consortium enterprise is good government in action—the competition it promotes between large, traditional R&D providers, academic institutions, and small and nontraditional suppliers drives innovation across the entire US economy.

The Basket Provision is another innovative acquisition tool that can be employed within OT-based Consortia. It is not uncommon for industry to propose technology development projects that cannot go forward due to a lack of available funding at the time the source selection decisions are made, despite being deemed valuable by the government. It is also possible that proposed technology development projects may be valid and approved, but not necessary to accomplish immediate government needs. In such cases, approved proposals can be held in an “electronic basket” for three years. This allows for a subsequent award of the previously-approved proposal in the event of emerging urgent needs, interest in the proposal by a different funding sponsor, end-of-year sweep-up funds or subsequent year funding availability. The provision also eliminates costly, time-consuming, start-from-scratch responses to new requirements or funding opportunities.

The basket provision benefits industry by:

• Increasing the chances that their proposal effort will not be in vain, even if it does not result in immediate
  work.
• Increasing the likelihood of business opportunities because government may turn to the basket for ways to invest available year-end, sweep-up funding.

It benefits Government by:

• Providing a meaningful, pre-vetted slate of projects for funding that arrives after initial source selection.
• Saving the time associated with duplication in the RPP and evaluation processes.

Unlike the FAR, the OT-based consortium model allows government and industry to communicate more openly from requirement generation to the proposal stage; it affords greater technology and prototype acquisition speed, getting solutions to end-users sooner; and it emphasizes engaging a diverse range of technology suppliers by casting a wider net for capturing ideas and innovations.

View frequently asked questions and learn more about joining MSTIC here.