Other Transactional Authority

What is Other Transaction Authority (OTA)?

Other Transactions (OTs) are legally binding instruments that may be used to engage industry and academia for a broad range of research and prototyping activities. OTs are typically defined by what they are not: they are not standard procurement contracts, grants, or cooperative agreements. As such, they are generally not subject to the federal laws and regulations that apply to government procurement contracts (e.g., FAR/DFARS). An “other transaction” agreement comes in a variety of forms and is typically distinguished according to whether its purpose is for research or a prototype.

Who is eligible to receive an OT award?

Any commercial or academic institution is eligible to receive an OT award. However, OTs may only be executed in the following circumstances:

The awardee is a non-traditional defense contractor.

• Non-traditional contractors are defined by statute as those entities that are not currently performing and has not performed for at least one-year prior to an OT solicitation:

• 1) any contract or subcontract subject to full coverage under the Cost Accounting Standards (CAS);

The awardee is a traditional defense contractor, but at least one of the following apply:

• A non-traditional contractor is participating to a “significant” extent. “Significant” participation can refer to any of the following:

• Supplying a new key technology or product;

• Accomplishing a significant amount of the effort;

• Causing a material reduction in cost or schedule; and/or

• Causing an increase in performance.

• The awardee provides a financial or in-kind cost share – typically, a 1/3 cost share is required.

• The Service Acquisition Executive makes a written determination that exceptional circumstances justify use of OTA for the purpose of executing innovative business models or structures that would not be feasible or appropriate with a FAR-based contract.