TOs are a mechanism for accessing innovative research and development by non-traditional contractors, challenged by the standard requirements of traditional contracts, grants or cooperative research and development agreements. TOs can be used with traditional contractors if the legal requirements are met. TOs offer flexibility that allows for greater speed, flexibility and accessibility for research and prototyping activities than is possible under the laws and regulations applicable to traditional FAR-based contracts. OT agreements can be fixed-price, expenditure or hybrid agreements. The Defense Ministry is increasing spending on other transaction authority agreements, according to a recent report by big data analytics firm Govini. These agreements are a contractual mechanism designed to reduce bureaucracy related to the Pentagon`s standard procurement practices and help the department innovate through non-traditional suppliers. The National Defense Authorization Act of 2016 expanded its application. ASAs are now available for basic, applied and advanced research projects, as well as prototype and monitoring production projects, says the Govini report entitled “Evaluating the Innovative Potential of Other Transaction Authority Investments”. In 2018, about 20% of the companies in the OTA agreements were linked to consortia.
Commitments to suppliers related to consortia peaked at $US 1.1 billion in 2017, the report said. Other transactions (OTs) are often referred to as OTAs (OTA is actually the other authority in charge of transactions, that is: the power of an agency to issue an OT). TOs are a special vehicle used by federal authorities to obtain or promote research and development (R&D) or prototypes. A OT is not a contract, grant or cooperation contract, and there is no legal or regulatory definition of “other transaction”. Only agencies that have been authorized and can participate in other transactions. The authority ot was born with the National Aeronautics and Space Administration (NASA), when the National Aeronautics and Space Act of 1958 was passed….