Event: Other Transactions Authority

Acquisition Talk

In this episode of Acquisition Talk, we listen in on a recent event on Other Transactions Authority hosted by George Mason University's Center for Government Contracting. Many thanks to my colleague Stephanie Halcrow for moderating a panel that included Stan Soloway, who recently authored a report on the progress of OTs, Wes Bennett, Director of the Contracts Management Office at DARPA, and Dan Fick, Vice President of SAP. In case you've been asleep at the acquisition wheel the past few years, Other Transactions (OTs) allow select government agencies to flexibly contract without all the rules found in the Federal Acquisition Regulation that can make it impossible to reach startups and nontraditional contractors. Actually, as panelist Stan Soloway noted, OTs are not technically "contracts" because the term has a specific meaning in the FAR. They use the term "agreements" and are signed by "agreements officers." But, in the general commercial sense, OTs are binding contractual documents. Although OTs were invented around 1958 for NASA, they were expanded for use in DoD in 1989 with 10 USC 2371. It seemed by the time Future Combat Systems used OTs and was terminated in 2009, the authority reached its nadir. With the FY 2016 NDAA, OTs were refreshed, adding the ability to transition a competitive prototype OT into production (up to $500 million). That signaled Congressional intent for increased adoption.