What is an OTA?

An “Other Transaction Agreement” or “Other Transaction Authority” (OTA) is a streamlined vehicle that brings innovative research findings and state-of-the-art prototypes from industry to the Federal Government. An OTA relieves some of the contractual burdens typically placed on contractors working for federal clients, making it possible for non-traditional contractors – small and emerging companies – to participate in technology development.

The Other Transaction (OT) consortium model is an “enterprise partnership” between the government and technology providers in a specific domain. The OT consortium model relieves some of the contractual burdens typically placed on contractors working for federal clients.

Why does the Government use OTAs?

  • Unlike the FAR (Federal Acquisition Regulation), 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
  • It 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.

Government gains a better understanding of state-of-the-art industry capabilities. Industry gains insight into Government needs, expectations, and priorities.
Open communication leads to a better application of industry to solve Government challenges.

The Basket Provision

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 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.

A basket provision preserves technically acceptable industry proposals until funding becomes available.

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

OTA Resources

  • ATI OTA Educational Webinars – ATI invites you to learn more about the world of OTAs and how you can get involved and bring your technologies to the federal market. Join live, interactive OTA webinars: OTA 101 for the basics and OTA / Academia for specific information on how academia can take advantage of federal R&D funding.
  • DARPA’s Acquisition Innovation page – Information on how OTAs work and their benefits, briefing papers, Congressional Research Service Reports on OTAs, articles, and training.
  • Defense Acquisition University – Courses, continuous learning modules, and other resources for acquisition professionals.
  • AiDA/MITRE website – Learn about Other Transactions and when to use them.

OTA Resources

  • ATI OTA Educational Webinars – ATI invites you to learn more about the world of OTAs and how you can get involved and bring your technologies to the federal market. Join live, interactive OTA webinars: OTA 101 for the basics and OTA / Academia for specific information on how academia can take advantage of federal R&D funding.
  • DARPA’s Acquisition Innovation page – Information on how OTAs work and their benefits, briefing papers, Congressional Research Service Reports on OTAs, articles, and training.
  • Defense Acquisition University – Courses, continuous learning modules, and other resources for acquisition professionals.
  • AiDA/MITRE website – Learn about Other Transactions and when to use them.
  • NIH’s Other Transactions Authorities –  Learn about Other Transactions within the U.S. Department of Health and Human Services and the National Institutes of Health.