Reference · Contract vehicles & pricing
Other Transaction Authority (OTA)
Other Transaction Authority
Other Transaction Authority (OTA) lets certain agencies enter agreements that are not standard FAR contracts, grants, or cooperative agreements. Used mainly for research and prototype projects, OTAs have customizable terms and are designed to attract nontraditional performers.
What it is
An Other Transaction (OT) is a legally binding agreement outside the FAR. DoD's prototype OT authority (10 U.S.C. § 4022) lets contracting officials tailor terms; a successful prototype can lead to a follow-on production OT without further competition.
Why it exists
The FAR's overhead deters commercial and nontraditional companies. OTs remove much of that friction so the government can access innovation it otherwise couldn't.
Who it applies to
Agencies with statutory OT authority (notably DoD) and the companies — often nontraditional or commercial — that partner with them on R&D and prototypes, frequently through consortia.
Frequently asked
What is Other Transaction Authority?
Other Transaction Authority (OTA) lets certain agencies — chiefly the DoD — enter agreements outside the standard FAR contract, grant, and cooperative-agreement framework. It is used mostly for research and prototype projects, with customizable terms meant to attract nontraditional and commercial performers.
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