Ota Contract Types
She said the Air Force held competitions in some places, where suppliers brought their ideas and got a contract on the same day. These clauses describe how members of the procurement workforce should plan, design and manage their contracts. Parts 1 to 51 cover different types of information, including contracts: Instead of strictly complying with the strict clauses of the FAR, an OTA contract allows the DoD, which is subject to it, to take a riskier approach to procurement. From there, they can say more clearly whether they will succeed or fail before investing in an expensive long-term program. Once an OTA prototype has been issued and successfully completed, a production-purpose OTA can be added to the contract as a non-competitive follow-up. Other Transaction Authority (OTA) is the term commonly used to refer to the (10 U.S.C. 2371b) Department of Defense (DoD) agency to carry out certain prototypes, research and production projects. Additional Transaction Authorities (TOs) have been created to give the Department of National Defence the flexibility to adopt and incorporate commercial industry standards and best practices into its procurement tools. Beginning with Section 845 of 2016 of the National Defense Authorization Act (NDAA), the DoD currently has the permanent authority to issue TOs under (10 U.S.C. 2371) for research, (2) prototype, and (3) production purposes.
These are the same people you would do a traditional contract with,” Zabel said. The DoD doesn`t turn a blind eye. Defense Department Undersecretary of State for Procurement, Technology and Logistics Ellen Lord said last week that she wanted OTAs as a way for the Pentagon to cut its delivery time by 50 percent in the future. In 2015, Congress expanded the scope of projects OTAs are allowed to use to cover a much wider range of R&D and prototyping activities. Among the new, broader requirements, a government agency can use an OTA to work with government or civilian contractors for cutting-edge research and prototypes that improve the mission in some way. OTAs are also often used as a proof of concept or stepping stone in a process that leads to a larger, more lucrative contract for the design and component of the work once the initial R&D and prototyping work is completed. The White House Office of Science and Technology Policy (OSTP) stated in a 2014 publication that “TOs allow agencies and their contractors to enter into flexible agreements tailored to specific projects and needs of participants.” Section 867 of NDAA FY18 requires the Secretary of Defense to establish a preference for the use of TOs and experimental authority in the execution of W&T and prototype programs. OTAs are not grants, cooperation agreements or contracts. When we get an OTA, we need to pay close attention to the terms of the agreement, as they are likely to differ from what we are used to federal grants and contracts. This flexibility makes it easier and more attractive for non-traditional government contractors to work with the federal government. Other contracts with transaction authorities seem to be the novelty in defense procurement circles.
For DoD contracts, requests from the other transaction authority (OTA) are very popular. OTAs are hyper-streamlined, relatively free from expensive DTAR and FAR regulations, highly innovative and flexible. You don`t even have to be a registered government contractor to bid! However, most OTAs are approved by consortia, and to make an offer, you must be a member. Below, we break down some of the specifics of OTA and consortia applications. (1) Research Purpose (10 U.S.C 2371) enables basic, applied and advanced research projects. These overseas territories are designed to stimulate dual-use research and development (R&D) and exploit economies of scale without imposing government regulatory burdens on companies that would make them uncompetitive in the commercial (non-military) sector. Traditional defence companies are encouraged to engage in research in the Overseas Territories, especially if they wish to adopt commercial practices or standards, diversify into the commercial sector, or work with non-traditional defence contractors. *As defined in 10 U.S.C. Section 2302(9) is a non-traditional defense contractor, a company that does not currently perform a contract or subcontract for the Department of Defense and has not executed at least one year before obtaining sources for the other transaction, which is subject to full coverage under Cost Accounting Standards (CAS). In addition, Parts 52 and 53 contain model provisions on tendering, contractual or subcontracting clauses and forms.
While OTAs can take many forms, most are used to build prototype systems outside of the Federal Procurement Regulations.