OTA Resources

  • OTAs authorized by 10 U.S. Code § 4021 (formerly 2371) are applicable for basic, applied, and advanced research projects to pursue development and application of dual-use technology. Unlike Prototype OTAs, Research OTAs do not include authority for transition to follow-on production contracts or transactions. Research OTAs require cost sharing arrangements between the government and the other party/parties, typically split 50/50, although the ratio is negotiable based on resources, previous technological investments, commercial vs. government applicability, performance risk, and nature of a project. Although the Competition in Contracting Act (CICA) is not applicable, competition should be pursued to the maximum extent practicable to incentivize high quality and competitive pricing.
  • DoD Policy: Defense Procurement and Acquisition Policy, within the Office of the Secretary of Defense, is the DoD point of contact for questions about the DoD policy regarding use of OTAs to carry out prototype projects. Email the Office of the Deputy Director, DPAP, Contract Policy and International Contracting, regarding OTAs to carry out prototype projects
  • Review the DoD Other Transactions Guide: July 2023
  • OTAs authorized by 10 U.S. Code § 4022 (formerly 2371b) are appropriate for research and development and prototyping activities to enhance mission effectiveness of military personnel and supporting platforms, systems, components, or materials. Prototype OTAs may only be used to develop limited quantities of prototypes, however, they can provide a path to directly award a follow-on Production OTA or contract without having to recompete the effort. This is an important benefit of the Prototype OTA approach, but programs must develop acquisition approaches for prototype projects that address anticipated follow-on activities to properly take advantage of this authorization and also ensure the organization is prepared and resourced to move forward with a successful prototype OTA.
  • DoD Policy: Defense Procurement and Acquisition Policy, within the Office of the Secretary of Defense, is the DoD point of contact for questions about the DoD policy regarding use of OTAs to carry out prototype projects. Email the Office of the Deputy Director, DPAP, Contract Policy and International Contracting, regarding OTAs to carry out prototype projects
  • Review the DoD Other Transactions Guide: July 2023
  • Agencies with Other Transaction authority and Contracting Officers with Agreement Officer Authority can execute OTs, but must establish processes to solicit, evaluate, negotiate, and award OT agreements. It is not advised to leverage FAR processes to execute OTs. There is not a single established process for executing OTs. Projects or programs seeking to use OTs may desire white papers, demonstrations, competitive prototyping, phased down-selects, or any combination thereof to construct a strategy to achieve objectives.
  • For further guidance about how to plan and execute OT agreements, refer to the OSTP Innovative Contracting Case Studies guide or the OUSD A&S Other Transactions Guide.