Other Transaction Authority: What Is It and How Can I Get It?

Story excerpt provided by JD Supra

Written by Megan Connor

If you followed the National Defense Authorization Act for Fiscal Year 2018 (“FY 2018 NDAA”) or the recent cloud computing award to REAN Cloud, you likely heard the term “other transaction authority,” but may have wondered what it means. The term is an invention of lawmakers to give the U.S. Department of Defense (“DOD”) maximum flexibility in obtaining innovation without the trappings of traditional procurements. Contractors looking to take advantage of “other transaction authority” or “OTA” need to know some basics.

By statute, OTA is for “prototype projects” that are directly relevant “to enhancing the mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed” by DOD or “to improvement of platforms, systems, components, or materials in use by the armed forces.” 10 U.S.C. § 2371b(a). This authority is intentionally broad and reflects an expansion from the original purpose of developing weapons and weapons systems.

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Originally published March 9, 2018