The government will then evaluate this prototype based on the technology, process used, concept, end item or system. The prototype can be a virtual or physical model. Typically, the Department of Defense (DoD) will issue this type of OTA for projects directly relevant to the weapons or weapon systems it wants to acquire or develop. This type of OTA is great for organizations that want to adopt commercial practices or standards, partner with non-traditional defense contractors, and diversify into the commercial sector. Research-based OTAs correspond with basic, applied, and advanced research projects. There are three main ways the government and contractors can use an OTA – research, prototyping and production. Other Transaction Authorities (OTAs) are procurement instruments established in 2015 under 10 U.S.C.2371b. What is an Other Transaction Authority (OTA)? Simply put, OTs are a great avenue for nontraditional defense contractors to do business with the government and can also cut down on cost, time and labor to deliver products to federal agencies. OTs can include flexible business arrangements to obtain research and development activities for new types of technologies, evaluating technical manufacturing models and prototypes or military utility of current or new technologies. Transactions pursuant to this authority can take many forms and generally are not required to comply with certain federal laws or the Federal Acquisition Regulation (FAR). Other Transactions are common terms that refer to any kind of transaction other than a contract, grant or cooperative agreement. By Josh Hillis, Senior Program Analyst at Thompson Gray, Inc.
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