What to Expect from Other Transaction Authorities in 2019

Photon photo/Shutterstock.com

Though the contract model is well-suited to research and development, expect to see it tried for other things too.

If there is one term that has punctuated government contracting in 2018, it is “OTA.”

The use of OTAs or “other transaction authority” agreements has grown significantly in the federal government over the last year, due to this contract vehicle’s ability to help federal agencies rapidly incorporate new technologies required to ensure the success of today’s complex missions.

Although this style of contract is not new to the federal contracting community (in fact, it was brought onto the scene in the 1950s to aid NASA in the space race), we can expect to see additional use of OTAs to gain access to groundbreaking technologies faster and more efficiently in 2019.

Here are three things we expect to see from OTAs in the next year and beyond.

Growth Outside of R&D

OTAs can be used for a wide variety of contracts; however, OTAs are especially well-suited for research and development. As opposed to a Federal Acquisition Regulation-based acquisition of commodities or services, R&D projects rarely have a specific, known outcome that the contract will yield. Rather, the contracts are often used to prototype and test new solutions to problems. In these instances, it benefits both the contractor and the contracting agency to work together to determine which requirements will be most beneficial for the execution of the contract. It helps tremendously for the government to learn the art of the possible, especially from nontraditional technology providers. OTAs allow this collaboration, rather than forcing agencies and contractors to abide by the often rigid requirements of contract vehicles like the FAR.

Even so, we are beginning to see agencies with other transaction authority use OTAs for contracts that are not traditional R&D contracts. For example, the Transportation Security Administration uses OTAs for things like airport security, education and outreach, and more. As the contract vehicle grows in popularity and awareness, we expect this trend to continue, and OTAs may be used in other capacities where appropriate.

Other Agencies Using OT

Currently, 11 federal agencies have other transaction authority—including NASA, the Homeland Security Department, TSA, Health and Human Services Department, and the National Institutes of Health—but the vast majority of these agreements are executed by the Defense Department. Although OTAs are ideal for Defense ’s accelerating need for R&D projects to keep pace with potential adversaries, we anticipate increased potential for other federal agencies to use this contract vehicle to help them get the technologies they need at the speed they desire.

Although the bulk of OTAs will remain in defense in the near future, other agencies, such as Homeland Security, are beginning to try out the contract vehicle based on the demonstrated successes of Defense OTAs. A proliferation of the model means new uses in new places.

Growing the Use of OTAs as a Whole

While the popularity of OTAs has brought this vehicle into the limelight recently, when we step back and look at the bigger picture, the model actually accounts for a relatively small portion of the overall contracting spend. Out of the $88.3 billion spent on R&D projects by Defense in 2017, only $2 billion was spent on OTAs. This discrepancy demonstrates that, even in the OTA “sweet spot” of defense R&D, there is enormous potential for additional growth. Compound this opportunity with the expansion to other agencies and other contract functions, and we begin to see the revolutionary potential that this model presents in government contracting.

An Evolving Model

Although it remains somewhat uncertain as to how OTAs will be used in federal contracting moving forward, we can be sure to expect that the model will continue to evolve, delivering even greater value to stakeholders as the federal acquisition workforce gains a greater appreciation for the freedom to innovate that the OTA model offers. The major catalysts that will drive that evolution remain to be seen; however, as the technology refresh cycle continues to contract and requirements grow and adapt to help federal agencies succeed in their missions, so too must the contracting vehicles that support them.

Bob Tuohy is the chief operating officer of Advanced Technology International, a consortia-management organization.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.