Other Transaction Authority (OTA) #1 – Overview

Resource Category:Business Development
Resource Type:Strategy Guide

This resource explains Other Transaction Authority (OTA), a flexible contracting mechanism that allows government agencies to engage industry and academia for research and prototyping activities outside traditional FAR-based procurement rules. OTA agreements provide significantly greater speed, flexibility, and accessibility compared to standard government contracts, making them particularly valuable for businesses seeking to win government contracts through innovative approaches. OTA authority enables agencies to design business arrangements that would not be feasible under conventional procurement regulations.

This guide details eligibility requirements, including provisions for non-traditional defense contractors and traditional contractors working with non-traditional partners or providing cost-sharing arrangements. Additionally, it explains OT Consortiums, which have awarded over $1 billion for prototype development and can reduce proposal-to-award timelines to less than two months. These consortiums minimize barriers for new companies through simplified application processes and flexible intellectual property negotiations.

Use this resource to understand how Other Transaction Authority can accelerate your path to winning government contracts, particularly in research and development sectors. Furthermore, OTA represents a growing opportunity for businesses to engage with government customers through streamlined processes that bypass many traditional procurement constraints while maintaining competitive positioning in the federal marketplace. The RSM Federal Sales Training Center provides this overview as part of its market-leading government sales education and training.

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