Other Transaction Authority (OTA) #2 – Background

Resource Category:Business Development
Resource Type:Strategy Guide

This resource examines how Other Transaction Authority (OTA) serves as a revolutionary contracting mechanism that enables rapid technology acquisition for military readiness. The document traces OTA’s history from NASA’s creation in 1958 through its modern application in Department of Defense (DoD) prototype development and production contracts. Government contractors can leverage OTA to bypass traditional FAR-based procurement constraints while delivering innovative solutions that maintain U.S. technological superiority against emerging global threats.

This resource highlights successful OTA implementations, including the Mine-Resistant Ambush Protected vehicle development completed in just 90 days versus typical 18-24 month acquisition cycles. However, it demonstrates how OTA specifically targets nontraditional defense contractors and creates opportunities for commercial firms to enter the defense marketplace without traditional regulatory burdens. The streamlined approach eliminates requirements for Cost Accounting Standards compliance, audit obligations, and mandatory FAR clause flow-downs to subcontractors.

Use this resource to understand how OTA can accelerate your ability to win government contracts through innovative business arrangements that traditional procurement cannot accommodate. The RSM Federal Sales Training Center provides this analysis as part of its market-leading government sales training. Contractors who master OTA positioning can cut major systems acquisition life cycle times by 40% while beating adversary system deployment timelines, creating significant competitive advantages in today’s rapidly evolving defense marketplace.

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