![]() OTA is primarily used by these agencies for research work, although the DoD, NASA, and the Department of Homeland Security use it for prototype development as well. Initially limited to use by the DoD, it is now used by agencies such as the Department of Energy, the Department of Health and Human Services, the Department of Homeland Security, NASA, the FAA, and even the Department of Transportation. ![]() But its usage has increased greatly since then, particularly in recent years. This unusual authority is referred to quite simply as “Other Transaction Authority” (OTA), and any government contractor that encounters it needs to understand that OTA procurements are a whole different beast from regular federal procurements.Īs noted above, OTA isn’t necessarily new, it has been around for over 30 years. One that is not subject to the FAR or other such federal regulations. Since 1989, the Department of Defense (and as time has passed, more and more other agencies) has held an interesting form of contracting authority. Unfortunately, that last statement is not true. ![]() Regardless of what contract you’re dealing with (other than a few exceptions such as the FAA, which is not subject to the FAR), you can be sure that the rules of the FAR govern it. Quite numerous and complex, yes, but they provide a standardized set of rules and procedures that govern federal government procurements. Ah, the Federal Acquisition Regulations, or FAR.
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