// UNMANNED SYSTEMS AND NEXT-GEN WARFARE TERM

Other Transaction Authority

Other Transaction Authority (OTA) is a special contracting tool used by U.S. federal agencies, especially the Department of Defense, to quickly acquire research, prototypes, and sometimes production items. It allows them to bypass some traditional government contracting rules to speed up innovation and work with non-traditional defense companies.

Other Transaction Authority — illustration from Wikipedia
Image via Wikipedia

TECHNICAL DEFINITION

Other Transaction Authority (OTA) is a flexible U.S. federal contracting mechanism, distinct from the Federal Acquisition Regulation (FAR), employed by entities like the Department of Defense (DoD) to expedite the procurement of research, prototypes, and limited production, primarily aimed at engaging non-traditional defense contractors and fostering rapid technology development.

BACKGROUND

The Foreign Military Sales Act of 1968, Pub. L. 90–629, 82 Stat. 1320-2, enacted October 22, 1968, was supplemental legislation to the Arms Control and Disarmament Act of 1961 and the Foreign Assistance Act of 1961. The Act discloses the United States commitment and sustainment to a world free from the dangers of armaments and the scourge of war.

READ MORE ON WIKIPEDIA

SYNONYMS & ALIASES

  • OTA
  • Other Transactions
  • OT Agreements
  • Non-FAR Contract
  • Prototype OT

USAGE NOTE

OTAs are widely utilized by the DoD to accelerate technology development and adoption by reducing bureaucratic hurdles and attracting commercial entities hesitant to engage with traditional government contracting.

DEVELOPERS

Organizations developing technology related to Other Transaction Authority.

  • Defense Innovation Unit (DIU)

    DIU is a Department of Defense organization that accelerates the adoption of commercial technology for military use, heavily leveraging Other Transaction Authority (OTA) to prototype and field advanced capabilities.

  • Army Futures Command (AFC)

    AFC leads the Army's modernization enterprise, using Other Transaction Authority (OTA) extensively to rapidly develop and integrate new technologies for future warfare, often through consortia.

  • National Advanced Mobility Consortium (NAMC)

    NAMC is a consortium that manages a large Other Transaction Agreement (OTA) with the U.S. Army, facilitating collaborative research and development in ground vehicle systems, robotics, and other mobility technologies.

  • National Armaments Consortium (NAC)

    NAC manages an Other Transaction Agreement (OTA) for armaments innovation, bringing together government, industry, and academia to develop advanced armament technologies and prototypes for the Department of Defense.

  • Undersea Technology Innovation Consortium (UTIC)

    UTIC fosters collaboration between industry, academia, and government to develop undersea and maritime technologies, managing an Other Transaction Agreement (OTA) with Naval Sea Systems Command (NAVSEA).

  • Consortium for Command, Control and Communications in Cyberspace (C5)

    C5 manages an Other Transaction Agreement (OTA) with the U.S. Army, focusing on rapid prototyping and development of advanced technologies for command, control, communications, computers, intelligence, surveillance, reconnaissance (C4ISR), and cyber solutions.

RELATED TERMS IN DOCTRINE & STRATEGY