Debunking the Hype Involving "Other Transaction Authority"
by Jerome Gabig and Richard Raleigh
“OTHER TRANSACTION AUTHORITY” (OTA) AND ITS ASSOCIATED “OTHER TRANSACTIONS” (OTS)1 ARE EXPERIENCING A SURGE OF ACTIVITY,2 THANKS IN PART TO RECENT LEGISLATION.”
Certainly, OTA can be a valuable procurement tool if used correctly. In fact, recent efforts with the use of OTs have been overwhelmingly positive.
Unfortunately, there has also been an abundance of “hype” concerning OTA and OTs that could lead one to believe them to be a panacea for government contract ills—a “pill” that will result in fast and flawless procurements.3 Perhaps the most detrimental aspect of this “hype” is that it could lull members of Congress and senior executive branch leaders into thinking that serious procurement reform is no longer needed.
This article is not an explanation of what OTA and OTs are; rather, it is an explanation of what they are not. It seeks to clarify what OTs work well for, and to dispel the myths that have recently been cropping up due to the increased “hype” over OTA.
Exemplary of this “hype” is a recent Defense Acquisition University (DAU) video4 featuring an interview with Lauren Schmidt, the Defense Innovation Unit Experimental (DIUx)5 Pathway Director. OTs are the contracting vehicle of choice for DIUx, and within the video, OTs are compared to conventional Federal Acquisition Regulation (FAR)–based contracts and are heralded as:
Let’s examine each of these categories in turn.
Certainly, OTA can be a valuable procurement tool if used correctly. In fact, recent efforts with the use of OTs have been overwhelmingly positive.
Unfortunately, there has also been an abundance of “hype” concerning OTA and OTs that could lead one to believe them to be a panacea for government contract ills—a “pill” that will result in fast and flawless procurements.3 Perhaps the most detrimental aspect of this “hype” is that it could lull members of Congress and senior executive branch leaders into thinking that serious procurement reform is no longer needed.
This article is not an explanation of what OTA and OTs are; rather, it is an explanation of what they are not. It seeks to clarify what OTs work well for, and to dispel the myths that have recently been cropping up due to the increased “hype” over OTA.
Exemplary of this “hype” is a recent Defense Acquisition University (DAU) video4 featuring an interview with Lauren Schmidt, the Defense Innovation Unit Experimental (DIUx)5 Pathway Director. OTs are the contracting vehicle of choice for DIUx, and within the video, OTs are compared to conventional Federal Acquisition Regulation (FAR)–based contracts and are heralded as:
- Faster,
- More flexible, and
- More collaborative.
Let’s examine each of these categories in turn.