Are OTAs the Thing of the Future?

As it looks to get new technologies developed and into the field as quickly as possible, the Department of Defense has been making greater use of Other Transaction Authority (OTA), a quick-strike contracting mechanism that has gone in and out of fashion since the 1950s, but is now seeing a resurgence.

The Defense Information Systems Agency (DISA), for example, recently awarded a $49 million OTA to Enterprise Services, teaming with four other companies, for DISA's National Background Investigation Services (NBIS), a shared service intended to combine a number of separate systems to speed up process investigations. The Navy also took the OTA route in awarding Advanced Technology International a $100 million deal to manage work on the Space and Naval Warfare (SPAWAR) Systems Command's Information Warfare Research Project.

The Defense Innovation Unit-Experimental (DIUx), created in 2015 to foster innovation in partnership with industry, has made extensive use of OTAs, telling Congress earlier this year it had awarded 61 other transaction agreements worth $145 million, with the agreements reached within an average of 78 days.

What both projects have in common are that they involve prototyping new technologies and involve companies that don't usually work as DoD contractors. They also aim for rapid development and deployment. The Navy contract “will accelerate acquisition and bring non-traditional sources, research and development labs, and industry together to provide new, innovative information warfare solutions,” said Rear Adm. C.D. Becker, commander of SPAWAR Systems Command.

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