Other Transaction Agreements | The Contracting Education Academy

July 5, 2018 By AMK

DoD seeks streamlined procurements of innovative technologies: OTAs and commercial solutions pilot program

The Department of Defense (DoD) has once again emphasized its willingness to engage with commercial companies and other non-traditional contractors to try to expedite and simplify its procurement of innovative technologies.

In particular, the Defense Information Systems Agency (DISA) indicated that it plans to enter directly into Other Transaction Authority (OTA) agreements, and DoD issued a class deviation for a commercial solutions opening (CSO) pilot program.

These developments, in connection with the continued promotion of OTA agreements by DoD’s Defense Innovation Unit Experimental organization (DIUx), provide commercial companies with additional incentives to enter into creative collaborations with the U.S. Government.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2018/07/dod-seeks-streamlined-procurements-of-innovative-technologies-other-transaction-agreements-and-the-commercial-solutions-opening-pilot-program/

June 18, 2018 By AMK

GAO sustains Oracle’s ‘other transaction authority’ protest

GAO’s much-anticipated decision in Oracle America, Inc. confirms that GAO will not hesitate to review the details of an agency’s use of its Other Transaction Authority (OTA) in lieu of issuing a procurement contract.

GAO determined that the US Transportation Command (TRANSCOM) both: (a) failed to properly provide for a follow-on production contract in its initial “prototype OTA” instrument, and (b) issued its sole-source production order before the prototype was complete, in violation of the requirements of the statute that provides OTA.

The Oracle decision acts as a shot across the bow to agencies exploring OTA agreements as alternatives to traditional contracting. OTA is not new, but the recent advent of using OTA for follow-on production contracts, combined with increased government interest in using creative alternatives to traditional procurement procedures, has made OTA agreements particularly popular in recent years. While GAO will not review an agency’s award decision once it properly elects to utilize an OTA agreement, GAO will examine the transaction to assess whether the agency properly chose to use an OTA agreement instead of a procurement contract. That is the context in which GAO sustained Oracle’s protest of TRANSCOM’s OTA award. GAO did not seek to limit TRANSCOM’s ability to use OTA, and specifically declined to find that the agency was obligated to use FAR-based procurement. Rather, GAO identified specific process flaws and implied that had the agency written its prototype OTA award slightly differently, and waited slightly longer for completion of the prototype project before issuing its follow-on production order, there may not have been a problem from GAO’s perspective.

The Oracle decision does not prevent any agency from seeking to obtain the flexibility and lower administrative burden that comes with OTA, but instead cautions that GAO will not shy away from policing compliance with the strict letter of the statutory provisions that provide OTA.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=708740

April 6, 2018 By AMK

The magic of ‘other transaction authorities’

Space and Missile Systems Center’s Maj. Steven Pugh arrived at an industry conference held at the National Geospatial-Intelligence Agency recently to talk about the big pot of money he has to spend — $100 million over the next five years to be precise — on anything that could help the Air Force improve its spacecraft, launch or ground systems.

And the best thing about it is that contractors, academics, or whoever comes forth to compete for this money can ignore the Federal Acquisition Regulation, the dreaded FAR, and do an end run around its notorious red tape.

Those with good ideas can take the Air Force money — as long as there is a one-third cost share — and build prototypes without having to use Defense Department-approved accounting standards, adhere to the new cybersecurity rules, or comply with innumerable edicts that add to overhead.

This is all made possible by a once out-of-fashion contracting vehicle known as the “other transaction authority,” or OTA. The OTA has been around for decades. It was intended to allow nontraditional contractors or small businesses to build prototypes for the Defense Department, NASA and other agencies.

Keep reading this article at: http://www.nationaldefensemagazine.org/articles/2018/3/30/the-magic-of-other-transaction-authorities

April 2, 2018 By AMK

The scary new contracting model that isn’t scary or new

There is a new and scary but potentially game-changing acquisition model catching fire across government. The thing is, it doesn’t have to be scary and is not really all that new.

Long lead times and complex, overwrought requirements have made acquisition one of the main impediments to successful information technology procurements in the federal government, resulting in no shortage of handwringing over the rules included in the Federal Acquisition Regulation that govern most transactions. But there is another way, if program managers, contracting officials and agency lawyers are willing to take a chance.

Before there was a FAR, there were “other transaction authorities,” also known by the shorthand OTAs or OTs. This contracting method outside the usual federal process is not widely used and even less understood. But that’s beginning to change.

“Is there anything here to be worried about? No,” Douglas Maughan, director of the Homeland Security Department’s Science and Technology Directorate’s Cyber Security Division, told Nextgov. “Even though it’s been around for a fairly lengthy period of time, it’s just not been used very much. So, people are afraid of it because they haven’t seen how it’s worked.”

Keep reading this article at: http://www.nextgov.com/it-modernization/2018/03/otas-scary-new-contracting-model-isnt-scary-or-new/146964/

March 22, 2018 By AMK

Agencies need to quit being difficult customers if they want startup tech

Modernizing federal tech will require the government to work closely with startups and innovators, but before that can happen, agencies must make themselves more appealing customers, according to technology experts.

Agencies will have to adapt to being one of many customers when they work with companies from commercial hubs like Silicon Valley. Government and industry technologists said lengthy timelines and convoluted purchasing processes are deterring many startups from sharing their breakthroughs with federal agencies.

On Thursday of last week, experts offered a variety of strategies for lowering those barriers to entry, ranging from streamlining the Federal Acquisition Regulation to posting project solicitations on TechCrunch.

Within the startup community, “there is a perception the government is going to take a very long time” getting projects over the finish line, said Meagan Metzger, founder and CEO of the IT accelerator DCode, at a forum hosted by GovernmentCIO Media. While some vehicles exist for fast-tracking contracts, she said agencies’ largely opaque procurement process isn’t conducive to fledgling companies driven by quarterly reports.

Keep reading this article at: http://www.nextgov.com/emerging-tech/2018/03/agencies-need-quit-being-difficult-customers-if-they-want-startup-tech/146713/

The Department of Defense (DoD) has once again emphasized its willingness to engage with commercial companies and other non-traditional contractors to try to expedite and simplify its procurement of innovative technologies.

GAO’s much-anticipated decision in Oracle America, Inc. confirms that GAO will not hesitate to review the details of an agency’s use of its Other Transaction Authority (OTA) in lieu of issuing a procurement contract.

There is a new and scary but potentially game-changing acquisition model catching fire across government. The thing is, it doesn’t have to be scary and is not really all that new.

Modernizing federal tech will require the government to work closely with startups and innovators, but before that can happen, agencies must make themselves more appealing customers, according to technology experts.

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