other transaction authorities | The Contracting Education Academy

March 5, 2020 By cs

GAO declines to limit DoD’s ‘experimental purchasing’ authority

In its recent decision in Air Tractor, Inc., the Government Accountability Office (GAO) held that the Department of Defense (DoD) may, at its own discretion, begin a project with agreements under its prototyping Other Transaction (OT) authority, and award later phases of the same project on a sole source basis under its experimental purchasing authority.

In the decision, GAO discussed distinctions between these avenues, and gave a broad reading to the DoD’s authority to award contracts for experimental work.

The past few years have seen a swell of interest in DoD’s ability to sidestep the Federal Acquisition Regulation (FAR) and use more flexible OT authority to enter into contracts. Thus far, the majority of this interest has centered on DoD’s OT authority to enter into prototype projects, now codified at 10 U.S.C. § 2371b.

One of the most powerful features of DoD’s prototype OT authority is that DoD may award a sole source follow-on production contract for a successful prototype. Congress included some limitations on this authority to award sole source follow-on production contracts at 10 U.S.C. § 2371b(f). For example, in its decision in Oracle America, Inc., GAO confirmed that DoD must comply with all notice and other specific preconditions at the prototyping stage in order to award a sole source follow-on production contract.

However, prototype OT authority is not DoD’s only authority to award sole source contracts. The Competition in Contracting Act (CICA) itself allows for sole source awards in certain circumstances. In DRS Sustainment Systems, GAO held that DoD need not comply with 10 U.S.C. § 2371b(f) to award a sole source production contract where DoD invokes one of CICA’s exceptions to separately justify the sole source award. In addition, under 10 U.S.C. § 2373, DoD has authority to make sole source purchases for items it “considers necessary for experimental or test purposes in the development of the best supplies that are needed for the national defense.”

In Air Tractor, GAO held that DoD properly relied on its “experimental purchasing” authority under 10 U.S.C. § 2373 to purchase a set of full production light attack aircraft for use in “experiments” to determine the best use of such planes in combat support. GAO found that this purchase was acceptable because it met the requirements of § 2373 alone, regardless of the Air Force’s initial use of its § 2371b prototype OT authority to compare various candidate aircraft. GAO confirmed that while it will exercise jurisdiction to ensure agency compliance with various statutory authorities to award non-procurement contracts, GAO will not impose requirements beyond those stated in the statutes. In upholding the Air Force’s acquisition strategy, the Air Tractor decision provides valuable insight as to the broad scope of § 2373 “experimental purchasing” authority.

Keep reading this article at: http://www.mondaq.com/unitedstates/Government-Public-Sector/895672/GAO-Declines-To-Limit-DoD39s-Experimental-Purchasing-Authority

February 19, 2020 By cs

A high-profile OTA program goes off the rails

It had to happen at some point. A high-profile, big-ticket Army program using an other transaction authority (OTA) agreement has turned into a fiasco.

One prototype of the Army SMET (squad multipurpose equipment transport) concept.

In December, the Army Contracting Command announced it was canceling and re-soliciting a contract issued in October to manufacture hundreds of robotic mules. This is bad news.

For critics of the Army’s acquisition system, it’s another example of the service’s poor record over the last 20 to 30 years of developing and fielding new weapon systems. While Army leadership say they are going to speed procurement of badly needed technology to take on “great powers” — this is a black mark and will certainly get the attention of Congress.

And the same goes for proponents of other transaction authority agreements — touted as a way to put new technology into the hands of warfighters faster by forgoing the traditional acquisition system.

The program in question is the squad multipurpose equipment transport, or SMET, the Army’s answer to helping dismounted troops lighten their loads. This so-called robotic mule has been on the service’s wish list dating back to the Future Combat Systems program, which was canceled in 2009.

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2020/2/4/a-high-profile-ota-program-goes-off-the-rails

January 17, 2020 By cs

Space Force sets first Pitch Day using alternative acquisition authority

As the Space Force begins to stand up operations, the newest military branch wants to get in on the latest wave of acquisition options to match its space-age mission.

Space Force officially became the sixth branch of the military in December with passage of the 2020 National Defense Authorization Act. As the newly-minted branch gets up and running, the 45th Space Wing, based out of Patrick Air Force Base in Brevard County, Florida, is holding a pitch day on March 4 to hear about “innovative solutions” to several problem areas around installation support and space operations.

For the pitch day, Space Force is leaning on its Commercial Solutions Opening, or CSO, authority, which allows certain government agencies — such as the Defense Department — to move quickly on acquisitions involving innovative ideas, especially those from nontraditional vendors that could use government funding to move from idea to prototype to production. The CSO contracting method uses iterative funding to move a project through four phases of development—the same structure used for Other Transaction Authority, or OTA, contracts.

“The Space Force intends to obtain ‘innovative’ solutions or potential new capabilities that fulfill requirements, close capability gaps or provide potential technology advancements,” according to a notice posted to the Contracting Opportunities website.

Keep reading this article at: https://www.nextgov.com/emerging-tech/2020/01/space-force-sets-first-pitch-day-using-alternative-acquisition-authority/162244/

January 9, 2020 By cs

A win-win contracting tool for the Pentagon and the private sector

The Defense Department is taking measures to get new capabilities to warfighters more quickly, and they’re working. One of these tools is called Other Transaction Authority.

The Pentagon has made increasing use of this contracting method, which has existed since the space race but was expanded dramatically in the 2016 National Defense Authorization Act.

The value of Other Transaction Authority agreements has increased nearly 300% since 2016, from $1.4 billion to $3.7 billion, according to a Government Accountability Office report released in November.

The normal defense contracting system is, by all accounts, too slow. Secretary of the Army Ryan McCarthy has likened the procurement system to baseball: “It’s like having a 19-year-old kid that can throw a 100-mile-an-hour fastball but who won’t make the majors until he’s 39.”

Keep reading this article at: https://www.dailysignal.com/2019/12/30/a-win-win-contracting-tool-for-the-pentagon-and-the-private-sector/

December 2, 2019 By cs

Pentagon nearly doubles use of Other Transaction Authority purchases

The Defense Department is embracing the alternative procurement method but could use more oversight of the deals, a Government Accountability Office audit found.

The Pentagon upped its use of purchases through other transaction authority, or OTAs, significantly over the past fiscal year, nearly doubling both the number of total OTA contracts and total investment.

In fiscal 2017, the Defense Department issued 384 new awards, modifications or orders for OTA contracts totaling $2.1 billion in obligations. In 2018, the Defense Department contracted 618 OTA awards totaling $3.7 billion, according to a Government Accountability Office audit released this week.

Based on data from the Federal Procurement Data System, the audit indicates the Pentagon has more than tripled its use of OTA contracts since it received enhanced authorities from the 2016 National Defense Authorization Act. In that year, Defense agencies issued only 248 OTA awards for approximately $1.4 billion.

Keep reading this article at: https://www.nextgov.com/emerging-tech/2019/11/pentagon-nearly-doubles-use-other-transaction-authority-purchases/161504/

It had to happen at some point. A high-profile, big-ticket Army program using an other transaction authority (OTA) agreement has turned into a fiasco.

As the Space Force begins to stand up operations, the newest military branch wants to get in on the latest wave of acquisition options to match its space-age mission.

The Defense Department is taking measures to get new capabilities to warfighters more quickly, and they’re working. One of these tools is called Other Transaction Authority.

The Defense Department is embracing the alternative procurement method but could use more oversight of the deals, a Government Accountability Office audit found.

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