Other Transaction Agreements

An Other Transaction Agreement (OTA) is an acquisition instrument which allows agencies to enter into transactions “other than” standard Government contracts, grants and cooperative agreements.

As an alternative to the complex Federal Acquisition Regulation (FAR), which may discourage small businesses and other non-traditional contractors from seeking to work with the Government, OTAs provide a commonsense, flexible and user-friendly way of linking buyers and sellers of advanced technologies through a rapid, efficient and cost-effective acquisition instrument. An OTA replaces nothing. It simply is an additional tool that Congress has authorized to help Government program managers accomplish their missions.

OTAs offer great flexibility in tailoring the terms to a particular project and the needs of the participants, achieving the best approach to fulfilling the Government’s technology needs. Projects can therefore be awarded more quickly and cost-efficiently and engage more small and large businesses, as well as academic institutions.

What is an OTA?

An Other Transaction Agreement (OTA) is a cost-effective and collaborative acquisition alternative to the FAR for members seeking to do business with the Federal Government, and for rapid acquisition across the DoD of innovative technologies in support of the Warfighter.

  • It is NOT a standard procurement contract, grant or cooperative agreement
  • It is NOT subject to many provisions of the Federal Acquisition Regulation (FAR)

  • It is a legally binding instrument
  • It is similar to a commercial-sector contract
  • It is provided by 10 U.S.C. § 4022: Authority of the Department of Defense to carry out certain prototype projects

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