Getting Started With OTAs (Part 2 of 2)

By Troy Fortune, VP and General Manager

In my previous blog I talked about how OTAs can offer real advantages to both government agencies and suppliers. This blog provides more information about the types of OTAs and when they should be used. We also provide tips on how to assist your potential customers in the process.

There are three categories of OTAs and it’s important for you to know how and when they’re used.

  1. Research OTAs (also known as “original” or science and technology OTAs) are for basic, applied and advanced research projects. These OTs are intended to spur dual-use research and development. Companies can take advantage of economies of scale without the burden of government regulatory overhead.
  2. Prototype OTAs are authorized for acquiring prototype capabilities and allowing those prototypes to transition into Production OTAs. Both dual-use and defense-specific projects are encouraged. Successful Prototype OTAs streamline the transition into follow-on production without competition. They also reduce the possibility of a future protest.
  3. Production OTAs are authorized as noncompetitive, follow-on OTAs to a Prototype OT agreement that was competitively awarded and successfully completed. Under this statute, advanced consideration is required, and notice is to be made of the potential for a project to go into production.

Read more of this post

Getting Started With OTAs (Part 1 of 2)

By Troy Fortune, VP and General Manager

An OTA (Other Transaction Authority) can be a powerful alternative to a traditional contract vehicle. OTAs have been in use for years but they have become more popular since Congress relaxed rules and restrictions. In fact, Bloomberg reports that government spending on OTAs increased almost eight-fold from FY15-FY19, from $1B to $7.8B. This includes all OTAs, not just for information technology solutions.

OTAs can provide a rapid way to deliver solutions the government needs. This can be an especially valuable tool for government to acquire technology from companies that may offer cutting edge or emerging technologies but are not set up to do business with the government.

The speed with which OTAs can be executed is a real benefit. On its website, DOD cited  the example of how the Air Mobility Command was able to “take a requirement and turn it into a product in just 95 days, when the process might normally take more than a year to complete.”

Many of our suppliers have asked for our help in understanding how OTAs work and how to navigate the process. Here is some basic information to get you thinking about whether or not this might be something your company should pursue. Read more of this post

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