Other Transaction (OT) authority offers an alternative approach, when appropriate, from the typical Federal Acquisition Regulation (FAR)-based contracting opportunities in order to engage non-traditional Defense Contractors in federal acquisition accelerating the developmental path to greater innovative solutions and ideas to Government requirements. OTs are legislative authorities that permit agencies to enter into Other Transaction Agreements (OTAs).
10 U.S. Code (USC) 2302(9) defines a non-traditional Defense Contractor as “an entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation sources by the Department of Defense (DoD) for the procurement or transaction, any contract or subcontract for the DoD that is subject to the full coverage under the cost accounting standards prescribed pursuant to section 1502 of title 41 and the regulations implementing such section.” “Small business” is defined under section 3 of the Small Business Act (15 USC 632). For OT prototype projects, at least one non-traditional Defense Contractor must participate to a “significant” extent. The awardee provides a financial or in-kind cost share – typically, a 1/3 cost share is required or the Service Acquisition Executive makes a written determination that exceptional circumstances justify use of an OTA for the purpose of executing innovative business models or structures that would not be feasible or appropriate with a FAR-based contract.
10 USC 2371b authority shall be used to “carry out prototype projects that are directly relevant to enhancing the mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed by the DoD, or to improvement of platforms, systems, components, or materials in use by the armed forces.”
Conditions of 10 USC 2371b and 6 USC 391 require the use of competitive procedures to the maximum extent practicable for prototype projects and the agreed-to price is fair and reasonable.
The Naval Surface Warfare Center, Philadelphia Division (NSWCPD) has been granted statutory authority to enter into OTAs for prototype projects.
We are seeking to establish an OTA for prototype projects under 10 USC 2371b with a Consortium, a legal entity whose members will be comprised of both traditional and non-traditional Defense Contractors, to develop and mature technologies in maritime environments through the award of prototype projects amongst the Consortium. The Consortium will have the full breadth, depth, ability, and expertise to support high-level technologies as they relate to maritime sustainment technology and innovation. This member-based Consortium model will provide networking opportunities across Industry, academia, and Government stakeholders, allowing greater visibility into Government needs and priorities, and into technological capabilities. The OTA Consortium model specifically allows for enhanced collaboration between Government and Industry. The collaborative nature of this model also creates a longer‐term channel for the Government to capitalize on “technology push” by obtaining Industry input and feedback on rapidly evolving technologies. The OTA Consortium model also establishes a mechanism for creating technology transition partnerships between small technology innovators and large system integrators.
If you are interested, please read our Request for Consortium Agreement Base OTA available below. Proposals are due Friday, 25 September 2020.
Please contact Michael D’Elia at firstname.lastname@example.org with any questions.