Other Transaction Authority (OTA) is a special mechanism used by federal agencies to engage in procurement for research, development, and prototypes outside the traditional bounds of the Federal Acquisition Regulation (FAR). This authority is intended to cut through the red tape associated with standard government procurement to facilitate rapid development and prototyping of new technologies and to capitalize on innovation that might be stifled under the FAR system.
Details of OTA
OTA has the following characteristics:
Flexibility: OTA agreements are not subject to the FAR, allowing for more flexible terms and conditions. This flexibility can be particularly beneficial in the space sector where technology evolves rapidly.
Collaboration: OTAs can be structured to promote partnership with consortia, fostering collaboration between government, academia, and industry.
Speed: They enable quicker contracting and development cycles, which is important in fields where the U.S. seeks to maintain a technological advantage, such as space exploration and national security.
Access: OTAs allow non-traditional defense contractors, including small businesses and startups, easier access to government contracts.
Agencies with OTA
Several U.S. government agencies have been granted OTA including:
Department of Defense (DoD): The DoD is perhaps the most prolific user of OTA, with the authority to enter into OTAs for research and prototyping activities. This has enabled the DoD to rapidly field advanced technological capabilities.
National Aeronautics and Space Administration (NASA): NASA utilizes OTAs to engage with industry partners to develop new space technologies that could enable future missions. This includes partnerships with commercial entities to develop transport vehicles for crew and cargo to the International Space Station and beyond.
Department of Energy (DOE): The DOE has the authority to use OTAs for research and development projects that can include space-related technologies, especially those concerning energy applications on space missions.
Department of Homeland Security (DHS): The DHS can use OTAs for research and development in areas such as cybersecurity and counter-terrorism, which can have applications in securing space-based assets and infrastructure.
Implications for the Space Economy
The implications of OTA for the space economy are significant, as this authority allows the government to leverage private sector innovation and agility effectively. By using OTA, agencies like NASA and the DoD can partner with small businesses and startups that are developing cutting-edge technologies in rocket propulsion, satellite communication, deep space exploration, and other areas pertinent to space activities.
As the space industry continues to evolve with the entry of numerous private players, the use of OTA is likely to grow, reflecting the government’s desire to foster a competitive and innovative industrial base that can contribute to the U.S.’s strategic goals in space. The continued and expanded use of OTA promises to sustain the dynamism of the space economy by allowing the government to support and benefit from the rapid pace of technological advancements in the sector.