Non-FAR authority sanctioning commercial business practices for research, prototype and limited production efforts.
Other Transaction (OT) authorities were created to give DoD the flexibility necessary to adopt and incorporate business practices that reflect commercial industry standards and best practices into its award instruments. As of the 2016 National Defense Authorization Act (NDAA) Section 815, the DoD currently has permanent authority to award OT under (10 U.S.C. 2371) for (1) Research, (2) Prototype, and (3) Production Purposes. 11 other agencies have OT authority - including DHS and NASA.
- Allows for rapid procurement from non-traditional contractors without FAR-based competition
- Rapid procurement
- Non-FAR competition
- Iterative prototyping reduces risk and cost
- SMALL BUSINESS BENEFIT: Focuses on reducing barriers for non-traditional or new entrant small business contractors participating to a significant extent