Mar 2025 - Other Transaction Authorities (OTAs)

On March 6, the Secretary of Defense issued a memorandum highlighting the urgent need to accelerate software acquisitions. As part of this guidance, he named Other Transaction Authorities (OTAs) as one of two “default solicitation” methods for acquiring software rapidly.

This aligns with the current administration’s broader effort to eliminate bureaucratic delays, stay competitive with the private sector, and increase government efficiency.

The growing emphasis on OTAs isn’t just limited to Information Technology. Their use is expanding across various sectors of defense acquisition—and that trend is expected to continue.

Because OTAs operate outside the traditional Federal Acquisition Regulation (FAR), they require a different business development (BD) mindset and strategy. BD leaders must understand:

• What OTAs are

• How they’re structured and awarded

• How to position your organization to win OTA-based work

• How to transition into follow-on opportunities—including production or services work that may eventually be procured through FAR-based contracts

Step One - Learn the Doctrine

OTAs are not covered by the FAR, which can make them seem ambiguous at first. To understand their use and potential, BD professionals should start by reviewing their statutory foundations:

• 10 U.S.C. § 4021 – Governs OTAs for research projects

• 10 U.S.C. § 4022 – Authorizes OTAs for prototype projects

These authorities provide the legal framework OTAs - making them essential reading.