Robert Levinson, senior defense analyst at Bloomberg Government, joins the program to detail how the Department of Defense uses consortia to manage Other Transaction Authority acquisitions and the what impact the government reorganization plan will have on contracts.
The U.S. Navy’s Space and Naval Warfare Systems Command is looking to manage Other Transaction Authority using a consortium, a group of companies each looking to obtain the same contract. SPAWAR is using the program to solicit proposals for their Information Warfare Research Project, but it’s not the only OTA consortium in the government. “The government actually gets a contract with an organization to manage a consortium. [Advanced Technologies International] manage about 16 of these things… Basically, they just sort of do the management work. Companies join, it usually only costs about 500 bucks for a company to join, and then when the government has requirements they issue a request basically for white papers. All of the members of the consortia can respond to the white paper… they go ‘Hey, here’s our idea to solve whatever the problem in the government is,’” said Robert Levinson, Senior Defense Analyst, Bloomberg Government. “The government looks at these white papers, they work with the manager of the consortia, pick one and then throw the money at it really quickly. It is mostly for prototyping. It’s really designed ideally to bring in these non-traditional defense contractors.”