The use of Other Transaction Authority

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Frank Kendall, former Under Secretary of Defense for Acquisition, Technology & Logistics and senior adviser at the CSIS International Security Program, discusses the use of Other Transaction Authority at the Department of Defense, and why bureaucracy is discouraging to companies entering the federal market.


The latest major use of Other Transaction Authority at the Department of Defense comes from the Navy. The Training and Readiness Accelerator will manage a program to overhaul business systems at the branch. Frank Kendall, former Under Secretary of Defense for Acquisition, Technology & Logistics and senior adviser at the CSIS International Security Program, said that OTAs are enticing to acquisition now, because they resemble private-sector contracts more than government ones.

 

“There’s nothing wrong with OTAs. They are basically contracts. Government people are used to doing contracts under the federal acquisition regulation and are taking a little bit of risk when entering a clean sheet of paper contract. But in some cases, that’s perfectly appropriate.” DARPA’s used them for quite a long time, the Army at Picatinny Arsenal uses them, mostly for research and development.”