Some agencies with the authority to use OTAs are NASA, the Department of Defense (DoD), Department of Health and Human Services (including NIH), and Department of Energy (DOE). When we receive an OTA we must pay close attention to the terms and conditions in the agreement as they likely differ from what we are used to seeing in federal grants and contracts. One that is not subject to the FAR or other such federal regulations. The only defining characteristic would be the federal government’s identification of the award as an Other Transaction Authority or OTA. Since 1989, the Department of Defense (and as time has passed, more and more other agencies) has held an interesting form of contracting authority. Though OTs are uncommon, and NIAID rarely uses them, there are several reasons for going the OT route rather than traditional funding mechanisms. Federal government agencies can enter into OTs through the Other Transactions Authority. There is no standard set of regulations or template for this award. In a nutshell, OTs are a special type of legal instrument other than a contract, grant, or cooperative agreement. Authority of the Department of Defense to carry out certain prototype projects (a) Authority.
In FY 2015, OTAs accounted for just three percent of DoDs total R&D. A legal instrument (award) issued by the federal government that is not a contract, cooperative agreement or grant. A Practice Note discussing other transaction (OT) authority of certain federal government agencies, particularly the Department of Defense (DOD). Other Transaction Authority is limited to those government agencies and operational divisions with appropriated authority, and is a funding mechanism which targets non-traditional sources and allows a high degree of flexibility in how the agreement is awarded. the average DoD OTA award totaled 4.39 million, a 321 percent increase.
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