OTA Agreements Exploding in Popularity.

 
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* The Defense Department is ramping up spending on other transaction authority agreements, according to a recent report by big data analytics firm Govini.

The agreements are a contracting mechanism intended to cut through bureaucratic red tape associated with the Pentagon's standard acquisition practices, and help the department tap into innovation from nontraditional suppliers. The 2016 National Defense Authorization Act expanded their application. OTAs are now available for basic, applied and advanced research projects and for prototype projects and follow-on production, noted the Govini report titled, "Evaluating the Innovative Potential of Other Transaction Authority Investments."

"To ensure U.S. military advantage, it is imperative for DoD to partner with businesses and academia to incorporate innovative technological advancements into military capability," the study said. "DoD is increasingly using OTAs to leverage commercial technology for research and prototyping."

Following the change in the NDAA, obligation totals grew by 122 percent, eventually reaching a total of $3.4 billion in fiscal year 2018, according to the report.

The number of OTAs awarded annually from fiscal years 2012 through 2015 hovered around 50, then shot up to a high of 298 in 2018. The average value of each contract increased from $2.4 million to $4.1 million, it noted.

Last year, the Army led the way with about $2.5 billion in OTA contract obligations and more than 220 agreements. The Air Force was the next biggest...

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