Many people think of Other Transaction Agreements (OTAs) as something that only the Department of Defense (DoD) uses. While DoD is the most visible user, OTAs are increasingly employed across multiple federal agencies, including NASA, DOE (ARPA-E), HHS (NIH/ARPA-H), DHS (TSA/DNDO), and DOT/FAA.
What makes OTAs special?
- OTAs are flexible agreements outside the normal procurement rules, grants, or cooperative agreements.
- They allow agencies to move faster, adapt terms, and support innovative projects without being constrained by traditional regulations.
- They also give teams permission to take calculated risks, which is essential for innovation.
Consortia: The power of collaboration Many OTAs are consortium-based, where groups of organizations focus on specific technology areas to provide the government with a ready pool of stakeholders to innovate.
- From FY2019 to FY2021, DoD obligated over $24B in OTA prototype awards to consortia, including efforts to develop COVID-19 vaccines.
- Most of these consortia were established since 2014 and managed by CMOs such as ATI, CMG, NSTXL, and SOSSEC.
- CMOs handle the legal interface, project administration, and member recruitment, while consortium members include traditional and nontraditional contractors, academics, and nonprofits.
How it works: Base and Project Awards
- Base Award: An umbrella agreement awarded to the CMO with terms generally applying to all projects.
- Project Award: Covers specific research, prototype, or production projects, typically issued by the CMO to consortium members.
- This structure allows for rapid contracting, flexibility, and access to specialized expertise.
Key Takeaways for Innovators and Contractors
- OTAs are not limited to DoD — they are a tool used across government to accelerate innovation.
- Consortia and CMOs provide a simplified entry point to federal opportunities, especially for nontraditional contractors.
- Understanding OTAs and how base and project awards work can give innovators a strategic advantage in federal contracting.
- Federal policy is clear: prioritize OTAs and commercial solutions, embrace flexible contracting, and encourage calculated risk-taking.
If you want to learn more about OTAs reach out to Inspiralia, we are here to help!