An analysis of Other Transactions: have Other Transactions met the intent of Congress?

• Main Author: Hanson, Todd T.
• Other Authors: Doyle, Richard B.
• Published: Monterey, California. Naval Postgraduate School 2012
• Online Access: http://hdl.handle.net/10945/10012

Department of Defense (DoD) Science and Technology (SandT) programs seek and need the best research and technology, most of which serves the needs of the commercial marketplace. DoD had limited access to these non-traditional performers because many would not accept the onerous requirements imposed by contracts issued under the rules of Federal Acquisition Regulations. In 1989, Congress provided "Other Transaction Authority" (OTA) to address this problem. OTA provided a procurement vehicle which minimized the laws and regulations applicable to contracts, grants, or cooperative agreements. This study examined all DoD reports submitted to Congress detailing Cooperative Agreement and "Other Transaction" awards for fiscal years 1997-2003 to determine the extent to which the objectives of the OTA legislation were achieved. The researcher found that only 11 percent of the awards went directly to "non-traditional" contractors, the remaining 89 percent going to traditional defense contractors. Only one-tenth of one percent of all DoD "Research, Development, Test and Evaluation" funding in those fiscal years, awarded in the form of cooperative agreements or :other transactions," went directly to "non-traditional" contractors. Thus, OTA has proved ineffective at attracting "non-traditional" contractors to DoD SandT projects.