| Summary: | As U.S. Defense budgets and military research and development spending experienced significant decline between 1988 and 1998, the Defense Technology and Industrial Base essentially merged with the national industrial base. DOD reform occurred more slowly than changes in the private sector fueled by advances in technology. U.S. national security relies upon the ability of the military to maintain technological superiority. To attract advanced technology companies that normally do not participate in defense business to the defense market, Congress provided a new contracting authority, Section 845 Other Transaction Authority (OTA). This study examines the effectiveness of its byproduct, Section 845 Other Transactions (OTs). Opinions and performance data regarding the effectiveness of Section 845 OTs were solicited from non-traditional companies that participated in OTs from 1994 to 2000. Significant disagreement was found within the Federal Government concerning the definition of a non-traditional company. It was also found that DOD does not quantify the amount of technology it accessed with OTs. Many of the non-traditional companies with which DOD participated in OT-based relationships came from markets where significant defense business already exists. In sum, DOD achieved uncertain and varied success in using OTs to achieve their stated. === US Navy (USN) author
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