Other Transaction Authority (OTA)

OTA is a flexible contracting authority that lets DoD enter agreements outside the FAR for prototype projects and follow-on production. It moves at startup speed: no FAR cost-accounting standards, no DCAA audits, no mandatory profit caps. A typical DIU OTA goes from solicitation to award in 90 days versus 18-plus months for a comparable FAR contract. Startups have used OTAs to win nine-figure production contracts without ever bidding a FAR proposal. OTA-fluent PMs are scarce because the skill set is half traditional defense contracts, half venture-style speed. Roles where this matters: Program Management, Contracts, BD.