What Is an Other Transaction Agreement (OTA)?
An other transaction agreement (OTA) is a government deal that isn't a standard contract, grant or cooperative agreement, so the FAR doesn't apply.
OTA (other transaction agreement) in plain English
Agencies use OTAs for research and prototype work with more flexibility than a regular contract allows. The Department of Defense is the biggest user, with separate authority for research, prototype and production agreements. Some other agencies have similar authority.
Because the FAR doesn't apply, the terms come from the agreement itself and the agency's own rules, and most other government contracting laws generally don't apply either. Read the announcement and the draft agreement closely, and ask the agency what rules do apply.
OTAs are meant to make it easier for companies that don't usually work with the government, including small businesses, to take part in research and prototyping.
Related terms
- BAA (broad agency announcement): A broad agency announcement (BAA) is an open call where an agency asks for research ideas and proposals in broad topic areas, not for one specific product.
- SBIR (Small Business Innovation Research): SBIR (Small Business Innovation Research) is a federal program that pays small businesses to do research and development. The awards aren't loans.
- FAR (Federal Acquisition Regulation): The FAR (Federal Acquisition Regulation) is the main rulebook for how federal agencies buy goods and services.
- Prime contractor: A prime contractor is the business that holds a contract directly with the government. It's responsible for all the work, including any it subcontracts.
Put it to work
Looking for another term? Browse the full glossary or the government contracting glossary guide.