US DoD bets on non-standard procurement to improve readiness
Other Transaction Authority (OTA) obligations of the US DoD have increased by 712% between FY2015 and FY2019. The largest proportion of these resources is going to non-traditional contractors and is primarily being used for R&D. The army was the leader in OTA usage across the DoD and accounted for 67% of obligations in FY2019.
The US DoD's Other Transaction Authority (OTA) obligations increased by 712% between FY2015 and FY2019 according to a study by the think-tank Center for Strategic & International Studies (CSIS), released in October.
OTAs are legally binding instruments used by federal agencies to engage industry and academia for obtaining or advancing R&D work or prototypes. As they are not standard procurement contracts, they are generally not subject to the federal laws and regulations that non-traditional suppliers are unable to match.
The CSIS study analysed the topline contracting trends of the DoD that are available in the Federal Procurement Data System (FPDS).
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
![UK Chancellor commits £2 billion to make the country a “defence industrial superpower”]()
UK Chancellor commits £2 billion to make the country a “defence industrial superpower”
Rachel Reeves announced port upgrades, protected budgets for innovation and investment in novel technologies.
-
![Launch of Gilat Defense targets DoD market]()
Launch of Gilat Defense targets DoD market
The communications company Gilat launched its new Gilat Defense division at the Satellite 2025 expo, with future solutions aimed at US military customers.
-
![Collins MAPS Gen II to equip US DoD watercraft]()
Collins MAPS Gen II to equip US DoD watercraft
US services have already conducted multiple tests with military maritime systems fitted with the system.
-
![OCCAR expects substantial boost in programme numbers “in the coming months”]()
OCCAR expects substantial boost in programme numbers “in the coming months”
Europe’s Organisation for Joint Armament Cooperation (OCCAR) “has to establish itself…as a centre of excellence for cooperative Defence Equipment Programmes” in the face of growing threats and the need for rearmament, according to the organisation’s chairman.
-
![MBDA CEO emphasises “moment of truth” for Europe as company sees €37 billion backlog]()
MBDA CEO emphasises “moment of truth” for Europe as company sees €37 billion backlog
MBDA CEO Éric Béranger stressed the company’s role supporting European countries with complex weapon systems and focused on boosting production against the backdrop of “shifting” geopolitical alliances.
