Glossary
OTA (Other Transaction Authority)
A DoD contracting authority that operates outside the Federal Acquisition Regulation, used mainly to fund fast prototype work with non-traditional contractors.
OTAs let the Department of Defense contract outside the Federal Acquisition Regulation (FAR), which is the traditional, slower procurement process most large primes are built around. They were designed specifically to make it easier for non-traditional contractors — companies without existing government contracting infrastructure — to work with the Pentagon quickly, particularly for prototyping.
A prototype OTA funds development and demonstration of a capability, not a production purchase. A successful prototype OTA can transition to a follow-on production contract without a new full competition, but that transition isn't automatic — it's an option the government can decline.