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Other Transaction (OT) Authority (CRS Report for Congress)

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Release Date Revised Jan. 4, 2012
Report Number RL34760
Report Type Report
Authors L. Elaine Halchin, Specialist in American National Government
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised July 15, 2011 (37 pages, $24.95) add
  • Premium   Revised Jan. 27, 2010 (37 pages, $24.95) add
  • Premium   Nov. 25, 2008 (44 pages, $24.95) add
Summary:

An other transaction (OT) is a special vehicle used by federal agencies for obtaining or advancing research and development (R&D) or prototypes. An OT is not a contract, grant, or cooperative agreement, and there is no statutory or regulatory definition of 'other transaction.' Only those agencies that have been provided OT authority may engage in other transactions. OT authority originated with the National Aeronautics and Space Administration (NASA) when the National Aeronautics and Space Act of 1958 was enacted. Subsequently, seven other specific agencies have been given OT authority: the Department of Defense (DOD), Federal Aviation Administration (FAA), Department of Transportation (DOT), Department of Homeland Security (DHS), Transportation Security Administration, Department of Health and Human Services, and Department of Energy. Other federal agencies may use OT authority under certain circumstances and if authorized by the Director of the Office of Management and Budget (OMB). Generally, the reason for creating OT authority is that the government needs to obtain leadingedge R&D (and prototypes) from commercial sources, but some companies (and other entities) are unwilling or unable to comply with the government's procurement regulations. The government's procurement regulations and certain procurement statutes do not apply to OTs, and, accordingly, other transaction authority gives agencies the flexibility necessary to develop agreements tailored to a particular transaction. […] Evidence of congressional interest in the use of other transaction authority includes the expansion of OT authority over the years (as noted above), and a 2008 congressional hearing on the Department of Homeland Security's use of OT authority. This report will be updated as events warrant.