Defense Primer: Other Transactions (OTs) (CRS Report for Congress)
| Release Date |
Dec. 19, 2024 |
| Report Number |
IF12856 |
| Report Type |
In Focus |
| Authors |
David H. Carpenter; Alexandra G. Neenan |
| Source Agency |
Congressional Research Service |
Summary:
The Department of Defense (DOD) is authorized to enter
into legally binding contracts, referred to as other
transactions (OTs), to acquire goods and services in certain
situations. OTs, in contrast to traditional procurement
contracts, are exempt from many federal procurement laws
and regulations. These regulatory exemptions give DOD
greater flexibility in how OTs are structured, solicited,
negotiated, and awarded, but they also render inapplicable
various regulatory measures intended to promote
transparency, accountability, and competition in
government contracts. DOD has used its OT authorities
with increasing frequency in recent years, which has
prompted debate among Members of Congress about
whether to increase statutory limits on their use. What
follows is a discussion of how OTs are used and structured,
how OT awards may be protested, recently implemented
modifications to OT use, and considerations for Congress.
