Injecting New Ideas and New Approaches in Defense Systems: Are 'Other Transactions' an Answer?

Abstract

Other Transactions'' (OT) Authority permits a form of contracting for research, development and conducting prototype projects which is an alternative to military contracting under the Defense Acquisition Regulations and related statutes and regulations. This research shows that OT contracting can produce results better, more cheaply and more quickly than contracting under FAR. Moreover OT contracting has proved to be attractive to commercial firms that traditionally have spurned DoD R&D business and it has the potential to greatly expand the industrial base available to DoD. OT contracting has been limited by a number of factors. DoD acquisition personnel are generally poorly equipped to engage in free form OT contracting. OTs have also been restricted by a broad misperception of their potential and risks involved. There has been a tendency to restrict OTs to a niche role and to impose restrictions by regulation and statute. DoD could benefit greatly by expanding its use of OTs and recognizing them as an equal alternative to traditional contracting.