Overall, industry and government need to be educated on the flexibilities of OTAs and how they can operate if used correctly.
Education should not be singularly directed to industry or government but to all on an acquisition team, which includes both buyers and sellers.
Arlington, Virginia, May 5, 2026 — The Greg and Camille Baroni Center for Government Contracting in the Costello College of Business at George Mason University released its latest White Paper: Department of War OTAs (Other Transaction Authority) through the Eyes of the Contractor.
Written by Janel C. Wallace, this white paper identifies the hindrances and potential improvements is just the first step in increasing speed to delivery. National Defense Contractors (NDC) participation remains vital to the success of the Department’s Strategy of transforming the acquisition system to deliver those OT innovations to the warfighter.
“Today’s security environment, shaped by active conflict in the Middle East and Europe and deterrence requirements in the Western Pacific, demands rapid delivery of advanced military capabilities at scale. While the United States has historically relied on its unmatched industrial capacity to deter and defeat adversaries, that advantage can no longer be assumed. Adversaries are adaptive, technology evolves continuously, and speed to capability has become decisive.”
To sustain America’s warfighting edge, Congress and Department leadership have underscored the urgent need to more fully integrate Nontraditional Defense Contractors (NDCs)—particularly firms specializing in advanced and emerging technologies—into the defense industrial base. Legislative action, regulatory reform, and policy direction increasingly point to Other Transaction Authority (OTA) as a critical mechanism for achieving this objective.
Although OTA use has risen significantly for research, prototypes, and follow‑on production, it remains a small fraction of overall Department acquisition activity. Most NDCs are small businesses, and existing acquisition processes often fail to support the rapid transition of innovation into operational capabilities. As a result, Congress and Department leaders are evaluating how to expand, accelerate, and extend OTA use to unlock greater industrial participation and innovation throughput.
Key findings indicate that increasing OTA effectiveness requires targeted improvements across risk management, funding transparency, education, communication, and process efficiency. Clear, well‑defined OTA solicitations—paired with predictable payment structures, financing options, and early industry engagement—can significantly improve cash flow, resource planning, and participation by NDCs. Equally important is limiting unfunded prototype requests and improving access to government facilities and equipment to reduce unrecoverable industry investments.
Additional priority actions include:
- Streamlining and reducing the cost of certification and approval processes
- Improving usability of government online systems
- Ensuring consistent determinations of commerciality
- Incorporating alternative dispute resolution mechanisms
- Avoiding unnecessary application of FAR requirements to OT agreements
Requiring FAR-driven elements such as certified cost or pricing data in OTAs undermines their purpose and reduces speed. Value-based analysis offers a more effective approach for determining price reasonableness while maintaining government stewardship.
Speed remains the defining expectation of OTAs. Expanding the availability of trained Agreement Officers, leveraging existing OT vehicles, and establishing a repository of completed prototypes ready for production would accelerate capability transition when funding becomes available.
Early and continuous communication between government and industry is essential. Clearly articulated pathways from prototype to production significantly incentivize NDC participation and improve alignment across acquisition teams. Outreach strategies must also extend beyond traditional platforms, as many NDCs do not routinely engage through standard government entry points or consortia.
While consortia can be effective, industry feedback suggests reliance should be reassessed to reduce administrative burden and duplication. Finally, broader education across government and industry on the flexibilities and intended use of OTAs is critical. Shared understanding among buyers and sellers alike will reduce risk aversion, increase innovation, and deliver advanced capabilities at the speed demanded by today’s warfighters.