OTA USE BOOMS AS ACQUISITION TOOL

The Pentagon’s use of Other Transaction Authority (OTA) continues to explode, but they’re not the only agency using innovative acquisition methods. While Bloomberg Government reports that DOD has at least 150 active OTA agreements worth, at a minimum, $2.1 billion in 2017 alone, the Department of Homeland Security and GSA are using the innovative Commercial Solutions Opening (CSO) acquisition approach.  Bloomberg estimates that the total value of all DOD OTA agreements, including options, could be as high as $48 billion. One key factor to consider when conducting OTA business is whether your company is part of one or more consortia.  Industry experts report the creation of new consortia, a key channel through which many OTA’s are executed, each week.  Bloomberg believes that 2/3rds of all OTA agreements have gone through consortia, a group that typically includes universities, non-profits, and contractors.  GSA is promoting CSO’s to DOD and civilian agency customers that may use traditional or non-traditional government contractors as solution providers.  Agencies are clearly looking for new methods to get business done quickly, especially in this year when Congressional appropriations came late, but delivered more money than most agencies were expecting.  If your company isn’t using these, or other, innovative acquisition methods, you’re likely losing out on year-end business.