Other Transaction Authority (OTA) agreements allow defense agencies to side-step the Federal Acquisition Regulation, a 2,010-page document that government agencies typically have to comply with when making large purchases. A recent report from the Center for Strategic and International Studies found that DoD’s use of OTAs has increased by about 350% since President Trump took office.
“Contractors and the government alike don’t really like the [Federal Acquisition] regulation. It costs money to comply with all of it,” said McCarter partner Franklin Turner. “On the other hand, regulations are there for a reason: to ensure full and open competition, to ensure everyone is playing by the rules.”