Benefits of an OTA
There are many benefits to using an OTA, primarily decreased acquisition time and cost. There are other notable benefits, making the OTA a unique and desirable tool for program and contract managers alike, including:
- Federal funding can be obligated quickly.
- An OTA is not a contract, grant or cooperative agreement. As a result, an OTA is not subject to the Federal Acquisition Regulation (FAR) or its supplements.
- Projects awarded under an OTA are not subject to DCAA audits.
- Government rights to intellectual property are generally minimal and negotiable.
- Awards cannot be protested.
- Competition is required only to the maximum extent practicable.
- The Government is allowed to openly discuss requirements and to collaborate with contractors to obtain the best approach for developing technology.
- OTA projects generally are awarded on a Firm Fixed Price basis.
- Payments are made based on measurable milestone achievements. No Arm length agreement between government and contractor, but rather a partnership based on IPT concept.