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.

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