The Pentagon’s Cybersecurity Loophole: Other Transaction Authority (OTA)

From: National Defense

By Stew Magnuson


Those with good ideas can take the Air Force money — as long as there is a one-third cost share — and build prototypes without having to use Defense Department-approved accounting standards, adhere to the new cybersecurity rules, or comply with innumerable edicts that add to overhead.

This is all made possible by a once out-of-fashion contracting vehicle known as the “other transaction authority,” or OTA. The OTA has been around for decades. It was intended to allow nontraditional contractors or small businesses to build prototypes for the Defense Department, NASA and other agencies.

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