There are many benefits to using an OTA, primarily in 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:
- An OTA is not a contract, grant or cooperative agreement. As a result, OTA Initiatives are not subject to the Federal Acquisition Regulation (FAR) or its supplements.
- Federal funding generally can be obligated more quickly, and Initiatives are awarded in less time than typical FAR-based contracts.
- Initiatives awarded under an OTA are not subject to DCAA audits.
- The Government may collaborate with contractors in tailoring the terms to the Initiative and the needs of the performing member(s), achieving the best approach to fulfilling the Government’s technology needs.
- Government rights to intellectual property are negotiable on an Initiative-by-Initiative basis.
- OTA Initiatives are awarded on a Firm Fixed Price basis.
- Payments are made based on measurable milestone achievements.
- Competition is required only to the maximum extent practicable.
- Awards are not subject to protest.