How does the OT process work?
Other Transactions offer greater freedom of contract than traditional government contracts. OTs require careful planning, creativity, and critical thinking because there are no templates or checklists.
Collaboration and careful planning are critical for success. Some of your colleagues will be seeing OTs for the first time, so always involve everyone as early as possible to include contracting, legal, program, and cost analyst personnel. You don’t want to surprise a decision-maker at a later stage. Foster a collaborative and transparent environment.
Don’t be limited by the past. OTs are not constrained by the usual government contracting rules. Seize this opportunity by letting your goals and requirements drive the contractual arrangement. Make the OT agreement match your vision for program success.
Negotiation is wide open with OTs. Forget the rigid process from traditional government contracting. OTs allow frequent, unconstrained, transparent, and collaborative negotiation between industry and government. Sharing information and comparing goals will allow both parties to meet objectives.
On the government side, OTs will often require special approvals by senior leadership. These thresholds vary by agency and change frequently. Pay attention to legislative or policy changes. The current guidance for the Department of Defense is available here.
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