Georgia Tech Procurement Assistance Center

The Army’s newest $21 billion contract is not your typical government contract

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Last week the Army awarded Microsoft the Integrated Visual Augmentation System (IVAS) contract, a potentially $21 billion undertaking by the Army to develop next-generation night vision and “situational awareness capabilities” in a Heads Up Display.  Unlike Microsoft’s last multi-billion dollar contract award, the Joint Enterprise Defense Infrastructure (JEDI), which is still pending before the Court of Federal Claims more than a year after Amazon filed its bid protest challenging the award in November 2019, IVAS is unlikely to experience the same fate.  Why?  Because IVAS was awarded under the Army’s Other Transaction Authority (OTA) and is not subject to the same FAR rules as the JEDI contract.

Continue reading at:  The Contractor’s Perspective

GAO clarifies its jurisdiction over OTA protests

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The Government Accountability Office (GAO), in Spartan Medical, Inc., B-419503, recently clarified the scope of its jurisdiction over bid protests involving an agency’s use of its other transaction agreement (OTA) authority.  The GAO’s decision in this case is noteworthy because agencies are increasingly relying on OTAs to meet their procurement needs.

Continue reading at:  Bradley’s BuildSmart Blog

Other transaction agreements: Where does an unsuccessful bidder go?

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A recent decision by the U.S. District Court for the District of Arizona highlights the complexity of jurisdictional issues faced by unsuccessful offerors that challenge government awards of “other transaction” (OT) agreements.  Over the past few years, OT agreements have grown significantly in popularity due to their immunity from the regulatory provisions that typically govern government procurement contracts, including those that address intellectual property rights, cost accounting, and other key terms.  By some reports, Department of Defense (DoD) spending on OT agreements has grown from $2.3 billion in Fiscal Year (FY) 2017 to, by some accounts, more than $7 billion in FY 2019.  It is no wonder that companies not selected for an OT agreement have at times attempted to challenge their exclusion in various judicial fora.

Continue reading at:  Hogan Lovells

Journal article: OTAs are government contracts, and why it matters

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Readers of this Journal are likely aware of the burgeoning interest in Other Transactions and Other Transactions Authority (OTA).  Some believe that agencies endowed with OTA are free from the traditional rules of procurement contracting when forming Other Transactions.  With the freedom of OTA, the theory goes, agencies can contract with the most innovative commercial firms, which might otherwise decline the boilerplate terms and compliance burdens associated with procurement contracting.  This article is a reminder that the authority to create an Other Transaction is, at bottom, the authority to create a government contract.  It first explains why Other Transactions qualify as contracts and then begins exploring the implications of the contractual nature of Other Transactions.  Any private party entering into an Other Transaction should be aware of the significance of contracting with the United States.  OTA might clear away many burdensome procurement statutes and regulations, but principles of sovereign immunity and separation of powers, along with the pervasive precedents of the United States Court of Appeals for the Federal Circuit, will continue to ensure that doing business with the federal government, even by “Other Transaction,” is never quite the same as doing business in the commercial market.

Continue reading at:  Arnold & Porter

GSA begins pilot using OTA-like streamlined acquisition process

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The General Services Administration announced Monday its client support center for acquisitions will use a streamlined process, designed to attract startups, to procure innovative, commercial solutions.

As part of a pilot, GSA’s FEDSIM innovation team will rely on the commercial solutions opening (CSO), a solicitation outside the Federal Acquisition Regulation, to acquire technologies and services in the production phase or adapted from existing products from “traditional and non-traditional government contractors.”

“The goal of this pilot program is to provide a streamlined approach for acquiring innovative commercial products and services,” GSA says.

CSO is a recently created tool with simplified contract terms, which Section 880 of the National Defense Authorization Act for fiscal 2017 authorized GSA to create the pilot.  It’s similar to the Other Transaction Authority of defense agencies but differs in that it’s not legally binding, GSA says.

Continue reading at:  FedScoop

OTA agreements exploding in popularity

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The Defense Department is ramping up spending on other transaction authority agreements, according to a recent report by big data analytics firm Govini.

The agreements are a contracting mechanism intended to cut through bureaucratic red tape associated with the Pentagon’s standard acquisition practices, and help the department tap into innovation from nontraditional suppliers.  The 2016 National Defense Authorization Act expanded their application.  OTAs are now available for basic, applied and advanced research projects and for prototype projects and follow-on production, noted the Govini report titled, “Evaluating the Innovative Potential of Other Transaction Authority Investments.”

“To ensure U.S. military advantage, it is imperative for DoD to partner with businesses and academia to incorporate innovative technological advancements into military capability,” the study said.  “DoD is increasingly using OTAs to leverage commercial technology for research and prototyping.”

Following the change in the NDAA, obligation totals grew by 122 percent, eventually reaching a total of $3.4 billion in fiscal year 2018, according to the report.

Continue reading at:  National Defense Magazine 

Defense dominates experiment in streamlined bidding for innovation

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Streamlined solicitations for innovative commercial products and services, known as commercial solutions openings are beginning to take off in the Defense Department. Even the General Services Administration’s CSO service, which is open to all agencies for a fee, so far has been dominated by Defense users.

CSOs aren’t as well known or broadly used as their procurement-innovation cousin, other transaction authority, which gives agencies the ability to strike contracts outside the Federal Acquisition Regulation for research, prototypes and production to obtain technology from nontraditional defense contractors. Eleven agencies including Defense have OT authority.

GSA’s CSO holds the potential to bring civilian agencies, most of which don’t have OT authority, the ability to reach out to and select suppliers unencumbered by the Federal Acquisition Regulation. So far, civilian agencies haven’t been biting, but Pentagon organizations are, even though they have their own CSO provider.

The very first GSA CSO customer was none other than the Defense Innovation Unit, a once-experimental buying organization that invented CSOs. Originally designed to lure emerging companies to work for the Pentagon by easing the pain of federal procurement processes, the Defense Innovation Unit Experimental, or DIUx, lost the X last summer, when it was designated a permanent outpost for testing defense buying boundaries.

Keep reading this article at: https://www.govexec.com/excellence/management-matters/2019/03/defense-dominates-experiment-streamlined-bidding-innovation/155373/

GTPAC hosts ‘Creating the Next: Defense Innovation Conference’

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The Georgia Tech Procurement Assistance Center (GTPAC) recently sponsored an event where 200 small innovative tech companies learned about special funding opportunities and programs that are available to small businesses at the Department of Defense (DoD), including the Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) programs.

“The goal of the January 14th conference was to help small companies, especially small technology companies and innovative manufacturers, learn about how they can do business with the Defense Department and its various components,” explained Andrew Smith, GTPAC’s program manager.  “We wanted to have an event where we could educate the small business community about DoD opportunities.”

GDX connects Georgia businesses with each other and with DoD contract opportunities.

The event featured numerous prominent speakers.  Khai Edouard, the co-founder of the technology consulting firm The Simple Vue, spoke about the Georgia Defense Exchange (GDX), a technology platform that was built for the Georgia Department of Economic Development that helps government defense contractors network with other contractors and find contracting opportunities with DoD.  Contractors can access the Georgia Defense Exchange at https://gdx.georgia.org

The National Security Technology Accelerator prospects, vets, and develops technology.

Tim Greeff, the founder, and CEO of the National Security Technology Accelerator (NSTXL), which prospects and develops innovative technology for the Department of Defense, spoke about Other Transaction Authority (OTA) contracts, and how DoD utilizes OTAs to fund research and prototype development.

Adele Navarrete, senior corporate counsel for the Logistics Management Institute, a major not-for-profit defense contractor, provided attendees with insights and advice on how to win business with the Department of Defense.  Ms. Navarrete later joined an industry panel with Raven Smith, senior regulatory compliance analyst with Lockheed Martin, and John Roman, senior vice president at Huntington Ingalls Industries – Technical Solutions.  They discussed the important attributes and qualities defense contractors look for in subcontractors.

Panelists, representing defense industry giants, provided attendees with subcontracting insights.
Lisa R. Sanders with U.S. Special Operations Command discussed technology problems she’s counting on industry to solve.

The keynote address was delivered by Lisa R. Sanders, the director of science and technology for the U.S. Special Operations Command (USSOCOM).  As a defense intelligence senior leader, Ms. Sanders is responsible for all research and development funded activities for the U.S. Special Operations Forces at MacDill Air Force Base.  Ms. Sanders gave an overview of USSOCOM’s technology and purchasing priorities, and the difficult technology problems Special Operations Forces needs industry to solve.  Ms. Sanders also gave an overview of how industry could engage and do business with the USSOCOM.

After the keynote speech, attendees were able to network with one another and forge potential business relationships.

Four concurrent workshops were also held in the afternoon sessions that covered a variety of topics of interest to government contractors, including how to develop successful bids and proposals and how to comply with DoD cybersecurity requirements.

“Overall, I’m very proud of the event and how industry and government came together to provide such excellent information and training to our attendees,” said Mr. Smith.  “I think everyone came away learning a lot about how to best engage the Department of Defense if you are a small technology company or manufacturer with the next great product or idea.  I firmly believe Georgia Tech can help connect the next great idea to those in DoD who need that idea and solution — and that is going to keep our nation safe.”

Copies of all presentations made at the Jan. 14, 2019 event — along with related resource materials — can be downloaded from: https://gtpac.org/training-video/

 

Agencies spent record $64.7 billion on IT contracts in 2018

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Federal agencies spent a record $64.7 billion on IT contracts in fiscal 2018, according to research released last week by Bloomberg Government.

The nearly $65 billion spent represents a 9.5 percent increase over fiscal 2017 levels, and includes higher levels of spending in cybersecurity ($6.4 billion), cloud computing ($4.1 billion) and almost a doubling of other transaction authority spending, to $4.2 billion from $2.3 billion.

IT spending jumped in both civilian and defense agencies. Across the Defense Department, IT contract spending grew by about 12 percent to $33.8 billion — the highest nominal spending figure ever for the Defense Department, and highest adjusted for inflation IT contract spending since 2012.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2019/01/agencies-spent-record-647b-it-contracts-2018/154510/

DoD is now taking applications for 2019’s Rapid Innovation Fund

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The Department of Defense has opened applications for the 2019 edition of its Rapid Innovation Fund (RIF) — a program that offers up to $3 million in funding for “innovative technologies” that “meet critical national security needs.”

The defense agency posted its broad agency announcement on FedBizOpps on Jan. 11, 2019 and will be taking white paper submissions until March 8, 2019.

What’s the DOD looking for?

Per the announcement, the agency is seeking tech solutions to support the ambitions of the National Defense Strategy.

Keep reading this article at: https://www.fedscoop.com/rapid-innovation-fund-2019/

Gain insights into this development by visiting resources posted at https://gtpac.org/training-video from GTPAC’s Jan. 14th Defense Innovation Conference.

See an explanation of DoD’s Rapid Innovation Fund (RIF) at: https://business.defense.gov/Programs/RIF/

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