Georgia Tech Procurement Assistance Center

What to expect from OTA protests and disputes

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Ready or not — federal agencies are increasingly utilizing “other transactions authority” (OTA) to craft agreements that are not subject to traditional procurement laws and therefore should, in theory, allow the government greater access to innovative solutions.

While the goal of OTA procedures may be to avoid bottlenecks inherent in procurement under the Federal Acquisition Regulation, in the end they may result in valuable contracts with the government. As with any such contracts, it is inevitable that disputes will arise during their formation and administration.

While there is very little precedent relating to protests of OTA awards or claims arising under OTA-awarded contracts, there are some fundamental principles and analogous decisions that suggest how this early history of OTA protests and claims may unfold.

This article attempts to portray the current landscape for protests of OTA awards and contract claims arising during performance of an OTA agreement.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=721778

The gatekeepers of the government’s ‘other transaction’ deals

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In the little-understood realm of other transaction authorities, there is a widely used but even more obscure contracting model: the consortium.

When federal contracting offices with OT authority — an alternative procurement method outside the Federal Acquisition Regulation — issue a contract, they sometimes will solicit a consortium, or group of traditional and nontraditional government contractors self-organized around a specific technological area.  A consortium management company — often billed as a non-profit — will then be given exclusive access to the requirements to distribute among its association’s members.

The consortium model has been used since the early days of OT contracting at the Defense Department, and is now used in civilian agencies with OT authority like the Energy Department and Transportation Security Administration.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2018/04/gatekeepers-governments-other-transaction-deals/147524/

This is part of a series about ‘other transaction’ authorities. Read the first part here.

A fundamental shift is underway in today’s market — Are you prepared?

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As we move into the second half of the fiscal year, what can we take away from the last six months?

As most analysts have pointed out, we can say with some confidence that despite the budget chaos and uncertainty, the market continues to be strong. Both professional and IT services showed meaningful growth in the first quarter of fiscal 2018 and it is reasonable to expect that trend continued in the second quarter.

In addition, we now have a spending agreement that relieves the unnatural and problematic budget caps, at least for a few years. And that likely means even more growth.

And, of course, the long discussed consolidation of our industry appears to be upon us; a spate of deals has escalated talk about a restructuring of the industry.

But beyond those evident trends, there are other dynamics well worth considering.

Keep reading this article at: https://washingtontechnology.com/articles/2018/03/28/insights-soloway-market-changes.aspx

Company calls out ‘old guard’ after Pentagon cuts its $950 million cloud contract by 93 percent

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One week ago, Virginia-based REAN Cloud was preparing to hire an additional 100 employees to meet demand across the Defense Department after it received a $950 million other transaction authority agreement to provide cloud services across Defense agencies.

Now the company is calling out the contracting community that it feels helped successfully pressure the Pentagon to curb its contract award by more than 90 percent — from $950 million to $65 million — and looking for answers from the Defense Department.

“Based on the threat of legal action and protest by the old guard, the only winners in this delay are those large companies that stand to lose money if the Defense Department proceeds with innovation. In the meantime, the cost of maintaining antiquated government infrastructure has not subsided,” said Sekhar Puli, the company’s managing partner, in a statement.

Keep reading this article at: http://www.nextgov.com/it-modernization/2018/03/company-calls-out-old-guard-after-pentagon-cuts-its-nearly-1-billion-cloud-contract/146529/

DIUx and DoD ‘other transaction’ prototype agreements: Fast track to DoD funding

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On February 7, 2018 the Department of Defense (DoD) awarded REAN Cloud a contract valued at up to $950 million to work with defense agencies to migrate existing applications to commercial cloud solutions. The award is of significant relevance to efforts currently underway in connection with the upcoming DoD Joint Enterprise Defense Infrastructure — or “JEDI” — procurement. However, the award is also important in a broader context in that it was issued as a follow-on production contract to an “other transaction” (OT) prototype agreement awarded on an expedited basis by DoD’s Defense Innovation Unit Experimental organization (DIUx). The award, therefore, reflects DoD’s increased comfort with issuing high-value production contracts following preliminary work with DIUx under OT prototype agreements.

In 2015, DoD founded DIUx to increase its access to technical innovations from nontraditional contractors. Defense contractors’ spend on research and development in the last decade has been adversely impacted by increasing budget cuts, protracted procurement cycles, and numerous government shutdowns. As a result, DoD has both needed and wanted access to cutting-edge technology in the commercial sector, but commercial companies with robust global markets have historically been wary of the significant compliance obligations that come with traditional defense procurements. DIUx is the Department’s attempt to contract with these innovators in a way that mimics the speed and terms of commercial transactions and significantly reduces compliance obligations.

Essential to the success of this approach is the use of OT agreements to govern DIUx transactions. According to recent congressional testimony, since it was established, DIUx has awarded 61 OT agreements totaling $145 million and averaging only 78 days from initial contact with a potential partner to signing an agreement. And, beginning in September of last year, DoD has followed some of those DIUx awards with follow-on production contracts. In addition to the recent $950 million award to REAN, DIUx has awarded two more production contracts together valued at up to more than $1 billion. Importantly, DoD can issue these high-value follow-on contracts without competition as long as competition was established for an initial DIUx OT award.

Recent efforts, therefore, suggest that DIUx, OT agreements, and follow-on production contracts are here to stay, and potential contractors of all sizes and sophistication should understand how they may impact the competitive landscape.

Keep reading this article at: https://www.natlawreview.com/article/diux-and-dod-other-transaction-prototype-agreements-fast-track-to-dod-funding

Haven’t sold to the Government before? DARPA might buy your tech

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darpaIn the past, companies that had never sold to the government found it difficult to prove their qualifications to federal buyers.

Today, several agencies are trying to eliminate experience requirements, part of a deliberate effort to acquire cutting-edge technology from commercial companies that have, until now, avoided the federal marketplace.

The Pentagon’s research and development agency is one prominent example: the Defense Advanced Research Projects Agency’s Microsystems Technology Office is introducing a “simpler contracting approach” for companies that haven’t sold to DARPA and haven’t won large Pentagon contracts, according to a recent announcement.

That initiative is supposed to help the agency connect with companies specializing in machine learning, sensors, hardware security and other technology that draws both commercial and government buyers, according to DARPA.

Keep reading this article at: http://www.nextgov.com/cio-briefing/2016/10/havent-sold-government-darpa-still-might-buy-your-tech/132203

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