What is an OTA (other transaction agreement), and can a small company realistically get one?

An other transaction agreement (OTA) is a contractual instrument used by certain federal agencies for research, prototype, or production projects that generally falls outside the scope of the Federal Acquisition Regulation (FAR). This means that many of the standard FAR clauses and procedures you are used to seeing in a firm fixed price contract, like those for pricing, contract administration, and disputes, do not directly apply to an OTA. For your small software startup, this can mean more flexibility in how the work is defined and executed, as well as potentially faster award times compared to traditional FAR contracts. Being a "nontraditional defense contractor" typically helps in pursuing an OTA, as these agreements are often used to attract companies that do not usually work with the Department of Defense. A "nontraditional defense contractor" is an entity that is not currently performing or has not performed, for at least the one-year period preceding the date of the OTA, any contract or subcontract for the Department of Defense that is subject to full coverage under the cost accounting standards. Consortium membership typically involves joining an industry group that holds an OTA with an agency, and this consortium then manages solicitations and awards to its members. It can be a realistic path for a small company, as consortia are often designed to include and streamline access for innovative small businesses like yours.