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The origination of Other Transaction Agreements (OTAs) traces back to the October 1957 launch of Sputnik I by the Soviet Union and the subsequent Space Race. Congress created the National Aeronautics and Space Administration (“NASA”) to quickly design and build new space technology. Following the creation of NASA, Congress granted the agency broad authority to “enter into and perform such contracts, leases, cooperative agreements, or other transactions as may be necessary” to carry out its mission. National Aeronautics and Space Act of 1958, Pub. L. No. 85-568, Section 203(5).

Although OTAs have been around for many years, since 2016 their use has, to use a pun, skyrocketed. Indeed, billions of appropriated funds are used to acquire the development of advanced technology through OTAs. Although OTAs have the benefit of decreasing the burden of the federal acquisition process, they also restrict a contractor’s ability to challenge their use.