What is the Purpose of Other Transactions & Why 'so-called OT Consortia suck!
In this podcast episode, Strategic Institute gets back to basics, asking what is the purpose of Other Transactions, why were they created, what is their 'mission'? The answer, while misunderstood by many, is simple and clear.Additionally, we tackle the 'so-called' OT consortia issue, which generally speaking, are NOT consortia, may not be legal, and have an obvious conflict of interest problem, among others. BUT they are extremely convenient and easy for federal contracting and management offices. Why are flexible contracts (10 U.S.C. 4022) meant for prototype projects (those involved in prototyping) being awarded to a support services contractor not engaged in prototype activities? The consortia members, the performers, are not awarded OTs but subcontracts (aka commercial contracts). The OT is being awarded to an entity that does not do prototyping! The reality is, it's a hack! This 'easy button' approach, pushed by DoD, has had the consequence of disincentivizing people from exploring, learning, and experimenting with new and different business approaches and collaborative arrangements, and creating more dynamic teams. Not to mention this action flips the bird to Congress (warfighter & people too) who mandated preferential use of these authorities AND equipping the acquisition workforce to succeed working in a different operational environment - over SEVEN years ago! This has been ignored, while business-as-usual has been protected and continues to be heavily incentivized. The 'so-called' OT consortia model has become a hindrance to innovation, obscuring the potential for both Other Transactions and real consortia.We recognize that some are putting their thinking caps on, even within the current framework, that's awesome! We like seeing critical-thinking and problem-solving applied to acquisition processes. Other Transactions are flexible, they allow teams to create, build, be a part of something more. At this point, just about anything will be better than the mainstream. Truth be told, if folks remove the shackles, both procedural and mental, and orient themselves on mission, Other Transactions are remain wide open, yet still poorly understood. The flexibility allows you to do things, but you have to do the things!Â