Other Transaction (OT) Authority

An other transaction OT is a special vehicle used by federal agencies for obtaining or advancing research and development RD or prototypes. An OT is not a contract, grant, or cooperative agreement, and there is no statutory or regulatory definition of other transaction. Only those agencies that have been provided OT authority may engage in other transactions. OT authority originated with the National Aeronautics and Space Administration NASA when the National Aeronautics and Space Act of 1958 was enacted. Subsequently, seven other specific agencies have been given OT authority the Department of Defense DOD, Federal Aviation Administration FAA, Department of Transportation DOT, Department of Homeland Security DHS, Transportation Security Administration, Department of Health and Human Services, and Department of Energy. Other federal agencies may use OT authority under certain circumstances and if authorized by the Director of the Office of Management and Budget OMB.