March 18, 2019

Can We Talk?

Can We Talk?

Other Transaction Agreements improve Government/Industry Communication

The Other Transaction (OT) model enables open communication between government and industry. Unlike traditional contracts, there are few rules about how and when parties can talk under OTs. This helps Government learn about and better understand industry capabilities, and it lets Industry better understand government requirements.

When Government and Industry communicate openly... Government gains a better understanding of the state-of-the-art and real capabilities of industry so RFP's map to industry capabilities reflect an awareness of technologies already under development. Industry gains insight into Government needs, expectations and priorities so they are able to make informed bid/no bid decisions and focus IRAD in areas of opportunity.

When government and industry communicate before and, especially, after releasing a request for proposals under an Other Transaction Agreement (OTA), Government can identify and access promising new technologies, while industry can tailor their responses to meet government needs.

These insights from Government also help Industry focus their own investments (known as Internal R&D, or “IRAD”) on technologies that represent new opportunities. Well-targeted IRAD is a big win for the Government, since agencies don’t have to pay to build technologies from scratch. Rather, Government pays much less to customize what industry has already built using private money.

Robust government-industry communication is a hallmark of OTAs that leads to better technology outcomes and smoother acquisitions for industry and government alike.

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