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 interests, among other problems. BUT they are extremely convenient and easy for federal contracting and management offices. Why are flexible contracts (10 U.S.C. 4022) specifically meant for prototype projects (prototype performers) 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 awarded to an entity that does not do prototyping! The reality is – it’s a hack! This is an ‘easy button’ approach, pushed by DoD leadership, that disincentivizes the workforce 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 to equip the acquisition workforce for success in different operational environments – over SEVEN years ago! This has been ignored, while business-as-usual is protected and continues to be incentivized. The ‘so-called’ OT consortia model has become a hindrance to problem-solving, critical-thinking and innovation; obscuring the potential for both Other Transactions and real consortia. BUT as one program manager said recently, “Why do I care if it’s legal or not, they make my job easier.”
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 is better than the mainstream. Truth be told, if folks remove their shackles, both procedural and mental, and orient themselves on mission, Other Transactions remain wide open, yet still poorly understood. The flexibility allows you to do things, but you have to do the things!
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