‘Other Transaction’ Spending on the Rise, Key to Covid Response

The federal government’s need for speedy acquisition led to $36.8 billion in agency agreements with private industry for prototypes and R&D services since fiscal 2020.

All procurement under “other transaction authority” in fiscal 2020 resulted in an all-time high of nearly $18 billion, about half of which was used for procurement related to the government’s Covid-19 response, according to Bloomberg Government data. The value of OTA spending in fiscal 2021, $15.4 billion, would have been the record amount if the pandemic-related transactions were separated.

OTA procurement allows agencies to fund research and development programs and buy certain goods and services ...