Less than a year ago, we shared the story of how the National Center’s Procurement Technical Assistance Center (PTAC) helped Arrowhead Global secure its first 8(a) contract. Arrowhead specializes in aerospace manufacturing, military hardware manufacturing, construction, power solutions, professional services, and distribution. Now, the company is reaching new heights in federal procurement. Learn more about Arrowhead’s latest success in the update below.
Arrowhead Global, LLC, which has been a PTAC client since 2013, was recently awarded an indefinite-delivery/indefinite-quantity (IDIQ) multiple award to generate first article tests and produce F-16 avionics panels and face places with a maximum dollar value of $34,200,000. While this is a big accomplishment in and of itself, Chad Hill, CEO of Arrowhead, has informed the National Center’s PTAC that the company has been tapped by the United States Air Force to participate in an Other Transaction Agreement (OTA) effort and will submit their proposal shortly. The OTA covers:
Part Reverse Engineering/Repair DevelopmentNew Sustainment Technology (artificial intelligence, alternative manufacturing, machine learning, robotic process automation, etc.)Business Process Re-engineeringRapid Problem Solving (i.e. hackathons)
This invite is just another example of the complex programs in which our PTAC clients are being asked to participate. As our clients continue to expand their advanced procurement opportunities with the federal agencies, the PTAC continues to be a vital resource for them. We are very happy for Chad and the entire team at Arrowhead Global on their recent success, and look forward to working with them in the future as they strive for and meet new milestones.
Federal agencies use a variety of acquisition and financial assistance mechanisms, such as contracts, grants, and cooperative agreements, to help meet their missions. Congress has authorized 11 federal agencies to use Other Transaction Agreements (or Authority)—which generally do not follow a standard format or include terms and conditions required in traditional mechanisms, such as contracts or grants—to help meet project requirements and mission needs.
OTAs are legally binding instruments that may be used to engage industry and academia for a broad range of research and prototyping activities. OTAs are typically defined by what they are not: they are not standard procurement contracts, grants, or cooperative agreements. As such, they are generally not subject to the federal laws and regulations that apply to government procurement contracts (e.g., FAR/DFARS). An “other transaction” agreement comes in a variety of forms and is typically distinguished according to whether its purpose is for research or a prototype.
An OTA can allow for much greater speed, flexibility, and accessibility in performing research and prototyping activities. It can also be used to design and implement innovative business models within the government that would otherwise not be feasible. Any commercial or academic institution is eligible to receive an OTA award. However, OTAs may only be executed in the following circumstances:
The awardee is a non-traditional defense contractor.Non-traditional contractors are defined by statute as those entities that are not currently performing and has not performed for at least one-year prior to an OTA solicitation: 1) any contract or subcontract subject to full coverage under the Cost Accounting Standards (CAS); or 2) any other contract in excess of $700,000 under which the contractor is required to submit certified cost or pricing data.The awardee is a traditional defense contractor, but at least one of the following apply:A non-traditional sub-contractor is participating to a “significant” extent. “Significant” participation can refer to any of the following:Supplying a new key technology or product;Accomplishing a significant amount of the effort;Causing a material reduction in cost or schedule; and/or Causing an increase in performanceThe awardee provides a financial or in-kind cost share – typically, a 1/3 cost share is requiredThe Service Acquisition Executive makes a written determination that exceptional circumstances justify use of OTA for the purpose of executing innovative business models or structures that would not be feasible or appropriate with a FAR-based contract.
Given how quickly technologies are growing and evolving, OTAs will be a needed and increasingly important tool to swiftly transition technology from private industry to the government.