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54 Procurement Law. 1 (2018-2019)

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U E.. Ax.: :::. K it . ..: .: r. 1 .0 0 f.:: P.1 K . I C. C 0 N 1. . r.. I W.A.: A WARSAW:.-A L. . ..S. . 0M I ''Ott 'K 20 .0 ... . . ..... '0V 'W V W...:,,:: M90 ASO 0 .... C' N: . ...... ....................................................................................... ..................................................................................................I ....................................................... .. .. ..... Other Transaction Agreements: An Analysis of the Oracle Decision and Its Potential Impact on the Use of OTAs By ANNEJANETTE HECKMAN PICKENS AND DANIEL J. ALVARADO Daniel J. Alvarado The Department of Defense (DoD), along with other federal agencies, continuously grapples with the ques- tion of how to acquire the newest, groundbreaking tech- nology in a timely way, especially when that technology is produced by commercial companies that do not rou- tinely contract with federal agencies.' Many commercial companies hesitate to work with federal agencies because they perceive government contracting as a labyrinth of regulatory requirements and rigorous compliance obliga- tions that are too costly and time-consuming to meet.2 To counteract this sentiment, Congress has provid- ed DoD and a number of other agencies the authority to enter into other transaction agreements (OTAs).3 DoD Annejanette Heckman Pickens is an associate general counsel with General Dynamics Mission Systems (GDMS) and the budget and finance officer of the ABA Section of Public Contract Law. Daniel J. Alvarado is aJD candidate (2019) at George Mason University, Antonin Scalia Law School. The authors would like to thank GDMS general counsel Devon Engel and vice president of contracts Jerzy Piatkowski for assistance with this article. Any opinions expressed in this article are the authors' own, and not those of GDMS. has welcomed this authority as a tremendously flexible acquisition tool that creates opportunities to spur in- novation among defense contractors, attract companies with leading-edge technologies, and adapt business prac- tices to explore innovative technology rapidly.' Agency spending via OTAs has more than doubled in the last five years, growing to a reported $2.3 billion in government fiscal year (FY) 2017. Other reports indicate that between FY 2015 and FY 2017 DoD spent nearly $21 billion through 148 OTAs.6 Congress has urged on this expansion by increasing the number of agencies that may enter into OTAs, broadening the purposes for which OTAs may be used, and raising the dollar values for vari- ous OTA projects.7 Indeed, the Senate Report on the FY 2018 National Defense Authorization Act (NDAA) la- mented that agencies were taking an overly narrow in- terpretation of when OTAs may be used and continuing to burden innovative projects with unnecessarily re- strictive contracting methods.' As agencies pushed forward with their use of OTAs, the availability of judicial review of these agreements was continued on page 18 Published in The Procurement Lawyer, Volume 54, Number 1, Fall 2018. @ 2018 by the American Bar Association. Reproduced with permission. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association. Annejanette Heckman Pickens

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