Govini analyzed the Department of Defense’s use of other transaction authorities and Small Business Innovation Research contracts between fiscal year 2015 and FY 2019 and found that the two contracting methods accounted for 10 percent, or $9.6B, of DoD’s spending on research, development, test and evaluation operations in 2019, Defense News reported Wednesday.
The company’s analysis showed that DoD awarded $11.4B in OTA contracts from 2018 to 2019, up from $4.9B in OTA deals handed out between 2015 and 2017.
“The Defense Department’s surging use of OTAs reflects its strong desire to break free from the stringent acquisition process, better access innovative technologies, and lure new companies to the defense ecosystem who otherwise may not see the federal government as a viable or lucrative potential market,” said Govini CEO Tara Murphy Dougherty.
The U.S. Army awarded $14.1B in contracts through OTAs and SBIR during the five-year period, followed by the U.S. Air Force at $10.4B, defensewide agencies at $6B and the U.S. Navy at $4B, according to Govini.
Analytic Services, Advanced Technology International and Consortium Management Group are the top three consortia managers that account for more than 50 percent of the total OTA contracts awarded in the last five years.
Govini also cited traditional defense contractors that are considered top OTA recipients. Those include United Launch Alliance, Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and Boeing (NYSE: BA).
