Does the department of defense have additional powers to award contracts? What is its ‘other transaction authority’?
The Department of Defense ("DoD") has authority to enter into transactions (other than contracts, cooperative agreements, and grants) to carry out basic, applied, and advanced research projects. Figuratively called "other transaction authority", The DoD is supposed to be saddled with restrictions on the use of "other transaction authority".
The "other transaction" may not (to the maximum extent practicable) provide for research that duplicates research being conducted under existing programs carried out by the DoD
To the extent that the Secretary of Defense determines practicable, the funds provided by the Government under an "other transaction" must not exceed the total amount provided by non-DoD parties; and
"Other transactions" may be used when the use of a procurement contract, federal grant, or cooperative agreement is not feasible or appropriate. See 10 U.S.C. section 2371.
Organizations that wish to do business with the Government without being subject to the regulations applicable to procurement contracts, federal grants, and cooperative agreements may find DoD "other transactions" appealing.
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