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Contract Type Matrix

Research Other Transactions
10 U.S.C. § 4021

Research Other Transactions, or Research OTs, are non-FAR instruments used by DoD for basic, applied, and advanced research projects. Research OTs may be used to support research and development of technologies with potential military, commercial, or dual-use application. Unlike Prototype OTs under 10 U.S.C. § 4022, Research OTs do not include authority for follow-on production contracts or transactions.

Research OTs should include a cost-sharing arrangement that, to the maximum extent practicable, does not require Government funds to exceed the amount provided by the other parties to the transaction. The final cost-share approach may vary based on factors such as the performer’s resources, prior investment, commercial potential, military relevance, technical risk, and the nature of the research project.

Although the Competition in Contracting Act does not apply to Research OTs, competition should be pursued to the maximum extent practicable to encourage high-quality solutions and fair pricing. Research OTs are intended to provide flexibility in planning, evaluating, selecting, negotiating, and managing research efforts while reducing barriers that may discourage nontraditional performers from working with the Government.

Research OTs may also be used in connection with Technology Investment Agreements when the agreement is structured as an assistance transaction other than a grant or cooperative agreement. TIAs are governed by 32 C.F.R. Part 37 and are used to stimulate or support research, often to foster civil-military integration.

 

Common Applications

  • Basic, applied, and advanced research projects
  • Research and development activities to advance new technologies or processes
  • Evaluation of technical feasibility or utility
  • Dual-use technology research with both Government and commercial potential
  • Research efforts involving nontraditional defense contractors or commercial performers
  • Agreements requiring tailored payment terms, milestones, intellectual property provisions, or cost-sharing arrangements

 

Pros Cons
Reduces barriers to entry for nontraditional contractors and commercial innovators. Requires experienced and empowered acquisition, technical, legal, and fiscal personnel.
Allows flexible approaches for planning, evaluating, selecting, and negotiating research efforts. The Government must manage risk without relying on the full FAR procurement framework.
Cost accounting system requirements generally do not apply the same way they do under procurement contracts. Lack of standardized processes can challenge inexperienced teams.
Allows flexible negotiation of intellectual property, data rights, payment milestones, and cost-sharing arrangements. Does not provide follow-on production authority like Prototype OTs.
Can support dual-use research and civil-military integration. Requires careful documentation to show the effort is a proper research project under 10 U.S.C. § 4021.

 

Restrictions

  • Must be for basic, applied, or advanced research.
  • Does not provide follow-on production authority.
  • Should include cost-sharing so that, to the maximum extent practicable, Government funds do not exceed funds provided by the other parties.
  • Should not duplicate research being conducted under existing DoD programs to the maximum extent practicable.
  • Competition should be used to the maximum extent practicable.
  • Requires appropriate OT/agreement officer authority and agency procedures.
  • Fiscal law, ethics rules, the Procurement Integrity Act, and applicable agency policy still apply.

 

Reporting

 Reference Source: USD A&S Memo: Required and Recommended Use of eBusiness Tools When Awarding and Administering Other Transactions

  • Research OTs, including modifications, must be reported in the Financial Assistance Award Data Collection (FAADC).
  • Research OTs must identify the 9th position of the award number as a “3,”. The other positions of the award number and modifications will be assigned the same as procurement contracts. If the award supports a significant federal government or Department effort or initiative, Defense Pricing and Contracting will issue instruction for what identifier should be added to the ‘Description of Requirements’ field to easily track these actions when reporting to FPDS.
  • See Appendix A for all required and recommended eBusiness tools.

 

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