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A Guide to the Newest Transaction Authorities in the Department of Defense

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In the past decade the expansive growth of artificial intelligence has forced militaries around the world to reassess their digital capabilities, and play catch up with China’s growth in critical technology areas.

In November 2023, The Pentagon released the 2023 Data, Analytics, and Artificial Intelligence Adoption Strategy. This Department of Defense strategy report outlines the department’s commitment to AI and its potential uses for enhancing capabilities, optimizing decision-making processes, and finding strategic advantages in the ever- evolving defense technology space.

In order to embrace and advance the U.S. Militaries AI capabilities the DoD has established several new offices to offer flexible funding approaches for innovation. These offices, known as Other Transaction Authorities (OTAs), serve as legal instruments that allow the DoD to discover and enter into agreements with non-traditional defense contractors.

This report will take a look at four OTAs that have emerged in the past decade and break down their specialties and responsibilities.

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