OTAs under fire: legal challenges emerge

Other Transaction Authority (OTA) acquisitions, long seen as a fast-track alternative to standard federal contracts, may no longer be shielded from protests. In a recent Federal News Network interview with Haynes Boone attorney Zach Prince, Prince explained that OTAs can still face legal scrutiny—just not through the speedy GAO channel. Instead, the Court of Federal Claims is increasingly recognizing jurisdiction over these challenges.

A recent example involves Raytheon protesting a major missile defense OTA. Prince noted that, despite OTAs’ design to expedite cutting-edge work and bypass some FAR hurdles, “we’re talking about billions of dollars and there has to be some oversight process.” While OTAs give agencies flexibility and speed, especially for complex initiatives like hypersonic defense, established defense giants often secure these deals—raising the likelihood of disputes.

Ultimately, the Raytheon case underscores that OTAs, once viewed as “protest-proof,” may not be immune after all.