Procurement Instrument

• “Other Transaction” - 10 U.S.C. 2371 authority to procure, granted to services by Sec 845 of FY96 NDAA*

• Agreement versus a standard FAR contract

• Goal to capitalize on the flexibility this instrument allows

  • Relief from FAR and supplement requirements, e.g., cost accounting and reporting, source selection processes
  • Conducted outside of standard procurement law and
    regulations (CICA, TINA, etc)
  • Use the “best” elements of the regulations and statutes

• Competition to the maximum practicable extent

• “Contractual” relationship based on sound business judgment and the “Freedom of Contract” principle

* - as amended

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