1 source · first reported 2h ago
The Pentagon has partnered with a venture studio to test a new contract model where vendors are paid based on the costs they eliminate for the Department of Defense. The pilot program is worth $100M and utilizes an Other Transaction Authority (OTA) agreement. This unique approach aims to demonstrate a new framework for shared services contracts.
This partnership signifies a shift in the Pentagon's approach to contracting, focusing on cost savings and efficiency. The use of an OTA agreement allows for more flexibility and innovation in the contracting process.
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