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ARTICLE · 18 MARCH 2024

Other Transactions: Freedom To Launch?

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Kelley Drye & Warren LLP

Kelley Drye & Warren LLP

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Many laws and regulations governing U.S. Government contracts do not apply to ​"Other Transactions" ("OTs").

United StatesGovernment, Public Sector

This article was authored in conjunction with
Kelley Drye's participation in Space Beach Law Lab 2024

Many laws and regulations governing U.S. Government contracts do not apply to "Other Transactions" ("OTs"). Since the first days of the space program, Congress has authorized the National Aeronautics and Space Administration ("NASA") to use OTs "as may be necessary" and "on such terms as it may deem appropriate" to carry out its mission, going beyond contracts, leases, and cooperative agreements. NASA OTs, called "Space Act Agreements" ("SAAs"), remove potential obstacles to attaining "the fullest commercial use of space." In addition to NASA's SAAs, Congress has granted OT authority to other agencies, including the Department of Defense ("DoD"), which awards OTs for research, prototype, and production purposes. Exemption from the voluminous Federal Acquisition Regulation ("FAR") system makes OTs particularly attractive to non-traditional contractors and small

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