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BGOV: DoD’s ‘Other Transaction’ Awards Could Exceed $7B by End of FY 2019

The Department of Defense obligated more than $4B on “other transaction” agreements in the first seven months of fiscal year 2019 and could record $7B or more in OTA obligations by the end of FY 2019, Bloomberg Government reported Thursday.

BGOV analysis shows that DoD has increased its OTA obligations by approximately 80 percent since FY 2014. The Pentagon issued $2.5B in OTA funds to consortia and $1.6B to individual contractors.

The report noted that Microsoft (Nasdaq: MSFT) has received the largest amount of OTA funds from DoD to date and that the U.S. Air Force has increased its OTA obligations from $586M in FY 2018 to $1.2B since the start of the current fiscal year.

Since the beginning of FY 2019, Air Force Space Command has obligated $662M on OTA contracts with Northrop Grumman (NYSE: NOC), United Launch Alliance and Blue Origin as part of the Evolved Expendable Launch Vehicle program.

According to the report, DoD spent more than $4B on OTA contracts in FY 2018.

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