Why CSOs and OTAs Are Dominating Federal Acquisition Trends in 2025

1. Introduction

In an era where speed and adaptability are paramount, federal acquisitions are undergoing a revolution. The rising popularity of Commercial Solutions Openings (CSOs) and Other Transaction Agreements (OTAs) reflects the government's commitment to agile, innovation driven procurement-prompting contractors to rethink their strategies to win more government work.

2. What Are CSOs and OTAs?

Commercial Solutions Openings (CSOs) are solicitation frameworks that allow agencies to define problems or capabilities rather than strict specifications. They foster innovation by encouraging solution diversity and enabling faster evaluations. CSOs may result in either FAR based contracts or OTA awards, offering flexibility while still requiring postings on SAM.gov and adherence to certain evaluation guidelines.

Other Transaction Agreements (OTAs), on the other hand, are contracting tools outside the traditional FAR paradigm. They empower agencies-particularly the DoD, to engage non-traditional vendors, such as startups and research institutions, without facing compliance heavy barriers. Though exempt from most FAR rules, OTAs may still include certain FAR/DFARS clauses by choice.

3. Why Are CSOs and OTAs Gaining Momentum?

• Policy Support
  A key driver is recent executive direction and DoD memos urging adoption of CSOs and OTAs to accelerate procurement, especially for software under the Software Acquisition Pathway (SWP).

• Significant Spending Growth
  FY 2024 saw over $328 million in CSO-related spending, surpassing the combined totals of earlier years, highlighting a clear upward trend.

• Broader Legislative & Industry Endorsement
  Congressional reports, NDAA directives, and recent policy proposals like the FORGED and Innovate Acts continue to elevate OTAs as strategic contracting tools
  

4. CSO vs. OTA vs. Traditional FAR Contracts

When exploring federal acquisitions, it helps to understand the differences between Commercial Solutions Openings (CSOs), Other Transaction Agreements (OTAs), and traditional FAR-based contracts.

Commercial Solutions Openings (CSOs)

• Designed for innovative commercial solutions.

• Partially exempt from FAR, but still require certain structured postings and evaluation criteria.

• Faster than traditional procurements because they focus on defining problems and inviting creative solutions rather than rigid specifications.

Other Transaction Agreements (OTAs)

• Largely exempt from the FAR, offering maximum flexibility.

• Commonly used by the Department of Defense and agencies seeking prototypes or R&D from non-traditional contractors.

• Enable quick partnerships but can be riskier since standard FAR protections are often not included.

Traditional FAR Contracts

• Fully compliant with the Federal Acquisition Regulation (FAR).

• Provide the most structure, consistency, and legal protections for both government and contractors.

• Slower and more document-heavy, but lower risk because of built-in safeguards.

Key takeaway:

• CSOs balance flexibility with some regulatory guardrails.

• OTAs maximize speed and agility, but require careful negotiation to protect contractor interests.

• Traditional FAR contracts remain the gold standard for compliance and protections, though they move at a slower pace.

5. What This Means for Contractors

• Position Your Offerings for CSOs or OTAs
  Craft problem-centric presentations and frameworks suited to rolling submissions.

• Prioritize Agility and Innovation
  Bring innovative, quickly deployable solutions—especially tech-centric or iterative ones.

• Understand the Software Acquisition Pathway (SWP)
  DoD mandates it for software systems. CSOs and OTAs are frequently used within SWP to expedite outcomes.

• Prepare to Negotiate Risk Protections
  Since some FAR clauses may be omitted, proactively negotiate protections for IP, liability, and dispute resolution.

• Watch for OT- or CSO-Specific Solicitations
  Use platforms like SAM.gov, GovSpend, and Fedmine to track evolving opportunity vehicles.

6. Conclusion

The surge in CSOs and OTAs signals a new chapter in federal acquisition—one favoring agility, innovation, and flexibility over strict compliance and slow timelines. Contractors who adapt by aligning with these methods can unlock competitive advantages and position themselves early in the evolving acquisition ecosystem.

Ready to Position Your Business for Success in Federal Acquisitions?

At CIG, we specialize in Federal acquisition consulting, government contracting support, and compliance solutions that help businesses thrive in today’s fast-changing procurement environment. Whether you’re pursuing opportunities through CSOs, OTAs, or FAR-based contracts, our team of former federal 1102s and acquisition leaders delivers the expertise you need to stay compliant, competitive, and contract-ready.

Contact us today to learn how CIG can help you win and sustain success in the federal, state, and local government marketplace.