We don’t offer memberships to specific OTAs. Instead, we offer membership to NSTXL, which provides your firm access to all of our OTAs. Currently, NSTXL is the consortium manager for three OTAs, TReX, S2MARTS, and SpEC, but we are bidding on many more. As we manage more OTAs, there is no additional membership fee – just more opportunities for your firm to grow.
No, NSTXL does not add a cost on top of the Performer’s Project invoice or take a percent of the invoice. NSTXL is paid a management fee by the Government which is a percentage of the total Project Award. This fee does not affect the nominal value of the award to the Performer.
Yes, the NDAA FY18 made changes to the Small Business Innovation Research (“SBIR”) and Small Business Technology Transfer (“STTR”) programs (Section 864: Other Transaction Authority for Certain Prototype Projects). This (1) increases the amount of funding that can be authorized through the rapid prototyping program from $50 to $100 million for Department Secretaries and from $250 to $500 million for the Secretary of Defense and (2) specifically authorizes SBIR and STTR firms to compete for such funding through the Other Transaction Authority (“OTA”) contracting vehicle. 10 U.S.C. §4022– (formerly 2371b).
What agreement is put into place between NSTXL (the Consortium Manager) and the selected performer(s) for an opportunity?
Once a performer(s) has been selected based on the evaluation of white papers or solutions by the government, NSTXL will enter into a Performers Agreement with the selected vendor(s). This takes approximately 3-5 business days after NSTXL has been notified of the selection by the government. Every agreement is different and can be tailored to meet the specific needs of the vendor and government program office.
NSTXL membership dues vary by entity type and size. The full dues schedule for each can be found here: Membership.
Yes, each organization is required to have a CAGE code. If a company has conducted business with the U.S. Government, it should include their CAGE code on their Membership Application. All applying members are required to include their CAGE code when submitting the Membership Application.
The most valuable benefit of joining NSTXL is the ability to bid on our exclusive solicitations. Our government customers mandate that you must be a member to submit a bid. But NSTXL offers many other benefits to its members, including:
- Membership to all of the OTAs we manage.
- Ability to sign up as many members of your firm as you like, so that multiple team members can track their own areas of interest.
- A Learning Center with webinars, videos, and other member-only content to give you an edge on winning work and preparing for solicitations.
- Access to a member community where your firm can interact with other members (find bidding partners, discuss new prototypes, expand your professional network etc).
- A customizable Opportunity Tracker that allows you to track opportunities and technology areas, ensuring you never miss out on an opportunity.
- Access to special member-only events at major commercial and government conferences
- More to come…
Can a member of the consortium use a subcontractor entity (other company, university, etc.) that is not part of the consortium?
Yes, the subcontractor does not have to be a member of the consortium, but the member is required to identify all subcontractors in their solution submission. Only the Prime on the contract needs to be a member of NSTXL.
Can a large company benefit from being a NSTXL member, or is it only for nontraditional contractors?
Traditional defense contractors can greatly benefit from engaging with NSTXL in a variety of ways: NSTXL encourages teaming agreements among members (traditional and non-traditional) to deliver solutions to the Warfighter. NSTXL events also offer traditional contractors opportunities to identify business opportunities with innovative technologies from start-ups, universities, and incubators who engage in technology challenges and showcases.
If I am part of a university system, does membership apply to all campuses within the system or is it specific to the campus I am on?
University membership is processed at the campus level. For example, a membership for the University of Texas at Austin covers the entire Austin campus. The University of Texas El Paso would require a separate membership for that campus.
Corporate dues are based on total annual revenues for the parent company in the previous 12-month period. Once a specific division, subsidiary or line of business of a corporation joins NSTXL at the full membership cost, the whole corporation is considered a member. If the organization is a separate subsidiary or division of a large corporation, it can’t pay a membership due based on its own annual revenues – only the parent company’s revenues.
Only companies that fulfill our simple requirements and agree to our Principles of Engagement can become members. Provided your company is eligible to do business with the Department of Defense, has a valid DUNS number and CAGE code, and, if joining SpEC, has a valid, JCP-signed Form DD2345, you can join NSTXL. Membership dues are valid for 1 year after time of payment.
To join NSTXL, simply fill out the Membership Application. You’ll be able to submit your application and, pending a brief (typically 1 business day) requirement review, your membership will be instated. If for some reason we have questions, we’ll contact you. If you don’t meet our criteria for membership, we’ll refund your membership dues.
All contracts and subcontracts with small businesses are exempt from all CAS requirements (FAR 9903.201-1(b)(3)).
No. All prototype project requests will be publicly posted on the NSTXL and specific consortium websites. Non-members will be able to download and review the full request and requirement. However, membership in NSTXL is required to submit a response to any request. For information on NSTXL membership, click here: Membership.
Contract announcements and “Coming Soon” opportunities include technology areas that are defined and described by government clients and in alignment with technology areas listed above and on the NSTXL website. NSTXL will help to clarify matches with your technology capabilities when needed.
Cost sharing is a statutory requirement for an Other Transaction when a non-traditional contractor is not participating to a significant extent. Cost Sharing is when one-third of the total cost of the prototype project is to be provided by sources other than the Federal Government. Cost sharing can be represented as cash or in-kind value.
Doing business with the Government is new to our company. What information should we include in our proposal?
Each Request for Solutions, or RFS, is deliberately tailored for each project and all instructions regarding your proposal’s content and format are contained within that document. Remember, there is a reason for each directive or request within the RFS. Ensure you take time to review and understand all RFS instructions since a noncompliant proposal make be grounds for deeming your response ineligible for consideration. If something in the RFS doesn’t quite make sense, please submit your question to NSTXL and we can assist.
According to statute, a nontraditional defense contractor is defined as an entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation of sources by the Department of Defense for the procurement or transaction, any contract or subcontract for the Department of Defense that is subject to full coverage under the cost accounting standards prescribed pursuant to section 1502 of title 41 and the regulations implementing such section.
To summarize, in order to be considered a nontraditional defense contractor:
Your company cannot be currently performing a contract or subcontract that is subject to full coverage under the cost accounting standards (CAS); and,
Your company has not performed a contract or subcontract subject to full coverage under the CAS within one-year of RFS release.
Under an OTA, IP and Data Rights are negotiated on a project-by-project basis prior to final agreement. Consideration is given to existing IP and data. Commercial and proprietary IP and data developed prior to engagement on specific prototype efforts remain the sole property of the vendor.
How long after the down-selection has been made will the contract be finalized and work be allowed to begin on the project?
Each project timeline differs in complexity and structure based on the requirement. However, the typical timeframe from prototype project request issuance to project agreement finalization is 60-90 days.
NSTXL releases prototype project requests on demand, year-round. The requesting program offices will determine the frequency of the release of prototype project requests.
The Government requirement sponsor will identify subject matter experts appropriate to conduct a fair and reasonable evaluation and provide selection recommendations to the Agreements Officer. NSTXL does not play a part in the selection of any vendors.
A prototype project can generally be described as a preliminary pilot, test, evaluation, demonstration, or agile development activity used to evaluate the technical or manufacturing feasibility or military utility of a particular technology, process, concept, end item, effect, or other discrete feature. Prototype projects may include systems, subsystems, components, materials, methodology, technology, or processes. By way of illustration, a prototype project may involve: a proof of concept, a pilot, a novel application of commercial technologies for defense purposes; a creation, design, development, validation, demonstration of technical or operational utility; or combinations of the foregoing, related to a prototype.
Will projects involve compliance with Export Administration Control Regulations (EARS) and International Traffic in Arms Regulations (ITAR)?
Yes, compliance to EARS and ITAR is required. Any firm large or small must comply with US regulations and laws, no matter the level of effort. Both the Government and NSTXL realize that complying with Export Controls (EARS and ITAR) will take more resources. The Government is required to identify projects requiring Export Control at the beginning of the project ideation. This provides Consortium Members with adequate information early in the process to determine if they want to respond, since these types of projects would require additional steps and resources.
There is no statutory definition of “Significant Extent/Participation”; however, examples of what might be considered a significant contribution include:
- will supply a new key technology, product or process
- will supply a novel application or approach to an existing technology, product or process
- will provide a material increase in the performance, efficiency, quality or versatility of a key technology, product or process
- will accomplish a significant amount of the prototype project
- will cause a material reduction in the cost or schedule of the prototype project
- will provide for a material increase in performance of the prototype project
The Government will determine “significant extent/participation” in their evaluation of the solutions.
Could Projects be classified programs and if so, what is the process for organizations to participate in classified projects?
Yes, some projects may be classified programs. The Government will identify projects requiring use of classified data in the Request for Solutions. Classified programs require the close involvement of the Government’s security staff to assess and approve Consortium Members for access and control of classified data.
You can easily find teaming partners on NSTXL Community. On NSTXL Community, you can search and filter through the membership database to identify potential teaming partners that can meet your project needs (i.e. based on technology area, compliance status, and more). Once you find someone that is a good fit, you can talk with them directly through the NSTXL Community platform by using the chat feature. Refer to our helpful How To Guide or How To Video for more information.
Teaming Collision events are another way for members to find teaming partners. Teaming collision events showcase member capabilities specific to Government-identified, forward looking technical focus areas. Participants have the opportunity to connect and build capability and technology-driven partnerships in addition to keynote and live Q&A session with Government’s technology leadership team.
Registering on NSTXL Community is easy and only takes a few minutes. You can watch this short video or check out our How To Guide to get started.
NSTXL Community is a members-only teaming platform giving you insider access to hundreds of like-minded innovators. You can join groups based on opportunities, ask questions, vet skills, curate connections, and find new partners all from your computer or smartphone. You can download the app on Google Play or the Apple App Store. Just look for NSTXL Community.
A Facility Clearance Level (FCL) is a determination made by the Government that a contractor is eligible for access to classified information. A contractor must have an FCL commensurate with the highest level of classified access (Secret or Top Secret) required for contract performance.
The Commercial and Government Entity Code, or CAGE Code, is a unique identifier assigned to suppliers to various government or defense agencies, as well as to government agencies themselves and various organizations. CAGE codes provide a standardized method of identifying a given facility at a specific location.
Yes. A traditional contractor may still receive project awards under the OTA given that at least one of the following conditions is met: 1) the traditional contractor includes one or more non-traditional contractors or nonprofit research institutions to perform a significant portion of the billable work; 2) the traditional contractor includes a nontraditional contractor with a technology that is critical to the success of the prototype; 3) the traditional contractor provides for a one-third cost share on the project.
What is the difference between a traditional and nontraditional defense contractor for the purposes of the OTA?
A “Non-traditional defense contractor” is defined by statute as “an entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation sources by the Department of Defense for the procurement or transaction, any contract or subcontract for the Department of Defense that is subject to the full coverage under the cost accounting standards prescribed pursuant to Section 1502 of title 41 and the regulations implementing such section.” In plainspeak, if your firm is obligated to follow government accounting standards (is DCAA compliant), then you are a traditional firm. If you have never heard of DCAA, then assume your firm is a non-traditional.
An OTA is an acquisition method authorized under Title 10 U.S.C. §4021– (formerly 2371). Congress authorized its use to accelerate the prototyping and deployment of technologies that address national security needs. OTAs also provide a great deal of flexibility compared to more traditional government contracts for both the Government and industry user to enable rapid acquisition of innovative technologies. For more information on OTAs, please click here.
Think of an OTA as a quicker, more commercially-friendly way of competing for prototype funding from the federal government. What makes OTAs different is their focus on nontraditional contractors, meaning companies with little or no experience working with the Department of Defense.