A TSA is a technology transfer mechanism that enables federal laboratories to perform work for hire. Title 10 U.S. Code 2539(b) authorizes federal laboratory directors and commanders to make testing services available to private industry. Under a TSA, a federal laboratory performs a test or technical service for a fee. The fee must cover all direct and indirect costs. Materials, processes, equipment, models, devices, computer software, etc., may all be tested.

Unlike a CRADA, the TSA is not a joint R&D effort. All inventions and data belong to the TSA partner; for some companies, this type of agreement may be more appealing than the CRADA. TSAs must involve some unique government capability and no “undue competition” with the private sector. A simple statement in a cover letter, written by the recipient of the services, serves as a certification that the conditions are met. A TSA requires minimal effort to execute and can be enacted in a reasonably short time. Because a TSA is an abbreviated agreement it typically consists of several pages and a cover letter.

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