Do a search on this site for this topic - been discussed before - basically you use the OS factor on critical, brittle connections, etc. The various material specifications outline when to use it (i.e. AISC).
The OS factor is completely different from the redundancy factor. The redundancy factor tries to reflect the overall level of redundancy in the structure's bracing system (i.e. more, smaller braces are better than one big brace).
The OS factor attempts to oversize non-ductile portions of the structure (like bolted connections) so that the first yeild failure occurs in the more ductile elements first, avoiding sudden, brittle failures during a seismic event.