[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR17.401]

[Page 327]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 17_SPECIAL CONTRACTING METHODS--Table of Contents
 
                 Subpart 17.4_Leader Company Contracting
 
Sec.  17.401  General.


    Leader company contracting is an extraordinary acquisition technique 
that is limited to special circumstances and utilized only when its use 
is in accordance with agency procedures. A developer or sole producer of 
a product or system is designated under this acquisition technique to be 
the leader company, and to furnish assistance and know-how under an 
approved contract to one or more designated follower companies, so they 
can become a source of supply. The objectives of this technique are one 
or more of the following:
    (a) Reduce delivery time.
    (b) Achieve geographic dispersion of suppliers.
    (c) Maximize the use of scarce tooling or special equipment.
    (d) Achieve economies in production.
    (e) Ensure uniformity and reliability in equipment, compatibility or 
standardization of components, and interchangeability of parts.
    (f) Eliminate problems in the use of proprietary data that cannot be 
resolved by more satisfactory solutions.
    (g) Facilitate the transition from development to production and to 
subsequent competitive acquisition of end items or major components.