[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR17.401]



[Page 337-338]

 

            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.



[[Page 338]]



    (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.