FAR and DFARS › FAR Part 17: Special Contracting Methods › Subpart 17.4
FAR 17.401 General.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section describes leader company contracting, an unusual acquisition method used only in special circumstances and according to agency procedures. Under it, a developer or sole producer is designated as the leader company and helps designated follower companies become sources of supply. It matters because this technique is limited and only used to achieve specific objectives listed in the section.
Applies to: Leader company contracting arrangements
Key terms: leader company · follower companies · source of supply · proprietary data · agency procedures
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
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.
← 17.208 Solicitation provisions and contract clauses. · 17.402 Limitations. →
Rule changes for FAR Part 17
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-05-12 · effective 2025-06-11
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
- Federal Acquisition Regulation: Prohibition on the Use of Reverse Auctions for Complex, Specialized, or Substantial Design and Construction Services ↗ · proposed 2024-08-29 · comments due 2024-10-28
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-07-30 · effective 2024-08-29
- Federal Acquisition Regulation: Reverse Auction Guidance ↗ · final rule 2024-07-30 · effective 2024-08-29
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.