FAR 17.402 Limitations.

In plain English

This section limits when the Government can use leader company contracting, a method where an experienced company helps another company learn to produce items. It requires that the leader has the needed know-how, that no other source can meet the Government's needs without this help, that the assistance is limited to what is essential, and that agency procedures authorize its use. The Government must also reserve the right to approve subcontracts between the leader and the follower.

Applies to: Government contracting officers using leader company contracting

What it requires

• Use leader company contracting only when the leader has the necessary production know-how and can provide required assistance.
• Use leader company contracting only when no other source can meet the Government's requirements without a leader company's assistance.
• Limit the leader company's assistance to what is essential for the follower(s) to produce the items.
• Ensure use is authorized in accordance with agency procedures.

Key terms: leader company contracting · leader company · follower(s) · subcontracts

Written by AI from this section's text. A guide, not legal advice: the text below rules.