---
kind: "section"
citation: "32 C.F.R. § 3.5"
title: "32"
number: "3.5"
heading: "Appropriate use."
url: "https://uscodex.org/cfr/32/3.5"
---

# §3.5. Appropriate use.


In accordance with statute, this authority may be used only when:

- (a) At least one nontraditional Defense contractor is participating to a significant extent in the prototype project; or
- (b) No nontraditional Defense contractor is participating to a significant extent in the prototype project, but at least one of the following circumstances exists:
  - (1) At least one third of the total cost of the prototype project is to be paid out of funds provided by non-Federal parties to the transaction.
  - (2) The Senior Procurement Executive for the agency determines in writing that exceptional circumstances justify the use of a transaction that provides for innovative business arrangements or structures that would not be feasible or appropriate under a procurement contract.

## Notes

### Amendments

[67 FR 54956, Aug. 27, 2002]

### Authority

Authority: Sec. 845, Pub. L. 103-160, 107 Stat. 1547, as amended.

### Source

Source: 66 FR 57383, Nov. 15, 2001, unless otherwise noted.

### Amendments

[67 FR 54956, Aug. 27, 2002]