---
kind: "section"
citation: "48 C.F.R. § 17.401"
title: "48"
number: "17.401"
heading: "General."
url: "https://uscodex.org/cfr/48/17.401"
---

# §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.

## Notes

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42231, Sept. 19, 1983, unless otherwise noted.