---
kind: "section"
citation: "48 C.F.R. § 17.402"
title: "48"
number: "17.402"
heading: "Limitations."
url: "https://uscodex.org/cfr/48/17.402"
---

# §17.402. Limitations.

- (a) **Leader company contracting is to be used only when—**
  - (1) The leader company has the necessary production know-how and is able to furnish required assistance to the follower(s);
  - (2) No other source can meet the Government's requirements without the assistance of a leader company;
  - (3) The assistance required of the leader company is limited to that which is essential to enable the follower(s) to produce the items; and
  - (4) **Its use is authorized in accordance with agency procedures.**
- (b) When leader company contracting is used, the Government shall reserve the right to approve subcontracts between the leader company and the follower(s).

## 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.