Leader Company Contracting Law and Legal Definition
A leader company contracting is an acquisition technique that is applied under special circumstances and utilized only when its use is in accordance with agency procedures. A developer or producer of a product or system is designated under the acquisition technique to be the leader company. It can also 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:
1. Reduce delivery time;
2. Achieve geographic dispersion of suppliers;
3. Maximize the use of scarce tooling or special equipment;
4. Achieve economies in production;
5. Ensure uniformity and reliability in equipment, compatibility or standardization of components, and interchangeability of parts;
6.Eliminate problems in the use of proprietary data that cannot be resolved by more satisfactory solutions;
7.Facilitate the transition from development to production and to subsequent competitive acquisition of end items or major components.
According to 48 CFR 17.402, 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 followers;
2.there is no other source that can meet the government's requirements without the assistance of a leader company.
Legal Definition list
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