This series of FAR summaries is meant to take a meaningful portion of the Federal Acquisition Regulations to ensure an easy-to-understand approach to maintain that readers comprehend the process of doing business with the government and that the government exercises a fair and reasonable approach to doing business with the general public.
FAR 17.401 General
Leader company contracting is only used in extraordinary circumstances. The practice must be a part of agency regulations.
In this special acquisition type a primary producer of a product or system is chosen as the leader company. They then designate follower companies through subcontracting procedures,, but not only that. The leader company shows the follower company how to make the product and even lends them equipment, supplies and techniques to accomplish the mission-critical task. This type of agreement reduces production time, maximizes shipping efforts, optimizes equipment usage, leverages productivity, makes certain a uniform outcome, creates a trusting business relationship and ensures superior acquisition outcomes for the government.
Here’s the thing. Follower companies have to forget everything they were told or borrowed upon the conclusion of the special circumstance.
A primary example of this was World War II.
Information on this contracting phenomenon is few and far between. Kind of like night time fishing for channel catfish seems like a good idea until only one in the group gets a bite. Now, I may have snapped my line on this because I’ve never touched a DoD contract, let alone a leader company contract, but I thought this blog post was a good idea. I wanted to show off my training from the VA Acquisition Academy! Sorry if I failed you!
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation.
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