32 C.F.R. § 3.5

Appropriate use

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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.

[67 FR 54956, Aug. 27, 2002]

Notes of Decisions

Cited in 1 case, 2019–2019 · leading case: Space Expl. Tech. Corp. v. United States (Fed. Cl. 2019).

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Space Expl. Tech. Corp. v. United States (Fed. Cl. 2019). “§ 2371b(d)(1); see also OT Guide at 13-14; 32 C.F.R. § 3.5 . In addition, Congress has required that, “[t]o the maximum extent practicable, competitive procedures shall be used when entering into [OT] agreements to carry out the prototype projects.”

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