StacksVerified U.S. regulatory reference

32 CFR §3.5

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
In accordance with statute, this authority may be used only when:
  1. (a)At least one nontraditional Defense contractor is participating to a significant extent in the prototype project; or
  2. (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. (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. (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.