(a) Leader company contracting is to be used only when-

1. (1) The leader company has the necessary production know-how and is able to furnish required assistance to the follower(s);

2. (2) No other source can meet the Government’s requirements without the assistance of a leader company;

3. (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. (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).