212.7102-1  Contracts under the program.

The contracting officer may enter into contracts with nontraditional defense contractors for the acquisition of military-purpose nondevelopmental items.  See PGI 212.7102 for file documentation requirements.  Each contract entered into under the pilot program shall-

(a)  Be awarded using competitive procedures;

(b)  Be a firm-fixed-price contract, or a fixed-price contract with an economic price adjustment clause;

(c)  Be in an amount not in excess of $50 million;

(d)  Provide-

(1)  For the delivery of an initial lot of production quantities of completed items not later than nine months after the date of the award of such contract; and

(2)  That failure to make delivery as provided for under paragraph (d)(1) may result in termination for cause; and

(e)  Be-

(1)  Exempt from the requirement to submit certified cost or pricing data;

(2)  Exempt from the cost accounting standards under 41 U.S.C. 1502; and

(3)  Subject to the requirement to provide data other than certified cost or pricing data for the purpose of price reasonableness determinations.