{"data":{"id":"us/32-cfr-3.5","jurisdiction":"us","citation":"32 CFR 3.5","heading":"Appropriate use.","body":"In accordance with statute, this authority may be used only when:\n(a) At least one nontraditional Defense contractor is participating to a significant extent in the prototype project; or\n(b) No nontraditional Defense contractor is participating to a significant extent in the prototype project, but at least one of the following circumstances exists:\n(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.\n(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.","path":["Title 32—National Defense","Subtitle A—Department of Defense","CHAPTER I—OFFICE OF THE SECRETARY OF DEFENSE","SUBCHAPTER A—ACQUISITION","PART 3—TRANSACTIONS OTHER THAN CONTRACTS, GRANTS, OR COOPERATIVE AGREEMENTS FOR PROTOTYPE PROJECTS"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-32.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:25:30Z","sha256":"01c12995283ca77c2b0c19494adf79a3a5d212723437983126721e0ce177f419","source_id":"us-cfr","stale":true,"prev":"us/32-cfr-3.4","next":"us/32-cfr-3.6"},"notice":"GroundRules: Original legal text. Not legal advice."}