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 $53.5 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. [76 FR 38049, June 29, 2011, as amended at 77 FR 35880, June 15, 2012; 80 FR 36904, June 26, 2015]