Government Contracts DoD Removes Requirement for Technical Interchange on IR&D Costs
News
Wednesday, September 12, 2018

DoD Removes Requirement for Technical Interchange on IR&D Costs

By Government Contracts Editorial Staff

The Department of Defense has removed from the Defense Federal Acquisition Regulation Supplement a requirement for major contractors to have a technical interchange with the government prior to generating independent research and development costs. The final rule (DFARS Case 2017-D041) removes the text at DFARS 231.205-18(c)(iii)(C)(4), which requires major contractors to engage in and document a technical interchange with the government, prior to generating costs for IR&D projects initiated in fiscal year 2017 and later, in order for those costs to be determined allowable. This requirement caused contractors to expend time preparing for a discussion, contacting appropriate government personnel, and discussing the IR&D project. Since contractors commonly pool all of their IR&D project costs to develop a single billing rate, this requirement would necessitate contractors having to discuss all of the IR&D projects contained in their billing rate. This change supports a recommendation from the DoD Regulatory Reform Task Force. The rule supersedes Class Deviation 2017-O0010 (¶70,245.74). For the text of the final rule, which went into effect on August 24, 2018, see ¶70,016.950.

Back to Top

Interested in submitting an article?

Submit your information to us today!

Learn More