DoD White Paper Takes Aim at IR&D Costs

While DOD's August 26 white paper "Enhancing the Effectiveness of Independent Research and Development" explains that the intent of new requirements it announced is "not to reduce the independence of IR&D investment selection, nor to establish a bureaucratic requirement for government approval prior to initiating an IR&D project," contactors have good reason to doubt that assertion. Most significantly for contractors, there will be a new DFARS rule under which, "beginning in FY 2017, DoD will require contractors to record the name of the government party with whom, and date when, a technical interchange took place prior to IR&D project initiation and to provide this information as part of the required IR&D submissions made to [DTIC]," and DCMA and DCAA "will use these DTIC inputs when making allowability determinations for IR&D costs."