EAM@ICG

IR&D

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We are a small business government/defense contractor ($13M in Rev). Is there a limit to the amount of IR&D expense we can claim in our G&A either under FAR or DFAR? In looking at DFAR 231.205-18 Independent research and development and bid and proposal costs, it looks as if the threshold for any limitation requires classification as a "major contractor" ..meaning an allocation of a total of $11M or more in IR&D for prior fiscal year. We are obviuosly way below that so no concerns.

There is langauge in the clause pertaining to "?Covered contract? means a DoD prime contract for an amount exceeding the simplified acquisition threshold. I didn't see any specific langauge pertaining to a "simplified acquisition threshold" Anyone know what that means?

Is this a correct read of the clause?

Thx

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I know of no limit on IR&D, other than what you cite.

The Simplified Acquisition Threshold is defined at FAR 2.101 and generally means $150,000, with some exceptions, as noted at the provision.

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