Hello esteemed colleagues,

We are in the process of reviewing and revising the templates we use for "Final Reports" to be completed at the end of every one of our IR&D projects.

The question came up whether there was anything mandated by FAR or other authority that would help us in our review.

At a Government Contracts course I took several years ago, I recall the instructor talking about how the USG could consider some IR&D costs unallowable if the Contractor fails to do things like Final Reports and other activities that would ensure the IR&D is spent how it should be. But I checked my notes and alas, nothing. The course was in Vegas too, so I'm not sure my mental capacity was at its highest at that time!

Anyway, I checked FAR (Part 31 in particular) and Title 48 of CFR (referenced in the FAR) and found nothing.

Your help and guidance is eagerly awaited and much appreciated!

Benny

There is not much information in FAR.

See the DCAA guidance: "Audit Program for Cost Accounting Standard No. 420, Accounting for Independent Research and Development Costs and Bid and Proposal Costs," which can be found at this link: http://www.dcaa.mil/sap/19420_AP_NA.pdf. It tells DCAA auditors what to look for when auditing the allowability of IR&D programs.

There is a lot of material about IR&D programs on the internet, with links to official publications. Google "independent research and development." The military services, especially, publish guides for industry.

Hello Benny,

You will want to check out the DFARS, not the FAR.

At 231.205-18, the DFARS Supplemental Cost Principles discuss cost allowabilty for contractor IR&D costs allocated to DOD contracts. There is a reference to 242.771-3(a). If you click over to 242.771, you'll see contract administration responsibilties related to the determination of cost allowability related to such costs -- including (at 242.771-3(d)-- which includes the following statement:

(d) The Director, Defense Research and Engineering (OUSD(AT&L)DDR&E), is responsible for establishing a regular method for communication?

(1) From DoD to contractors, of timely and comprehensive information regarding planned or expected DoD future needs; and

(2) From contractors to DoD, of brief technical descriptions of contractor IR&D projects

Hope this helps.

I am sorry I haven't responded sooner, but thanks for the advice everyone!