Proposed Rule For Independent Research & Development (“IR&D”) Costs Raises Concerns

Pillsbury Winthrop Shaw Pittman LLP
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On November 4, 2016, the Department of Defense (“DOD”) issued a proposed rule that would amend the Defense Federal Acquisition Regulation Supplement (“DFARS”) to require DOD Contracting Officers to adjust offerors’ proposed prices and estimated costs upward when their proposals rely on the results of their IR&D efforts. The proposed rule, which would apply only to major defense acquisition programs and major automated information systems in a development phase, includes a new solicitation provision with potentially ambiguous wording that could cause problems for contractors if it is not clarified.

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