Independent Research and Development (IR&D)

Technical Interchange

Note: This page is a work in progress, but will be regularly updated and is the best source for up-to-date IR&D process information. Please email with any questions/comments/concerns.

The rulemaking effort established under this case revises the Defense Federal Acquisition Regulation Supplement (DFARS) at 231.205-18, Independent Research and Development and Bid and Proposal Costs, to require that proposed new IR&D efforts be communicated to appropriate DoD personnel prior to the initiation of these investments, and that results be shared with appropriate DoD personnel. The rule makes three primary changes:

  • For annual IR&D costs to be allowable, the IR&D projects generating the costs must be reported to Defense Innovation Marketplace, and must be updated at least annually and when the project is completed
  • For IR&D projects initiated in the contractor's fiscal year 2017 and later, as a prerequisite for the subsequent determination of allowability, major contractors must engage in a documented technical interchange with a technical or operational DoD government employee before IR&D costs are generated
  • This technical interchange (to include the name of the DoD Government employee and the date that the interchange occurred) will be documented through contractors reporting any cost-generating IR&D projects to the Defense Innovation Marketplace

IR&D Technical Interchange Process:

  • Until 1 JAN 2017 requests for IR&D technical interchange should either be sent directly to:
    • An appropriate DoD government employee
    • OR
  • By 1 JAN 2017, the DoD will establish a link on the DTIC-managed Defense Innovation Marketplace webpage for a database to which industry will submit their proposed IR&D projects – The database will have the necessary security to ensure protection of proprietary information
  • Companies submitting IR&D projects will target a Service, defense agency, or operational organization, such as a Combatant Command
  • Upon submission of a project, an email will be sent to the Service/Agency/Command-designated representative along with the project abstract Each Service/Agency/Command in the DTIC database will have an internal process to ensure information is sent to an appropriate DoD government employee for review Upon completion of the review, the reviewer will send an email to the project POC to notify them that the review has been completed – The email will serve as the documentation of the date of completion of the review and the name of the reviewer
  • If submitted through the Defense Innovation Marketplace, the Service/Agency/Command will execute the review and respond with review documentation (i.e., an email stating the date of review and name of the DoD government employee who reviewed the project) within 30 days of submission
  • If submitted through the Defense Innovation Marketplace, then any request for additional information will come at the same time or after the written statement documenting the review (i.e., the request for additional information will not delay the review process)
  • This is only one possible process for executing the rule. Under the rule, industry can provide a brief and/or abstract directly to a DoD Service/Agency/Command government employee, and request a review from that individual that will meet the requirements of the rule for reimbursement. If a company choses to use a process different than using the Defense Innovation Marketplace, it will be responsible for obtaining the necessary documentation of the review to ensure allowability for the charges.


This page is a work in progress, but will be regularly updated and is the best source for up-to-date Independent Research and Development (IR&D) IR&D process information. Please contact with any questions/comments/concerns. Only submit Independent Research & Development projects

IR&D Technical Interchange Facts:

  • The new IR&D rule requires a technical interchange (i.e., government review) of any IR&D project prior to commencing work in order to receive government reimbursement
  • Industry may be required to provide proof of the government review (i.e., a written statement) prior to the start of work before validating the charges for reimbursement
  • The rule only requires that a knowledgeable DoD government employee review the project abstract - Acceptable reviewers include a scientist/engineer or other subject matter expert working similar science and technology (S&T) projects, an acquisition official working similar projects, and/or an operator who might use the technology in a future fight, such as a COCOM official
  • The review is not a determination of allowability - Any work that would have been reimbursed prior to the rule will still be allowable
  • The review does not include a statement that the costs are reimbursable, that the projects is deemed useful in the view of the government, or that the project costs should be declined - The government reviewer will only state that the project has been reviewed, and will not issue any official declaration stating that the project is or is not allowable
  • The DoD is in the process of establishing a process (submitting online through the Defense Innovation Marketplace) to ensure project review within 30 days of submission

Close Menu