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Report: DoD Proposes Rules on Industry’s Use of Independent R&D Investments

research and development RDThe Defense Department has proposed an amendment to a policy that would require contractors to consult with DoD on independent research and development programs, Federal News Radio reported Tuesday.

Scott Maucione writes the Pentagon also plans to introduce a new rule that would ask contract officers to take into account the use of IRAD in the final contract price when it comes to the selection of a contractor.

The two policies are part of DoD’s efforts to limit industry’s use of public funds for IRAD projects in order to achieve short-term goals like price reduction on a competitive product, Maucione reports.

“By requiring industry to tell government what it’s doing will encourage more meaningful content,” said Frank Kendall, defense undersecretary for acquisition, technology and logistics.

Comments on the proposed policy on the use of IRAD in contract assessments are due by January, according to the report.

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