EconDefense
ACQ-54 / Research, innovation and experimentation

Reimburse contractor independent R&D through allowable contract costs

Treat qualifying independent research and development as allowable indirect expense under defense contracts while preserving statutory contractor independence in technology selection.

Action briefPDF dossier · original 168Download record
Authority / instrument · ACQ-54

Research financial assistance

Research, innovation and experimentation

Statute & instrument
Authority holder

Secretary of Defense establishes payment rules; contracting and audit officials apply them

What this does not authorize / hard limit

Not a stand-alone R&D grant, reimbursement entitlement for every expense, or authority to direct all private research.

Recorded executor

Warranted contracting officer and program manager

Continue to actor →

Recorded executing role; this record-specific route is not an additional institutional office.

Legal basisSources linkedLegal sources and instrument limits are recorded.
RequirementsGates recordedRead the requirements for this instrument; applicability depends on the proposed action.
Public fundingRules recordedRecovery through applicable defense-contract indirect costs, not a new appropriation or loan. Office budget figures are separate institutional context, not an allocation to this instrument.
Assigned rolesRoles recordedPublic sources describe institutional authority. The instrument identifies approval and execution roles; a specific signature remains transaction-dependent.
EngagementProcess sourcedCurrent DoD cost-principle and administration deviations supply the actual IR&D allowability/reporting process, not an R&D grant application. Program check: 2026-10-04; see each route for intake status.

Public evidence describes the institution and instrument; it is not approval of an individual transaction.

At a glance

Possible toolACQ-54 · Contracts & purchases
Legal basis10 U.S.C. §3762

Authority holder: Secretary of Defense establishes payment rules; contracting and audit officials apply them

Contracts & purchasesFunds & shared services

Mechanism tags describe the source text; they do not expand the authority.

Availability and verification

Express statutory pathway; award-specific appropriations, available balances, delegations, implementation and approvals not independently verified.

Program process and intake

Checked 2026-10-04 · process documented. Program evidence is separate from legal authority, available funds and transaction approval.

Current DoD cost-principle and administration deviations supply the actual IR&D allowability/reporting process, not an R&D grant application.

IR&D contract-cost allowability and DTIC reporting

Who this route serves
Contractors allocating IR&D to covered contracts
Administering office / routing lead
Cognizant administrative/corporate administrative contracting officer; DCAA; contractor management
Direct implementation

DFARS 242.570 expressly implements section 3762 and related cost rules; the Part 31 deviation supplies the current DoD text.

What this evidence label means
Current deviation process documented

Part 31 deviation effective February 1, 2026 applies until rescinded/incorporated; contract vintage and applicable clauses matter.

Status reference date: 2026-10-04 · research checked 2026-10-04

DoD RFO class deviation2026-O0032, Part31 · Effective February 1, 2026; Attachment 231.205-18, PDF pp. 3–4official acquisition class deviation · Evidence record

Program eligibility

  • Allowability depends on allocability, the governing contract clauses and applicable major-contractor reporting requirements.

    DoD RFO class deviation2026-O0032, Part31 · Effective February 1, 2026; Attachment 231.205-18, PDF pp. 3–4official acquisition class deviation · Evidence record

Steps and preparation

  • Submit required project reporting/updates to DTIC; document CEO determination of relevance to future defense technology/capability needs and separately trackIR&D/B&P.

    DoD RFO class deviation2026-O0032, Part31 · Effective February 1, 2026; Attachment 231.205-18, PDF pp. 3–4official acquisition class deviation · Evidence record
Funding, limits and authority relationship

Funding and financial terms

  • contract indirect-cost recovery · applicable contract/cost-accounting period

    Allowable indirect contract costs, not a separate government research-award pot or reimbursement of every private investment.

    DoD RFO class deviation2026-O0032, Part31 · Effective February 1, 2026; Attachment 231.205-18, PDF pp. 3–4official acquisition class deviation · Evidence record

Exclusions and limits

Authority relationship source

DoD RFO Part242 deviation · 242.570; explicit3762/3763/3847 implementationofficial acquisition class deviation · Evidence record

Read current DoD IR&D cost rules →

published guidance: Contract administration and cost reporting, not company funding intake.

Source access and verification notes
  • DoD RFO Part242 deviation · 242.570; explicit3762/3763/3847 implementationofficial acquisition class deviation · Evidence record

    Automated direct retrieval did not complete on October 4, 2026. This access check does not establish current legal effect or invalidate independently reviewed indexed evidence; see the cited location and this dossier’s access qualifications.

Research scope and sources checked

Checked current2026 RFO deviations rather than relying solely on old codified DFARS pages; read Part31 and located explicit statutory tie inPart242. Kept funding distinct from standalone innovation programs.

What remains unverified

  • No contractor-specific allowable-cost determination or recovery amount verified; Part242 direct download failed but official indexed text identified the statutory implementation.

A dated source check is not continuing monitoring. Recheck the linked official notice before preparing a submission. Browse program research →

Requirements and limits

Eligibility & prerequisites

  • Costs genuinely constitute independent R&D and must be reported separately from other allowable indirect costs.
  • Contract pricing, allocation and allowability rules remain applicable.

Limits & exclusions

  • Not a stand-alone R&D grant, reimbursement entitlement for every expense, or authority to direct all private research.
  • Contractor independence protected where statutory chief-executive determination concerning future defense needs is satisfied.

Funding conditions

  • Recovery through applicable defense-contract indirect costs, not a new appropriation or loan.

Read the funding and execution guide

Who contributes what

Need & planning

  • Operational requirement owner; Service/component portfolio acquisition executive and program manager

Resources

  • Sponsoring Service/component appropriations manager and comptroller

Approval

  • Service/component acquisition executive and authorized contracting authority, at applicable threshold

Execution

Partners & review

  • User command
  • Counsel, fiscal, engineering, testing, logistics and security staff as applicable

Office links are editorial matches to the original role text, not verified delegations. Composite labels and unmatched actors are preserved.

Coordination pathway

DoD communicates future capability needs → contractor undertakes qualifying independent R&D → contracting/audit review → permitted cost treatment.

Actor and execution-role sources

Legal basis

What this research establishes

Legal basisSources linkedLegal sources and instrument limits are recorded.
RequirementsGates recordedRead the requirements for this instrument; applicability depends on the proposed action.
Public fundingRules recordedRecovery through applicable defense-contract indirect costs, not a new appropriation or loan. Office budget figures are separate institutional context, not an allocation to this instrument.
Assigned rolesRoles recordedPublic sources describe institutional authority. The instrument identifies approval and execution roles; a specific signature remains transaction-dependent.
EngagementProcess sourcedCurrent DoD cost-principle and administration deviations supply the actual IR&D allowability/reporting process, not an R&D grant application. Program check: 2026-10-04; see each route for intake status.

Confidence: High on express authority and cited conditions; execution assignment is illustrative unless statute expressly names it.

Currentness: GovInfo 2024 Code (includes FY2025 NDAA, P.L. 118-159) read in full for cited provision; targeted FY2026 NDAA P.L. 119-60 amendment/repeal sweep. No claim of complete legislative currency through 2026-10-02; remaining 2026 delta needs counsel validation.

Review scope: Original research target October 2, 2026; no record-specific last-review date supplied. Publication is not legal-currentness certification.

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