A covered contract may acquire, construct or furnish necessary specialized research, development or test facilities and equipment. The FY2026 amendment also permits jointly funded projects spanning DoD components, other federal agencies and eligible nonfederal entities, subject to written agreements and statutory safeguards.
What this is not / limit: Explicitly does not authorize new construction or improvements with general utility.
Executing role: Contracting office and contractor
Authority holder
Secretary of the military department concerned
Eligibility gate
Facilities/equipment necessary for contract; allowable-cost rules.
Nonremovable installations on nonfederal land need reimbursement, land-acquisition option or other adequate U.S. protection.
Each joint-project participant needs a written agreement covering cost shares, access priorities, lead agency and management, ownership and intellectual-property rights, and dispute resolution. Nonfederal participation requires the Secretary of Defense’s national-security-interest determination and consistency with applicable law.
Funding condition
Legally available RDT&E funds, expressly including budget activities 1–3, and O&M funds supporting authorized activities may be used. This authority supplies no new appropriation or finding that project funds are available.
Loans/leases may be with or without reimbursement; sales are at fair value.
All recorded limits
Explicitly does not authorize new construction or improvements with general utility.
Sale/reimbursement receipts normally go to Treasury unless another law applies.