DOD May Crimp Recovery Of IR&D Costs

Law360, New York (April 22, 2011, 2:49 PM EDT) -- The U.S. Department of Defense recently announced a proposed rule that would tie the allowability of independent research and development (IR&D) costs to a reporting requirement. The proposed rule would require major contractors to report IR&D projects that generate annual costs in excess of $50,000. (A "major contractor" is one whose covered segments allocated a total of more than $11 million in IR&D and bid and proposal costs to covered contracts during the preceding fiscal year.)

Under the proposed rule, contractors would have to submit their...
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