Proposed Rule2021-20938
Defense Federal Acquisition Regulation Supplement: Treatment of Incurred Independent Research and Development Costs (DFARS Case 2017-D018)
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Published
September 29, 2021
Issuing agencies
Defense DepartmentDefense Acquisition Regulations System
Abstract
DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2017 that makes amendments regarding the treatment of independent research and development expenditures and requires the Defense Contract Audit Agency to provide an annual report to Congress on independent research and development and bid and proposal expenditures.
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<title>Federal Register, Volume 86 Issue 186 (Wednesday, September 29, 2021)</title>
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[Federal Register Volume 86, Number 186 (Wednesday, September 29, 2021)]
[Proposed Rules]
[Pages 53927-53931]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-20938]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225, 231, 242, and 252
[Docket DARS-2019-0039]
RIN 0750-AJ27
Defense Federal Acquisition Regulation Supplement: Treatment of
Incurred Independent Research and Development Costs (DFARS Case 2017-
D018)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to implement a section of the National
Defense Authorization Act for Fiscal Year 2017 that makes amendments
regarding the treatment of independent research and development
expenditures and requires the Defense Contract Audit Agency to provide
an annual report to Congress on independent research and development
and bid and proposal expenditures.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before November 29, 2021, to be
considered in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2017-D018, using
any of the following methods:
[cir] Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Search for ``DFARS Case 2017-D018.'' Select ``Comment'' and follow the
instructions to submit a comment. Please include your name, company
name (if any), and ``DFARS Case 2017-D018'' on any attached documents.
[cir] Email: <a href="/cdn-cgi/l/email-protection#6e011d0a400a080f1c1d2e030f070240030702"><span class="__cf_email__" data-cfemail="5c332f3872383a3d2e2f1c313d353072313530">[email protected]</span></a>. Include DFARS Case 2017-D018 in
the subject line of the message.
Comments received generally will be posted without change to
<a href="https://www.regulations.gov">https://www.regulations.gov</a>, including any personal information
provided. To confirm receipt of your comment(s), please check <a href="https://www.regulations.gov">https://www.regulations.gov</a>, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: Mr. David E. Johnson, telephone 571-
372-6115.
SUPPLEMENTARY INFORMATION:
I. Background
Section 824 of the National Defense Authorization Act (NDAA) for
Fiscal Year (FY) 2017 (Pub. L. 114-328) amends 10 U.S.C. 2372 to
require that regulations may not infringe on the independence of a
contractor to choose which technologies to pursue in its independent
research and development (IR&D) program if the chief executive officer
(CEO) of the contractor determines that IR&D expenditures will advance
the needs of DoD for future technology and advanced capability.
Section 824 amends 10 U.S.C. 2372 to remove the list that limits
the allowability of IR&D costs to seven activities of potential
interest to DoD. In lieu of the list of activities of potential
interest to DoD, section 824 requires a CEO determination that IR&D
expenses will advance the needs of DoD for future technology and
advanced capability.
Section 824 also decouples IR&D and bid and proposal (B&P) costs by
moving the language pertaining to B&P costs out of 10 U.S.C. 2372 and
placing it in the new 10 U.S.C. 2372a. This change ensures that
regulations pertaining to B&P costs are separated from regulations
pertaining to IR&D costs.
Section 824 also amends 10 U.S.C. 2313a by adding a requirement for
the Defense Contract Audit Agency to submit an annual report to
Congress of all incurred IR&D and B&P costs of contractors in the prior
Government fiscal year.
II. Discussion and Analysis
In accordance with 10 U.S.C. 2372(d), the rule adds language at
DFARS 231.205-18(c)(iii)(A)(1) to require contractor CEOs to determine
that IR&D expenditures will advance the needs of DoD for future
technology and advanced capability. In addition, the rule adds a
requirement at DFARS 231.205-18(iii)(c)(A)(2) for major contractors to
include a statement in the submission to the Defense Technical
Information Center (DTIC) that the CEO of the contractor has made the
determination required by 10 U.S.C. 2372. This statement serves as
evidence for DoD, when determining whether IR&D costs are allowable.
Major contractors are already required to upload IR&D activities in
DTIC in order to provide DoD with information on the progress of these
activities; this rule simply adds a requirement for those major
contractors to include a statement in the DTIC input that the
determination required by 10 U.S.C. 2372 has been made as a means for
DoD to know that those costs are allowable.
Since the list of seven activities of potential interest to DoD was
deleted from 10 U.S.C. 2372, the requirement for the Defense Contract
Management Agency (DCMA) administrative contracting officer (ACO) or
corporate ACO (CACO) to compare the IR&D activities uploaded in DTIC to
the list of seven IR&D activities of potential interest to DoD no
longer exists. Therefore, DFARS 242.771-3(a) is modified to remove the
ACO and CACO responsibilities for determining if an activity is of
potential interest to DoD.
The rule also adds language to clarify that IR&D and B&P costs will
be reported independently from other incurred indirect costs in a new
paragraph at DFARS 231.205-18(c)(iv). This change corresponds to 10
U.S.C. 2372(a) and 10 U.S.C. 2372a(a), which require allowable IR&D and
B&P costs to be reported independently.
The proposed rule decouples IR&D and B&P by stating ``IR&D and
B&P'' instead of ``IR&D/B&P'' throughout the text based on the
amendment to 10 U.S.C. 2372, which segregates IR&D and B&P costs.
However, for the purposes of calculating the threshold that requires
major contractors to submit IR&D activities and statements regarding
the CEO determinations in DTIC, the rule does not change the
calculation, which combines IR&D and B&P, to ensure the definition of
``major contractor'' remains the same.
DFARS 242.771-3(c)(1) is modified in the proposed rule to change
the content of the communication from DoD to contractors from the
``planned or expected DoD future needs'' to the ``planned or expected
needs of DoD for future technology and advanced capability.'' In
addition, the responsibilities of the Office of the Under Secretary of
Defense for Research and Engineering are expanded to include providing
on the DTIC website
[[Page 53928]]
communities of interest on DoD's future needs. An email address for
additional information is also provided. This change ensures that
timely and comprehensive information on DoD's planned or expected needs
for future technology and advanced capability is being transmitted from
DoD to contractors, as required by 10 U.S.C. 2372(c)(2)(A).
To support DCAA's compliance with 10 U.S.C. 2313a, the proposed
rule adds a contract clause at DFARS 252.242-70XX, Independent Research
and Development and Bid and Proposal Incurred Costs, which requires all
contractors with noncommercial awards exceeding the simplified
acquisition threshold to provide an incurred cost submission of IR&D
and B&P costs for the prior Government fiscal year to a website for
DCAA to access. The related clause prescription is at DFARS 242.771-4.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-The-Shelf Items
This rule proposes to create a new clause at DFARS 252.242-70XX,
Independent Research and Development and Bid and Proposal Incurred
Costs. However, this clause does not impact contracts at or below the
simplified acquisition threshold or contracts for the acquisition of
commercial items, including commercially available off-the-shelf items.
IV. Executive Orders 12866 and 13563
Executive Order (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993.
V. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808)
before an interim or final rule takes effect, DoD will submit a copy of
the interim or final rule with the form, Submission of Federal Rules
under the Congressional Review Act, to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States. A
major rule under the Congressional Review Act cannot take effect until
60 days after it is published in the Federal Register. This rule is not
anticipated to be a major rule under 5 U.S.C. 804.
VI. Regulatory Flexibility Act
DoD does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
However, an initial regulatory flexibility analysis has been performed
and is summarized as follows:
DoD is proposing to amend the DFARS to implement section 824 of the
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017
(Pub. L. 114-328). Section 824 modifies 10 U.S.C. 2372 to require the
chief executive officer (CEO) of the contractor to make a determination
that independent research and development (IR&D) expenditures will
advance the needs of the Department of Defense for future technology
and advanced capability. Section 824 also amends 10 U.S.C. 2313a to
require the Defense Contract Audit Agency (DCAA) to submit an annual
report to Congress on incurred IR&D and bid and proposal (B&P) costs
for all contractors in the prior Government fiscal year. The legal
basis for the amendment to the DFARS is section 824 of the NDAA for FY
2017.
In accordance with 10 U.S.C. 2372(d), the proposed rule adds
language applicable to contractors at DFARS 231.205-18(c)(iii)(A)(1)
requiring the CEO of the contractor to determine that IR&D expenditures
will advance the needs of DoD for future technology and advanced
capability. The proposed rule also adds, at DFARS 231.205-
18(iii)(A)(2), a requirement for major contractors to include a
statement in the Defense Technical Information Center (DTIC) submission
that the CEO of the contractor made the determination required by 10
U.S.C. 2372. To support DCAA's compliance with 10 U.S.C. 2313a, the
proposed rule includes a contract clause that requires contractors with
noncommercial awards exceeding the simplified acquisition threshold to
provide an incurred cost submission of IR&D and B&P costs for the prior
Government fiscal year to a website for DCAA to access.
The proposed rule will only apply to small entities that have
incurred IR&D costs or B&P costs associated with noncommercial DoD
awards exceeding the simplified acquisition threshold or small
businesses that have an IR&D program and are considered to be a major
contractor, which is defined as having annual expenditures of $1.1
million in combined IR&D and B&P expenditures.
Based on an internal DoD website, on average for FY 2017 through FY
2019, there were 69 other than small business major contractors that
submitted IR&D activities to DTIC. DoD does not have a list of other
than major contractors or small entities that have IR&D programs. As a
result, the burden on the public for developing a statement of the CEO
determination in DTIC is expected to be close to 69 contractors. DoD
expects a minimal number of the contractors to be small entities.
DoD determined that for FY 2020, a total of 1,869 contractors
submitted incurred cost proposals to the Government claiming IR&D or
B&P costs. This number represents the estimated number of contractors
that will be required under the new clause 252.242-70XX, Independent
Research and Development and Bid and Proposal Incurred Costs, to
annually report IR&D and B&P costs to the Defense Contract Audit
Agency. The ratio of small entities to other than small entities is
unknown. However, DoD expects the proposed rule will have minimal
impact on small entities.
This proposed rule does include new reporting or recordkeeping
requirements for small entities. The annual reporting burden is related
to adding the statement that the CEO has made a determination to IR&D
project submissions in DTIC and submitting IR&D and B&P incurred costs
to a DCAA website. It is expected that, if applicable to a small
entity, the CEO of the contractor and an attorney of the contractor
would be required to support including a statement that the CEO made a
determination with IR&D project submissions in DTIC and a financial
analyst of the contractor would be required to support submitting IR&D
and B&P incurred costs to a website. As stated previously, it is
expected that a minimal number of small entities will be impacted by
the major contractor requirement to upload to DTIC a statement that the
CEO made a determination as there are currently no known small entities
classified as major contractors. It is expected that fewer than 1,869
small businesses would be required to upload IR&D and B&P incurred
costs to a DCAA website.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known significant alternative approaches to the
proposed rule that would meet the requirements of the applicable
statute.
[[Page 53929]]
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2017-D018), in
correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) applies. The
rule contains information collection requirements that require the
approval of the Office of Management and Budget (OMB) under the
Paperwork Reduction Act (44 U.S.C. chapter 35). Accordingly, DoD plans
to submit a request for approval of a new information collection
requirement concerning DFARS Case 2017-D018, Treatment of Incurred
Independent Research and Development Costs, to OMB.
A1. DFARS 231.205-18(c)(iii)(A)(2)(iii)
Based on the proposed revisions to DFARS 231.205-
18(c)(iii)(A)(2)(iii), an upward adjustment is being made to the burden
hours for reporting per response. Public reporting burden for this
collection of information is estimated to average 1 hour per response
for submission of the confirming statement into DTIC that the chief
executive officer of the contractor has made a determination that the
expenditures will advance the needs of DoD future technology and
advanced capability. The annual reporting burden is estimated as
follows:
Respondents: 69.
Responses per respondent: 90, approximately.
Total annual responses: 6,244.
Hours per response: 1.
Total annual burden hours: 6,244.
A2. DFARS 252.242-70XX, Independent Research and Development and Bid
and Proposal Incurred Costs
Public reporting burden results from the collection of information
regarding contractor submission of an annual report of IR&D and B&P
costs incurred during performance of any DoD contract in the prior
Government fiscal year. Reports are required no later than December 31
each year. Approximately 0.25 hour per response is expected for the
contractor to submit incurred IR&D and B&P costs for the prior
Government fiscal year to a website provided in the clause that DCAA
can access. The annual reporting burden is estimated as follows:
Respondents: 1,869.
Responses per respondent: 1.
Total annual responses: 1,869.
Hours per response: 0.25.
Total response Burden Hours: 467.
B. Request for Comments Regarding Paperwork Burden
Written comments and recommendations on the proposed information
collection, including suggestions for reducing this burden, should be
sent to Ms. Susan Minson at the Office of Management and Budget, Desk
Officer for DoD, Room 10236, New Executive Office Building, Washington,
DC 20503, or email <a href="/cdn-cgi/l/email-protection#2a795f594b447567756743445945446a454748044f455a044d455c"><span class="__cf_email__" data-cfemail="673412140609382a382a0e0914080927080a054902081749000811">[email protected]</span></a>, with a copy to the
Defense Acquisition Regulations System, Attn: David E. Johnson,
OUSD(A&S)DPC/DARS, Room 3B938, 3060 Defense Pentagon, Washington, DC
20301-3060. Comments can be received from 30 to 60 days after the date
of this notice, but comments to OMB will be most useful if received by
OMB within 30 days after the date of this notice.
Public comments are particularly invited on: Whether this
collection of information is necessary for the proper performance of
functions of the DFARS, and will have practical utility; whether our
estimate of the public burden of this collection of information is
accurate, and based on valid assumptions and methodology; ways to
enhance the quality, utility, and clarity of the information to be
collected; and ways in which we can minimize the burden of the
collection of information on those who are to respond, through the use
of appropriate technological collection techniques or other forms of
information technology.
To request more information on this proposed information collection
or to obtain a copy of the proposal and associated collection
instruments, please write to the Defense Acquisition Regulations
System, Attn: David E. Johnson, OUSD(A&S)DPC/DARS, Room 3B938, 3060
Defense Pentagon, Washington, DC 20301-3060, or email
<a href="/cdn-cgi/l/email-protection#6d021e0943090b0c1f1e2d000c040143000401"><span class="__cf_email__" data-cfemail="a6c9d5c288c2c0c7d4d5e6cbc7cfca88cbcfca">[email protected]</span></a>. Include DFARS Case 2017-D018 in the subject line of
the message.
List of Subjects in 48 CFR Parts 225, 231, 242, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 225, 231, 242, and 252 are proposed to be
amended as follows:
0
1. The authority citation for parts 225, 231, 242, and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 225--FOREIGN ACQUISITION
0
2. Amend section 225.7303-2 by revising paragraphs (b) and (c) to read
as follows:
225.7303-2 Cost of doing business with a foreign government or an
international organization.
* * * * *
(b) Costs not allowable under FAR part 31 are not allowable in
pricing FMS contracts, except as noted in paragraphs (c) and (e) of
this section.
(c) The limitations for all contractors described in 231.205-
18(c)(iii) and (iv) do not apply to FMS contracts, except as provided
in 225.7303-5. The allowability of IR&D and B&P costs on contracts for
FMS not wholly paid for from funds made available on a nonrepayable
basis is limited to the contract's allocable share of the contractor's
total IR&D and total B&P expenditures. In pricing contracts for such
FMS--
(1) Use the best estimate of reasonable costs in forward pricing;
and
(2) Use actual expenditures, to the extent that they are
reasonable, in determining final cost.
* * * * *
PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES
0
3. Revise section 231.205-18 to read as follows:
231.205-18 Independent research and development and bid and proposal
costs.
(a) Definitions. As used in this section--
Covered contract means a DoD prime contract for an amount exceeding
the simplified acquisition threshold, except for a fixed-price contract
without cost incentives. The term also includes a subcontract for an
amount exceeding the simplified acquisition threshold, except for a
fixed-price subcontract without cost incentives under such a prime
contract.
Covered segment means a product division of the contractor that
allocated more than $1,100,000 in independent research and development
(IR&D) and bid and proposal (B&P) costs to covered contracts during the
preceding fiscal year. In the case of a contractor that has no product
divisions, the term means that contractor as a whole. A product
division of the contractor that allocated less than $1,100,000 in IR&D
and B&P
[[Page 53930]]
costs to covered contracts during the preceding fiscal year is not
subject to the limitations in paragraph (c) of this section.
Major contractor means any contractor whose covered segments
allocated a total of more than $11,000,000 in IR&D and B&P costs to
covered contracts during the preceding fiscal year. For purposes of
calculating the dollar threshold amounts to determine whether a
contractor meets the definition of ``major contractor,'' do not include
contractor segments allocating less than $1,100,000 of IR&D and B&P
costs to covered contracts during the preceding fiscal year.
(c) Allowability. (i) Departments/agencies shall not supplement
this regulation in any way that limits IR&D and B&P cost allowability.
(ii) See 225.7303-2(c) for allowability provisions affecting
foreign military sale contracts.
(iii)(A) For incurred IR&D costs to be allowable--
(1) The chief executive officer (CEO) of the contractor must have
determined that the expenditures will advance the needs of DoD for
future technology and advanced capability (10 U.S.C. 2372(d)) (see
242.771-3); and
(2) For major contractors only--
(i) The IR&D projects generating the IR&D costs must be reported to
the Defense Technical Information Center (DTIC) using the DTIC's online
input form and instructions at <a href="https://defenseinnovationmarketplace.dtic.mil/industry-portal/">https://defenseinnovationmarketplace.dtic.mil/industry-portal/</a>;
(ii) The DTIC inputs must be updated at least annually, no later
than 3 months after the end of the contractor's fiscal year, and when
the project is completed; and
(iii) For each IR&D project beginning on or after October 1, 2017,
the DTIC input must include a statement that the CEO of the contractor
determined that the expenditures will advance the needs of DoD for
future technology and advanced capability.
(B) The amount of IR&D costs allowable under DoD contracts shall
not exceed the lesser of--
(1) Such contracts' allocable share of total incurred IR&D costs;
or
(2) The total amount of incurred IR&D costs that the CEO of the
contractor has determined will advance the needs of DoD for future
technology and advanced capability.
(C) Contractors not meeting the threshold of a major contractor are
encouraged to use the DTIC online input form and instructions at
<a href="https://defenseinnovationmarketplace.dtic.mil/industry-portal/">https://defenseinnovationmarketplace.dtic.mil/industry-portal/</a> to
report IR&D projects in order to provide DoD with visibility into the
technical content of the contractors' IR&D projects.
(iv) Incurred IR&D and B&P costs must be reported independently
from each other and other incurred indirect costs.
PART 242--CONTRACT ADMINISTRATION
0
4. Amend section 242.302 by revising paragraph (a)(9) to read as
follows:
242.302 Contract administration functions.
(a) * * *
(9) For additional contract administration functions related to
IR&D and B&P projects performed by major contractors, see 242.771-3(a).
* * * * *
0
5. Revise sections 242.771-1, 242.771-2, and 242.771-3 to read as
follows:
Sec.
* * * * *
242.771-1 Scope.
242.771-2 Policy.
242.771-3 Responsibilities.
* * * * *
242.771-1 Scope.
This section implements 10 U.S.C. 2372, Independent research and
development costs: Allowable costs; 10 U.S.C. 2372a, Bid and proposal
costs: Allowable costs; and 10 U.S.C. 2313a, Defense Contract Audit
Agency: annual report.
242.771-2 Policy.
Defense contractors are encouraged to engage in independent
research and development (IR&D) projects that will advance the needs of
DoD for future technology and advanced capability (see 231.205-
18(c)(iii)).
242.771-3 Responsibilities.
(a) The cognizant administrative contracting officer (ACO) or
corporate ACO shall determine cost allowability of IR&D and B&P costs
as set forth in 231.205-18 and FAR 31.205-18.
(b) The Defense Contract Audit Agency (DCAA) shall--
(1) For the DoD-wide B&P program, submit an annual report to the
Principal Director, Defense Pricing and Contracting, Office of the
Under Secretary of Defense for Acquisition and Sustainment, as required
by 10 U.S.C. 2372a(c); the Defense Contract Management Agency or the
military department responsible for performing contract administration
functions is responsible for providing DCAA with statistical
information, as necessary; and
(2) For IR&D and B&P costs incurred under any DoD contract in the
previous Government fiscal year, submit an annual report to the
congressional defense committees as required by 10 U.S.C. 2313a.
(c) The Office of the Under Secretary of Defense for Research and
Engineering (OUSD(R&E)), is responsible for establishing a regular
method for communication--
(1)(i) From DoD to contractors, of timely and comprehensive
information regarding planned or expected needs of DoD for future
technology and advanced capability, by posting information on
communities of interest and upcoming meetings on the Defense Technical
Information Center (DTIC) website at <a href="https://defenseinnovationmarketplace.dtic.mil/communities-of-interest">https://defenseinnovationmarketplace.dtic.mil/communities-of-interest</a>; and
(ii) From contractors to DoD, of brief technical descriptions of
contractor IR&D projects; and
(2) By providing OUSD(R&E) contact information: <a href="/cdn-cgi/l/email-protection#fa95899ed48a9f948e9b9d9594d4958f899ed7889fd4979882d4999597978f9493999b8e93959489ba979b9396d4979396"><span class="__cf_email__" data-cfemail="ef809c8bc19f8a819b8e888081c1809a9c8bc29d8ac1828d97c18c8082829a81868c8e9b8680819caf828e8683c1828683">[email protected]</span></a>.
0
6. Add section 242.771-4 to subpart 242.7 to read as follows:
242.771-4 Contract clause.
Use the clause at 252.242-70XX, Independent Research and
Development and Bid and Proposal Incurred Costs, in solicitations and
contracts that exceed the simplified acquisition threshold.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
7. Add section 252.242-70XX to read as follows:
252.242-70XX Independent Research and Development and Bid and
Proposal Incurred Costs.
As prescribed in 242.771-4, use the following clause:
Independent Research and Development and Bid and Proposal Incurred
Costs (DATE)
(a) In order for the Defense Contract Audit Agency to submit the
annual report required by 10 U.S.C. 2313a, the Contractor shall--
(1) Report to [website TBD] a consolidated spreadsheet of all
independent research and development (IR&D) and bid and proposal
(B&P) costs incurred by the Contractor during performance of any DoD
contract in the previous fiscal year, beginning October 1 through
September 30; and
(2) Submit this report no later than December 31 of each year.
(b) IR&D and B&P incurred costs shall be reported separately and
shall be reported by costs attributable to--
(1) The Department of Defense (non-foreign military sales);
(2) Foreign military sales; and
(3) Other.
[[Page 53931]]
(End of clause)
[FR Doc. 2021-20938 Filed 9-28-21; 8:45 am]
BILLING CODE 5001-06-P
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