An Overview of DoD Policy for and Administration of Independent Research and Development
DEFENSE SYSTEMS MANAGEMENT SCHOOL FORT BELVOIR VA
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Independent research and development IRD is contractor initiated and conducted research and development effort not sponsored by a contract or grant. The DOD recognizes IRD as a normal cost of business and accepts its reasonable and allocable share of these costs. The allowability of IRD costs and DOD policy and administration of this area have been and are controversial. This report presents an overview of DOD IRD policy and administration. The evolution, current status, and major areas of existing controversy are highlighted. Current DOD policy appears to be a reasonable balance of the needs for good stewardship of the taxpayers funds and the needs for a strong technological base. Major shifts in policy, whether to the more liberal extremes advocated by the industry or the more restrictive extremes advocated by Senator Proxmire and Admiral Rickover, would probably be detrimental to the best interests of the Department of Defense.
- Administration and Management
- Economics and Cost Analysis