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  • Question

    How can the U.S. military legally accept funding from a corporation willing to pay to have their weapon integrated onto a military platform that would not incur valid protests? If there is more than one way to accomplish the funds transfer, what are the methods and which one would allow the most Government flexibility?


    Answer

    Independent Research and Development (IR&D)
    Technical effort by industry that is not sponsored by, or required in performance of, a contract and that consists of projects falling within the areas of basic and applied research, development, and systems and other concept formulation studies. Discretionary funds that industry can allocate to projects.





    The Department of Defense cannot accept direct funding from contractors, but that doesn't preclude a contractor from pursuing independent development and then seeking DoD to acquire their project or service. Independent Research and Development (IR&D) is defined as a "technical effort by industry that is not sponsored by, or required in performance of, a contract and that consists of projects falling within the areas of basic and applied research, development, and systems and other concept formulation studies. Discretionary funds that industry can allocate to projects." In most cases, the contractor would recoup their development costs if DoD were to acquire the product or service. For further information, you should review DoDD 3204.1, Independent Research and Development (IR&D) and Bid and Proposal (B&P) Program.  

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