Independent Research and Development (IR&D)
“Independent Research and Development (IR&D)[1] ” means a contractor’s IR&D cost that consists of projects falling within the four following areas:
- (1) basic research,
- (2) applied research,
- (3) development, and
- (4) systems and other concept formulation studies.
The term does not include the costs of effort sponsored by a grant or required in the performance of a contract. IR&D effort shall not include technical effort expended in developing and preparing technical data specifically to support submitting a bid or proposal
"Independent research and development means".[2] the cost of effort which is neither sponsored by a grant, nor required in the performance of a contract, and which falls within any of the following three areas:
(i) Basic and applied research,
(ii) Development, and
(iii) Systems and other concept formulation studies.
Also See
Independent Research & Development (IR&D) Reporting
CAS 420 - Accounting for Independent Research & Development and Bid & Proposal Costs