IR&D refers to research and development activities funded internally by a company to drive innovation and future capabilities. Unlike government-funded R&D, IR&D is not tied to a specific contract or deliverable, giving organizations more flexibility in direction and execution.
IR&D can help position your company for future government opportunities, foster innovation, develop Intellectual Property (IP), and demonstrate capability maturity. It also allows proactive engagement with emerging requirements before formal solicitations are released.
Yes, IR&D costs are generally allowable under Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) provisions but must be properly accounted for. However, contractors who meet the DoDs definition of a major contractor-those with more than $11 million in combined IR&D and bid & proposal (B&P) costs in a fiscal year-must comply with additional requirements. These include annual reporting of IR&D projects to the Defense Technical Information Center (DTIC).
Major contractors must report IR&D project data to DTIC using DTIC's online input form and instructions found on the Defense Innovation Marketplace website, updating the data annually and upon project completion.
Yes, successful IR&D work can be leveraged in proposals or demonstrations to show technical maturity. However, proprietary rights must be clearly identified, especially if the government did not fund the work.
While the government cannot direct IR&D, it can provide insight into future capability needs to help align your investments. Open dialogue with government customers helps maximize relevance and transition potential.
Participation in industry days, technology demonstrations, and submitting to DTIC are effective ways to increase visibility. You can also submit white papers under open Broad Agency Announcements (BAAs).
No. IP developed under IR&D remains the property of the company. However, data rights must be properly marked, and certain disclosures are required when IR&D results are proposed in a government-funded effort.
Summaries should be descriptive enough to convey technical scope and relevance but should not disclose proprietary or sensitive information. Abstract-level details and keywords improve discoverability.
IR&D can position your company ahead of solicitations by demonstrating readiness, proof-of-concept, or early prototypes. Many DoD customers use IR&D visibility to inform Request for Proposal (RFP) development and future program planning.
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