Overview
FAR 45.303 establishes the specific conditions under which a Contracting Officer may authorize a contractor to utilize government-furnished property for Independent Research and Development (IR&D) programs.
Key Rules
- Authorization Requirement: Use of government property for IR&D is not automatic and requires express approval from the Contracting Officer.
- Priority of Use: IR&D activities must not interfere with the property's primary government contract purposes or serve as a justification to retain property that should otherwise be returned or disposed of.
- No Rental Reimbursement: The contractor is prohibited from claiming reimbursement from the government for the rental value of the property used during the IR&D program.
- Commercial Allocation: If the IR&D program includes work allocated to commercial (non-government) interests, a calculated rental charge for that portion must be deducted from the government’s share of IR&D cost reimbursements.
Practical Implications
- Resource Efficiency: Contractors can leverage existing government assets to advance technological innovation, provided they maintain strict accounting to ensure the government does not pay "rent" on its own equipment.
- Accounting Complexity: Contractors must implement precise tracking to distinguish between government and commercial IR&D applications to ensure accurate rental deductions and avoid overbilling the government for IR&D cost-sharing.