General
R&D contracts require flexible, minimally burdensome processes to foster innovation and attract top scientific and industrial talent.
Overview
FAR 35.002 outlines the unique nature and objectives of research and development (R&D) contracts within federal procurement. The section emphasizes that R&D contracts are primarily intended to advance scientific and technical knowledge and to apply that knowledge to meet agency and national objectives. Unlike typical supply or service contracts, R&D efforts often cannot be precisely defined in advance, and the likelihood of success or the level of effort required is inherently uncertain. As a result, the contracting process for R&D must be structured to attract top talent from the scientific and industrial sectors, while also allowing for flexibility and minimizing administrative burdens to foster innovation and effective research outcomes.
Key Rules
- Purpose of R&D Contracts
- R&D contracts are designed to further scientific and technical knowledge and support agency/national goals.
- Uncertainty and Flexibility
- R&D contracts often involve objectives and methods that cannot be fully specified in advance, requiring flexible approaches.
- Encouraging Participation
- The contracting process should attract the best sources from the scientific and industrial community.
- Minimizing Administrative Burden
- Administrative requirements should be kept to a minimum to allow for effective pursuit of R&D objectives.
Responsibilities
- Contracting Officers: Structure R&D solicitations and contracts to allow flexibility, minimize administrative burden, and encourage participation from qualified sources.
- Contractors: Understand that R&D contracts may have less precise requirements and be prepared to operate in an environment of uncertainty and innovation.
- Agencies: Ensure that R&D contracting processes align with the goals of advancing knowledge and supporting national objectives.
Practical Implications
- This section exists to recognize and accommodate the unique challenges of R&D contracting, such as uncertain outcomes and evolving technical approaches.
- It impacts daily contracting by requiring more flexible contract structures and less rigid administrative processes.
- Common pitfalls include over-specifying requirements or imposing excessive administrative controls that stifle innovation and participation.