The impact of Independent Research and Development regulations on companies not required to negotiate advanced Independent Research and Development agreements
Drew, Craig Cooper
Fremgen, James M.
Duke, James R.
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The purpose of this study is to determine the impact of Independent Research and Development (IR&D) regulations on companies not required to negotiate advanced IR&D agreements. The study used data gathered from a survey questionnaire. The questionnaire addressed the contract characteristics of these companies and the impact of the regulations in the areas of (1) cost allowability and allocability, (2) the IR&D ceiling formula and (3) the nature of IR&D costs and their incurrence. The response to the survey showed that approximately 30% of the companies doing business with the Government were not involved in any significant IR&D efforts. A significant number of companies engaged in IR&D efforts expressed some dissatisfaction with the IR&D regulations. In general, however, most companies indicated the present system was acceptable.
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