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DFARS Deviation Removes “Technical Interchange” Requirement for IR&D Cost Allowability


On September 14, 2017, the Department of Defense issued a Class Deviation waiving the requirement for “major contractors” to “engage in” and “document” a “technical interchange” with DoD as a prerequisite to making costs for IR&D projects allowable (previously discussed here and here). This deviation is “effective until it is incorporated in the DFARS” or otherwise rescinded. While it is certainly good news for contractors, it does not impact the portion of the rule requiring contractors to report at least annually IR&D projects to DTIC as a condition of allowability

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

John E. McCarthy Jr.
Partner – Washington, D.C.
Phone: +1 202.624.2579

Stephen J. McBrady
Partner – Washington, D.C.
Phone: +1 202.624.2547

Jonathan M. Baker
Partner – Washington, D.C.
Phone: +1 202.624.2641

Skye Mathieson
Counsel – Washington, D.C.
Phone: +1 202.624.2606

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