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IR&D Expenses

October 24, 2012 / Ed Jameson / Blog Posts
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Are you a “major” DOD contractor that claims IR&D costs in your indirect rates? If you are, please take note that the FAR clauses relating to IR&D costs changed in January of 2012.  In order for these costs to be allowable, the contractor is required to register its IR&D project with the Defense Technical Information Center.  Projects that are not registered will be deemed expressly unallowable during audits by the DCAA.  Since they are expressly unallowable, the penalty FAR clause that is imbedded in most cost reimbursement contracts will be applicable and could add a 100% penalty to IR&D expenses included in your indirect rate submission.

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Ed Jameson, CPA, Managing Partner

I’ve been in practice for over 40 years helping our small business clients procure, manage, and survive audits on more than $6 billion in federal government contract and grant funding. We’ve been featured presenters and panel moderators at Tech Connect’s National SBIR/STTR conferences since 2010, and I’ve presented at the DOD’s Mentor Protégé Summit and present regularly for several state and local organizations.