DFARS Deviation Removes “Technical Interchange” Requirement for IR&D Cost Allowability
Client Alert | 1 min read | 09.25.17
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 This deviation is “effective until it is incorporated in the DFARS” or otherwise rescinded.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
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In an important first, the yearly defense policy law, the National Defense Authorization Act (NDAA) for Fiscal Year 2026, directs the Department of Defense (DoD) to develop and implement a framework addressing the cybersecurity and physical security of artificial intelligence and machine learning technologies (AI/ML) acquired by the Pentagon.
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