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DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement to ensure that substantial future independent research and development (IR&D) expenses, as a means to reduce evaluated bid prices in competitive source selections, are evaluated in a uniform way during competitive source selections.  This rule is intended to address situations when promised future IR&D expenditures (funded through allowable IR&D overhead expenses) are used to substantially reduce bid prices and gain a competitive advantages on competitive procurements.  As a result of this rule, DoD contracting officers will adjust the total evaluated price of major defense acquisition programs and major automated information systems proposals, for evaluation purposes only, to include the amount by which the offerors propose that future IR&D investments reduce the price of the proposals. 

Sixteen respondents submitted public comments in response to the proposed rule.  This rule is not expected to impose costs on offerors.