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DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement to implement section 824 of the National Defense Authorization Act for Fiscal Year 2017, which amends 10 U.S.C. 2372 to require regulations governing the payment by the DoD of expenses incurred by contractors for independent research and development (IR&D) costs. Section 824 requires the Secretary of Defense to prescribe regulations governing the payment by the DoD of expenses incurred by contractors for independent research and development costs and bid and proposal costs. Such regulations shall provide that expenses incurred for IR&D, and for bid and proposal costs, shall be reported independently from other allowable indirect costs. Section 824 further requires that DoD regulations may not include provisions that would infringe on the independence of a contractor to choose which technologies to pursue in its IR&D program if the chief executive officer of the contractor determines that expenditures will advance the needs of the DoD for future technology and advanced capability.