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DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 824 of the National Defense Authorization Act for Fiscal Year 2017, which amends 10 U.S.C. 2372 and 10 U.S.C. 2313a. The rule includes the requirement at 10 U.S.C. 2372 that the chief executive officer of the contractor must determine that independent research and development (IR&D) expenditures will advance the needs of the DoD for future technology and advanced capability. The rule also requires the submission of incurred IR&D and bid and proposal (B&P) costs, for noncommercial contracts exceeding the simplified acquisition threshold, to DCAA for preparation of their annual report to Congress, as required by 10 U.S.C. 2313a.