Episode 1: Manufacturing and Production Engineering Costs vs. Independent Research & Development Costs
For companies that incur manufacturing, production line, engineering or product development costs, determining the true nature of the cost can be difficult. The Federal Acquisition Regulation (“FAR”) points us to FAR 31.205-25 — Manufacturing and Production Engineering Cost, to help companies determine if the cost incurred should be considered a manufacturing and production engineering cost. However, the issue companies have is where one draws the line if the costs should actually be considered independent research & development (“IR&D”). Determining if the costs falls under FAR 31.205-25 or meets the definition of FAR 31.205-18 and is considered IR&D doesn’t just impact. Read More.
Topics: DCAA Contract Audit Manual, Defense Acquisition Regulations System, Defense Contract Audit Agency "DCAA", Federal Acquisition Regulation "FAR", Independent Research and Development "IR&D", Manufacturing and Production Engineering Costs