DFARS Part 235: Research and Development Contracting

In plain English

DFARS Part 235 covers contracting for research and development (R&D) under DoD contracts. It addresses contract types, competition methods like broad agency announcements, special allowances for educational institutions, indemnification for unusually hazardous risks, and required clauses. It matters because it sets specific rules for how DoD buys R&D, affecting how contractors bid and perform.

Key rules

• For development programs that are not major defense acquisition programs, you cannot award a fixed-price contract unless the program risk allows realistic pricing, the contract type fairly allocates risk, and a written determination is made by the USD(A&S) for contracts over $25 million or by the contracting officer otherwise. (235.006)
• Under the Manufacturing Technology Program, all contracts must be awarded using competitive procedures, and solicitations must include an evaluation factor for cost sharing. (235.006-70)
• Using a broad agency announcement with peer or scientific review for science and technology proposals satisfies the requirement for full and open competition. (235.006-71, 235.016)
• A broad agency announcement may be used for basic research, applied research, advanced technology development, and advanced component development and prototypes. (235.016)
• DoD may indemnify contractors for unusually hazardous risks in R&D contracts if authorized by the Secretary concerned, but the specific risks must be clearly defined and approved. (235.070-1)
• For R&D contracts involving both R&D and other work, indemnification may be provided under both 10 U.S.C. 3861 and Public Law 85-804, with Public Law 85-804 applying only to work not covered by 10 U.S.C. 3861. (235.070-2)
• When indemnification is provided, use the clause at 252.235-7000 for fixed-price contracts or 252.235-7001 for cost-reimbursement contracts. (235.070-3)
• For R&D contracts, you must use clauses for acknowledgement of support and disclaimer (252.235-7010) and final scientific or technical report (252.235-7011). (235.072)

Who does what

In practice

• If you bid on a DoD R&D contract, check whether the solicitation uses a broad agency announcement, as that method fulfills full and open competition and may have different evaluation procedures.
• For development contracts, be aware that fixed-price contracts are restricted unless the government makes a written determination that risk allows it; this may affect your pricing strategy.
• If your work involves unusually hazardous risks, ensure the contract clearly defines those risks and includes the appropriate indemnification clause.
• For R&D contracts, expect to provide scientific and technical reports and include the required acknowledgement and disclaimer clauses.

Common pitfalls

• Do not assume a fixed-price contract is available for development work; the government must first determine that program risk permits realistic pricing and that risk allocation is equitable.
• If you are involved in the Manufacturing Technology Program, do not omit cost sharing from your proposal, as it is a required evaluation factor.
• Do not overlook the requirement to define unusually hazardous risks in the contract if you seek indemnification; vague definitions may not be approved.
• For R&D contracts involving human subjects, animal welfare, or frequency authorization, ensure the correct clauses are included to avoid compliance issues.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.