FAR and DFARS › FAR Part 35

FAR Part 35: Research and Development Contracting

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

FAR Part 35 provides policies and procedures specific to research and development (R&D) contracting, emphasizing flexibility, innovation, and the use of broad agency announcements. It matters to contractors because it explains how R&D work is solicited, evaluated, and managed, including special rules for educational institutions and FFRDCs.

Key rules

  • Contracts are used for R&D only when the principal purpose is acquiring supplies or services for the direct benefit of the Government; grants or cooperative agreements are used to stimulate or support R&D for other public purposes. (35.003)
  • Agencies must continually search for and develop information on sources, including small businesses, competent to perform R&D work, and publicize needs through the Governmentwide point of entry. (35.004)
  • Work statements for R&D should allow contractors freedom to exercise innovation and creativity, and must be individually tailored by technical and contracting personnel. (35.005)
  • Negotiation is generally necessary for R&D acquisitions because precise specifications for sealed bidding are not available, but part 6 still applies. (35.006)
  • Solicitations should initially be distributed only to technically qualified sources to avoid costly evaluation of unqualified proposals. (35.007)
  • Awards should be made to the organization proposing the best ideas and having the highest competence in the specific field, but not to obtain capabilities exceeding those needed. (35.008)
  • Contractors must not subcontract technical or scientific work without the contracting officer's advance knowledge, and for cost-reimbursement contracts, the contracting officer must obtain complete subcontracting plans. (35.009)
  • R&D contracts must require scientific and technical reports as a permanent record, and agencies should make results available to other Government activities and the private sector. (35.010)

Who does what

Contracting officers
  • Ensure work statements allow contractor creativity and are tailored to the R&D objectives.
  • Select the appropriate contract type after obtaining recommendations of technical personnel.
  • Review solicitation evaluation factors for consistency with the solicitation.
  • Obtain complete information on subcontracting plans for cost-reimbursement R&D contracts.
Contractors
  • Furnish scientific and technical reports as required by the contract.
  • Do not subcontract technical or scientific work without the contracting officer's advance knowledge.
  • For educational institutions and nonprofit organizations, ensure the principal investigator is closely involved and continuously responsible for the work.
Agencies
  • Continually search for and develop information on R&D sources, including small businesses.
  • Publicize R&D needs and requirements through the Governmentwide point of entry.
  • Make R&D contract results available to other Government activities and the private sector, following agency regulations.

In practice

  • When bidding on R&D contracts, focus on proposing innovative ideas and demonstrating high competence in the specific field, as awards are based on best ideas and capability.
  • Expect work statements that allow flexibility and creativity, and be prepared to negotiate rather than respond to sealed bids.
  • If you are an educational institution or nonprofit, be aware of special rules for research contracts, including the role of the principal investigator and title to equipment.
  • For subcontracting technical work, obtain the contracting officer's advance knowledge and be ready to provide detailed subcontracting plans for cost-reimbursement contracts.

Common pitfalls

  • Assuming that fixed-price contracts are always preferred; in R&D, fixed-price is used only when goals, objectives, specifications, and cost estimates are sufficient.
  • Subcontracting technical or scientific work without informing the contracting officer in advance, which violates 35.009.
  • Failing to include required scientific and technical reports, as R&D contracts must require them as a permanent record.
  • Using a broad agency announcement when meaningful proposals with varying technical approaches cannot be reasonably anticipated.

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.

Rule changes for FAR Part 35

Subparts and sections

← Part 34: Major System AcquisitionPart 36: Construction and Architect-engineer Contracts →

All FAR parts

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗.

FAR Part 35: Research and Development Contracting · SpendQuery