FAR and DFARS › FAR Part 35: Research and Development Contracting
FAR 35.003 Policy.
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
This section states that contracts should only be used when the main purpose is buying supplies or services for the Federal Government's direct benefit or use. Grants or cooperative agreements are the appropriate tool when the main purpose is to stimulate or support research and development for another public purpose. It also points to other rules for cost sharing and recoupment.
Applies to: Government contracting officers and contractors involved in research and development acquisitions
What it requires
- Use contracts only when the principal purpose is acquiring supplies or services for the direct benefit or use of the Federal Government
- Follow cost sharing policies in accordance with 16.303, 42.707(a), and agency procedures
- Follow recoupment rules in accordance with agency procedures
Key terms: contracts · grants · cooperative agreements · cost sharing · recoupment
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Use of contracts. Contracts shall be used only when the principal purpose is the acquisition of supplies or services for the direct benefit or use of the Federal Government. Grants or cooperative agreements should be used when the principal purpose of the transaction is to stimulate or support research and development for another public purpose.
(b) Cost sharing. Cost sharing policies (which are not otherwise required by law) under Government contracts shall be in accordance with 16.303, 42.707(a) and agency procedures.
(c) Recoupment. Recoupment not otherwise required by law shall be in accordance with agency procedures.
Sections it refers to
Sections that refer to it
- 42.707 Cost-sharing rates and limitations on indirect cost rates.
← 35.002 General. · 35.004 Publicizing requirements and expanding research and development sources. →
Rule changes for FAR Part 35
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35 ↗ · proposed 2026-09-18 · comments due 2026-10-19
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.