FAR 35.002—General.
Plain-English Summary
FAR 35.002 explains the basic policy for federal research and development (R&D) contracting. It covers the purpose of contracted R&D programs, the difference between R&D work and ordinary supplies or services contracts, the inherent uncertainty in defining R&D work and predicting technical success, and the need for the contracting process to attract the best scientific and industrial sources. It also emphasizes that R&D contracting should support an environment of reasonable flexibility and minimum administrative burden. In practice, this section tells contracting officers and contractors that R&D acquisitions are meant to advance knowledge and meet agency and national goals, but they must be managed differently from routine procurements because the work often cannot be fully specified in advance and may involve uncertain outcomes. The section is important because it justifies more adaptive acquisition approaches, careful source selection, and contract administration that avoids unnecessary rigidity while still protecting the Government’s interests.
Key Rules
Advance knowledge and goals
The primary purpose of contracted R&D is to advance scientific and technical knowledge and apply that knowledge to achieve agency and national goals. R&D contracts are therefore mission-oriented, not just task-oriented.
R&D differs from routine contracts
Unlike supplies and services contracts, most R&D contracts involve work or methods that cannot be precisely described in advance. Acquisition planning must account for evolving technical approaches and incomplete information.
Uncertain success is expected
It is often difficult to judge the probability of success or the amount of effort needed for technical approaches, and some approaches may offer little or no early assurance of full success. The Government should expect technical risk and manage it appropriately.
Attract the best sources
The contracting process must encourage the best sources from the scientific and industrial community to participate in the program. Competition and outreach should be structured to draw in capable performers.
Preserve flexibility
The process must provide an environment in which the work can be pursued with reasonable flexibility and minimum administrative burden. Contract structure and administration should avoid unnecessary rigidity that could hinder research progress.
Responsibilities
Contracting Officer
Structure the acquisition to support R&D objectives, use procedures that attract strong scientific and industrial sources, and administer the contract with reasonable flexibility and minimal unnecessary burden while still maintaining oversight.
Agency
Define the agency and national goals the R&D effort is intended to advance, and ensure acquisition policies support participation by qualified research performers and allow for technical uncertainty.
Contractor
Pursue the research or development effort in good faith despite technical uncertainty, provide the best available scientific or technical approach, and work within the flexible framework established by the contract.
Scientific and Industrial Community
Participate as potential sources of innovative technical solutions, bringing specialized expertise and research capability to the Government’s R&D program.
Practical Implications
R&D acquisitions should not be treated like fixed, fully defined production buys; the statement of work often needs room for exploration and refinement.
Source selection should focus heavily on technical capability, creativity, and past research performance, not just price or routine delivery factors.
Contract administration should avoid over-prescriptive controls that slow experimentation, but it still needs enough structure to track progress and manage risk.
Because success is uncertain, contracting officers should expect that some approaches will fail or need redirection; that is not necessarily a contract problem if the effort was reasonable and properly managed.
A common pitfall is demanding overly detailed specifications or rigid milestones that conflict with the nature of research and reduce the chance of attracting top-tier performers.
Official Regulatory Text
The primary purpose of contracted R&D programs is to advance scientific and technical knowledge and apply that knowledge to the extent necessary to achieve agency and national goals. Unlike contracts for supplies and services, most R&D contracts are directed toward objectives for which the work or methods cannot be precisely described in advance. It is difficult to judge the probabilities of success or required effort for technical approaches, some of which offer little or no early assurance of full success. The contracting process shall be used to encourage the best sources from the scientific and industrial community to become involved in the program and must provide an environment in which the work can be pursued with reasonable flexibility and minimum administrative burden.