[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR37.530]



[Page 234]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

                 Subpart E_Pre-Award Business Evaluation

 

Sec.  37.530  What criteria do I use in deciding whether to accept a 

recipient's cost sharing?



    You may accept any cash or in-kind contributions that meet all of 

the following criteria:

    (a) In your judgment, they represent meaningful cost sharing that 

demonstrates the recipient's commitment to the success of the research 

project. Cash contributions clearly demonstrate commitment and they are 

strongly preferred over in-kind contributions.

    (b) They are necessary and reasonable for accomplishment of the 

research project's objectives.

    (c) They are costs that may be charged to the project under Sec.  

37.625 and Sec.  37.635, as applicable to the participant making the 

contribution.

    (d) They are verifiable from the recipient's records.

    (e) They are not included as cost sharing contributions for any 

other Federal award.

    (f) They are not paid by the Federal Government under another award, 

except:

    (1) Costs that are authorized by Federal statute to be used for cost 

sharing; or

    (2) Independent research and development (IR&D) costs, as described 

at 32 CFR 34.13(a)(5)(ii), that meet all of the criteria in paragraphs 

(a) through (e) of this section. IR&D is acceptable as cost sharing, 

even though it may be reimbursed by the Government through other awards. 

It is standard business practice for all for-profit firms, including 

commercial firms, to recover their research and development (R&D) costs 

(which for Federal procurement contracts is recovered as IR&D) through 

prices charged to their customers. Thus, the cost principles at 48 CFR 

part 31 allow a for-profit firm that has expenditure-based, Federal 

procurement contracts to recover through those procurement contracts the 

allocable portion of its R&D costs associated with a technology 

investment agreement.