Technology Development

Research and Development Cost

Research & Development (R&D) Cost consists of development costs (both contractor and Government) incurred from the beginning of the Materiel Solution Analysis (MSA) Phase, Technology Development (TD) Phase and through the end of the Engineering and Manufacturing Development (EMD) Phase.

– See R&D Appropriations

Typically costs include: [1]

  • Advanced technology development
  • Assembly
  • Common support equipment
  • Development
  • Engineering Change Orders
  • Engineering development models
  • Fabrication
  • Industrial Facilities
  • Initial spares and repairs
  • Parts
  • Materiel solution trade studies
  • Operational/Site activation
  • Peculiar support equipment
  • Prime mission product system
  • Product support elements
  • Program management
  • System design and integration
  • System test and evaluation
  • Systems engineering
  • Technical publications and data
  • Test and evaluation
  • Test of hardware and software for prototypes
  • Training

For the Research and Development Cost report format, see DoD 7000.14 R, Financial Management Regulation, Volume 2B, Chapter 5.


  • The Training element includes training equipment and devices, training course materials, and training services
  • Supportability analysis that defines the requirements for the logistics elements is part of Systems Engineering, and planning and management associated with the logistics elements is part of Program Management
  • Specialized facilities (fixtures, test chambers, laboratories, etc.) are considered part of the Work Breakdown Structure (WBS) element that they support.
  • Specialized contractor support is considered part of the WBS element that it supports. Contractor support associated with the service, maintenance or launch of prime mission systems is part of the Operational/Site Activation element

AcqLinks and References:

Updated: 6/22/2018

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