keep PART 335—RESEARCH AND DEVELOPMENT CONTRACTING
This FAR regulation mandates contracting officers to use cost-sharing in R&D contracts where contractors stand to benefit from the research (e.g., commercial products, technical know-how). Cost-sharing amounts should be proportional to anticipated contractor gains, with flexibility for adjustments and waivers when inappropriate. It prevents double-charging and allows consideration of key personnel.
Deleting this would permit full taxpayer subsidization of private R&D that primarily benefits contractors, creating corporate welfare and inefficient resource allocation. The requirement aligns incentives through market-based negotiation, promotes fiscal responsibility, and would be difficult to achieve through alternative means without adding complexity.