Sponsoring agreements
A sponsoring agreement with specific required provisions is mandatory for every FFRDC, must be reviewed and renewed at least every five years, and governs the center’s mission, operations, and compliance obligations.
Overview
FAR 35.017-1 outlines the requirements for establishing and maintaining sponsoring agreements between the Government and Federally Funded Research and Development Centers (FFRDCs). These agreements formalize the relationship, define the FFRDC’s mission, and ensure periodic review. The regulation mandates that a written sponsoring agreement be prepared at the establishment of an FFRDC, and it specifies minimum content requirements, including mission statements, termination provisions, asset disposition, retained earnings, competition restrictions, and policies for accepting work from non-sponsors. The agreement’s term cannot exceed five years but may be renewed in increments of up to five years following periodic review. Additional provisions may be included as appropriate, such as cost element agreements and fee negotiation considerations.
Key Rules
- Written Sponsoring Agreement Required
- A formal, clearly designated agreement must be established when an FFRDC is created, regardless of its legal form.
- Minimum Content Requirements
- Agreements must address mission, termination, asset disposition, retained earnings, competition restrictions, and acceptance of non-sponsor work.
- Additional Provisions
- Agreements may include advance cost element agreements and fee negotiation considerations.
- Term Limits and Renewal
- Agreements are limited to five years but may be renewed in increments of up to five years after review.
Responsibilities
- Contracting Officers: Ensure all required elements are included in the sponsoring agreement and that the agreement is properly designated and periodically reviewed.
- Contractors (FFRDCs): Comply with the terms of the agreement, including competition restrictions and procedures for accepting non-sponsor work.
- Agencies: Develop policies and procedures for sponsoring agreements and conduct periodic reviews for renewal.
Practical Implications
- This section ensures clarity, accountability, and compliance in the relationship between the Government and FFRDCs.
- It impacts how FFRDCs operate, especially regarding competition, asset management, and acceptance of outside work.
- Common pitfalls include missing required agreement elements, failing to renew agreements on time, or not properly restricting competition.