35.017-2 Establishing or changing an FFRDC
Source: FAR 35.017-2 on acquisition.gov
Establishing or changing an FFRDC requires rigorous justification, transparency, oversight, and formal approvals to ensure public interest and compliance with federal requirements.
Overview
FAR 35.017-2 outlines the specific requirements and procedures for establishing a Federally Funded Research and Development Center (FFRDC) or changing its basic purpose and mission. The regulation ensures that FFRDCs are only created or modified when no effective alternative sources exist, and that their operations are transparent, cost-effective, and free from conflicts of interest. It mandates agency sponsors to conduct thorough evaluations, provide public notice, maintain oversight, and secure necessary approvals before proceeding. The section also requires clear differentiation between FFRDC and non-FFRDC work, notification to the Office of Science and Technology Policy, and prohibits quantity production unless legislatively authorized.
Key Rules
- No Effective Alternatives
- Agencies must confirm that existing sources cannot meet the specialized research or development needs.
- Public Notice
- Required notices must be published as specified in FAR 5.205(b).
- Government Expertise
- Agencies must have sufficient expertise to objectively evaluate FFRDC work.
- OSTP Notification
- Notify the Office of Science and Technology Policy of establishment or changes.
- Cost Controls
- Implement controls to ensure service costs are reasonable.
- Clear Mission Statement
- Clearly state the FFRDC’s purpose and mission to distinguish its work from non-FFRDCs.
- Continuity of Support
- Maintain reasonable continuity in support, consistent with agency needs and agreements.
- Autonomous Operation
- FFRDCs must be managed autonomously, operate in the public interest, and disclose affairs to the sponsor.
- Production Restrictions
- Quantity production/manufacturing is prohibited unless legislatively authorized.
- Agency Head Approval
- Obtain approval from the head of the sponsoring agency.
Responsibilities
- Contracting Officers: Ensure all requirements are met before establishing or changing an FFRDC, including documentation, notifications, and approvals.
- Contractors: Comply with operational, disclosure, and conflict of interest requirements if managing or operating an FFRDC.
- Agencies: Oversee compliance, maintain cost controls, and ensure public interest and transparency.
Practical Implications
- This section ensures FFRDCs are only established or changed when truly necessary and with proper oversight.
- It impacts how agencies justify, document, and manage FFRDC relationships, and how contractors structure their operations.
- Common pitfalls include inadequate justification, missing notifications, or insufficient cost controls, which can delay or invalidate FFRDC establishment or changes.
To establish an FFRDC, or change its basic purpose and mission, the sponsor shall ensure the following:
(a) Existing alternative sources for satisfying agency requirements cannot effectively meet the special research or development needs.
(b) The notices required for publication (see 5.205(b)) are placed as required.
(c) There is sufficient Government expertise available to adequately and objectively evaluate the work to be performed by the FFRDC.
(d) The Executive Office of the President, Office of Science and Technology Policy, Washington, DC 20506, is notified.
(e) Controls are established to ensure that the costs of the services being provided to the Government are reasonable.
(f) The basic purpose and mission of the FFRDC is stated clearly enough to enable differentiation between work which should be performed by the FFRDC and that which should be performed by non-FFRDC’s.
(g) A reasonable continuity in the level of support to the FFRDC is maintained, consistent with the agency’s need for the FFRDC and the terms of the sponsoring agreement.
(h) The FFRDC is operated, managed, or administered by an autonomous organization or as an identifiably separate operating unit of a parent organization, and is required to operate in the public interest, free from organizational conflict of interest, and to disclose its affairs (as an FFRDC) to the primary sponsor.
(i) Quantity production or manufacturing is not performed unless authorized by legislation.
(j) Approval is received from the head of the sponsoring agency.