35.017-5
Terminating an FFRDC
When an agency no longer needs an FFRDC, it must either justify transferring sponsorship to another agency or phase out the FFRDC entirely.
Overview
FAR 35.017-5 outlines the procedures for terminating a Federally Funded Research and Development Center (FFRDC) when the sponsoring agency no longer requires its services. The regulation provides two primary options: transferring sponsorship to another government agency if there is a justified need, or phasing out the FFRDC if no transfer occurs. This ensures that FFRDCs continue only when there is a valid government requirement and that resources are not expended on unnecessary operations.
Key Rules
- Transfer of Sponsorship
- If the original sponsor no longer needs the FFRDC, sponsorship may be transferred to another government agency, provided there is appropriate justification.
- Phase-Out Requirement
- If the FFRDC is not transferred, it must be phased out, effectively ending its operations.
Responsibilities
- Contracting Officers: Must ensure proper justification for any transfer of sponsorship and oversee the phase-out process if no transfer occurs.
- Contractors (FFRDC Operators): Must comply with phase-out instructions or facilitate the transfer as directed.
- Agencies: Must document the need for transfer or initiate phase-out procedures when the FFRDC is no longer required.
Practical Implications
- This section ensures that FFRDCs are only maintained when there is a clear government need, preventing unnecessary expenditures.
- Contracting professionals must be prepared to justify transfers or manage orderly phase-outs, including compliance with all related documentation and transition requirements.
- Common pitfalls include inadequate justification for transfer or failure to properly phase out operations, which can lead to compliance issues or wasted resources.