35.017-7 Limitation on the creation of new FFRDC’s
Source: FAR 35.017-7 on acquisition.gov
No new FFRDCs using DoD funds can be created without a Congressional report and a 60-day waiting period after Congress receives the report.
Overview
FAR 35.017-7 establishes strict limitations on the creation of new Federally Funded Research and Development Centers (FFRDCs) using Department of Defense (DoD) appropriated funds. Specifically, it prohibits the obligation or expenditure of DoD funds for operating any FFRDC not in existence before June 2, 1986, unless certain procedural requirements are met. These requirements include submitting a detailed report to Congress outlining the new center's purpose, mission, and scope, and waiting a mandatory 60-day period after Congress receives the report before any funds can be used. This rule applies to the Secretaries of Defense, Army, Navy, Air Force, Homeland Security, and the NASA Administrator, ensuring Congressional oversight before new FFRDCs are established with DoD funding.
Key Rules
- Congressional Reporting Requirement
- Agencies must submit a report to Congress describing the new FFRDC's purpose, mission, and general scope before obligating funds.
- Mandatory Waiting Period
- Agencies must wait 60 days after Congress receives the report before expending or obligating funds for the new FFRDC.
Responsibilities
- Contracting Officers: Ensure no funds are obligated or expended for new FFRDCs until all reporting and waiting period requirements are met.
- Contractors: Be aware that new FFRDCs cannot be established or funded without Congressional notification and a waiting period.
- Agencies: Prepare and submit the required report to Congress and track the 60-day waiting period before proceeding with funding.
Practical Implications
- This regulation exists to provide Congressional oversight and prevent the unchecked creation of new FFRDCs with DoD funds.
- It impacts agency planning and timelines for establishing new research centers, requiring advance preparation and compliance with reporting and waiting periods.
- Failure to comply can result in funding delays or legal violations, making careful adherence essential.
Pursuant to https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4126&num=0&edition=prelim" target="_blank">10 U.S.C. 4126, the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, the Secretary of Homeland Security, and the Administrator of the National Aeronautics and Space Administration may not obligate or expend amounts appropriated to the Department of Defense for purposes of operating an FFRDC that was not in existence before June 2, 1986, until—
(a) The head of the agency submits to Congress a report with respect to such center that describes the purpose, mission, and general scope of effort of the center; and
(b) A period of 60 days, beginning on the date such report is received by Congress, has elapsed.