FAR 35.015—Contracts for research with educational institutions and nonprofit organizations.
Plain-English Summary
FAR 35.015 addresses how the Government should structure research and development contracts with educational institutions and nonprofit organizations when the work is not precisely defined and the contract is based on a period of performance rather than a fixed deliverable date. It explains when the contractor, rather than the Government, should have primary responsibility for the research, and it requires special contract terms about the principal investigator or project leader, that person’s expected level of effort, continuous involvement, and the need for contracting officer approval before changing key research elements. The section also covers when these same controls may be added even in contracts with precise objectives or a specific completion date, if Government oversight of approach, methods, or schedule is needed. In addition, it addresses basic agreements for recurring research contracting with these organizations, including when they should be negotiated, how often they should be reviewed and updated, and the preference for using basic agreements developed by other agencies to promote consistency. In practice, this section is meant to preserve the flexibility and academic independence often needed in research while still giving the Government enough control to protect its interests, manage key personnel, and maintain oversight of the research direction and performance.
Key Rules
Use special terms for undefined research
When R&D work is not precisely defined and the contract is for a period of performance rather than a specific result date, the contract must include special provisions for educational institutions and nonprofit organizations. These provisions are intended to reflect the exploratory nature of the work and the contractor’s central role in conducting it.
Contractor bears primary responsibility
The contract must state that the contractor has primary responsibility for the research. This makes clear that the institution or nonprofit is not merely providing labor under close Government direction, but is expected to manage and carry out the research effort.
Identify the principal investigator
If the award decision depends on a particular researcher’s expertise and management ability, the contract must name the principal investigator or project leader and state the estimated amount of time that person will devote to the work. This ties the award to the specific individual whose qualifications were material to the selection.
Require continuous involvement
The named principal investigator or project leader must be closely involved and continuously responsible for the conduct of the work. This requirement helps ensure that the research is actually led by the person whose capabilities justified the award.
Control key personnel changes
The contractor must obtain contracting officer approval before changing the principal investigator or project leader. The contractor must also notify the contracting officer if that person will, or plans to, devote substantially less effort than expected.
Protect research direction
The contractor must obtain contracting officer approval before changing the phenomenon under study, the stated research objectives, or the methodology. This gives the Government oversight over major shifts in the research scope or approach.
Add controls when oversight is needed
Even when a research contract has precise objectives or a specific completion date, the contracting officer may still include the special requirements from paragraph (a)(1) if Government oversight and approval over the avenues of approach, methods, or schedule is necessary. The rule is permissive, not mandatory, and depends on the need for oversight.
Use basic agreements for recurring work
A basic agreement should be negotiated when the volume of contracts justifies it, and it should be reviewed and updated at least annually. This is intended to streamline repeated contracting with educational institutions and nonprofit organizations.
Promote interagency consistency
Agencies are encouraged to use basic agreements developed by other agencies to improve uniformity and consistency in dealings with educational institutions and nonprofit organizations. This reduces duplication and helps align contracting practices across the Government.
Responsibilities
Contracting Officer
Include the required research-control clauses when the work is undefined and the contract is based on a period of performance. Decide whether to add those same controls to contracts with precise objectives or a fixed completion date when oversight of approach, methods, or schedule is needed. Approve or disapprove changes to the principal investigator, major changes in research direction, and other covered changes, and ensure basic agreements are negotiated, reviewed, and updated when appropriate.
Contractor
Accept primary responsibility for conducting the research, keep the named principal investigator closely involved and continuously responsible, and obtain contracting officer approval before changing the principal investigator, the research phenomenon, the objectives, or the methodology. Notify the contracting officer if the principal investigator will devote substantially less effort than anticipated.
Educational Institution or Nonprofit Organization
Ensure its internal research management supports the contractual commitment to contractor-led research and maintain continuity of the named investigator’s involvement. Use basic agreements where applicable and keep them current through periodic review and update.
Agency
Promote uniformity and consistency by encouraging use of basic agreements from other agencies when appropriate. Support the negotiation and maintenance of basic agreements for recurring research contracting relationships.
Practical Implications
This section is especially important for university and nonprofit research awards where the Government wants flexibility in the science but still needs visibility into who is leading the work and whether the project is drifting from the original plan.
A common pitfall is treating the principal investigator as interchangeable; if the award was based on that person’s expertise, changing personnel or reducing effort without approval can create a contract compliance issue.
Another frequent issue is scope creep in research projects. Even in exploratory work, changes to the phenomenon under study, objectives, or methodology may require prior contracting officer approval under this section.
For contracting officers, the key judgment is whether the contract is truly open-ended research or whether the Government needs tighter oversight because the objectives, methods, or schedule are more defined.
For recurring relationships, failing to use or refresh a basic agreement can lead to inconsistent terms across awards and unnecessary administrative burden; annual review helps keep the agreement aligned with current practice and policy.
Official Regulatory Text
(a) General. (1) When the R&D work is not defined precisely and the contract states only a period during which work is conducted (that is, a specific time for achievement of results is not required), research contracts with educational institutions and nonprofit organizations shall- (i) State that the contractor bears primary responsibility for the research; (ii) Give- (A) The name of the principal investigator (or project leader), if the decision to contract is based on that particular individual’s research effort and management capabilities; and (B) The contractor’s estimate of the amount of time that individual will devote to the work; (iii) Provide that the named individual shall be closely involved and continuously responsible for the conduct of the work; (iv) Provide that the contractor must obtain the contracting officer’s approval to change the principal investigator (or project leader); (v) Require that the contractor advise the contracting officer if the principal investigator (or project leader) will, or plans to, devote substantially less effort to the work than anticipated; and (vi) Require that the contractor obtain the contracting officer’s approval to change the phenomenon under study, the stated objectives of the research, or the methodology. (2) If a research contract does provide precise objectives or a specific date for achievement of results, the contracting officer may include in the contract the requirements set forth in paragraph (a)(1) of this section, if it is necessary for the Government to exercise oversight and approval over the avenues of approach, methods, or schedule of work. (b) Basic agreements. (1) A basic agreement should be negotiated if the number of contracts warrants such an agreement (see 16.702 ). Basic agreements should be reviewed and updated at least annually. (2) To promote uniformity and consistency in dealing with educational institutions and nonprofit organizations, agencies are encouraged to use basic agreements of other agencies.