FAR 35.017-4—Reviewing FFRDC’s.
Plain-English Summary
FAR 35.017-4 explains how a sponsoring agency must periodically review a Federally Funded Research and Development Center (FFRDC) before extending its contract or agreement. It covers the required comprehensive review of the FFRDC’s continued use and need, coordination with co-sponsors, the option to align the review with the budget process, and the procedure to follow if the sponsor decides its sponsorship is no longer appropriate. It also assigns final approval authority to the head of the sponsoring agency for continuing or terminating sponsorship. Most importantly, it specifies what the review must examine: the sponsor’s continuing special technical needs and mission requirements, alternative sources, the FFRDC’s efficiency and effectiveness, the FFRDC’s objectivity and independence, quick-response capability, currency in its fields of expertise, familiarity with sponsor needs, the adequacy of FFRDC management, and whether the original establishment criteria and the sponsoring agreement requirements remain satisfied. In practice, this section is the government’s checkpoint for ensuring an FFRDC still serves a legitimate, unique public purpose and is being used in a way that remains compliant, cost-effective, and mission-driven.
Key Rules
Review before extension
Before extending an FFRDC contract or agreement, the sponsor must conduct a comprehensive review of the FFRDC’s continued use and need. This is not optional and is intended to confirm that the FFRDC still fills a valid role for the agency.
Coordinate with co-sponsors
The review must be coordinated with any co-sponsors, so all sponsoring agencies have a chance to participate in the assessment. The review may also be performed as part of the budget process, which can help align mission and funding decisions.
Notify other users if sponsorship changes
If the sponsor concludes that its sponsorship is no longer appropriate, it must inform other agencies that use the FFRDC and give them an opportunity to assume sponsorship. This prevents abrupt disruption and allows another agency to continue the arrangement if appropriate.
Agency head makes the decision
Approval to continue or terminate sponsorship rests with the head of the sponsoring agency. That decision must be based on the results of the required review, not on informal preference or convenience.
Assess mission need and alternatives
The review must examine whether the sponsor’s special technical needs and mission requirements still exist, and whether alternative sources could meet those needs. This ensures the FFRDC remains justified as a unique resource rather than a default contractor.
Evaluate performance and management
The sponsor must assess the FFRDC’s efficiency and effectiveness, including objectivity, independence, quick-response capability, currency in its expertise, and familiarity with sponsor needs. The review must also assess whether FFRDC management is ensuring a cost-effective operation.
Confirm continued eligibility and compliance
The sponsor must determine that the criteria for establishing the FFRDC are still met and that the sponsoring agreement complies with FAR 35.017-1. This is the compliance check that ties the review back to the original legal basis for the FFRDC.
Responsibilities
Sponsor
Conduct a comprehensive review before extending the FFRDC contract or agreement; coordinate the review with co-sponsors; consider whether sponsorship remains appropriate; notify other agencies using the FFRDC if sponsorship may end; and base the recommendation on the required review factors.
Co-sponsors
Participate in or coordinate with the sponsor’s review when they share sponsorship responsibilities, and consider the implications of any proposed change in sponsorship.
Head of the sponsoring agency
Approve continuation or termination of sponsorship based on the review results. This official has the final decision authority under this section.
Other agencies using the FFRDC
Be informed if the sponsor no longer views sponsorship as appropriate and decide whether to assume sponsorship if given the opportunity.
FFRDC management
Support the review by demonstrating efficient, effective, objective, independent, and cost-effective operations, and by maintaining the expertise and responsiveness expected of the center.
Practical Implications
This review is a recurring governance requirement, not a one-time setup step, so agencies should build it into their renewal and budget timelines.
A weak review record can create compliance risk if the agency cannot show why the FFRDC still meets a unique need or why alternatives were rejected.
Sponsors should document each required factor separately; missing analysis of objectivity, independence, or cost-effective management is a common gap.
If sponsorship may shift, early coordination with co-sponsors and other user agencies is important to avoid service disruption and policy conflict.
Contracting and program officials should watch for drift: if the FFRDC starts doing work that could be obtained elsewhere, the justification for continued sponsorship may no longer be strong.
Official Regulatory Text
(a) The sponsor, prior to extending the contract or agreement with an FFRDC, shall conduct a comprehensive review of the use and need for the FFRDC. The review will be coordinated with any co-sponsors and may be performed in conjunction with the budget process. If the sponsor determines that its sponsorship is no longer appropriate, it shall apprise other agencies which use the FFRDC of the determination and afford them an opportunity to assume sponsorship. (b) Approval to continue or terminate the sponsorship shall rest with the head of the sponsoring agency. This determination shall be based upon the results of the review conducted in accordance with paragraph (c) of this subsection. (c) An FFRDC review should include the following: (1) An examination of the sponsor’s special technical needs and mission requirements that are performed by the FFRDC to determine if and at what level they continue to exist. (2) Consideration of alternative sources to meet the sponsor’s needs. (3) An assessment of the efficiency and effectiveness of the FFRDC in meeting the sponsor’s needs, including the FFRDC’s ability to maintain its objectivity, independence, quick response capability, currency in its field(s) of expertise, and familiarity with the needs of its sponsor. (4) An assessment of the adequacy of the FFRDC management in ensuring a cost-effective operation. (5) A determination that the criteria for establishing the FFRDC continue to be satisfied and that the sponsoring agreement is in compliance with 35.017-1 .