FAR 35.017-7—Limitation on the creation of new FFRDC’s.
Plain-English Summary
FAR 35.017-7 imposes a statutory limitation on creating or funding certain new federally funded research and development centers (FFRDCs) within the Department of Defense and specified defense-related agencies. It applies only to FFRDCs that were not in existence before June 2, 1986, and it restricts the obligation or expenditure of DoD appropriated funds for operating such a center until two conditions are met: the agency head must submit a report to Congress describing the center’s purpose, mission, and general scope of effort, and 60 days must pass after Congress receives that report. In practical terms, this section is a congressional notification and waiting-period control designed to ensure oversight before the government commits defense funds to a new FFRDC. It matters for acquisition planning, budget execution, and program approval because an agency cannot simply stand up or begin operating a covered FFRDC without satisfying the statutory prerequisites. The rule is especially important for agencies that rely on FFRDCs for long-term technical support, research, or systems engineering, because it can delay funding and require advance coordination with legislative affairs, legal counsel, and budget officials. It also helps distinguish between existing legacy FFRDCs and new centers, since the restriction only applies to centers not in existence before the statutory cutoff date.
Key Rules
Applies to covered defense agencies
The restriction applies to the Secretary of Defense, the Secretaries of the Army, Navy, and Air Force, the Secretary of Homeland Security, and the Administrator of NASA. These officials may not use appropriated DoD funds to operate a covered new FFRDC until the statutory steps are completed.
Only new FFRDCs are covered
The limitation applies only to an FFRDC that was not in existence before June 2, 1986. Existing FFRDCs established before that date are not subject to this particular creation-and-waiting requirement.
Congressional report is required
Before funding may be obligated or expended, the agency head must submit a report to Congress describing the center’s purpose, mission, and general scope of effort. The report is the formal notice that triggers congressional awareness and review.
Sixty-day waiting period
After Congress receives the report, 60 days must elapse before the agency may obligate or expend the covered funds. The clock starts on the date of receipt by Congress, not the date the report is prepared or sent.
No funding before both steps
Both conditions must be satisfied: the report must be submitted and the 60-day period must run. An agency may not lawfully begin operating the covered FFRDC with DoD appropriated funds until both requirements are complete.
Responsibilities
Agency Head
Submit the required report to Congress describing the FFRDC’s purpose, mission, and general scope of effort before any covered funding is obligated or expended.
Secretary of Defense / Covered Service Secretaries / Secretary of Homeland Security / NASA Administrator
Ensure no DoD appropriated funds are obligated or expended for operating a covered new FFRDC until the reporting and 60-day waiting requirements are satisfied.
Budget and Program Officials
Plan funding actions so that no obligation or expenditure occurs prematurely, and coordinate timing with legislative reporting and legal review.
Contracting Officer
Verify that the statutory prerequisites have been met before awarding, modifying, or funding actions tied to the operation of a covered FFRDC.
Legal and Legislative Affairs Staff
Support preparation of the congressional report, confirm the correct recipient and receipt date, and advise on whether the center falls within the statutory restriction.
Practical Implications
This section can delay startup funding for a new FFRDC, so agencies need to build the reporting and 60-day wait into acquisition and budget schedules early.
A common pitfall is assuming that sending the report is enough; the agency must also wait 60 days after Congress receives it before obligating or expending funds.
Another risk is misidentifying whether a center is truly new or whether it existed before June 2, 1986, because that determines whether the restriction applies.
Contracting officers should not rely on informal approvals or internal planning milestones; they need documented evidence that the statutory conditions have been met.
Because the rule is tied to operating an FFRDC, agencies should coordinate carefully when funding support contracts, task orders, or other actions that effectively begin center operations.
Official Regulatory Text
Pursuant to 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.