FAR 35.017—Federally Funded Research and Development Centers.
Plain-English Summary
FAR 35.017 establishes the federal policy framework for Federally Funded Research and Development Centers (FFRDCs) and their sponsoring agreements. It explains what an FFRDC is, why the Government uses one, the special access and operating conditions that distinguish an FFRDC from an ordinary contractor, and the expectation that the center operate in the public interest with objectivity, independence, and full disclosure to its sponsor. The section also addresses who may operate an FFRDC, the importance of long-term relationships, and the role of multiple sponsorship arrangements. In practical terms, this section is the policy basis for creating, using, reviewing, and terminating FFRDC relationships, and it signals that FFRDCs are reserved for special long-term research or development needs that cannot be met as effectively by in-house resources or ordinary contractors. It also makes clear that privileged access is not meant to give an FFRDC an unfair competitive advantage in the private sector, while still allowing work for other agencies when authorized and when the work is not otherwise available from the private sector. Finally, the definitions of sponsor, primary sponsor, and nonsponsor are critical because they determine who manages the relationship, who controls overall use, and how work funded by others is treated.
Key Rules
FFRDCs serve special needs
An FFRDC may be established only to meet a special long-term research or development need that cannot be met as effectively by existing in-house or contractor resources. This makes the FFRDC a limited-purpose tool, not a general contracting vehicle.
Special access comes with duties
FFRDCs may receive access beyond a normal contractual relationship to Government and supplier data, including sensitive and proprietary information, as well as employees, installations, equipment, and real property. That access is tied to a duty to act in the public interest, maintain objectivity and independence, avoid organizational conflicts of interest, and fully disclose affairs to the sponsoring agency.
No unfair private-sector competition
The Government does not intend for an FFRDC to use privileged information or special access to compete with private industry. However, an FFRDC may perform work for others under the Economy Act or other applicable authority when the work is not otherwise available from the private sector.
Permitted operating structures
An FFRDC may be operated, managed, or administered by a university, a consortium of universities, another nonprofit or not-for-profit organization, or an industrial firm. It must function as an autonomous organization or as a clearly identifiable separate operating unit of a parent organization.
Long-term relationships are encouraged
The Government encourages long-term relationships with FFRDCs to support continuity, attract high-quality personnel, maintain technical currency, preserve objectivity and independence, sustain familiarity with sponsor needs, and provide quick response capability.
Sponsor roles must be defined
A sponsor is the executive agency that manages, administers, monitors, funds, and is responsible for overall use of the FFRDC. In multiple-sponsor arrangements, one agency must serve as the primary sponsor and act as the lead for overall management and administration.
Nonsponsors are separate funders
A nonsponsor is any other organization, inside or outside the Federal Government, that funds specific work for the FFRDC but is not a party to the sponsoring agreement. This distinction matters because nonsponsor-funded work does not make the organization a sponsor.
Responsibilities
Agency
Determine whether a special long-term research or development need justifies an FFRDC, establish and maintain the sponsoring agreement, and ensure the center is used only for appropriate purposes. The agency must also oversee the FFRDC’s objectivity, independence, disclosure, and overall compliance with the policy.
Primary Sponsor
In a multiple-sponsor arrangement, manage, administer, monitor, and coordinate the overall use of the FFRDC on behalf of all sponsors. The primary sponsor serves as the lead agency for the sponsoring agreement and overall governance.
Sponsor
Fund the FFRDC, manage and administer the relationship, monitor performance and use, and remain responsible for the center’s overall use. The sponsor must ensure the FFRDC operates consistently with its special public-interest role and the terms of the sponsoring agreement.
FFRDC Operator/Manager
Operate the center as an autonomous organization or separate operating unit, maintain objectivity and independence, avoid organizational conflicts of interest, and provide full disclosure to the sponsoring agency. The operator must also safeguard the special relationship and not use privileged access to unfairly compete with private industry.
Contracting Officer / Acquisition Officials
Use FFRDCs only when the policy basis is satisfied, ensure the sponsoring arrangement is properly structured, and confirm that any work for other agencies or entities is authorized under the Economy Act or other applicable legislation. They must also distinguish sponsor, primary sponsor, and nonsponsor roles correctly.
Nonsponsor
Fund specific work only as permitted and without becoming a party to the sponsoring agreement. A nonsponsor does not control overall use of the FFRDC and does not assume sponsor responsibilities merely by funding discrete work.
Practical Implications
FFRDCs are not ordinary contractors; they are reserved for long-term, mission-integral needs that require special access and continuity. Before using one, agencies should be able to explain why existing in-house or commercial resources are not sufficient.
The special access granted to an FFRDC creates heightened oversight needs. Agencies should watch for conflicts of interest, improper use of sensitive data, and any signs that the center is leveraging Government access to compete unfairly in the private sector.
Multiple sponsorship arrangements require clear governance. If more than one agency funds or uses the center, one must be designated as primary sponsor to avoid confusion over who controls the relationship and who is accountable for overall use.
The distinction between sponsor and nonsponsor matters in practice. Funding specific work does not automatically make an organization a sponsor, so agencies should document roles carefully in the sponsoring agreement and related tasking arrangements.
Long-term relationships are encouraged, but they are not open-ended by default. Agencies should periodically review whether the FFRDC still meets a special need and whether the arrangement continues to justify its privileged status and special access.
Official Regulatory Text
(a) Policy. (1) This section sets forth Federal policy regarding the establishment, use, review, and termination of Federally Funded Research and Development Centers (FFRDC’s) and related sponsoring agreements. (2) An FFRDC meets some special long-term research or development need which cannot be met as effectively by existing in-house or contractor resources. FFRDC’s enable agencies to use private sector resources to accomplish tasks that are integral to the mission and operation of the sponsoring agency. An FFRDC, in order to discharge its responsibilities to the sponsoring agency, has access, beyond that which is common to the normal contractual relationship, to Government and supplier data, including sensitive and proprietary data, and to employees and installations equipment and real property. The FFRDC is required to conduct its business in a manner befitting its special relationship with the Government, to operate in the public interest with objectivity and independence, to be free from organizational conflicts of interest, and to have full disclosure of its affairs to the sponsoring agency. It is not the Government’s intent that an FFRDC use its privileged information or access to installations equipment and real property to compete with the private sector. However, an FFRDC may perform work for other than the sponsoring agency under the Economy Act, or other applicable legislation, when the work is not otherwise available from the private sector. (3) FFRDC’s are operated, managed, and/or administered by either a university or consortium of universities, other not-for-profit or nonprofit organization, or an industrial firm, as an autonomous organization or as an identifiable separate operating unit of a parent organization. (4) Long-term relationships between the Government and FFRDC’s are encouraged in order to provide the continuity that will attract high-quality personnel to the FFRDC. This relationship should be of a type to encourage the FFRDC to maintain currency in its field(s) of expertise, maintain its objectivity and independence, preserve its familiarity with the needs of its sponsor(s), and provide a quick response capability. (b) Definitions. As used in this section- Nonsponsor means any other organization, in or outside of the Federal Government, which funds specific work to be performed by the FFRDC and is not a party to the sponsoring agreement. Primary sponsor means the lead agency responsible for managing, administering, or monitoring overall use of the FFRDC under a multiple sponsorship agreement. Sponsor means the executive agency which manages, administers, monitors, funds, and is responsible for the overall use of an FFRDC. Multiple agency sponsorship is possible as long as one agency agrees to act as the "primary sponsor." In the event of multiple sponsors, "sponsor" refers to the primary sponsor.