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[quote=Anonymous]“ The Federal Acquisition Regulation system (FAR) governs the establishment, use, review, and termination of FFRDCs.15 According to the FAR, FFRDCs are intended to address an R&D need that cannot be met as effectively by the federal government or the private sector alone. Essentially, FFRDCs are intended to only perform work that cannot be done by other contractors. FFRDCs accomplish their R&D through a strategic relationship with their sponsoring agency. Two overarching characteristics—special access and longevity—define this strategic relationship.

An FFRDC may be given special access to government and supplier data, employees, and facilities.16 This access is beyond what is typical in a normal contractual relationship and may include access to sensitive and proprietary information. Accordingly, the FAR requires that FFRDCs (1) operate in the public interest with objectivity and independence, (2) be free from organizational conflicts of interest, and (3) fully disclose their activities to their sponsoring agency.17 Additionally, FFRDCs are not allowed to use their special access to privileged information, equipment, or property to compete with the private sector for federal R&D contracts. However, an FFRDC is allowed to perform work for other agencies when the capabilities of the FFRDC are not available in the private sector. Finally, the prohibition against competing with the private sector for federal R&D contracts does not apply to the parent organization or any subsidiary of the parent organization associated with an FFRDC.18

The other defining characteristic is the long-term relationship between an FFRDC and its sponsoring agency. Under the FAR, the initial contract period of an FFRDC may be up to five years, but these contracts may be renewed, following a review, in increments of up to five years.19 For example, one DOE FFRDC—the Pacific Northwest National Laboratory—has been operating under the same contract since 1964. The FAR encourages long-term contracts to provide stability and continuity that are intended to allow an FFRDC to attract high-quality personnel.20 Additionally, under the FAR, a long relationship is required to enable the FFRDC to maintain in-depth expertise, stay familiar with the needs of the agency, provide a quick response capability, and maintain objectivity and independence.21”

https://www.everycrsreport.com/reports/R44629.html
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