Federally Funded Research and Development Centers (FFRDCs)

Organizations sponsored by government agencies; administered by colleges and universities, other nonprofit institutions, and industrial firms; and charged with assisting the U.S. government with scientific research and analysis, development and acquisition, and systems engineering and integration.

Federally funded research and development centers (FFRDCs) address complex, long-term problems, objectively analyze technical questions, and provide creative and cost-effective solutions to government problems under the sponsorship and guidance of their sponsoring governmental agency. Sponsoring agencies include the U.S. Departments of Defense, Energy, Health and Human Services, Transportation, and Treasury; the National Aeronautics and Space Administration (NASA); the National Science Foundation; and the Nuclear Regulatory Commission.

FFRDCs operate as long-term strategic partners with their sponsoring agencies; however, in an effort to ensure the highest levels of objectivity, they are organized as independent entities with limitations and restrictions on their activities. Because of the unique position of FFRDCs, the 1984 Competition in Contracting Act (which provides federal executive branch agencies with policy and procedures for the conduct of contracting activities) specifically authorized agencies to use noncompetitive procedures as needed to establish and maintain FFRDCs. This is an exception to the general rule requiring the use of full and open competition. As a matter of general practice, most federal agencies that sponsor FFRDCs do not use competitive procedures to maintain their FFRDCs on expiration of the contract terms.

The FFRDCs have a special relationship with the government organizations they serve. They have [Page 260]access, beyond what is common in a normal contractual relationship, to government and private data, including sensitive and proprietary information, as well as to federal employees and facilities. The FFRDCs are prohibited from manufacturing products, competing with industry, or working for commercial companies, allowing industry and government to confidently provide them with sensitive information.

As private entities, FFRDCs have greater flexibility than the government in recruiting and managing a highly skilled technical workforce. Long-term relationships between the government and FFRDCs are encouraged to provide the continuity that will attract high-quality personnel to the FFRDC. Therefore, the FFRDCs are able to support their government sponsors with a full spectrum of planning and concept development, research and development, and systems acquisition. Sponsors conduct comprehensive reviews of their FFRDCs every five years to ensure the quality, efficiency, and appropriateness of the work program. The practical results of the FFRDCs' work is made available to the public through methods such as cooperative research and development, technology licensing, open-source participation, and contributions to industry standards.