Eight federal agencies currently operate a total of 36 FFRDCs. According to the National Science Foundation, once theagency implements the OFPP guidelines, the new FFRDC should have the following characteristics: (1) its primaryactivities shouldinclude: basic research, applied research, development, or management of research and development; (2) it is aseparate operationalunit within the parent organization or is organized as a separately incorporated organization; (3) it performs actualR&D or R&Dmanagement either upon direct request of the federal government or under a broad charter from the federalgovernment, but in eithercase under direct monitoring by the federal government; (4) it receives its major financial support (70% or more)from the federalgovernment, usually from one agency; (5) it has, or is expected to have, a long-term relationship with its sponsoringagency (usually 5years, with a review of the center's progress conducted by the sponsoring agency during the third year of theagreement); (6) most orall of its facilities are owned by, or are funded under contract with, the federal government, (7) it has an averageannual budget(operating and capital equipment) of at least $500,000; and (8) when renewing the sole-source contract, thesponsoring agency isrequired to determine if it still needs to sponsor an FFRDC or if the work could be done in a federal facility, orthrough a traditionalprivate sector contract. (6)

	DHS FFRDCs

Within Title III, Science and Technology in Support of Homeland Security, of the Homeland Security Act ( P.L.107-296 ) there are twoprovisions that call for the establishment of FFRDCs. Oncethese requirementshave been met, the DHS can develop a request for proposals to establish one or more FFRDCs. More recently, congressional concerns have focused on the continuingneed for FFRDCs,diversification into areas beyond the Centers' original mission, and each sponsoring agency's oversight of itsFFRDC's activities. With the end of the Cold War and declining DOD R&D budgets, observers in the private and public sectors are concerned thatFFRDCs might have diversified into areas beyond their originally defined missions.
Federally Funded Research and Development Centers (FFRDCs) were first establishedduring World War II to provide specific defense research and development (R&D) capabilities that were notreadily available withinthe federal government or the private sector. The federal government currently operates 36 FFRDCs. Title III of theDepartmentHomeland Security (DHS) Act (P.L.107-296) calls for the creation of one or more FFRDCs , including a HomelandSecurity Institute.On September 10th, the DHS released a "Sources Sought" notice requesting that contractors indicate their interestin competing tooperate an FFRDC for DHS. Those responding must include a 400 words, or less, qualification statement by October30. DHS plansto release a formal request for proposal, for the FFRDC, before the end of this year. In the past several years, somecongressional andnon-congressional critics have questioned the use of FFRDCs, including the continuing need for such Centers, diversification intoareas beyond the Centers' original missions, and oversight of each FFRDC's activities by its sponsoring agency. Thisreport will beupdated to reflect most recent events.