However, NNSA and its laboratory or production facility are not allowed to transfer funds to the private partner(s). NNSA Laboratories and Production Facilities Have Reduced Partnership Activities Not Fully Funded by Private Partners

In response to the phasing out of dedicated funding for partnerships, NNSA’s laboratories and production facilities have reduced their CRADAs and technical assistance to small businesses while entering into more agreements that are fully funded by the business partners. Sandia National Laboratories has entered into more CRADAs than any other NNSA laboratory. Lawrence Livermore has shifted its emphasis from using CRADAs with private partners to using procurement contracts with its contractors to develop new technologies important for its mission, according to laboratory officials. Generally, partnerships that relied on DOE funds have decreased, while those predominantly funded by businesses have grown. CRADAs Offer Both Advantages and Disadvantages

NNSA officials and laboratory managers identified various advantages and disadvantages of collaborative research under a CRADA. In addition to research funds, NNSA’s laboratories have used other DOE funds, including their “laboratory-directed research and development” funds and Accelerated Strategic Computing Initiative funds, to support certain CRADAs. We are sending copies of this report to the Secretary of Energy, the Director of the Office of Management and Budget, and other interested parties.
Why GAO Did This Study

Congress enacted the National Competitiveness Technology Transfer Act to encourage federal laboratories operated by contractors to enter into cooperative research and development agreements (CRADA) with businesses, universities, and other private partners. This act was designed to improve the United States' competitive position in the world economy by facilitating the transfer of technology from federal laboratories to U.S. businesses. This report reviews the National Nuclear Security Administration's (NNSA) (1) use of CRADAs and (2) views on the advantages and disadvantages of CRADAs.

What GAO Found

GAO found that NNSA has reduced its use of CRADAs while entering into more agreements fully funded by private partners. Dedicated funding for CRADAs was gradually phased out and program managers at the laboratories were supposed to rely on regular research funding to make up the shortfall. However, NNSA laboratory managers have stated that because the funding has not been replaced with research funds, their laboratories have either prematurely terminated many CRADAs or required the private partners to fully fund the work. According to NNSA officials, CRADAs offers both advantages and disadvantages. CRADAs have enabled laboratories to recruit and retain experienced staff and have improved U.S.' businesses position in the global economy. However, CRADAs also compete for limited funding and generally take longer to execute because of the complexity of the agreements.