	Background

Federally funded research and development centers (FFRDCs) are a special type of government-owned, contractor-operated research centers—commonly referred to as "GOCOs"—that conduct research and development (R&D) and related activities in support of a federal agency's mission. They differ from other performers of federal R&D—such as federal laboratories, universities, non-profit organizations, and private firms—in that they are designed to meet a "special long-term research or development need which cannot be met as effectively by existing in-house or contractor resources" and that they have "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 appropriate role of FFRDCs in the federal R&D enterprise may remain an issue in the 115 th Congress. Current FFRDCs

Currently, 12 federal agencies sponsor a total of 42 FFRDCs. These FFRDCs provide R&D capabilities in a broad range of areas—from energy and cybersecurity to cancer and astronomy. 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. 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. On average, between FY1967 and FY2015, the federal government has obligated 9.1% of its federal R&D spending to FFRDCs. Effectiveness of Oversight and Management

The adequacy of agency oversight and management of FFRDCs is a long-standing congressional concern. Additionally, some critics have pointed out that the R&D capabilities of the private sector have increased dramatically since World War II and the continued use of FFRDCs is in direct opposition to their original intent—to conduct R&D that cannot be done as effectively by the private sector or the federal government. FFRDCs are widely seen as contributing to U.S. technological and economic leadership. Mission Creep

The diversification of FFDRC activities or "mission creep" is an issue closely related to concerns about competition with the private sector. However, some Members of Congress, GAO, and others have criticized the use of noncompetitive procedures for FFRDC contracts. Number of FFRDCs, FY1967–FY2017
The federal government supports research and development (R&D) that is conducted by a wide variety of performers, including federally owned and operated laboratories, universities, private companies, and other research institutions. A special class of research institutions referred to as federally funded research and development centers, or FFRDCs, are owned by the federal government, but operated by contractors, including universities, other non-profit organizations, and industrial firms. FFRDCs are intended to provide federal agencies with R&D capabilities that cannot be effectively met by the federal government or the private sector alone. FFRDCs are required to have a long-term strategic relationship with the federal agency that supports them. This relationship is presumed to convey a number of benefits, including the ability of an FFRDC to recruit and retain scientific and technical expertise; an in-depth knowledge of, and the capability to rapidly respond to, the R&D needs of the federal agency; and the capacity to offer independent and objective scientific and technical advice. Currently, 12 federal agencies sponsor a total of 42 FFRDCs. These FFRDCs provide R&D capabilities in support of federal agency missions in a broad range of areas—from energy and cybersecurity to cancer and astronomy. In FY2015, the federal government obligated $11.1 billion or 8.6% of its total R&D spending to FFRDCs.
Congress maintains a continuing interest in FFRDCs due to their contributions to U.S. technological and economic leadership. However, some Members of Congress have questioned the appropriate role of FFRDCs in the federal R&D enterprise and the ability of FFRDCs to effectively address federal agency R&D needs. The following issues have been of particular interest: (1) the effectiveness of federal agency oversight and management of FFRDCs; (2) competition between FFRDCs and the private sector for federal R&D funding; (3) the diversification of FFDRC activities or "mission creep"; and (4) the award of noncompetitive FFRDC management and operation contracts.