[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR35.017-1]

[Page 708-709]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 35_RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents
 
Sec.  35.017-1  Sponsoring agreements.

    (a) In order to facilitate a long-term relationship between the 
Government and an FFRDC, establish the FFRDC's mission, and ensure a 
periodic reevaluation of the FFRDC, a written agreement of sponsorship 
between the Government and the FFRDC shall be prepared when the FFRDC is 
established. The sponsoring agreement may take various forms; it may be 
included in a contract between the Government and

[[Page 709]]

the FFRDC, or in another legal instrument under which an FFRDC 
accomplishes effort, or it may be in a separate written agreement. 
Notwithstanding its form, the sponsoring agreement shall be clearly 
designated as such by the sponsor.
    (b) While the specific content of any sponsoring agreement will vary 
depending on the situation, the agreement shall contain, as a minimum, 
the requirements of paragraph (c) of this subsection. The requirements 
for, and the contents of, sponsoring agreements may be as further 
specified in sponsoring agencies' policies and procedures.
    (c) As a minimum, the following requirements must be addressed in 
either a sponsoring agreement or sponsoring agencies' policies and 
procedures:
    (1) A statement of the purpose and mission of the FFRDC.
    (2) Provisions for the orderly termination or nonrenewal of the 
agreement, disposal of assets, and settlement of liabilities. The 
responsibility for capitalization of an FFRDC must be defined in such a 
manner that ownership of assets may be readily and equitably determined 
upon termination of the FFRDC's relationship with its sponsor(s).
    (3) A provision for the identification of retained earnings 
(reserves) and the development of a plan for their use and disposition.
    (4) A prohibition against the FFRDC competing with any non-FFRDC 
concern in response to a Federal agency request for proposal for other 
than the operation of an FFRDC. This prohibition is not required to be 
applied to any parent organization or other subsidiary of the parent 
organization in its non-FFRDC operations. Requests for information, 
qualifications or capabilities can be answered unless otherwise 
restricted by the sponsor.
    (5) A delineation of whether or not the FFRDC may accept work from 
other than the sponsor(s). If nonsponsor work can be accepted, a 
delineation of the procedures to be followed, along with any limitations 
as to the nonsponsors form which work can be accepted (other Federal 
agencies, State or local governments, nonprofit or profit organizations, 
etc.).
    (d) The sponsoring agreement or sponsoring agencies' policies and 
procedures may also contain, as appropriate, other provisions, such as 
identification of--(1) Any cost elements which will require advance 
agreement if cost-type contracts are used; and (2) Considerations which 
will affect negotiation of fees where payment of fees is determined by 
the sponsor(s) to be appropriate.
    (e) The term of the agreement will not exceed 5 years, but can be 
renewed, as a result of periodic review, in increments not to exceed 5 
years.

[55 FR 3885, Feb. 5, 1990]