Federally Funded Research Centers: Agency Reviews of Employee Compensation and Center Performance

Abstract : Why GAO Did This Study. Federal agencies sponsor 40 FFRDCs for research and development tasks that are integral to their missions. DOE, DOD, and NSF sponsor the largest number of FFRDCs 16, 10, and 4 centers, respectively. Federal agencies sponsor FFRDCs by contracting with nonprofit, university-affiliated, or private industry operators. Federal statute and regulations provide for reimbursements for compensation for FFRDC contractor employees and require that sponsoring agencies evaluate the use and need for their FFRDCs. GAO was asked to review the management and oversight of FFRDCs. This report (1) describes funding for FFRDCs sponsored by DOE, DOD, and NSF for fiscal years 2008 through 2012; (2) examines compensation for FFRDC employees and these agencies processes for review of compensation; and (3) determines how these agencies assess FFRDC performance. GAO surveyed the agency sponsors for the 30 FFRDCs, analyzed agency policies and reviews of these FFRDCs, and interviewed agency officials and contractor representatives. What GAO Recommends. GAO is not making recommendations in this report. DOE, DOD, and NSF reviewed a draft of this report and did not provide formal comments. Technical comments provided by DOE, DOD, and NSF were incorporated, as appropriate.