Nonprofit Research Grants Cost Taxpayers, Contractors Say

Law360, New York (June 5, 2012, 9:19 PM EDT) -- A contractor group warned Congress in a policy paper Tuesday that the government must fully review agencies' spending on federally funded research and development centers to ensure that the agencies aren’t improperly relying on the nonprofits to circumvent contract competition rules.

The FFRDCs get sole-source contracts that often end up costing the government much more than for-profit companies would charge, said the Professional Services Council, suggesting that recent changes in contracting should prompt a review of the FFRDCs' role.

“Typically FFRDCs receive sole-source contracts that contain...
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