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<classification authority="sudocs">GA 1.13:NSIAD-96-26</classification>
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 <title>Federally Funded R&amp;D Centers: Use of Fee by the MITRE Corporation</title>
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<abstract>Pursuant to a congressional request, GAO examined the use of Department
of Defense (DOD) management fees provided to the Mitre Corporation,
focusing on: (1) the adequacy of federal guidance on how fees may be
used; (2) ways to reduce contractor management fees and strengthen DOD
management fee oversight; and (3) DOD efforts to improve the fee
management process for its federally funded research and development
centers (FFRDC).&lt;p/&gt;GAO found that: (1) FFRDC may incur some necessary but nonreimbursable
costs, but there is insufficient federal guidance on negotiating FFRDC
contract fees; (2) Mitre plans to use its management fee to cover
interest expenses due to DOD funding delays; (3) DOD has not ensured
that fee awards to Mitre are equitable and consistent, indicating that
it may need to further refine its fee-granting methodology; and (4) DOD
needs to clarify FFRDC fee guidance, provide stronger audit oversight of
FFRDC costs, and limit the discretionary funding provided to FFRDC
through fees.</abstract>
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 <topic>Administrative costs</topic>
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 <topic>Federal regulations</topic>
 <topic>Allotment</topic>
 <topic>Defense cost control</topic>
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