FFRDCs

Federally Funded Research and Development Centers operate under a governance model that has no direct parallel in commercial industry. FFRDCs are sponsored by federal agencies (most commonly the DoD, DOE, or NASA) and managed by universities, nonprofits, or specialized companies. The sponsor relationship carries strict cost transparency and reporting obligations, while the managing institution preserves research agility and scientific freedom.

These dual obligations create unique requirements for an ERP environment. FFRDCs are subject to DCAA audit of their accounting systems, indirect rate proposals, and incurred cost submissions, similar to defense contractors. Their indirect rate structures are often more complex because of mixed funding sources: government sponsors, internal research funds, and sometimes commercial work, all of which must be properly segregated and allocated.

Our FFRDC practice combines SAP expertise with an understanding of the research institution operating model. We configure project structures that support scientific workflow while preserving the cost accountability that sponsors require. We design indirect rate architectures that handle mixed funding without requiring monthly reconciliation exercises. We produce documentation that passes DCAA review on first cycle.

Every engagement is staffed with senior US-citizen consultants with direct experience in regulated cost accounting and DCAA interaction. For FFRDCs that deal with classified research or ITAR-controlled technology, our consultants bring the clearances and security experience required to work inside those boundaries.