Cooperative Research and Development Agreement (CRADA)

A Cooperative Research and Development Agreement (CRADA) is a legal agreement authorized by the Stevenson-Wydler Technology Innovation Act that enables a federal laboratory to collaborate with a private company, university, or other non-federal entity on joint research and development projects, typically sharing resources and expertise without the government paying the private partner.

What is a CRADA?

CRADAs provide a flexible, non-procurement mechanism for federal laboratories to partner with industry on technology development. Unlike traditional government contracts where the government pays a contractor for deliverables, a CRADA is a mutual collaboration: the federal lab contributes personnel, facilities, equipment, or intellectual property, while the private partner typically contributes funding, complementary expertise, or proprietary technology. The federal laboratory does not provide funds to the private partner under a CRADA. In return, the private partner typically receives licensing rights or first rights to negotiate an exclusive license for any intellectual property developed during the collaboration. CRADAs are widely used at national labs such as Oak Ridge, Argonne, and Sandia to commercialize federally developed technology and attract private investment into government research programs. For industry, a CRADA is an opportunity to access federally funded research infrastructure and expertise at a fraction of the cost of building it independently. CRADAs are not subject to FAR competitive procurement rules, making them a much faster and more flexible collaboration mechanism than traditional contracts.

Why CRADAs matter for government contractors

CRADAs offer companies access to federal laboratory capabilities, advanced computing, specialized testing facilities, expert researchers, that would be prohibitively expensive to replicate commercially. They also provide a path to licensing government-developed intellectual property. For technology and defense firms, a CRADA with a relevant national laboratory can be a significant competitive advantage and a precursor to larger government contracting relationships.

Example

A biomedical company enters a CRADA with a national laboratory to co-develop a novel diagnostics platform. The lab provides access to its biosafety testing facilities and research staff, while the company contributes proprietary sensor technology and funds the collaboration. Upon completion, the company negotiates an exclusive license for commercialization rights to the jointly developed technology.

Frequently Asked Questions

Does the government pay the company in a CRADA?

No. CRADAs are non-monetary agreements from the government's side. The federal lab contributes resources (personnel, equipment, facilities, IP) but does not write a check to the private partner. The private partner provides funding, matching resources, or complementary expertise.

How long does a CRADA take to execute?

CRADA negotiations and execution timelines vary by laboratory and complexity. Simple CRADAs may be executed in a few months, while complex multi-party agreements can take a year or more. Each federal laboratory has its own technology transfer office that manages the CRADA process.

Who owns the intellectual property from a CRADA?

IP ownership depends on who contributed the inventive concept and is negotiated in the CRADA agreement. Generally, the federal government retains rights to inventions made solely by federal employees, while the private partner retains rights to their own pre-existing IP. Jointly developed inventions are typically subject to negotiated licensing arrangements.

Can a CRADA lead to a government contract?

Yes. CRADAs often serve as a starting point for a longer relationship that includes subsequent government contracts. Companies that demonstrate successful collaboration through a CRADA are often well-positioned to win related contracts as the technology matures toward procurement.