Comment don't get your panties in a wad (Score 4, Insightful) 42
I used to do Gov contracting and FFRDCs are very common. The #1 problem with them is cost growth over time. A recompete is healthy. It forces the contractor to review everything and see how they can reduce costs. They rarely lose. They have way too much knowledge about the job requirements that others don't. That means their bid will be more realistic and the bid price will be low risk. By that I mean another company may assume certain requirements not explicit in the RFP and bid low on those tasks. The actual cost, once a contract starts, will be renegotiated and it isn't unusual for the new negotiated price to be higher than the incumbent. Therefore risk. Even if the incumbent does lose, the vast majority of the staff usually rotates onto the new contract - usually with a modest pay cut.