Fee Guidelines Still Needed for Government-Sponsored Nonprofit Organizations

Pursuant to a congressional request, GAO assessed the reasonableness of fees paid by Federal agencies to Government-sponsored, nonprofit organizations that are dependent on Federal contracts. Because these entities are organized by Federal agencies to support the missions of their sponsors, opponents of fees argue that these organizations are quasi-governmental and therefore should not receive a fee. Proponents believe that fees are necessary to meet certain financial obligations not covered under contracts.