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Found 2 results

  1. Fear & Loathing in Contracting

    Increasing Rights in Software--> In-scope Change?

    The following scenario pertains to a major system that is in the final stages of a "smart" shutdown and its related primary development contract. The original large sole source contract was awarded 3 years ago. A critical system component is a piece of software that the contractor asserted as exclusively developed with IR&D funding and having Restricted Rights. At the time, the Government made the business decision to accept the software with these rights. Since then, the program has been placed under Smart Shutdown and the contractor and PM have had some conversations on purchasing the sofware with Unlimited Rights (for future spin-off systems use). The cost to the Government for these improved rights is about 10% of what had been roughly quoted back at the time of original contract award. The projected "purchase" price of these increased rights is about 2/10th's of a percent of the overall contract amount. Bottom Line Question: Can these rights be increased through the use of an in-scope contract modification? Would this supplemental agreement be within the scope of the original contract? Additional Key Factor: We are running out of time on this shutdown system (we are in fact on borrowed time). I am being told that I will "probably" need to do this as an out-of-scope mod, thus will require a J&A, etc... all time killers. Are they correct? What is the point??? This change will not change the function of the system (in it's remaining days), the dollar magnitude is negligible, this is the only time anything like this was done under this contract (so no cumulative impact), and it does nothing to increase the complexity of the contract. Lastly, whatever the rights were at original contract award- there would have been no impact on competition as this was sole sourced.
  2. My company produces a commercial item that it will supply to the DoD through its Prime Contractor as a first tier sub. As, we will make slight modifications to our item for the purposes of integration into the Prime's product for sale to the government, the Prime Contractor wants to negotiate rights to technical data, specifically asking for exclusivity "on behalf of the government" that we will not further market the item. I have asked the Prime if the government has specifically requested exclusivity. I didn't get a straight answer (a we want to protect the govts rights) but I assume as I did when the request was made that the answer is no. Prime confirmed that the modification is being funded under the USG contract and not by their own R&D. It seems to me that the push for exclusivity is coming from the Prime and not from the government. Either way I have a few questions: 1. If I'm understanding things correctly, we can grant to the government standard commercial rights under DFARS 252.227-7015 for our existing IP and government purpose rights under 252.227-7013. Is my assumption correct? 2. I believe that as the modification is minor, does not significantly alter the nongovernmental function or essential physical characteristic of the item or change the purpose of the process and therefore does not affect the commerciality of our product? 3. If commerciality is in tact can I assert -7015 rights for the entire product? (I don't think so. But if we can...) 4. We will grant the prime a limited use license for fulfillment of the requirements under the existing government contract. Any suggestions on language for this clause? 5. Are we required to assert data rights for our commercial IP? I'm not finding a requirement to do so but think it may be a good idea to eliminate confusion. Thoughts?
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