Background: My company developed software utilizing internal R&D funds. The software was later used in performance of a Government contract which enhanced the software. We are now negotiating another contract with the same government agency and intend to utilize the software in the performance of the contract. This specific customer desires a discount off the software commercial list price because the software was previously enhanced using federal funds. Our software is now being sold to the commercial market and is also listed on NETCENTS as a commecial item with a 10% discount to Government buyers.

Question #1: If this federal government agency agrees to a 10% discount, should we expect that all future contracts with this customer will require the same discount or is this considered a business decision to be negotiated contract-by-contract?

Question #2: Will other agencies have "government rights" to the software at the same discount or are all acquisition actions considered independent from one another?

Any feedback anyone can offer will be greatly appreciated.

Background: My company developed software utilizing internal R&D funds. The software was later used in performance of a Government contract which enhanced the software. We are now negotiating another contract with the same government agency and intend to utilize the software in the performance of the contract. This specific customer desires a discount off the software commercial list price because the software was previously enhanced using federal funds. Our software is now being sold to the commercial market and is also listed on NETCENTS as a commecial item with a 10% discount to Government buyers.

Question #1: If this federal government agency agrees to a 10% discount, should we expect that all future contracts with this customer will require the same discount or is this considered a business decision to be negotiated contract-by-contract?

Question #2: Will other agencies have "government rights" to the software at the same discount or are all acquisition actions considered independent from one another?

Any feedback anyone can offer will be greatly appreciated.

With what agency are you deallng and what clauses dealing with rights in software were in the "enhancement" contract?