27.304-2 Contracts placed by or for other Government agencies
Source: FAR 27.304-2 on acquisition.gov
When one agency awards a contract for another, the requesting agency’s patent rights clause and administrative instructions must be followed unless otherwise agreed.
Overview
FAR 27.304-2 outlines the procedures for handling patent rights clauses in contracts awarded by one Government agency on behalf of another. The section ensures that the requesting agency’s requirements for patent rights are respected, particularly when statutory or exceptional circumstances dictate the use of a specific clause. It also clarifies responsibilities for agency determinations, reporting, and administration of inventions resulting from such contracts. The regulation aims to prevent conflicts and ensure proper handling of intellectual property rights when multiple agencies are involved in the contracting process.
Key Rules
- Patent Rights Clause Selection
- The requesting agency must specify the required patent rights clause, and the awarding agency must use it if mandated by law, deviation, or special circumstances.
- Severable vs. Non-Severable Work
- For non-severable, jointly funded work, only the requesting agency’s clause is used; for severable work, the clause applies only to the relevant portion.
- Agency Responsibilities
- The requesting agency is responsible for determinations, reports, deviations, and administration of inventions unless otherwise agreed.
- Handling Invention Disclosures
- The requesting agency may provide instructions for handling invention disclosures and reporting requirements.
Responsibilities
- Contracting Officers: Ensure correct patent rights clauses are included and follow agency instructions for severable/non-severable work.
- Contractors: Comply with the specified patent rights clause and reporting requirements.
- Agencies: Clarify responsibilities for determinations, reporting, and invention administration in advance.
Practical Implications
- This section exists to avoid confusion and legal issues over patent rights in interagency contracts.
- It impacts daily contracting by requiring careful coordination and documentation between agencies.
- Common pitfalls include failing to use the correct clause or not establishing administrative responsibilities in advance.
The following procedures apply unless an interagency agreement provides otherwise:
(a) When a Government agency requests another Government agency to award a contract on its behalf, the request should explain any special circumstances surrounding the contract and specify the patent rights clause to be used. The clause should be selected and modified, if necessary, in accordance with the policies and procedures of this subpart. If, however, the request states that a clause of the requesting agency is required (e.g., because of statutory requirements, a deviation, or exceptional circumstances), the awarding agency shall use that clause rather than those of this subpart.
(1) If the request states that an agency clause is required and the work to be performed under the contract is not severable and is funded wholly or in part by the requesting agency, then include the requesting agency clause and no other patent rights clause in the contract.
(2) If the request states that an agency clause is required, and the work to be performed under the contract is severable, then the contracting officer shall assure that the requesting agency clause applies only to that severable portion of the work and that the work for the awarding agency is subject to the appropriate patent rights clause.
(3) If the request states that a requesting agency clause is not required in any resulting contract, the awarding agency shall use the appropriate patent rights clause, if any.
(b) Any action requiring an agency determination, report, or deviation involved in the use of the requesting agency’s clause is the responsibility of the requesting agency unless the agencies agree otherwise. However, the awarding agency may not alter the requesting agency’s clause without prior approval of the requesting agency.
(c) The requesting agency may require, and provide instructions regarding, the forwarding or handling of any invention disclosures or other reporting requirements of the specified clauses. Normally, the requesting agency is responsible for the administration of any subject inventions. This responsibility shall be established in advance of awarding any contracts.