27.402 Policy
Source: FAR 27.402 on acquisition.gov
Agencies must balance their need for contract data with the protection of contractors' proprietary interests to encourage innovation and competition.
Overview
FAR 27.402 establishes the policy framework for how federal agencies handle data produced or used under government contracts. It outlines the government's need to acquire or access various types of data to support competition, fulfill statutory and programmatic requirements, disseminate research results, and ensure logistics support. At the same time, it recognizes that contractors may have proprietary interests in their data and mandates that agencies protect such data from unauthorized use or disclosure. The policy emphasizes the need to balance the government's operational requirements with the contractor's legitimate proprietary interests to foster innovation and encourage contractor participation.
Key Rules
- Government Data Needs
- Agencies require access to data for competition, dissemination, research utilization, statutory compliance, and logistics.
- Protection of Proprietary Data
- Agencies must protect contractor proprietary data from unauthorized use and disclosure, balancing this with government needs.
Responsibilities
- Contracting Officers: Ensure contract terms address both government data needs and contractor proprietary protections.
- Contractors: Identify and mark proprietary data; comply with contract data requirements.
- Agencies: Implement procedures to safeguard proprietary data and balance interests appropriately.
Practical Implications
- This policy ensures agencies can fulfill their missions while protecting contractor innovation and proprietary information.
- Contractors must be proactive in identifying proprietary data and understanding how it will be used or disclosed.
- Failure to properly balance these interests can lead to disputes, reduced competition, or reluctance from contractors to participate in government programs.
(a) To carry out their missions and programs, agencies acquire or obtain access to many kinds of data produced during or used in the performance of their contracts. Agencies require data to-
(1) Obtain competition among suppliers;
(2) Fulfill certain responsibilities for disseminating and publishing the results of their activities;
(3) Ensure appropriate utilization of the results of research, development, and demonstration activities including the dissemination of technical information to foster subsequent technological developments;
(4) Meet other programmatic and statutory requirements; and
(5) Meet specialized acquisition needs and ensure logistics support.
(b) Contractors may have proprietary interests in data. In order to prevent the compromise of these interests, agencies shall protect proprietary data from unauthorized use and disclosure. The protection of such data is also necessary to encourage qualified contractors to participate in and apply innovative concepts to Government programs. In light of these considerations, agencies shall balance the Government’s needs and the contractor’s legitimate proprietary interests.