General
FAR 27.406-1 requires contracting officers to clearly specify and minimize contract data requirements, respecting contractor data rights unless greater rights are justified and compensated.
Overview
FAR 27.406-1 outlines the general principles for determining, specifying, and managing data requirements in government contracts. The regulation emphasizes minimizing data requirements to reduce costs for both the Government and contractors, while ensuring that necessary data is available for contract performance. Contracting officers are responsible for specifying all known data requirements in the contract, including delivery details and any restrictions. For major system acquisitions, data requirements should be listed as separate line items when feasible. The section also addresses the handling of data rights, stating that contractors should not be required to provide unlimited rights to data that qualifies as limited rights data or restricted computer software unless necessary, and that any need for greater rights must be clearly stated and compensated.
Key Rules
- Minimize Data Requirements
- Only require data necessary for contract performance to avoid unnecessary costs.
- Specify Data Requirements in Contracts
- All known data requirements, delivery details, and restrictions must be included in the contract.
- Separate Line Items for Major Systems
- For major system acquisitions, data requirements should be set out as separate contract line items when feasible.
- Respect Data Rights
- Do not require unlimited rights in limited rights data or restricted software unless justified and compensated.
Responsibilities
- Contracting Officers: Must determine, specify, and document all data requirements, delivery details, and rights in the contract; ensure compliance with agency procedures.
- Contractors: Must comply with specified data requirements and delivery terms; negotiate rights in data as required.
- Agencies: May develop procedures for listing, specifying, and handling contract data requirements.
Practical Implications
- Ensures data requirements are clear, justified, and cost-effective.
- Protects contractor intellectual property rights unless greater rights are necessary and compensated.
- Reduces disputes over data rights and delivery by clarifying expectations in the contract.