Major system acquisition
FAR 27.406-3 ensures the Government obtains essential technical data and rights in major system acquisitions, linking data delivery to payment and protecting both Government and commercial interests.
Overview
FAR 27.406-3 addresses the requirements for technical data in major system acquisitions, focusing on the use of specific clauses to ensure the Government receives necessary rights and data deliverables. It mandates the use of clause 52.227-21 for technical data declaration, revision, and withholding of payment, requiring explicit identification of applicable data line items. Contracting officers must review delivered data for completeness and compliance, withholding payment if deficiencies exist until requirements are met. For civilian agencies (excluding NASA and the Coast Guard), additional requirements apply: clause 52.227-22 is used alongside 52.227-14 to secure minimum rights in technical data developed exclusively with Federal funds, especially when future competitive acquisitions are anticipated. The regulation also protects commercial suppliers by prohibiting the Government from requiring delivery of certain technical data as a condition of procurement if the data relates to products/processes offered for public sale, except for data needed for operation or maintenance.
Key Rules
- Technical Data Declaration and Withholding of Payment
- Use clause 52.227-21; identify applicable data line items; review and ensure data compliance before final payment.
- Major System Technical Data for Civilian Agencies
- Use clause 52.227-22 with 52.227-14 for data developed with Federal funds; ensure Government obtains minimum rights for future competition.
- Protection of Commercial Suppliers
- Do not require delivery of design/development data for commercial products/processes as a procurement condition, except for operation/maintenance needs.
Responsibilities
- Contracting Officers: Insert and enforce appropriate clauses, review technical data and declarations, withhold payment if data is deficient, and ensure compliance with statutory rights.
- Contractors: Deliver complete and accurate technical data as specified, correct deficiencies promptly, and comply with declaration requirements.
- Agencies: Oversee compliance, especially for civilian agencies (excluding NASA/Coast Guard), and ensure statutory rights are protected.
Practical Implications
This section ensures the Government secures necessary technical data and rights for major system acquisitions, supporting future competition and protecting commercial suppliers. Contractors must be diligent in data delivery and compliance, while contracting officers must rigorously review submissions and enforce payment conditions. Common pitfalls include incomplete data submissions and misunderstanding the scope of required data rights.