Royalty Information
Offerors must disclose detailed royalty information for any proposal with total royalties or license fees exceeding $250, and provide supporting documentation if requested by the Contracting Officer.
Overview
FAR 52.227-6, Royalty Information, requires offerors to disclose detailed information about royalties or license fees included in their proposal responses when the total exceeds $250. This provision ensures transparency regarding intellectual property costs that may impact contract pricing. Offerors must provide specifics for each royalty or license fee, including licensor details, agreement dates, patent information, item descriptions, royalty rates, unit prices, quantities, and total royalty amounts. If requested by the Contracting Officer, offerors must also supply copies of current license agreements and identify relevant patent claims. Alternate I modifies the requirement for solicitations involving special construction or assembly, but maintains the same disclosure threshold and information requirements. This provision helps agencies assess the reasonableness and allowability of royalty costs in contract pricing.
Key Rules
- Disclosure Threshold
- Offerors must provide royalty information if total royalties or license fees in the proposal exceed $250.
- Required Royalty Details
- For each royalty or license fee, offerors must disclose licensor name/address, license date, patent or basis, item description, royalty rate, unit price, number of units, and total royalty amount.
- License Agreement Submission
- If requested by the Contracting Officer, offerors must submit copies of current license agreements and identify applicable patent claims.
- Alternate I for Special Construction/Assembly
- For solicitations involving special construction or assembly, the same requirements apply if royalties exceed $250.
Responsibilities
- Contracting Officers: Must request and review royalty information and may request license agreements for verification.
- Contractors/Offerors: Must accurately disclose all required royalty information and provide supporting documentation if requested.
- Agencies: Ensure compliance and evaluate reasonableness of royalty costs in proposals.
Practical Implications
- This provision ensures transparency in royalty costs, helping prevent unallowable or excessive charges in government contracts.
- Contractors must maintain thorough records of royalty agreements and be prepared to provide detailed breakdowns and documentation.
- Failure to comply can delay contract award or result in disqualification.