Overview
FAR 27.406 establishes the policies and procedures for identifying, specifying, and acquiring technical data and computer software required under government contracts. It emphasizes minimizing data requirements to reduce costs while ensuring the government obtains the necessary rights and documentation for future competition and system maintenance.
Key Rules
- Requirement Minimization: Data requirements must be determined early (ideally before solicitation) and kept to the minimum necessary for the contract’s purpose to avoid unnecessary expenses.
- Protection of Proprietary Data: Agencies should generally not require unlimited rights in "limited rights data" or "restricted computer software" as a condition of procurement. Instead, they should accept "form, fit, and function" data or pay fair compensation for greater rights.
- Additional Data Requirements (52.227-16): In R&D or experimental contracts where requirements are unclear at award, the government can order additional data produced during performance for up to three years after contract acceptance.
- Major System Acquisitions: Technical data delivery requirements must be set out as separate line items. For civilian agencies, data for items developed exclusively with Federal funds must be delivered if needed for future competitive procurement.
- Quality and Withholding (52.227-21): For major systems, the Contracting Officer must review technical data for accuracy and completeness and is authorized to withhold payment until data requirements are satisfactorily met.
Practical Implications
- Pre-Award Planning: Contracting Officers must be diligent in specifying delivery times, locations, and handling restrictions in the contract schedule to avoid costly post-award disputes or "data gaps."
- Post-Award Liability: Contractors should remain prepared for government data requests for three years following contract completion and ensure they are properly compensated for the costs of converting, reproducing, and delivering that data.