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Software and Technology Sales to the U.S. Federal Government

Software and Technology Sales to the U.S. Federal Government. Breakout Session # 304 D. Michael Bennett, VP Contracts, Pricing & Procurement, Northrop Grumman Information Technology Date Monday, April 26, 2004 Time 4:30 – 5:30.

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Software and Technology Sales to the U.S. Federal Government

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  1. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  2. Software and Technology Sales to the U.S. Federal Government Breakout Session # 304 D. Michael Bennett, VP Contracts, Pricing & Procurement, Northrop Grumman Information Technology Date Monday, April 26, 2004 Time 4:30 – 5:30 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  3. Software and Technology Sales to the U.S. Federal Government Agenda: • Concept of Technology Ownership and Why • Protection of Software and Technology a Subcontractor • OEM Concerns • Source Code or Source Data License • Government Rights in Product • Government Purpose or Special License • U.S. verses British and Canadian Software and Technology Rules • Conclusion NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  4. Software and Technology Sales to the U.S. Federal Government • No Concept of Technology Ownership in Federal Acquisition Regulations • Rights • Restricted • Government Purpose • Limited • Unlimited • Ownership • Must be Specifically Stated NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  5. Software and Technology Sales to the U.S. Federal Government • Why? • Federal Government Wants to Promote Commerce • Federal Purposes and Security Needs Primary Driver NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  6. Software and Technology Sales to the U.S. Federal Government • Protecting Software and Technology While Doing Business as a Subcontractor on Federal Government Contracts • Propose Through Prime to Government (Privity of Contract Issues) • Submit in Sealed Package to Prime • Submit Directly to Government (must be pre-approved) NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  7. Software and Technology Sales to the U.S. Federal Government • Propose Through Prime to Government (Privity of Contract Issues) • Submit in Sealed Package to Prime • Submit Directly to Government (must be pre-approved) • Execute Non-Disclosure with Prime • License to Prime with Restrictions on Sublicensing to Federal Government • Create Stiff Penalty to Prime for Breach of License • Insure Government Rights from Prime are No More Than Technology Owner Approves NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  8. Software and Technology Sales to the U.S. Federal Government • OEM Concerns • Broad Marketing Costs • Marketing License to Reseller • Demo Support • Sales Support Requirement • Maintenance Support by OEM • Maintenance Support by Reseller NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  9. Software and Technology Sales to the U.S. Federal Government • Source Code or Source Data License • Only License Source if Absolutely Necessary • Integrity of Product (Long Term) • Commerciality of Product • Intellectual Property Protection • War Story (Losing Downstream Maintenance Creating Product Defect Disputes) NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  10. Software and Technology Sales To The U.S. Federal Government • Government Rights in Product • Avoid Ownership of Technology by Government • Competition Issues Downstream • War Story • Restricted Rights if Possible • OEM/Owner Maintains Control NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  11. Software and Technology Sales to the U.S. Federal Government • Government Purpose or Special License • Draft Documents to Protect Technology and Source Data from Disclosure • Avoid Use by Non-Government Party if Possible • Keep Track of Data and Technology Use NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  12. Software and Technology Sales to the U.S. Federal Government • British and Canadian Software and Technology Rules are Different! • Presumption of “Ownership” by Government • Foreground vs. Background • Background Belongs to Contractor • Foreground belongs to Government NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  13. Software and Technology Sales to the U.S. Federal Government • Conclusion • Protect Your Software and Data! • Make Sure You Have Visibility Into the Final Sale and Relationship Between the Prime and the Government Customer • Provide Source Code Only if Necessary and Only With a Very Restrictive License NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

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