27.202-2  Notice of Government as a licensee.

FAC 2005-21 DECEMBER 7, 2007

(a)  When the Government is obligated to pay a royalty on a patent because of an existing license agreement and the contracting officer believes that the licensed patent will be applicable to a prospective contract, the Government should furnish the prospective offerors with-

(1)  Notice of the license;

(2)  The number of the patent; and

(3)  The royalty rate cited in the license.

(b)  When the Government is obligated to pay such a royalty, the solicitation should also require offerors to furnish information indicating whether or not each offeror is the patent owner or a licensee under the patent. This information is necessary so that the Government may either-

(1)  Evaluate an offeror's price by adding an amount equal to the royalty; or

(2)  Negotiate a price reduction with an offeror when the offeror is licensed under the same patent at a lower royalty rate.