FAR 27.202-2

(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.

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