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B-204808 1 (1981-09-24)

handle is hein.gao/gaobabjaz0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 3 /93 OFFICE OF GENERAL COUNSEL B-204808 September 24, 1981 Mr. Fred H. Dietrich Associate Administrator Office of Federal Procurement Policy 726 Jackson Place, N.W. Washington, D.C. 20503 Dear Mr. Dietrich: This will confirm informal discussions between Mr. Norm Latker, of your agency, and Mr. John McGrail, of my staff, concerning a potential problem in the interim version of'0MB Bulletin 81-22., The Bulletin implements sections 202 through 204 of Public law No. 96-517, 94 Stat. 3015, December 12, 1980. Those sections give non-profit organizations and small busi- nesses a first right of refusal to title in inventions made by them in performance of Government grants, contracts, or coopera- tive agreements(referred to collectively as funding agreements) 4subject to some limited exceptions. This right extends to small businesses and non-profit organizations which are subcontractors under funding agreements generally. However, the Bulletin may be read as denying this right to non-profit organizations and small businesses whose subcontract is with a prime contractor which is not a small business or non-profit organization., The Clause for Funding Agreements (Small Business Firms and Non-Profit Organizations), which is generally required by section 5(c) of the Bulletin to be in all funding agreements with small business firms and non-profit organizations, states in part: (g)(1) The contractor will include this clause, suitably modified to identify the parties, in all subcon- tracts, regardless of tier, for experi- mental, developmental or research work to be performed in the United States by a small business firm or a non-profit organization. The subcontractor will retain all rights provided for the con- tractor in this clause, and the con- tractor will not, as part of the con- sideration for awarding the subcontract, obtain rights in the subcontractor's subject inventions. (Emphasis in original.)

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