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PSAD-79-69 1 (1979-05-18)

handle is hein.gao/gaobaazev0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT AND SYSTEMS ACQUISITION DIVISION B-163074 The Honorable Harold Brown The Secretary of Defense Attention: Assistant for Audit Reports Room 3A336 ASD (Comptroller) ioq3q- L109397 MAY 18, 1979 111111 11f l ll l l 109397 Dear Mr. Secretary: \) The Government paid $1,858,500 for the use of special- purpose computer software packages called Telescope 340, Telescope 350, and TeleDynamic 1/ even though these packages had been developed primarily at Government expense. Addi- tionally, these packages were acquired with restricted rights. This occurred because the Defense Acquisition Regu- lation did not provide adequate guidance on ownership rights in computer software and because contracting officials did not enforce certain provisions of the acquisition regulations. /According to Defense Acquisition Regulation 9-602, the Government is to have unlimited rights in computer software required to be developed under or generated as a necessary part of performing a Government contract. 2/ No license fees payment is to be made where the Government has obtained un- limited rights.I Our audit work at Grumman Data Systems Cor- poration 3/ disclosed that the Government paid licensing fees for software developed under Government contracts and should have obtained unlimited software rights. 1/Telescope 340, Telescope 350, and TeleDynamic, along with Telescope 330, are trademarks of Grumman Data Systems Cor- poration. In this report, the trademark legend will not be repeated each time the trademark is used. 2/This section was in effect at the time of execution of the contracts involving Telescope 350 and TeleDynamic but not during the contract involving Telescope 340. 3/Grumman Data Systems Corporation and Grumman Aerospace Corporation are wholly owned subsidiaries of Grumman Cor- poration. (950395)

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