FAR 27.403—Data rights-General.
Plain-English Summary
FAR 27.403 explains the basic rule for data rights in federal contracts: if a contract requires data to be produced, furnished, acquired, or used to perform the work, the contract must include terms that spell out the Government’s and contractor’s respective rights and obligations concerning use, reproduction, and disclosure of that data. The section also draws an important distinction between data rights clauses and delivery requirements: data rights clauses govern what each party may do with the data, but they do not tell the contractor what data must be delivered, how much must be delivered, or the quality of the deliverable. Instead, the contract itself must specifically identify the data to be delivered. In practice, this means contracting officers must draft both the delivery requirements and the data rights provisions with care, and contractors must review both to understand what information must be provided and how the Government may later use it. The section exists to avoid ambiguity, protect proprietary or sensitive information, and ensure the Government receives the data it needs without overreaching beyond the agreed rights. It is a foundational rule that applies across many types of procurements involving technical data, reports, software-related information, or other contract-generated information.
Key Rules
Include data rights terms
Any contract that requires data to be produced, furnished, acquired, or used for performance must contain terms defining the parties’ rights and obligations for that data. Those terms must address use, reproduction, and disclosure.
Separate rights from delivery
Data rights clauses govern what the Government and contractor may do with data, not what data must be delivered. The clause does not itself specify the type, quantity, or quality of deliverables.
Specify deliverables in the contract
The contract must clearly identify the data to be delivered. Delivery requirements belong in the contract’s statement of work, deliverables list, or other applicable contract terms, not in the data rights clause alone.
Cover all required data
The rule applies broadly to data that is produced, furnished, acquired, or used in meeting performance requirements. If the contract depends on data in any of these ways, the rights framework must be addressed.
Avoid ambiguity in rights
Because the Government’s ability to use or disclose data can affect competition, follow-on support, and internal use, the contract must clearly state the scope of rights rather than leaving them implied.
Responsibilities
Contracting Officer
Ensure the contract includes appropriate data rights terms whenever performance involves data. Clearly specify the data deliverables in the contract and make sure the rights clause does not substitute for a delivery requirement.
Agency
Define its actual need for data, including what must be delivered and how the Government expects to use, reproduce, or disclose it. Coordinate technical and legal requirements so the contract language matches mission needs.
Contractor
Review the contract to understand both what data must be delivered and what rights the Government will receive. Identify any concerns about proprietary, restricted, or sensitive data early so they can be addressed in the contract terms.
Practical Implications
A common mistake is assuming a data rights clause automatically tells the contractor what to deliver; it does not. The deliverables must be listed separately and clearly.
Poorly drafted data provisions can create disputes over whether the Government may share, reproduce, or reuse technical information after delivery.
Contracting officers should align the statement of work, deliverables schedule, and data rights clause so they do not conflict or leave gaps.
Contractors should check whether the Government is asking for data it can use broadly, because the scope of rights may affect proprietary protections and future business value.
If the contract needs data for performance, failing to include the right clause or failing to identify the deliverable can lead to enforcement problems and misunderstandings later in performance.
Official Regulatory Text
All contracts that require data to be produced, furnished, acquired, or used in meeting contract performance requirements, must contain terms that delineate the respective rights and obligations of the Government and the contractor regarding the use, reproduction, and disclosure of that data. Data rights clauses do not specify the type, quantity or quality of data that is to be delivered, but only the respective rights of the Government and the contractor regarding the use, disclosure, or reproduction of the data. Accordingly, the contract shall specify the data to be delivered.