I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force 1 Fulfilling Air Force R&D Mission Needs William H. Anderson Associate General Counsel (Acquisition) Office of the General Counsel Opinions expressed in this presentation are strictly those of the author

I n t e g r i t y - S e r v i c e - E x c e l l e n c e $573M 37% 6.1 $228M 14% 6.2 $772M 49% BY BUDGET ACTIVITY BY TECHNOLOGY AREAS TOTAL: $1.573B Values may differ due to rounding Directed Energy $130M (8%) Munitions $89M (6%) Propulsion $289M (19%) Basic Research $228M (14%) Sensors $174M (11%) Space Vehicles $138M (9%) Materials & Manf $165M (10%) Human Effectiveness $105M (7%) Air Vehicles $142M (9%) Information $102M (6%) Dual Use $10M (1%) As of 11 Feb 02 FY02 Appropriation AF S&T Budget

I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3 Contracting Mechanisms w/ Funds Procurement Contract Solicitation - Competitive Request for Proposals (RFP) Type - Cost Plus Fixed Fee or other contract type Recipient - Any organization Grants/Cooperative Agreements Solicitation - Competitive Broad Agency Announcement Type - typically fixed sum Recipient - typically university/non-profit “Other Transaction” Solicitation - BAA Type - Milestone payments Recipient - typically consortium or commercial firm

I n t e g r i t y - S e r v i c e - E x c e l l e n c e 4 Distinctions Between Types of Contracts Type of Contract Procurement Contract Grants & Cooperative Agreements Cooperative Research & Development Agr. Other Transactions (10 U.S.C. 2371) Primary IP Rights Fixed Government rights through FAR Clauses Same as Procurement Contract Exclusive license to Partner/Negotiable Completely Negotiable Issues Requires commercialization through patent process Forced Tech Transfer No $s may be spent by Govt. Potential to address all elements vital to commercialization/Cost sharing usually required

I n t e g r i t y - S e r v i c e - E x c e l l e n c e 5 BY TECHNOLOGY AREAS Directed Energy PCs/OTs/CRDAs Munitions PCs/OTs/CRDAs Propulsion PCs/OTs/CRDAs Basic Research Grants/CAs/PCs) Sensors PCs/OTs/CRDAs Space Vehicles PCs/OTs/CRDAs Materials & Manf PCs/OTs/CRDAs Human Effectiveness PCs/CRDAs Air Vehicles PCs/OTs/CRDAs Information PCs/OTs/CRDAs Dual Use OTs/CAs AF S&T Budget & Types of Contracts used

I n t e g r i t y - S e r v i c e - E x c e l l e n c e 6 Existing Intellectual Property Reform Initiatives DAR Council Cases Treatment of Proprietary Data (DFARS Case D011) Revise the treatment of contractors' proprietary data 6/20/2001, Tasked PD&C Cmte to draft proposed DFARS rule. No Consensus achieved by Committee, public meeting being considered. Patent Rights--Ownership by the Contractor (Large Business) (DFARS Case 2001-D015) Incorporate prescriptive text and clause equivalent to FAR clause , which will then be removed from the FAR (FAR Case ). Proposed DFARS rule sent to DARC for consideration. Case was edited and now under consideration by the Director of Defense Procurement.

I n t e g r i t y - S e r v i c e - E x c e l l e n c e 7 Trade Secret Coverage in the FAR and DFARS FAR Coverage Selected information submitted by contractors (i.e. bid and proposal information, source selection information (as defined in 3.104) Data (as defined in Part 27)) Section (supplemented by DFARS Section ) Describes how the Government must treat bid and proposal information as well as other source selection information in order to comply with the Procurement Integrity Act Sections and Describe how the Government should handle sealed bids and proposals, respectively, in accordance with Section Subpart Addresses the rights in data delivered to the Government.

I n t e g r i t y - S e r v i c e - E x c e l l e n c e 8 Trade Secret Coverage DFARS DFARS Section Addresses the rights in data delivered to it There is no treatment for information not delivered unless covered by the source selection provisions or clauses Limited Rights Data is the only data afforded Trade Secret protection What is needed Assess or evaluate on-going contracts Maintain competition Conform to reasonable industry standards and practices regarding confidentiality of information Develop acquisition strategies or approaches for future acquisitions Perform study efforts to support future acquisitions or acquisition reform initiatives