The FAR Part 27 Rewrite Could Bring DFARS-Style Data Rights to Civilian Contracting
For contractors developing technology with both private and federal funding, determining who owns—or more precisely, who receives rights to use—the resulting technical data and software can influence everything from pricing to future commercial opportunities.
The FAR Council is now proposing a significant restructuring of those rules for civilian contracting.
On September 18, 2026, the Council published proposed revisions to FAR Parts 9, 27, 47, and 52 as part of the Revolutionary FAR Overhaul. The Part 27 changes would substantially align civilian-agency treatment of technical data and computer software with concepts long familiar to defense contractors. Comments are due October 19, 2026.
One of the most important additions is Government Purpose Rights, or GPR.
Under the proposed framework, the source of development funding generally determines the Government’s license rights. Technical data or software developed exclusively at private expense would generally receive limited or restricted rights. Development funded exclusively by the Government would generally produce unlimited rights. And development using mixed government and contractor funding would generally result in Government Purpose Rights.
The proposed nominal GPR period is five years, although the parties could negotiate a different period. During that period, the Government generally could use the material for government purposes and authorize certain government contractors to use it subject to restrictions. Once the GPR period expires, the Government would obtain unlimited rights.
That is a significant concept for companies accustomed primarily to civilian contracting.
Funding decisions made early in development could determine the Government’s downstream ability to disclose technology to support contractors, use it in future competitions, or eventually exercise unlimited rights. Contractors therefore need to know not simply what technology they possess, but how its development was funded and whether they can prove it.
The proposed rule contains another potentially important change: contracting officers would be directed, to the extent practicable, to establish separate contract line items for required technical-data and software deliverables and require those deliverables to be separately priced.
That can improve transparency, but it also puts greater importance on proposal discipline. Contractors will need to identify what data and software they are delivering, determine what rights the Government receives, assert restrictions correctly, and understand what those rights are economically worth.
Subcontractors create another layer. A prime contractor cannot grant the Government rights that the prime itself never obtained. Development history, restrictive markings, licenses, and subcontract data-rights provisions therefore need to align across the supply chain.
The proposed rule remains subject to public comment and may change before becoming final. But its direction is clear: civilian procurement may increasingly adopt a more structured funding-based approach to data rights historically associated with the DFARS.
For technology contractors, intellectual-property strategy can no longer sit apart from capture and pricing strategy. The funding model selected today may determine who can use the technology years after contract performance ends.
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Disclaimer:
This article is provided for general informational and educational purposes only and does not constitute legal or intellectual-property advice. FAR Case 2026-011 is a proposed rule and may change before finalization. Contractors should review the final regulations, applicable solicitation and contract clauses, development-funding records, licenses, markings, and subcontract agreements before determining government or contractor rights in data or software.