What should buyers verify in commercial software license terms before award?

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Open questionLast verified: 2026-08-15
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  • #3501

    Software terms may be split across an order form, online terms, and an addendum. What should a buyer resolve before making an award?

    #3502
    Accepted answer

    Identify every document that will govern and set a clear order of precedence. Confirm who may use the software, permitted devices and environments, contractor and affiliate access, backup and documentation rights, restrictions on transfer or modification, usage measurement, audit terms, and what happens when the contract ends. Remove terms that conflict with applicable law or the buyer’s required use. FAR 12.212 says the Government receives the rights stated in the contract license, while FAR 27.405-3 says the contract must address rights to use, disclose, modify, distribute, and reproduce commercial software.

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