Defense Department Reviews Technical Data Rights Paperwork
Published Date: 3/27/2026
Notice
Summary
The Department of Defense is renewing its paperwork rules about who owns technical data and software rights in defense contracts. This affects over 46,000 businesses that work with the DoD, requiring them to provide info about their software and data rights. Comments on these rules are open until April 27, 2026, and the paperwork takes about 1.6 hours per response.
Analyzed Economic Effects
6 provisions identified: 0 benefits, 5 costs, 1 mixed.
Large Paperwork Burden on DoD Contractors
If your business works with the Department of Defense, this renewal affects 46,534 respondents and about 427,717 annual responses. Each response takes about 1.6 hours on average (about 9 responses per respondent), for a total annual burden of 703,325 hours; comments are due April 27, 2026.
You Must Identify and Mark Restricted Data
DoD requires offerors and contractors to identify and mark any technical data or computer software that needs protection from unauthorized use, release, or disclosure under DFARS clauses such as 252.227-7013 and in accordance with 10 U.S.C. 3771-3775. This marking obligation applies when you provide data or software with limited rights.
Keep Records to Justify Restrictions
Contractors and subcontractors at any tier must be prepared to furnish written justification for any asserted restriction on the Government's rights to use or release data, per 10 U.S.C. 3781 and DFARS clauses 252.227-7019 and 252.227-7037. You must maintain adequate records and procedures to support those assertions.
Sign Use and Nondisclosure Agreements
When a contractor obtains Government data with less-than-unlimited rights, DFARS 252.227-7025 and 227.7103-7 require submission of a use and nondisclosure agreement before release or disclosure. This must be done unless the recipient is a Government contractor with the clause at 252.227-7025.
Identify Previously Delivered Data
Offerors must identify any technical data or computer software previously delivered to the Government under any contract, per DFARS 252.227-7028. DoD uses this to avoid paying again for rights the Government already owns.
DoD May Share Limited Rights Data Externally
Under 10 U.S.C. 3771(b)(4), DoD may disclose limited rights data to persons outside the Government or allow their use of it if the recipient agrees not to further release, disclose, or use the data. DFARS clauses require contractors to mark such data and recognize this possible sharing.
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