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circumstances it may be the most effective way to balance the competing needs.
If a test bed system is a part of the acquisition, the vendor should also be asked
to provide separate pricing for the software licenses and the maintenance. The
RFP should provide details about the anticipated vendor usage of the test bed
system so that appropriate costing models can be developed.

9.7.3.2 Software
The government’s expectations regarding the software are set forth in this
section. It details the specifications and functionality of the application software
and defines the mandatory technical requirements, such as data standards,
interfaces, or connections needed to other databases. It may set forth the gov-
ernment’s expectations regarding its rights to operate the software and how it
proposes to determine if the software performs in the manner specified (often
referred to as acceptance testing).
Generally speaking, there are two types of software involved: operating or
system software, which manages the hardware, and application software, which
processes the data for the user. In an AFIS procurement, the application soft-
ware is the critical component. Extensive effort will be expended defining and
redefining the functionality and the technical requirements of an AFIS acqui-
sition. It is established on a case-by-case basis, is technical in nature, and is not
addressed here. Rather, selected non-technical concepts are presented for con-
sideration in the RFP process.

• Rights to the Software: In most instances, the government will seek a license to
the application software. Application software is a form of intellectual property,
proprietary in nature, owned by the vendor and distributed in accordance with
specified terms and conditions. Funding source requirements may dictate what
rights are sought. As previously discussed, some funding sources require the
reservation of an unrestricted right of distribution of products developed with
the federal funds. Other funding sources may require that the vendor agree to
the transfer or assignment of license rights under certain conditions.
Software licenses address various rights between the parties, such as the
ability to transfer the license to another governmental body. Common licenses
arrangements include a perpetual, non-exclusive license to use the software, a
license for an express term (such as a period of years), and a license for an
express location (site). A license details the permissions or the authorized
uses of the software. One issue for advance consideration is whether the vendor
may assert contractual rights to terminate the software licenses (in contrast to
commencing litigation for breach of contract actions). The concept should be
carefully reviewed with legal counsel. This review should factor in the govern-