B-136916, OCTOBER 6, 1958, 38 COMP. GEN. 276

AN AWARD IS REQUIRED TO BE MADE TO THE LOWEST BIDDER MEETING THE SPECIFICATIONS WITHOUT REGARD TO POSSIBLE PATENT INFRINGEMENT AND EVEN THOUGH SOME OF THE OTHER BIDDERS HOLD PATENTS OR LICENSES FOR THE ARTICLE AND IT WOULD BE IMPROPER TO REJECT ALL BIDS AND NEGOTIATE WITH THE PATENT HOLDERS OR LICENSEES UNDER AUTHORITY IN 10 U.S.C. 2304 (A) (10) FOR PROCUREMENTS IN CASES WHERE IT IS IMPRACTICABLE TO SECURE COMPETITION. PROCUREMENTS INVOLVING PATENTED ARTICLES ARE REQUIRED TO BE MADE BY FORMAL ADVERTISEMENT AND THE USE OF NEGOTIATION SOLELY ON THE BASIS THAT AWARDS TO OTHER THAN VALID PATENT HOLDERS OR LICENSEES WOULD IMPAIR THE PATENT SYSTEM IS IMPROPER IN VIEW OF THE SPECIFIC AUTHORITY IN 28 U.S.C. 1498 AFFORDED THE GOVERNMENT TO USE PATENTS AND THE REMEDY AFFORDED PATENTEES IN PATENT INFRINGEMENTS.