Confirmation of Discussions Concerning an OMB Bulletin

Office of Management and Budget Bulletin 81-22 gives nonprofit organizations and small businesses a first right of refusal to the title of their inventions made in performance of government grants, contracts, or cooperative agreements subject to some limited exceptions. The right extends to small businesses and nonprofit organizations which are subcontractors under funding agreements. However, the Bulletin may be read as denying this right to nonprofit organizations and small businesses whose subcontract is with a prime contractor which is not a small business or a nonprofit organization. GAO recommends that the final version of the Bulletin be clarified to provide a precise definition of the term contractor to avoid this sort of misinterpretation.