What rights does the Contractor grant to the City upon final payment?

The correct answer conveys that upon final payment, the Contractor grants the City a nonexclusive right to use a machine-readable copy of the developed software for internal purposes. This means that the City can utilize the software within its own operations, but it does not have the exclusive rights to that software. This arrangement allows the City to effectively implement and benefit from the software while leaving the door open for the Contractor to license or sell the software to other entities concurrently.

This right is structured to ensure that while the City can use the software to support its functions, the Contractor retains ownership and can explore further opportunities for distribution or licensing. Such provisions are common in contracts, where the rights granted are limited to prevent exclusivity that could hinder the Contractor’s future business prospects.

The other options involve different scopes of rights that either overextend what is typically granted upon final payment or contradict the nature of a nonexclusive arrangement. This highlights the balance between the City’s operational needs and the Contractor's rights over the proprietary software they created.