How should I protect my code?

Hi,
To start with I'd like to apologize if I've posted this question in the wrong forum. I wasn't quite sure where to post it.
Ok, here goes. I've gotten a contract to design a database connected website for a government organization. One of the conditions of the contract is that I have to provide them with 'access' to the source code for the system I write. I haven't done a licensing agreement for the project yet, but they've already been made aware that they will receive a license and will not be allowed to use any of the source code for purposes other than expanding their system. This is fine with them. Now here's where I'm at a loss of what to do...
I know there will be future contracts awarded to continue the development of this system. However, the future contracts will be for more money and will involve less work than the orignal contract I'm doing (it's the government and they really have no comprehension of what's involved). So, I basically want to fulfill my legal obligation of providing source code, but I want to make it as difficult as possible for someone to build into the system I write. Here's what I've come up with so far.
1. Try to get a licensing agreement that forces them to obtain written permission before modifying any source code for future development (which will be necessary).
2. I've seen programs that will make code very unreadable after it's been decompiled. Is there anything that will do a similar thing to source code? For example, remove all comments and rename all the variables to something like 'an5the32'.
I know this sounds kind of greedy, but the scope of this project is considerably larger than I realized (was led to believe) and without landing one of the future contracts I'm getting ripped off, so I really have no reservations about making things difficult for them. Any suggestions would be appreciated.

Have you seen this site?
http://mindprod.com/unmainobfuscation.html
In all seriousness, there are several source code
obfuscation tools available, Just use Google and
search for "source obfuscator Java" or like.
Some of the products I found but never tested are:
http://www.semdesigns.com/Products/Formatters/Obfuscators.html
http://www.jdevelop.com/java-source-obfuscator.html
For byte code obfuscators to protect the binary from being decompiled, the links in
http://mindprod.com/jglossobfuscator.html
I found to be quite comprehensive..
BTW Out of all of them in the list,
I have evaluated Dash-O and Sourceguard.
I chose sourceguard but 4thpass chose to
abandon the product with no notice, soon
after we had bought it...
Software companies doing that kind of
thing should not last long, but anyways,
Good luck, and happy obfuscating!
Steve Tsang
[email protected]

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