More information about sqlpackage.exe

Hi,

I would like to ask if somebody can provide more information sqlpackage.exe.

Use case:

• We develop a product, that is distributed using a setup.
• Our product is composed by a .Net application that uses a SQL Server database.
• The setup installs the binaries and creates a database on the SQL Server.

How the setup gets the database:

• We extract the database creation scripts using sqlpackage.exe extract and script actions.
• For the reference data we use BCP to extract the data to install. 

My 2 questions (for now):

1. Are we allowed to distribute Microsoft Command Line Utilities together with our setup? 
2. Instead of having the steps for the database creation listed above, we would be interested instead, on having a .bacpac file and having that file imported in the target database. However I cannot change the target location of the data and log files. Is there a way to do this (SSMS allows it)?
3. I have been trying to understand how to use the SQLCMD variables. I do understand that they will override any variable declared in SQLCMD when executing scripts, but I fail to understand what are the use of them for the sqlpackage publish action, since this is executed by sqlpackage.exe and not SQLCMD,

Note: I don't want to use management studio to do any of the steps, just the command line utilities.

Thank you 

Joao