H. R. 1107—60 
(4) APPLICABILITY.— 
(A) CONTRACTS IN EXCESS OF THE SIMPLIFIED ACQUISITION 
THRESHOLD.—This subsection shall apply to any contract 
for an amount in excess of the simplified acquisition 
threshold (as defined in section 134 of this title) if the 
contract is for the performance of relevant acquisition func-
tions. 
(B) PARTIAL APPLICABILITY.—If only a portion of a con-
tract described in subparagraph (A) is for the performance 
of relevant acquisition functions, then this subsection 
applies only to that portion of the contract. 
(c) BEST PRACTICES.—The Administrator shall, in consultation 
with the Director of the Office of Government Ethics, develop and 
maintain a repository of best practices relating to the prevention 
and mitigation of organizational and personal conflicts of interest 
in Federal contracting. 
§ 2304. Conflict of interest standards for consultants 
(a) CONTENT
OF REGULATIONS.—The Administrator shall pre-
scribe under this division Government-wide regulations that set 
forth— 
(1) conflict of interest standards for persons who provide 
consulting services described in subsection (b); and 
(2) procedures, including registration, certification, and 
enforcement requirements as may be appropriate, to promote 
compliance with the standards. 
(b) SERVICES SUBJECT TO REGULATIONS.—Regulations required 
by subsection (a) apply to— 
(1) advisory and assistance services provided to the Federal 
Government to the extent necessary to identify and evaluate 
the potential for conflicts of interest that could be prejudicial 
to the interests of the United States; 
(2) services related to support of the preparation or submis-
sion of bids and proposals for Federal contracts to the extent 
that inclusion of the services in the regulations is necessary 
to identify and evaluate the potential for conflicts of interest 
that could be prejudicial to the interests of the United States; 
and 
(3) other services related to Federal contracts as specified 
in the regulations prescribed under subsection (a) to the extent 
necessary to identify and evaluate the potential for conflicts 
of interest that could be prejudicial to the interests of the 
United States. 
(c) INTELLIGENCE ACTIVITIES EXEMPTION.— 
(1) ACTIVITIES THAT MAY BE EXEMPT.—Intelligence activities 
as defined in section 3.4(e) of Executive Order No. 12333 or 
a comparable definitional section in any successor order may 
be exempt from the regulations required by subsection (a). 
(2) REPORT.—The Director of National Intelligence shall 
report to the Intelligence and Appropriations Committees of 
Congress each January 1, delineating the activities and 
organizations that have been exempted under paragraph (1). 
(d) 
PRESIDENTIAL
DETERMINATION.—Before 
the 
regulations 
required by subsection (a) are prescribed, the President shall deter-
mine if prescribing the regulations will have a significantly adverse 
effect on the accomplishment of the mission of the Defense Depart-
ment or another Federal agency. If the President determines that 
the regulations will have such an adverse effect, the President
H. R. 1107—61 
shall so report to the appropriate committees of the Senate and 
the House of Representatives, stating in full the reasons for the 
determination. If such a report is submitted, the requirement for 
the regulations shall be null and void. 
§ 2305. Authority of Director of Office of Management and 
Budget not affected 
This division does not limit the authorities and responsibilities 
of the Director of the Office of Management and Budget in effect 
on December 1, 1983. 
§ 2306. Openness of meetings 
The Administrator by regulation shall require that— 
(1) formal meetings of the Office of Federal Procurement 
Policy, as designated by the Administrator, for developing 
procurement policies and regulations be open to the public; 
and 
(2) public notice of each meeting be given not less than 
10 days prior to the meeting. 
§ 2307. Comptroller General’s access to information 
The Administrator and personnel in the Office of Federal Procure-
ment Policy shall furnish information the Comptroller General may 
require to discharge the responsibilities of the Comptroller General. 
For this purpose, the Comptroller General or representatives of 
the Comptroller General shall have access to all books, documents, 
papers, and records of the Office of Federal Procurement Policy. 
§ 2308. Modular contracting for information technology 
(a) USE.—To the maximum extent practicable, the head of an 
executive agency should use modular contracting for an acquisition 
of a major system of information technology. 
(b) MODULAR CONTRACTING DESCRIBED.—Under modular con-
tracting, an executive agency’s need for a system is satisfied in 
successive acquisitions of interoperable increments. Each increment 
complies with common or commercially accepted standards 
applicable to information technology so that the increments are 
compatible with other increments of information technology com-
prising the system. 
(c) PROVISIONS IN FEDERAL ACQUISITION REGULATION.—The Fed-
eral Acquisition Regulation shall provide that— 
(1) under the modular contracting process, an acquisition 
of a major system of information technology may be divided 
into several smaller acquisition increments that— 
(A) are easier to manage individually than would be 
one comprehensive acquisition; 
(B) address complex information technology objectives 
incrementally in order to enhance the likelihood of 
achieving workable solutions for attaining those objectives; 
(C) provide for delivery, implementation, and testing of 
workable systems or solutions in discrete increments, each 
of which comprises a system or solution that is not 
dependent on a subsequent increment in order to perform 
its principal functions; and 
(D) provide an opportunity for subsequent increments 
of the acquisition to take advantage of any evolution in 
technology or needs that occurs during conduct of the ear-
lier increments;
H. R. 1107—62 
(2) to the maximum extent practicable, a contract for an 
increment of an information technology acquisition should be 
awarded within 180 days after the solicitation is issued and, 
if the contract for that increment cannot be awarded within 
that period, the increment should be considered for cancellation; 
and 
(3) the information technology provided for in a contract 
for acquisition of information technology should be delivered 
within 18 months after the solicitation resulting in award of 
the contract was issued. 
§ 2309. Protection of constitutional rights of contractors 
(a) PROHIBITION ON REQUIRING WAIVER OF RIGHTS.—A contractor 
may not be required, as a condition for entering into a contract 
with the Federal Government, to waive a right under the Constitu-
tion for a purpose relating to the Chemical Weapons Convention 
Implementation Act of 1998 (22 U.S.C. 6701 et seq.) or the Chemical 
Weapons Convention (as defined in section 3 of that Act (22 U.S.C. 
6701)). 
(b) PERMISSIBLE CONTRACT CLAUSES.—Subsection (a) does not 
prohibit an executive agency from including in a contract a clause 
that requires the contractor to permit inspections to ensure that 
the contractor is performing the contract in accordance with the 
provisions of the contract. 
§ 2310. Performance-based contracts or task orders for serv-
ices to be treated as contracts for the procure-
ment of commercial items 
(a) CRITERIA.—A performance-based contract for the procurement 
of services entered into by an executive agency or a performance- 
based task order for services issued by an executive agency may 
be treated as a contract for the procurement of commercial items 
if— 
(1) the value of the contract or task order is estimated not 
to exceed $25,000,000; 
(2) the contract or task order sets forth specifically each 
task to be performed and, for each task— 
(A) defines the task in measurable, mission-related 
terms; 
(B) identifies the specific end products or output to be 
achieved; and 
(C) contains firm, fixed prices for specific tasks to be 
performed or outcomes to be achieved; and 
(3) the source of the services provides similar services to 
the general public under terms and conditions similar to those 
offered to the Federal Government. 
(b) REGULATIONS.—Regulations implementing this section shall 
require agencies to collect and maintain reliable data sufficient 
to identify the contracts or task orders treated as contracts for 
commercial items using the authority of this section. The data 
may be collected using the Federal Procurement Data System or 
other reporting mechanism. 
(c) REPORT.—Not later than 2 years after November 24, 2003, 
the Director of the Office of Management and Budget shall prepare 
and submit to the Committees on Homeland Security and Govern-
mental Affairs and on Armed Services of the Senate and the 
Committees on Oversight and Government Reform and on Armed 
Services of the House of Representatives a report on the contracts