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 reg-
ulations 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 de-
fined in section 3.4(e) of Executive Order No. 12333 or a comparable 
definitional section in any successor order may be exempt from the reg-
ulations required by subsection (a). 
(2) REPORT.—The Director of National Intelligence shall report to 
the Intelligence and Appropriations Committees of Congress each Jan-
uary 1, delineating the activities and organizations that have been ex-
empted under paragraph (1). 
(d) PRESIDENTIAL DETERMINATION.—Before the regulations required by 
subsection (a) are prescribed, the President shall determine if prescribing 
the regulations will have a significantly adverse effect on the accomplish-
ment of the mission of the Defense Department or another Federal agency. 
If the President determines that the regulations will have such an adverse 
effect, the President 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 regula-
tions 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 Di-
rector 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 Procurement 
Policy shall furnish information the Comptroller General may require to dis-
charge the responsibilities of the Comptroller General. For this purpose, the
Comptroller General or his representatives shall have access to all books, 
documents, papers, and records of the Office of Federal Procurement Pol-
icy. 
§ 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 contracting, 
an executive agency’s need for a system is satisfied in successive acquisi-
tions 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 comprising the system. 
(c) PROVISIONS IN FEDERAL ACQUISITION REGULATION.—The Federal 
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 com-
prehensive acquisition; 
(B) address complex information technology objectives incre-
mentally in order to enhance the likelihood of achieving workable 
solutions for attaining those objectives; 
(C) provide for delivery, implementation, and testing of work-
able systems or solutions in discrete increments, each of which 
comprises a system or solution that is not dependent on a subse-
quent increment in order to perform its principal functions; and 
(D) provide an opportunity for subsequent increments of the ac-
quisition to take advantage of any evolution in technology or needs 
that occurs during conduct of the earlier increments; 
(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 incre-
ment cannot be awarded within that period, the increment should be 
considered for cancellation; and 
(3) the information technology provided for in a contract for acquisi-
tion 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