HR 5414 RH 
process offered or to be offered for sale to the public, as a condition 
for the Federal Government to procure the product or process, to pro-
vide to the Federal Government technical data relating to the design, 
development, or manufacture of the product or process. This paragraph 
does not apply to data that may be necessary for the Federal Govern-
ment to operate and maintain the product or use the process if the 
Federal Government obtains it as an element of performance under the 
contract. 
(c) TECHNICAL DATA DEVELOPED WITH FEDERAL FUNDS.— 
(1) USE BY GOVERNMENT AND AGENCIES.—Except as otherwise ex-
pressly provided by Federal statute, with respect to executive agencies 
subject to part C, regulations prescribed under subsection (a) shall pro-
vide that— 
(A) the Federal Government has unlimited rights in technical 
data developed exclusively with Federal funds if delivery of the 
data— 
(i) was required as an element of performance under a con-
tract; and 
(ii) is needed to ensure the competitive acquisition of sup-
plies or services that will be required in substantial quantities 
in the future; and 
(B) the Federal Government and each agency of the Federal 
Government has an unrestricted, royalty-free right to use, or to 
have its contractors use, for governmental purposes (excluding 
publication outside the Federal Government) technical data devel-
oped exclusively with Federal funds. 
(2) REQUIREMENTS IN ADDITION TO OTHER RIGHTS OF THE GOV-
ERNMENT.—The requirements of paragraph (1) are in addition to and 
not in lieu of any other rights the Federal Government may have pur-
suant to law. 
(d) FACTORS TO BE CONSIDERED IN PRESCRIBING REGULATIONS.—The 
following factors shall be considered in prescribing regulations under sub-
section (a): 
(1) Whether the item or process to which the technical data pertains 
was developed— 
(A) exclusively with Federal funds; 
(B) exclusively at private expense; or 
(C) in part with Federal funds and in part at private expense. 
(2) The statement of congressional policy and objectives in section 
200 of title 35, the statement of purposes in section 2(b) of the Small 
Business Innovation Development Act of 1982 (Public Law 97–219, 15 
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U.S.C. 638 note), and the declaration of policy in section 2 of the 
Small Business Act (15 U.S.C. 631). 
(3) The interest of the Federal Government in increasing competi-
tion and lowering costs by developing and locating alternative sources 
of supply and manufacture. 
(e) PROVISIONS
REQUIRED
IN
CONTRACTS.—Regulations prescribed 
under subsection (a) shall require that a contract for property or services 
entered into by an executive agency contain appropriate provisions relating 
to technical data, including provisions— 
(1) defining the respective rights of the Federal Government and the 
contractor or subcontractor (at any tier) regarding technical data to be 
delivered under the contract; 
(2) specifying technical data to be delivered under the contract and 
schedules for delivery; 
(3) establishing or referencing procedures for determining the ac-
ceptability of technical data to be delivered under the contract; 
(4) establishing separate contract line items for technical data to be 
delivered under the contract; 
(5) to the maximum practicable extent, identifying, in advance of de-
livery, technical data which is to be delivered with restrictions on the 
right of the Federal Government to use the data; 
(6) requiring the contractor to revise any technical data delivered 
under the contract to reflect engineering design changes made during 
the performance of the contract and affecting the form, fit, and func-
tion of the items specified in the contract and to deliver the revised 
technical data to an agency within a time specified in the contract; 
(7) requiring the contractor to furnish written assurance, when tech-
nical data is delivered or is made available, that the technical data is 
complete and accurate and satisfies the requirements of the contract 
concerning technical data; 
(8) establishing remedies to be available to the Federal Government 
when technical data required to be delivered or made available under 
the contract is found to be incomplete or inadequate or to not satisfy 
the requirements of the contract concerning technical data; and 
(9) authorizing the head of the agency to withhold payments under 
the contract (or exercise another remedy the head of the agency con-
siders appropriate) during any period if the contractor does not meet 
the requirements of the contract pertaining to the delivery of technical 
data. 
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§ 2303. Conflict of interest standards for consultants 
(a) CONTENT
OF REGULATIONS.—The Administrator shall prescribe 
under this part 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 sub-
section (a) apply to— 
(1) advisory and assistance services provided to the Federal Govern-
ment 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 submission 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 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 Central 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. 
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§ 2304. Authority of Director of Office of Management and 
Budget not affected 
This part does not limit the authorities and responsibilities of the Direc-
tor of the Office of Management and Budget in effect on December 1, 1983. 
§ 2305. 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. 
§ 2306. 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. 
§ 2307. 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 
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