Acquisition Regulations, 30520-30545 [06-4763]

Agencies

• Office of the Secretary
• DEPARTMENT OF HEALTH AND HUMAN SERVICES

[Federal Register Volume 71, Number 102 (Friday, May 26, 2006)]
[Proposed Rules]
[Pages 30520-30545]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-4763]



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Part III





Department of Health and Human Services





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Office of the Secretary



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48 CFR Chapter 3



Acquisition Regulations; Proposed Rule

Federal Register / Vol. 71, No. 102 / Friday, May 26, 2006 / Proposed 
Rules

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of the Secretary

48 CFR Chapter 3


Acquisition Regulations

AGENCY: Department of Health and Human Services (HHS).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Department of Health and Human Services proposes to amend 
its acquisition regulations (HHSAR) to make administrative and 
editorial changes to reflect organizational title changes resulting 
from Office of the Secretary (OS) and Operating Division (OPDIV) 
reorganizations and to update or remove outdated text and references. 
The intent of the proposal is to bring the HHSAR up to date and to make 
the HHSAR consistent with the latest amendments to the Federal 
Acquisition Regulations (FAR).

DATES: Comments must be received by July 25, 2006.

ADDRESSES: You may submit comments by either of the following methods: 
E-mail: Katherine.Hughes@hhs.gov or by mail to: Katherine Hughes, HHS, 
Division of Acquisition Policy, Office of Acquisition Management and 
Policy, 200 Independence Ave., SW., Room 336E, Washington, DC 20201. 
Please state ``48 CFR 3'' on the subject line.

FOR FURTHER INFORMATION CONTACT: Katherine Hughes, Office of 
Acquisition Management and Policy, telephone (202) 690-7079, e-mail: 
Katherine.Hughes@hhs.gov.

SUPPLEMENTARY INFORMATION:

A. Background

    The Department emphasizes that it is not proposing significant 
amendments to the existing HHSAR. The amendments being proposed to the 
HHSAR concern internal procedural matters which are administrative in 
nature, and would not have a major effect on the general public or on 
contractors or offerors supporting the Department. The majority of the 
amendments address the following:
     HHS organizational title changes resulting from agency 
reorganizations.
     Eliminating procedural guidance no longer deemed 
necessary.
     Changing contracting review and approval authorities to 
situate them at levels more appropriate to simplification, 
streamlining, and empowerment.
     Updating the HHSAR to bring it in line with the latest 
amendments made to the Federal Acquisition Regulation (FAR).
     Clarifying authorities for selecting and terminating 
Contracting Officers.
     Establishing minimum training requirements for certain 
positions.
     Specifically referencing regulations of other Federal 
agencies.
     Updating the text of clauses required to be inserted in 
solicitations and contracts.

B. Regulatory Flexibility Act

    The Department of Health and Human Service certifies this 
rulemaking will not have a significant economic effect on a substantial 
number of small entities under the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) because it does not impose any new requirements. 
Therefore, no regulatory flexibility statement has been prepared. Since 
this rule conveys existing acquisition policies or procedures and does 
not promulgate any new policies or procedures that would impact the 
public, it has been determined that this rule will not have a 
significant economic effect on a substantial number of small entities, 
and, thus, a regulatory flexibility analysis was not performed.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the HHSAR do not impose any record keeping or information collection 
requirements that require approval by the Office of Management and 
Budget under 44 U.S.C. 3501, et seq. Existing approvals cited in 48 CFR 
301.106 remain in effect. The provisions of this regulation are issued 
under 5 U.S.C. 301; 40 U.S.C. 486 (c).

List of Subjects in 48 CFR Chapter 3

    Government procurement.

    Under the authority of 5 U.S.C. 301; 40 U.S.C. 486(c), the 
Department of Health and Human Services proposes to amend 48 CFR 
Chapter 3 as set forth below.

    Dated: May 16, 2006.
Joe W. Ellis,
Assistant Secretary for Administration and Management.

CHAPTER 3--HEALTH AND HUMAN SERVICES

    1. The authority citation for 48 CFR chapter 3, parts 301-370 
continues to read as follows:

    Authority: 5 U.S.C. 301; 40 U.S.C. 486(c).

    2. 48 CFR chapter 3 is amended by removing ``Office of Acquisition 
Management'' and adding ``Division of Acquisition Policy (DAP)'' in its 
place each time it appears.

PART 301--HHS ACQUISITION REGULATION SYSTEM

    3. Revise paragraph (b) of section 301.101 to read as follows:


301.101  Purpose.

* * * * *
    (b) The HHSAR implements FAR policies and procedures and provides 
additional policies and procedures that supplement the FAR to satisfy 
the needs of HHS.
* * * * *
    4. Amend section 301.270 by revising paragraphs (c) and (d) to read 
as follows:


301.270  Executive Committee for Acquisition.

* * * * *
    (c) The purposes of the ECA are to:
    (1) Advise and assist the Chair on major acquisition policy 
matters;
    (2) Review and evaluate the overall effectiveness of existing 
policies and procedures and the impact of new acquisition policies, 
procedures, and regulations on current acquisition policies and 
procedures.
    (d) The Chair will periodically issue a list of current members and 
alternates, including each person's name, title, organization, address, 
telephone number, and e-mail address. ECA members are responsible for 
apprising the Chair of any changes to the list.
    5. Revise section 301.403 to read as follows:


301.403  Individual deviations.

    Requests for individual deviations to either the FAR or HHSAR shall 
be prepared in accordance with 301.470 and forwarded to the Deputy 
Assistant Secretary for Acquisition Management and Policy (DASAMP).
    6. Revise section 301.404 to read as follows:


301.404  Class deviations.

    Requests for class deviations to either the FAR or HHSAR shall be 
prepared in accordance with 301.470 and forwarded to the Director, 
Office of Acquisition Management and Policy.
    7. Amend section 301.470 by revising paragraph (a) to read as 
follows:


301.470  Procedure.

    (a) Deviation requests shall be prepared in memorandum form and 
forwarded through the Head of the Contracting Activity (HCA) to the 
Deputy Assistant Secretary for Acquisition Management and Policy. A 
deviation may be requested verbally in an exigency situation; however, 
the request must be confirmed in writing as soon as possible.
* * * * *

[[Page 30521]]

    8. Amend section 301.602-3 by revising paragraphs (b)(3), (e)(1), 
and (e)(2) to read as follows:


301.602-3  Ratification of unauthorized commitments.

* * * * *
    (b) * * *
    (3) Ratification authority for actions up to $100,000 may be 
redelegated by the HCA to the chief of the contracting office (CCO). No 
other redelegations are authorized.
* * * * *
    (e) Procedures. (1) The individual who made the unauthorized 
contractual commitment shall furnish the reviewing Contracting Officer 
all records and documents concerning the commitment and a complete 
written statement of facts, including, why the contracting office was 
not used, why the proposed contractor was selected, other sources 
considered, a description of the requirement, the estimated or agreed 
price, funds citation, and whether the contractor has commenced work.
    (2) The Contracting Officer will review the submitted material and 
prepare it for ratification following a determination that the 
commitment is ratifiable. The Contracting Officer shall forward the 
ratification document and the submitted material to the HCA or CCO with 
any comments or information which should be considered in evaluation of 
the request for ratification. If legal review is desirable, the HCA or 
CCO will coordinate the request for ratification with the Office of 
General Counsel, Business and Administrative Law Division.
* * * * *
    9. Revise sections 301.603 and 301.603-1 to read as follows:


301.603  Selection, appointment, and termination of appointment of 
Contracting Officers/Contract Specialists.


301.603-1  General.

    (a) The appointment, selection, and termination of appointment of 
Contracting Officers/Contract Specialists shall be made by the HCA. 
This authority is not delegable. The procedures for the selection and 
appointment of Contracting Officers/Contract Specialists shall apply to 
anyone seeking the authority for a Contracting Officer warrant. For 
those OPDIVs that have Contracting Officers/Contract Specialists with 
dual signature warrants within some of the offices, the appointment and 
termination of Contracting Officers/Contract Specialists is done in 
accordance with OPDIV procedures.
    (b) The Contracting Officer appointment document for personnel in 
the GS-1102 series, as well as personnel in any other series who will 
obligate the Government to the expenditure of funds in excess of the 
micro-purchase threshold, shall be the Standard Form (SF) 1402, 
``Certificate of Appointment,'' and shall indicate the Contracting 
Officer's warrant level and threshold and any other limitations. 
Appointing officials shall ensure that individuals delegated warrant 
authority meet the requirements stipulated in the HHS Acquisition 
Workforce Training and Certification Handbook (herein referred to as 
``Handbook''), are certified in accordance with Chapter 4 of the 
Handbook, and meet the skills currency training and other specific 
OPDIV standards that may apply. (The Handbook is located at the 
following Web site: https://www.knownet.hhs.gov/acquisition/Cert_
Training_Program/toc.htm). The HCA may determine an alternate 
appointment document for appointments at or below the micropurchase 
threshold level. Contracting Officer warrants will be issued to civil 
service personnel only. A delegation of procurement authority shall be 
set forth in a memorandum that describes the spending limits and 
authority. Changes to appointments shall be made by issuing a new 
appointment document. Each appointment document shall be prepared and 
maintained in accordance with FAR 1.603-1 and shall state the limits of 
the individual's authority.
    (c) An individual must be certified at the appropriate level (see 
Chapter 4 of the Handbook at the following Web site: https://
www.knownet.hhs.gov/acquisition/Cert_Training_Program/chap4.htm) as a 
prerequisite to being appointed as a Contracting Officer with authority 
to obligate funds in excess of the micro-purchase threshold. The HCA 
will determine and require training for individuals appointed as 
Contracting Officers/Contract Specialists at dollar levels below the 
micropurchase threshold. Individuals selected for Contracting Officer 
warrant authority must meet the education, training, and experience 
requirements that are established for the warrant level. An individual 
shall be appointed as a Contracting Officer only in instances where a 
valid organizational need is demonstrated. Factors to be considered in 
assessing the need for an appointment of a Contracting Officer include 
volume of actions, complexity of work, and structure of the 
organization.
    (d) Contracting Officers/Contract Specialists (GS-1102s) are 
prohibited from signing actions, including modifications, options, or 
any other action that will result in the total amount of the contract 
exceeding their delegated warrant authority (as specified on the SF-
1402). This includes Indefinite Delivery Indefinite Quantity (IDIQ) 
contracts. However, orders issued against IDIQ contracts are processed 
differently. Once an IDIQ contract is awarded by a Contracting Officer 
with the appropriate authority, orders against the contract may be 
issued by other Contracting Officers/Contract Specialists up to their 
delegated warrant authority, assuming that each order is separate and 
distinct (that is, not a follow-on of another order) from each other.
    (e) Employees delegated warrant authority are the only individuals 
legally authorized to bind the Government by executing contracts or 
signing determinations and findings required by the FAR. The amount 
specified on the warrant should cover the estimated maximum contract 
amount, including all option periods. For example, an employee with a 
$500,000 Contracting Officer Certificate of Appointment may not award a 
contract for a base year of $300,000 if the contract includes a one-
year option for an additional $300,000. In this case, the total 
contract amount, including options, exceeds the amount stipulated in 
the warrant. If a warrant is limited to $500,000 (for example), the 
holder may not sign a contract for more than that amount, even if the 
additional amount is subject to the availability of funds. Contracting 
Officers with higher warrant levels may sign the action when 
modifications to orders and contracts make the total amount of the 
contract exceed the Contracting Officer's warrant limitation.
    10. Revise section 301.603-2 to read as follows:


301.603-2  Selection of Contracting Officers/Contract Specialists.

    When it has been determined that the appointment is in the best 
interest of the OPDIV and/or Department and there is a demonstrated 
need for the procurement authority requested, nominations for 
appointment of Contracting Officers/Contract Specialists shall be 
submitted to the HCA through appropriate organizational channels for 
review. The HCA is responsible for appointing Contracting Officers/
Contract Specialists in accordance with FAR 1.603. This authority is 
not delegable. The nomination package, which typically is initiated by 
the prospective Contracting Officer's immediate supervisor, shall 
include the information listed in the following Web site: https://

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www.knownet.hhs.gov/acquisition/Cert_Training_Program/chap3.htm 
(click on ``Selection, Appointment, and Termination of Contracting 
Officers''). Additional information about appointment procedures is 
listed in the Web site mentioned above. The HCA will determine the 
documentation required, consistent with FAR 1.603-2, when the resulting 
appointment and authority will not exceed the micropurchase threshold.
    11. Revise section 301.603-3 to read as follows:


301.603-3  Appointment of Contracting Officers.

    (a) Appointing officials must ensure that a warrant candidate meets 
the experience, education/training requirements listed in Chapter 4 
entitled ``Training and Certification Requirements for the HHS 
Acquisition Workforce,'' of the Handbook (available at the following 
Web site: https://www.knownet.hhs.gov/acquisition/Cert_Training_
Program/chap4.htm), meets acquisition certification requirements, and 
meets the skills currency training and other OPDIV/Department standards 
that may apply. The warrant levels are listed in the Handbook at the 
following Web site: https://www.knownet.hhs.gov/acquisition/Cert_
Training_Program/chap3.htm.
    (b) If it is essential to appoint an individual who does not fully 
meet the certification requirements for the Contracting Officer 
authority sought, an interim appointment may be granted by the HCA. 
HCAs are responsible for ensuring that training requirements are met 
within the specified time frame. Interim appointments may not exceed 
one (1) year in total, and shall not be granted unless the individual 
can meet the certification requirements within one (1) year from the 
date of appointment. The HCA may extend an interim appointment when he/
she determines it is appropriate by granting additional time to 
complete the requirements of a permanent appointment. The HCA and 
Contracting Officer will discuss the timeframes for extension of an 
interim appointment, to allow completion of the requirements, and the 
HCA will make the final decision. If the certification requirements are 
not met by that date, the appointment will automatically terminate.
    12. Revise section 301.603-4 to read as follows:


301.603-4  Termination or revocation of a Contracting Officer's 
appointment.

    Termination or revocation of Contracting Officer appointments shall 
be accomplished in accordance with FAR 1.603-4.
    13. Revise section 301.603-70 to read as follows:


301.603-70  Delegation of Contracting Officer responsibilities.

    (a) Contracting Officer responsibilities which do not involve the 
obligation or deobligation of funds or result in establishing or 
modifying contractual provisions may be delegated by the Contracting 
Officer by means of a written memorandum that clearly delineates the 
delegation and its limits.
    (b) Contracting Officers may designate individuals as ordering 
officials to make purchases or place orders under blanket purchase 
agreements, indefinite delivery contracts, or other preestablished 
mechanisms. Ordering officials, including those under the National 
Institutes of Health's (NIH) Delegated Acquisition Program (DELPRO), 
are not Contracting Officers.
    14. Add sections 301.603-71 through 301.603-76 to read as follows:


301.603-71  Waivers to warrant standards.

    Guidance on waivers to warrant standards are found in Chapter 3 of 
the Handbook at the following Web site: https://www.knownet.hhs.gov/
acquisition/Cert_Training_Program/chap3.htm (under ``Selection, 
Appointment and Termination of Contracting Officers'').


301.603-72  Training and certification requirements for Contracting 
Officers/Contract Specialists.

    Training and certification requirements are found in Chapter 4 of 
the Handbook at the following Web site: https://www.knownet.hhs.gov/
acquisition/Cert_Training_Program/chap4.htm.


301.603-73  Earned value training requirement for Contracting Officers/
Contract Specialists who administer an IT contract.

    All GS-1102s who administer an IT contract are required to 
successfully complete the Department's (offered through HHS University) 
one-day course entitled ``Early Warning Project Management Systems 
Workshop,'' or an equivalent Earned Value training course. 
Determination of course equivalency shall be made jointly by the Office 
of Acquisition Management and Policy/ASAM and the HHS Office of the 
Chief Information Officer.


301.603-74  Training policy exception.

    In the event there is an urgent requirement for a Contracting 
Officer/Contract Specialist to award or administer an IT contract, and 
the Earned Value training requirement has not been met, the HCA (not 
delegable) may waive the training requirement and authorize the 
individual to perform the job duties, provided that the individual 
attends the next scheduled ``Early Warning Project Management System 
Workshop'' course, or an equivalent Earned Value course.


301.603-75  Training requirement for purchase cardholders, Approving 
Officials (AOs), and Agency/Organization Program Coordinators (A/OPCs).

    Training requirements for purchase cardholders, AOs and A/OPCs are 
found in Chapter 4 of the Handbook at the following Web site: https://
www.knownet.hhs.gov/acquisition/Cert_Training_Program/chap4.htm.


301.603-76  Requirement for certification retention and maintaining 
currency of acquisition knowledge and skills for Contracting Officers/
Contract Specialists and purchasing agents.

    The requirement for certification retention and maintaining 
currency of acquisition knowledge and skills is found in Chapter 4 of 
the Handbook at the following Web site: https://www.knownet.hhs.gov/
acquisition/Cert_Training_Program/chap4.htm.

PART 302--DEFINITIONS OF WORDS AND TERMS

    15. In section 302.101, add a definition for ``Agency head or head 
of the Agency,'' remove the definition for ``Head of the agency or 
agency head,'' revise the definition for ``Head of the Contracting 
Activity (HCA),'' and add a definition for ``Project Officer,'' to read 
as follows:


302.101  Definitions.

    Agency head or head of the Agency, unless otherwise specified, 
means the head of the Operating Division (OPDIV) for Agency for 
Healthcare Research and Quality (AHRQ), Centers for Disease Control and 
Prevention (CDC), Centers for Medicare & Medicaid Services (CMS), Food 
and Drug Administration (FDA), Health Resources and Services 
Administration (HRSA), Indian Health Service (IHS), National Institutes 
of Health (NIH), Substance Abuse and Mental Health Services (SAMHSA), 
and the Deputy Secretary for the Office of the Secretary (OS).
* * * * *

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    Head of the contracting activity (HCA) occupies designated 
organization positions as follows:

ASAM-OS--Deputy Assistant Secretary for Acquisition Management and 
Policy
AHRQ--Director, Division of Contracts Management
CMS--Director, Office of Acquisition and Grants Management
PSC--Director, Division of Acquisition Management
CDC--Director, Procurement and Grants Office
FDA--Director, Office of Acquisitions & Grant Services
HRSA--Director, Division of Procurement Management
IHS--Director, Division of Acquisition Policy
NIH--Director, Office of Acquisition Management and Policy
SAMHSA--Director, Division of Contracts Management

    Each HCA is responsible for conducting an effective and efficient 
acquisition program. Adequate controls shall be established to assure 
compliance with applicable laws, regulations, procedures, and the 
dictates of good management practices. Periodic reviews shall be 
conducted and evaluated by qualified personnel, preferably assigned to 
positions other than in the contracting office being reviewed, to 
determine the extent of adherence to prescribed policies and 
regulations, and to detect a need for guidance and/or training. The HCA 
shall be certified, or be certifiable, at Level IV of the HHS 
Acquisition Certification Program. Individuals appointed as HCAs who do 
not meet the Level IV requirements shall have one year from the date of 
appointment to obtain Level IV certification. The heads of contracting 
activities may redelegate their HCA authorities to the extent that 
redelegation is not prohibited by the terms of their respective 
delegations of authority, by law, by the Federal Acquisition 
Regulation, by the HHS Acquisition Regulation, or by other regulations. 
However, HCA and other contracting approvals and authorities shall not 
be redelegated below the levels specified in the HHS Acquisition 
Regulation or, in the absence of coverage in the HHS Acquisition 
Regulation, the Federal Acquisition Regulation. To ensure proper 
control of redelegated acquisition authorities, HCAs shall maintain a 
file containing successive delegations of HCA authority through and 
including the Contracting Officer level. Personnel delegated 
responsibility for acquisition functions must possess a level of 
experience, training, and ability commensurate with the complexity and 
magnitude of the acquisition actions involved.
    Project Officer is a Federal employee who monitors contractor 
performance and provides technical guidance to the Contract Specialist/
Contracting Officer. He or she serves as the Contract Specialist/
Contracting Officer's authorized representative to monitor specific 
aspects of the contract, thereby ensuring that the contractor's 
performance meets the standards set forth in the contract, the 
technical requirements under the contract are met by the delivery 
date(s) and/or within the period of performance, and performance is 
accomplished within the price or estimated cost stated in the contract. 
A Project Officer is required to comply with HHS Project Management 
Certification Program training requirements. The term ``Project 
Officer'' is synonymous with Contracting Officer's Representative (COR) 
and Contracting Officer's Technical Representative (COTR).
    16. Revise section 302.201 to read as follows:


302.201  Contract clause.

    The FAR clause, Definitions, at 52.202-1 shall be used as 
prescribed in FAR 2.201, except as follows:
    (a) In accordance with 52.202-1(a)(1), paragraph (a) at 352.202-1 
shall be used in place of paragraph (a) of the FAR clause.
    (b) In accordance with 52.202-1(a)(1), paragraph (h), or its 
alternate, at 352.202-1 shall be added to the end of the FAR clause. 
Use paragraph (h) when a fixed-priced contract is anticipated; use the 
alternate to paragraph (h) when a cost-reimbursement contract is 
anticipated. This is an authorized deviation.

PART 303--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    17. Revise section 303.101-3 to read as follows:


303.101-3  Agency regulations.

    (a)(3) The Department of Health and Human Services' Standards of 
Conduct are prescribed in 45 CFR part 73.
    18. Revise section 303.303 to read as follows:


303.303  Reporting suspected antitrust violations.

    (h) A copy of the agency report of suspected antitrust violations 
submitted to the Attorney General by the HCA shall also be submitted to 
the Director, Office of Acquisition Management and Policy.
    19. Revise section 303.405 to read as follows:
    303.405 Misrepresentations or violations of the Covenant Against 
Contingent Fees.
    (a) Reports shall be made promptly to the Contracting Officer.
    (b)(4) Suspected fraudulent or criminal matters to be reported to 
the Department of Justice shall be prepared in letter format and 
forwarded through acquisition channels to the head of the contracting 
activity for signature. The letter must contain all pertinent facts and 
background information considered by the Contracting Officer and chief 
of the contracting office that led to the decision that fraudulent or 
criminal matters may be present. A copy of the signed letter shall be 
sent to the Director, Office of Acquisition Management and Policy.
    20. Revise section 303.704 to read as follows:


303.704  Policy.

    (a) For purposes of implementing FAR subpart 3.7, the authorities 
granted to the ``agency head or designee'' shall be exercised by the 
HCA (not delegable).

PART 304--ADMINISTRATIVE MATTERS

    21. Revise section 304.602 to read as follows:


304.602  Federal Procurement Data System--Next Generation (FPDS-NG).

    The Departmental Contracts Information System (DCIS) represents the 
Department's implementation of the FPDS-NG. All departmental 
contracting activities are required to use the DCIS and follow the 
procedures stated in the Enhanced Departmental Contracts Information 
System Manual, available at https://dcis.hhs.gov, and amendments to the 
manual. The HCA (not delegable) shall ensure that all required contract 
information is collected, submitted, and received into the DCIS on or 
before the 15th of each month for all appropriate contract and contract 
modifications award of the prior month.
    22. Amend 304.804-70 by revising paragraphs (a) and (b)(1) to read 
as follows:


304.804-70  Contract closeout audits.

    (a) Contracting Officers shall rely, to the maximum extent 
possible, on single audits to close physically completed cost-
reimbursement contracts with colleges and universities, hospitals, non-
profit firms, and State and local governments. In addition, where 
appropriate, a sample of these contractors may be selected for audit, 
in

[[Page 30524]]

accordance with paragraph (b) of this section.
    (b) * * *
    (1) The Office of the Inspector General (OIG) and ASAM's Deputy 
Assistant Secretary for Acquisition Management and Policy in 
conjunction with the OPDIV's cost advisory/audit focal point, determine 
which contracts or contractors will be audited, which audit agency will 
perform the audit, and the type and scope of closeout audit to be 
performed. These decisions shall be based upon the needs of the 
customer, risk analysis, return on investment, and the availability of 
audit resources. When an audit is warranted prior to closing a 
contract, the Contracting Officer shall submit the audit request to the 
OIG's Office of Audit, via the OPDIV's cost advisory/audit focal point.
* * * * *
    23. Revise paragraph (e) of section 304.7001 to read as follows:


304.7001  Numbering acquisitions.

* * * * *
    (e) Assignment of identification codes. Each contracting office of 
the Department shall be assigned a three digit identification code by 
the ASAM/OAMP. Requests for the assignment of codes for newly 
established contracting offices shall be submitted by a headquarters 
official from the new contracting office to the OAMP. A listing of the 
contracting office identification codes currently in use is contained 
in the Enhanced Departmental Contracts Information System Manual, 
available at https://dcis.hhs.gov.

PART 305--PUBLICIZING CONTRACT ACTIONS

    24. Revise section 305.303 to read as follows:


305.303  Announcement of contract awards.

    (a) Public announcement. Any contract, contract modification, or 
order in the amount of $3 million or more, not otherwise exempt under 
FAR 5.303, shall be reported by the Contracting Officer to the Office 
of the Assistant Secretary for Legislation (Congressional Liaison), 
Room 406G, Hubert H. Humphrey Building. Notification shall be 
accomplished by providing a copy of the contract or award document face 
page to the referenced office prior to the day of award, or in 
sufficient time to allow for an announcement to be made by 5 p.m. 
Washington, DC time on the day of award. Notification may also be 
accomplished by e-mailing a copy of the contract or award document face 
page to grantfax@hhs.gov, or faxing to (202) 205-2420.
    25. Revise section 305.502 to read as follows:


305.502  Authority.

    The Contracting Officer is authorized to publish advertisements and 
notices indicating that proposals are being sought in newspapers and 
periodicals in accordance with the requirements and conditions 
referenced in FAR subpart 5.5.

PART 306--COMPETITION REQUIREMENTS

    26. Revise section 306.302-1 to read as follows:


306.302-1  Only one responsible source and no other supplies or 
services will satisfy agency requirements.

    (a)(2)(iv) Follow-on contracts for the continuation of major 
research and development studies on long-term social and health 
programs, major research studies, or clinical trials may be deemed to 
be available only from the original source when it is likely that award 
to any other source would result in unacceptable delays in fulfilling 
the Department's or OPDIV's requirements.
    (b) Application. (5) When the head of the program office has 
determined that only specified makes and models of technical equipment 
or parts must be obtained to meet the activity's program responsibility 
to test and evaluate certain kinds and types of products, and only one 
source is available. (This criterion is limited to testing and 
evaluation purposes only and may not be used for initial outfitting or 
repetitive acquisitions. Project officers should support the use of 
this criterion with citations from their agency's legislation and the 
technical rationale for the item of equipment required.)
    27. Revise section 306.303-1 to read as follows:


306.303-1  Requirements.

    (a)(1) When a program office desires to obtain certain goods or 
services by contract without full and open competition, it shall 
provide the contracting office a justification explaining why full and 
open competition is not feasible. The justification must be submitted 
with the requisition or request for contract.
    (i) Justifications in excess of the simplified acquisition 
threshold shall be in the form of a separate, self-contained document, 
prepared in accordance with FAR 6.303 and 306.303, and called a 
``JOFOC'' (Justification for Other Than Full and Open Competition). 
Justifications at or below the simplified acquisition threshold may be 
in the form of a paragraph or paragraphs contained in the requisition 
or request for contract.
    (ii) Justifications, whether over or under the simplified 
acquisition threshold, shall fully describe what is to be acquired, 
offer reasons which go beyond inconvenience, and explain why it is not 
feasible to obtain competition. The justifications shall be supported 
by verifiable facts rather than mere opinions. Documentation in the 
justification should be sufficient to permit an individual with 
technical competence in the area to follow the rationale.
    (iii) Sole source justifications using the Federal Supply Schedule 
shall include the content listed in FAR 6.303-2.
    (b) Preliminary arrangements or agreements with the proposed 
contractor shall have no effect on the rationale used to support an 
acquisition for other than full and open competition.
    28. Revise section 306.303-2 to read as follows:


306.303-2  Content.

    (a)(1) Each justification shall include the program office and 
name, address, and telephone number of the Project Officer and project 
identification such as the authorizing program legislation, to include 
citations or other internal program identification data such as title, 
contract number, etc.
    (2) The description may be in the form of a statement of work, 
purchase description, or specification. A statement is to be included 
to explain whether the acquisition is an entity in itself, whether it 
is one in a series, or part of a related group of acquisitions.
    (c) JOFOCs shall be signed by the Project Officer, the Project 
Officer's immediate supervisor, the Contracting Officer, and the 
approving official (if the approving official is not the Contracting 
Officer).
    29. Revise section 306.304 to read as follows:


306.304  Approval of the justification.

    (a)(2) The competition advocates are listed in 306.501. This 
authority is not delegable.
    (3) The competition advocate shall exercise this approval 
authority, except where the individual designated as the competition 
advocate does not meet the requirements of FAR 6.304(a)(3)(ii). This 
authority is not delegable.
    (4) The senior procurement executive of the Department is the 
Deputy Assistant Secretary for Acquisition Management and Policy. This

[[Page 30525]]

designation has been made pursuant to the OFPP Act (41 U.S.C. 
414(c)(2)(B).
    (c) A class justification shall be processed the same as an 
individual justification.
    30. Revise section 306.501 to read as follows:


306.501  Requirement.

    The Department's competition advocate is the Deputy Assistant 
Secretary for Acquisition Management and Policy. The competition 
advocates for each of the Department's OPDIVs are as follows:

AHRQ--Executive Officer
CDC--Director, Office of Program Support
CMS--Chief Operating Officer
FDA--Chief, Office of Shared Services
HRSA--Associate Administrator for Operations and Management
IHS--Director, Office of Management and Support
NIH--Senior Advisor for Policy, Office of Extramural Research (R&D) and 
Senior Advisor to the Deputy Director for Intramural Research (Other 
than R&D)
OS--Deputy Assistant Secretary for Acquisition Management and Policy
PSC--Director, Strategic Acquisition Service
SAMHSA--Associate Administrator for Management

PART 307--ACQUISITION PLANNING

    31. Revise section 307.104 to read as follows:


307.104  General procedures.

    (a) Each contracting activity shall prepare an Annual Acquisition 
Plan (AAP). The AAP is a macro plan, containing a list of anticipated 
contract actions over the simplified acquisition threshold and their 
associated funding, as well as the aggregate planned dollars for 
simplified acquisitions by quarter, developed for each fiscal year. The 
AAP shall conform to reasonable budget expectations and shall be 
reviewed at least quarterly and modified as appropriate. The HCA or the 
CCO shall obtain this information from the program planning/budget 
office of the contracting activity and use the AAP to provide necessary 
reports and monitor the workload of the contracting office. For 
contract actions, the plan shall contain, at a minimum:
    (1) A brief description (descriptive title, perhaps one or two 
sentences if necessary);
    (2) Estimated award amount;
    (3) Requested award date;
    (4) Name and phone number of contact person (usually the Project 
Officer);
    (5) Other information required for OPDIV needs.
    (b) Once the AAP is obtained from the program planning/budget 
office, the Contracting Officer/Contract Specialist shall initiate 
discussions with the assigned Project Officer for each planned 
negotiated acquisition over $100,000 except for:
    (1) Acquisitions made under interagency agreements, and
    (2) Contract modifications which exercise options, make changes 
authorized by the Changes clause, or add funds to an incrementally 
funded contract. (The HCA may prescribe procedures for contract actions 
not covered by this subpart.)
    (c) The purpose of the discussions between the Contracting and 
Project Officers is to develop an individual acquisition planning 
schedule and to address areas that will need to be covered in the 
request for contract (RFC), including clearances, acquisition strategy, 
sources, etc. The Project Officer must either have a statement of work 
(SOW) ready at this time or must discuss in more detail the nature of 
the services/supplies that will be required.
    (d) Standard lead-times for processing various types of 
acquisitions and deadlines for submission of acceptable RFCs (that is, 
RFCs which include all required elements such as clearances, funding 
documents, and an acceptable SOW) for award in a given fiscal year 
shall be established by the HCA or designee not lower than the CCO.
    (e) The outcome of the discussions referenced in paragraph (c) of 
this section between the Project Officer and the Contracting Officer/
Contract Specialist will be an agreement concerning the dates of 
significant transaction-specific acquisition milestones, including the 
date of submission of the RFC to the Contracting Officer. This 
milestone schedule document will be prepared with those dates and will 
be signed by the Project Officer and the Contracting Officer. The 
milestones cannot be revised except by mutual agreement of these same 
individuals. If the planning schedule indicates the need to obtain 
approval of a Justification for Other than Full and Open Competition, 
the HCA or CCO must sign the milestone agreement. This document shall 
be retained in the contract file. All other considerations that will 
affect the acquisition (technical, business, management) shall be 
addressed in the RFC (see 307.71).
    32. Revise section 307.170 to read as follows:


307.170  Program training requirements.

    (a) HHS will maintain a program for certifying employees before 
they may be considered eligible for appointment as a program/project 
manager or COR/COTR.
    (b) All HHS program/project managers, alternate program/project 
managers, CORs/COTRs, alternate CORs/COTRs, and at least fifty percent 
of the HHS program personnel performing the function of technical 
proposal evaluator on a technical evaluation team or panel for a 
competitively solicited HHS contract, shall have successfully completed 
the Department's (offered through HHS University) ``Basic Project 
Officer'' course, or an equivalent course, before assuming the duties 
of their designated role, or take the next available class. This 
requirement applies to the initial technical proposal evaluation and 
any subsequent technical evaluations that may be required. Course 
equivalency for the ``Basic Project Officer'' course will be determined 
by the ASAM/OAMP. The Contracting Officer is responsible for ensuring 
that the program/project manager, COR/COTR, and proposal evaluators 
have successfully completed the required training. Non-information 
technology (IT) program/project managers and non-IT CORs/COTRs who have 
successfully completed the appropriate ``Basic Project Officer'' 
course, or an equivalent course, are highly encouraged to take the 
Department's one-day course entitled ``Early Warning Project Management 
System Workshop,'' or an equivalent Earned Value course. Program/
Project managers and CORs/COTRs are highly encouraged to take the 
Department's (offered through HHS University) ``Writing Statements of 
Work'' course, or an equivalent course. Peer and objective reviewers 
are excluded from these requirements. The peer review process pertains 
specifically to NIH in the peer review of applications for grants and 
contracts. Applications are evaluated by a peer review group composed 
of scientists from the extramural research community.
    33. Revise section 307.170-1 to read as follows:


307.170-1  Training policy exceptions.

    In the event there is an urgent requirement for a specific 
individual to serve as a program/project manager and COR/COTR (or 
alternate program/project manager and alternate COR/COTR) and that 
individual has not successfully completed the prerequisite training 
course(s), the HCA (not delegable) may waive the training requirement 
and authorize the

[[Page 30526]]

individual to perform the project duties, provided that:
    (a) The individual first meets with the cognizant Contracting 
Officer to review the HHS ``Project Officer's Contracting Handbook'' to 
discuss the important aspects of the contracting-program office 
relationship as appropriate to the circumstances; and
    (b) The individual attends the next scheduled ``Basic Project 
Officer'' course, or an equivalent course, and, for those current and 
proposed IT program/project managers, as well as alternate IT program/
project managers and IT CORs/COTRs (as well as alternate CORs/COTRs) 
assigned to HHS IT projects (including those designated as major or 
tactical by HHS), the next ``Early Warning Project Management System 
Workshop,'' or an equivalent Earned Value course.
    34. Add sections 307.170-3 through 307.170-9 to read as follows:


307.170-3  Earned value training requirement for IT program/project 
managers and IT CORs/COTRs.

    All current and proposed IT program/project managers, alternate IT 
program/project managers, IT CORs/COTRs, and alternate CORs/COTRs 
assigned to HHS IT projects (including those IT projects designated as 
major or tactical), must successfully complete the Department's 
(offered through HHS University) one-day course entitled ``Early 
Warning Project Management System Workshop,'' or an equivalent Earned 
Value training course. Course equivalency will be determined jointly by 
the ASAM/OAMP and the HHS Office of the Chief Information Officer.


307.170-4  Required training in HHS' portfolio management tool.

    All current and proposed IT program/project managers, as well as 
alternate IT program/project managers and IT CORs/COTRs (as well as 
alternate IT CORs/COTRs), must successfully complete training in HHS' 
portfolio management tool (contact the HHS Office of the Chief 
Information Officer for additional information).


307.170-5  Maintenance/refresher training requirement for program/
project managers and CORs/COTRs.

    The maintenance/refresher training requirement for program/project 
managers and CORs/COTRs is found in Chapter 5 of the Handbook at the 
following Web site: https://www.knownet.hhs.gov/acquisition/Cert_
Training_Program/chap5.htm.


307.170-6  Warranting of Other Transaction Officers for Other 
Transactions.

    The requirement for the warranting of Other Transaction Officers 
for Other Transactions is found in Section I(H) of the HHS Guidebook on 
Other Transactions Authority (available at the following Web site: 
https://www.knownet.hhs.gov/acquisition/ota.htm).


307.170-7  Training Requirements for Other Transaction Officers.

    Training requirements for an Other Transaction Officer are listed 
in Section I(F) of the HHS Guidebook on Other Transaction Authority 
(available at the following Web site: https://www.knownet.hhs.gov/
acquisition/ota.htm).


307.170-8  Appointment of an Other Transaction Officer Technical 
Representative for an Other Transaction.

    The requirement for the appointment of an Other Transaction Officer 
Technical Representative for an Other Transaction is found in Section 
I(I) of the HHS Guidebook on Other Transactions Authority (available at 
the following Web site: https://www.knownet.hhs.gov/acquisition/
ota.htm).


307.170-9  Training requirement for an Other Transaction Officer 
Technical Representative.

    The training requirement for an Other Transaction Officer Technical 
Representative is found in Section I(I) of the HHS Guidebook on Other 
Transactions Authority (available at the following Web site: https://
www.knownet.hhs.gov/acquisition/ota.htm).


307.302,  307.303, 307.304, and 307.307 [Removed]

    35. Remove subpart 307.3 (sections 307.302, 307.303, 307.304, and 
307.307).
    36. Revise section 307.7104 to read as follows:


307.7104  Transmittal.

    The RFC must be conveyed to the contracting office by use of a 
cover memorandum. The cover memorandum must be signed by the head of 
the sponsoring program office and include both a statement attesting to 
the conclusiveness of the review described in 307.7103(b) and a list 
identifying all attachments to the RFC.
    37. Amend section 307.7105 by revising the introductory text for 
the section, the introductory text for paragraph (b)(4), and paragraphs 
(b)(4)(i) and (b)(7) to read as follows:


307.7105  Format and content.

    The Department is in the process of standardizing a format for the 
RFC. In the interim, the information in paragraph (a) of this section 
must be included. Paragraph (b) contains information that must also be 
included if applicable.
* * * * *
    (b) * * *
    (4) Special program clearances or approvals. Any required clearance 
or approval. The following special program clearances or approvals 
should be reviewed for applicability to each acquisition. Those which 
are applicable should be addressed during the planning discussions 
between the Project Officer and Contracting Officer/Contract Specialist 
(see 307.104(c)) and immediate action should be initiated by the 
Project Officer to obtain the necessary clearances or approvals. 
Comprehensive checklists of these and any OPDIV special approvals, 
clearances, and requirements shall be provided for reference purposes 
to program offices by the servicing contracting activity. If the 
approval or clearance has been requested and is being processed at the 
time of RFC submission, a footnote to this effect, including all 
pertinent details, must be included in this section.
    (i) Commercial activities. (OMB Circular No. A-76). An RFC must 
contain a statement as to whether the proposed solicitation is or is 
not to be used as part of an OMB Circular No. A-76 public-private cost 
comparison. (See OMB Circular No. A-76, Performance of Commercial 
Activities.)
* * * * *
    (7) Special terms and conditions. Any suggested special terms and 
conditions not already covered in the statement of work.
* * * * *
    38. Amend section 307.7106 by revising paragraphs (a) and (d) to 
read as follows:


307.7106  Statement of work.

    (a) General. A statement of work (SOW) describes the work or 
services to be performed in reaching an end result without describing 
the method that will be used unless the method of performance is 
critical or required in order to obtain successful performance. The SOW 
should be clear and concise and must completely define the 
responsibilities of both the contractor and the Government. The SOW 
should be worded to make more than one interpretation virtually 
impossible.
* * * * *

[[Page 30527]]

    (d) Elements of the SOW. The elements of the SOW will vary with the 
objective, complexity, size, and nature of the acquisition. In general, 
it should include the following:
    (1) Purpose of the project. This includes a general description of 
the objectives of the project and the desired results.
    (2) Background information. This includes a brief history of the 
project and the importance of the project to the overall program 
objectives.
    (3) A detailed description of the technical requirements. The 
statement of work should provide sufficient detail to accurately 
reflect the Government's requirement. It should state what is to be 
done without prescribing the method to be used and should include 
performance standards. The statement of work may be broken down into 
tasks and subtasks. The degree of breakout depends on the size and 
complexity of the project. The statement of work should indicate 
whether the tasks are sequential or concurrent.
    (4) Reference material. All reference material to be used in the 
conduct of the project that indicates how the work is to be carried out 
must be identified. Applicability should be explained, and a statement 
made as to where the material can be obtained.
    (5) Level of effort. When a level of effort is required, the number 
and type of personnel required should be stated. If known, the type and 
degree of expertise should be specified.
    (6) Special requirements (as applicable). An unusual or special 
contractual requirement, which would impact on contract performance, 
should be included as a separate section.
    (7) Deliverables reporting requirements. All deliverables and/or 
reports must be clearly and completely described. Include the timeframe 
for completion, the format, and the number of copies.

PART 309--CONTRACTOR QUALIFICATIONS

    39. Revise section 309.404 to read as follows:


309.404  List of parties excluded from Federal procurement and 
nonprocurement programs.

    (c) The Office of Acquisition Management and Policy (OAMP) shall 
perform the actions required by FAR 9.404(c).
    (4) OAMP shall maintain all documentation submitted by the 
initiating official recommending the debarment or suspension action and 
all correspondence and other pertinent documentation generated during 
the OAMP review.
    40. Amend section 309.405 by revising paragraph (a)(1) to read as 
follows:


309.405  Effect of listing.

    (a) * * *
    (1) If a Contracting Officer considers it necessary to award a 
contract, or consent to a subcontract with a debarred or suspended 
contractor, the Contracting Officer shall prepare a determination, 
including all pertinent documentation, and submit it through 
acquisition channels to the head of the contracting activity. The 
documentation must include the date by which approval is required and a 
compelling reason for the proposed action. Compelling reasons for award 
of a contract or consent to a subcontract with a debarred or suspended 
contractor include:
    (i) The property or services to be acquired are available only from 
the listed contractor; or
    (ii) The urgency of the requirement dictates that the Department 
conduct business with the listed contractor.
* * * * *
    41. Revise section 309.406-3 to read as follows:


309.406-3  Procedures.

    (a) Investigation and referral. When an apparent cause for 
debarment becomes known, the initiating official shall prepare a report 
containing the information required by 309.470-2, along with a written 
recommendation, and forward it through appropriate channels to the 
debarring official. Reports shall be forwarded in accordance with 
309.470-1. The debarring official, the Deputy Assistant Secretary for 
Acquisition Management and Policy, shall initiate an investigation.
    (b) Decisionmaking process. The debarring official shall review the 
results of the investigation, if any, and make a written determination 
whether or not debarment procedures are to be commenced. A copy of the 
determination shall be promptly sent through appropriate channels to 
the initiating official and the Contracting Officer. If it is 
determined that debarment procedures shall commence, the debarring 
official shall consult with the Office of General Counsel and then 
notify the contractor in accordance with FAR 9.406-3(c). If the 
proposed action is not based on a conviction or judgment and the 
contractor's submission in response to the notice raises a genuine 
dispute over facts material to the proposed debarment, the debarring 
official shall arrange for fact-finding hearings and take the necessary 
action specified in FAR 9.406-3(b)(2). The debarring official shall 
also ensure that written findings of facts are prepared, and shall base 
the debarment decisions on the facts as found, after considering 
information and argument submitted by the contractor and any other 
information in the administrative record. The Office of the General 
Counsel shall represent the Department at any fact-finding hearing and 
may present witnesses for HHS and question any witnesses presented by 
the contractor.
    42. Revise section 309.407-3 to read as follows:


309.407-3  Procedures.

    (a) Investigation and referral. When an apparent cause for 
suspension becomes known, the initiating official shall prepare a 
report containing the information required by 309.470-2 along with a 
written recommendation and forward it through appropriate channels to 
the suspending official. Reports shall be forwarded in accordance with 
309.470-1. The suspending official shall initiate an investigation.
    (b) Decisionmaking process. The suspending official shall review 
the results of the investigation, if any, and make a written 
determination whether or not suspension should be imposed. A copy of 
this determination shall be promptly sent through appropriate channels 
to the initiating official and the Contracting Officer. If it is 
determined that suspension shall be imposed, the suspending official 
shall consult with the Office of General Counsel and then notify the 
contractor in accordance with FAR 9.407-3(c). If the action is not 
based on an indictment, and, subject to the provisions of FAR 9.407-
3(b)(2), the contractor's submission in response to the notice raises a 
genuine dispute over facts material to the suspension, the suspending 
official shall, after suspension has been imposed, arrange for fact-
finding hearings and take the necessary actions specified in FAR 9.407-
3(b)(2).
    43. Amend section 309.470-1 by revising the introductory text to 
read as follows:


309.470-1  Situations where reports are required.

    A report incorporating the information required by 309.470-2 shall 
be forwarded, in duplicate, by the Contracting Officer through 
acquisition channels to OAMP when:
* * * * *

[[Page 30528]]

    44. Add part 311, Describing Agency Needs, and section 311.003 to 
read as follows:

PART 311--DESCRIBING AGENCY NEEDS

    Authority: 5 U.S.C. 301; 40 U.S.C. 486(c).


311.003  Defining Electronic Information Technology (EIT) requirements.

    HHS officials who are defining agency needs for EIT products and 
services and performing market research to meet those needs can use the 
Buy Accessible Wizard (https://www.buyaccessible.gov) managed by the 
General Services Administration to document EIT requirements, identify 
the applicable Section 508 standards, and document the market research.
    45. Add part 312, Acquisition of Commercial Items; Subpart 312.1, 
Acquisition of Commercial Items--General; and section 312.101 to read 
as follows:

PART 312--ACQUISITION OF COMMERCIAL ITEMS

    Authority: 5 U.S.C. 301; 40 U.S.C. 486(c).

Subpart 312.1--Acquisition of Commercial Items--General


312.101  Policy.

    (a) It is HHS policy to maximize its buying power, reduce 
acquisition administrative costs, and develop long-term, mutually 
beneficial, open partnerships with best-in-class providers of products 
and services. Accordingly, HHS has implemented a Strategic Sourcing 
Program under which Indefinite-Delivery/Indefinite-Quantity contracts 
(IDIQs) and Blanket Purchase Agreements (BPAs), known as HHS-wide 
Acquisition Contracts (HWACs), are awarded to allow for savings for 
commercial items and services across HHS and make the acquisition 
process more efficient.
    (b) If consideration is being given to soliciting or acquiring a 
product or service from a source, other than HHS Contract Closeout 
IDIQs or Strategic Sourcing BPAs, when the category of the current 
requirement (e.g. Lab Supplies, Events Management) is encompassed in 
the portfolio of existing IDIQ or BPA categories a waiver request must 
be prepared and approved in advance of a purchase or processing of a 
requirement.
    (c) The instructions, including approval requirements, and waiver 
form, are available at https://intranet2.hhs.gov/hwac/waiver.html. The 
following links provide more detailed information regarding the 
supplies, equipment, and services in each of the HWACs: the HHS 
Acquisition Integration and Modernization Web site: https://
intranet.hhs.gov/hwac/ and the HHS Strategic Sourcing Web 
site: https://intranet.hhs.gov/ssc/.

PART 314--SEALED BIDDING

    46. Revise section 314.202-7 to read as follows:


314.202-7  Facsimile bids.

    (c) If the (HCA (not delegable) has determined that the contracting 
activity will allow use of facsimile bids and proposals, the HCA shall 
prescribe internal procedures, in accordance with the FAR, to ensure 
uniform processing and control.


314.213  [Removed]

    47. Remove section 314.213.
    48. Revise section 314.401-1 to read as follows:


314.404-1  Cancellation of invitations after opening.

    (c) The HCA or CCO (not delegable) shall make the determinations 
required to be made by the agency head in FAR 14.404-1.
    49. Revise section 314.407-3 to read as follows:


314.407-3  Other mistakes disclosed before award.

    (e) Authority has been delegated to the Departmental Protest 
Control Officer, Office of Acquisition Management and Policy, to make 
administrative determinations in connection with mistakes in bid 
alleged after opening and before award. This authority may not be 
redelegated.
    (f) Each proposed determination shall have the concurrence of the 
Chief, General Law Division, Office of General Counsel.
    (i) Doubtful cases shall not be submitted by the Contracting 
Officer directly to the Comptroller General, but, instead, shall be 
submitted to the Departmental Protest Control Officer.
    50. Amend section 314.407-4 by revising paragraph (d) to read as 
follows:


314.407-4  Mistakes after award.

* * * * *
    (d) Each proposed determination shall have the concurrence of the 
Chief, General Law Division, Office of General Counsel.

PART 315--CONTRACTING BY NEGOTIATION

    51. Add section 315.204-1 to read as follows:


315.204-1  Uniform contract format.

    (a) When preparing solicitations and resulting contracts, 
Contracting Officers/Contract Specialists are strongly encouraged to 
use as a guide the HHS Solicitation/Contract Structure Document found 
at https://www.knownet.hhs.gov/acquisition/policy.htm.


315.204-5  [Removed]

    52. Remove section 315.204-5.


315.209  [Amended]

    53. Amend section 315.209 by removing paragraph (g).
    54. Amend section 315.305 by revising paragraphs (a)(1), 
(a)(3)(i)(D), (a)(3)(ii)(B), the introductory text of (a)(3)(ii)(E)(1), 
(a)(3)(ii)(E)(4), (a)(3)(ii)(F)(2), and (a)(3)(ii)(F)(3) to read as 
follows:


315.305  Proposal evaluation.

    (a)(1) Cost or price evaluation. (i) The Contracting Officer shall 
evaluate business proposals in accordance with the requirements set 
forth in FAR 15.404. The extent of cost or price analysis in each case 
depends on the contract type, the amount of the proposal, the technical 
complexity, and related cost or price. The Project Officer shall be 
requested to analyze the following elements, if applicable, to 
determine if they are necessary and reasonable for efficient contract 
performance:
    (A) The number of labor hours proposed for the various labor 
categories and the mix in relation to the technical requirements;
    (B) Types, numbers and hours/days of proposed consultants;
    (C) The kinds and quantities of material, equipment, supplies, and 
services;
    (D) Kinds and quantities of information technology;
    (E) Logic of proposed subcontracting; and
    (F) Travel proposed, including number of trips, locations, purpose, 
and travelers.
    (ii) The Project Officer shall provide written comments, including 
the rationale for any exceptions to the elements. The Project Officer's 
comments shall be used for negotiations or to support award without 
discussions. The Contracting Officer should also request assistance of 
a cost/price analyst, when necessary. The Contracting Officer's 
negotiation memorandum must include the rationale used in determining 
that the price or cost is fair and reasonable.
* * * * *
    (3) Technical evaluation.

[[Page 30529]]

    (i) * * *
    (D) The technical evaluation plan shall be submitted to the 
Contracting Officer for review and approval before the solicitation is 
issued. The Contracting Officer shall make sure that the significant 
factors and subfactors relating to the evaluation are reflected in the 
evaluation criteria when conducting the review of the plan.
    (ii) * * *
    (B) Role of the Project Officer. (1) The Project Officer is the 
Contracting Officer's technical representative for the acquisition 
action. The Project Officer may be a voting member of the technical 
evaluation panel, and may also serve as the chairperson of the panel, 
unless prohibited by law or contracting activity procedures.
    (2) The Project Officer is responsible for recommending panel 
members who are knowledgeable in the technical aspects of the 
acquisition and capable of identifying strengths and weaknesses in the 
proposals received. Government employees serving as panel members must 
be selected in accordance with the requirements set forth in 307.170.
    (3) The Project Officer shall ensure that persons possessing 
expertise and experience in addressing issues relative to sex, race, 
national origin, and handicapped discrimination are included as panel 
members for acquisitions in which such issues are applicable.
    (4) The Project Officer shall submit the list of recommended panel 
members to an official within the project office in a position at least 
one level higher. This official will review the list and select the 
chairperson.
    (5) The Project Officer shall arrange for adequate and secure 
working space for the panel.
* * * * *
    (E) Continuity of evaluation process. (1) The technical evaluation 
panel shall evaluate all original proposals, make recommendations to 
the chairperson regarding strengths and weaknesses of proposals, and, 
if required by the Contracting Officer, assist the Contracting Officer 
during communications and discussions, and review supplemental, revised 
and/or final proposal revisions. To the extent possible, the same 
evaluators should be available throughout the entire evaluation and 
selection process to ensure continuity and consistency in the treatment 
of proposals. The following are examples of circumstances when it would 
not be necessary for the technical evaluation panel to evaluate revised 
proposals submitted during the acquisition:
* * * * *
    (4) When c