Acquisition Regulations, 76488-76515 [E6-21505]

Agencies

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

[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Rules and Regulations]
[Pages 76488-76515]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21505]



[[Page 76487]]

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Part III





Department of Health and Human Services





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48 CFR Parts 301, 302 et al.



Acquisition Regulations; Final Rule

Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / 
Rules and Regulations

[[Page 76488]]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of the Secretary

48 CFR Parts 301, 302, 303, 304, 305, 306, 307, 309, 311, 312, 314, 
315, 316, 319, 323, 324, 325, 330, 332, 333, 334, 335, 339, 342, 
352, and 370


Acquisition Regulations

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

ACTION: Final rule.

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SUMMARY: The Department of Health and Human Services is amending 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and to update or remove outdated text and references.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 
final rule 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: Effective Date: December 20, 2006.

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 is not making significant amendments to the existing 
HHSAR. The amendments to the HHSAR concern internal procedural matters 
which are administrative in nature, and will 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. Comments on the Notice of Proposed Rulemaking

    The Department published a Notice of Proposed Rulemaking (NPRM) on 
May 26, 2006 (70 FR 30520). The comment period closed on July 25, 2006. 
The Department received one comment from the public regarding section 
352.270-8. The commenter stated that the Office for Human Research 
Protections (OHRP), which was cited as an office within the National 
Institutes of Health (NIH), is now an office in the Office of Public 
Health and Science (OPHS). Section 352.270-8 has been corrected in this 
final rule to refer to the new office location.
    In addition, the Department's internal review of the NPRM has 
resulted in a number of editorial changes and corrections, none of 
which are substantive.

C. 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.

D. 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).

E. Administrative Procedure Act Exception

    This final rule imposes no new burdens on the public and merely 
updates, corrects, or clarifies existing regulations. Therefore, good 
cause exists under 5 U.S.C. 553(d) to dispense with the 30-day delay in 
the effective date requirement, and the Department of Health and Human 
Services is making the rule effective upon publication in the Federal 
Register.

List of Subjects in 48 CFR Chapter 3

    Government procurement.

    Dated: September 21, 2006.
Joe W. Ellis,
Assistant Secretary for Administration and Management.

    Editorial Note: This document was received in the Office of the 
Federal Register on December 13, 2006.

0
Under the authority of 5 U.S.C. 301; 40 U.S.C. 486(c), the Department 
of Health and Human Services amends 48 CFR Chapter 3 as set forth 
below.

CHAPTER 3--HEALTH AND HUMAN SERVICES

0
1. The authority citation for 48 CFR chapter 3, parts 301 through 370 
continues to read as follows:

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

PART 301--HHS ACQUISITION REGULATION SYSTEM

0
2. 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.
* * * * *

0
3. Revise section 301.270 to read as follows:


301.270  Executive Committee for Acquisition.

    (a) The Deputy Assistant Secretary for Acquisition Management and 
Policy has established the Executive Committee for Acquisition (ECA) to 
assist and facilitate the planning and development of departmental 
acquisition policies and procedures and to assist in responding to 
other agencies and organizations concerning policies and procedures 
impacting the Federal acquisition process.
    (b) The ECA consists of members and alternates from the Division of 
Acquisition Policy (DAP), Agency for Healthcare Research and Quality, 
Centers for Medicare & Medicaid Services, Program Support Center, 
Centers for Disease Control and Prevention, Food and Drug 
Administration, Health Resources and Services Administration, Indian 
Health Service, National Institutes of Health, and Substance Abuse and 
Mental Health Services Administration. The ECA is

[[Page 76489]]

chaired by the Director, Division of Acquisition Policy (DAP). All 
meetings will be held at the call of the Chair, and all activities will 
be carried out under the direction of the Chair.
    (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.

0
4. 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).

0
5. 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 Deputy 
Assistant Secretary for Acquisition Management and Policy (DASAMP).

0
6. 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 
Director, Division of Acquisition Policy. A deviation may be requested 
verbally in an exigency situation; however, the request must be 
confirmed in writing as soon as possible.
* * * * *

0
7. 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, a description of the 
requirement, the estimated or agreed upon price, the funds citation, an 
explanation of why the contracting office was not used and why the 
proposed contractor was selected, a list of other sources considered, 
and a statement as to whether the contractor has commenced work.
    (2) The Contracting Officer will review the submitted material and 
prepare it for ratification if it is determined 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.
* * * * *

0
8. Revise section 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 a Contracting Officer warrant. OPDIV procedures shall be 
followed in the appointment and termination of Contracting Officers/
Contract Specialists in offices that have Contracting Officers/Contract 
Specialists with dual signature warrants.
    (b) Standard Form (SF) 1402, ``Certificate of Appointment,'' shall 
be used to appoint personnel in the 1102 series as Contracting 
Officers. It shall also be used for personnel in any other series who 
will obligate the Government to the expenditure of funds in excess of 
the micro-purchase threshold. The SF 1402 shall indicate the 
Contracting Officer's warrant level and threshold and any other 
limitations. 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 as a 
prerequisite to being appointed as a Contracting Officer with authority 
to obligate funds in excess of the micro-purchase threshold (see 
301.603-72). 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 (GS-1102's) shall not sign contracts or 
modifications to contracts which 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 placed against an IDIQ may be issued 
by Contracting Officers up to their delegated authority provided that 
each order is separate and distinct.
    (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 shall 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

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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.

0
9. Revise section 301.603-2 to read as follows:


301.603-2  Selection of Contracting Officers.

    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 shall be submitted to the HCA 
through appropriate organizational channels for review. The HCA is 
responsible for appointing Contracting Officers in accordance with FAR 
1.603. This authority is not delegable. 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.

0
10. 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 and education/training requirements listed in 301.603-
72.
    (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 year in total, and shall not be granted unless the individual can 
meet the certification requirements within one year from the date of 
appointment. The HCA may extend an interim appointment by granting 
additional time to complete the requirements of a permanent 
appointment. If the certification requirements are not completed by the 
extended date, the appointment will automatically terminate.

0
11. 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.

0
12. 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.

0
13. Add sections 301.603-71 through 301.603-76 to subpart 301.6 to read 
as follows:

Subpart 301.6--Career Development, Contracting Authority, and 
Responsibilities

* * * * *
301.603-71 Waivers to warrant standards.
301.603-72 Training and certification requirements for Contracting 
Officers/Contract Specialists.
301.603-73 Earned value training requirement for Contracting 
Officers/Contract Specialists who administer an IT contract.
301.603-74 Training policy exception.
301.603-75 Training requirement for purchase cardholders, Approving 
Officials (AOs), and Agency/Organization Program Coordinators (A/
OPCs).
301.603-76 Requirement for certification retention and maintaining 
currency of acquisition knowledge and skills for Contracting 
Officers/Contract Specialists and purchasing agents.

Subpart 301.6--Career Development, Contracting Authority, and 
Responsibilities


301.603-71  Waivers to warrant standards.

    There may be an unusual circumstance that requires delegation of a 
warrant to an employee who does not meet the warrant standards in of 
the HHS Contracting Officer Warrant Program. Any requests for waivers 
requesting deviations from the requirements and policies of the HHS 
Contracting Officer Warrant Program shall be sent in writing to the SPE 
for approval. The SPE will either approve or disapprove in writing the 
request for a waiver to the warrant standards. The SPE may grant 
waivers on a case-by-case basis in unique situations only.


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

    (a) Federal Acquisition Certification in Contracting (FAC-C) 
certification is not mandatory for all GS-1102s; however, members of 
the workforce issued new Contracting Officer (CO) warrants on or after 
January 1, 2007, regardless of GS series, must be certified at an 
appropriate level to support their warrant obligations, pursuant to 
agency policy. New CO warrants are defined in OFPP Policy Letter 05-01 
as warrants issued to employees for the first time at a department or 
agency. FAC-C certification does not apply to:
    (1) Senior level officials responsible for delegating procurement 
authority;
    (2) Non-1102s whose warrants are generally used to procure 
emergency goods and services; or
    (3) Non-1102s whose warrants are so limited as to be outside the 
scope of this program, as determined by the Chief Acquisition Officer 
(CAO).
    (b) HHS requires a senior level FAC-C certification for any 
employee issued an unlimited Contracting Officer's warrant on or after 
January 1, 2007.
    (c) Achievement of the FAC-C is based on three requirements: 
education, training, and experience, and the requirements are 
cumulative, (i.e., a person must meet the requirements of each previous 
certification level).
    (d) FAC-C training requirements are as follows:
    (1) FAC-C Level I:
    (i) CON 100 Shaping Smart Business Arrangements.
    (ii) CON 110 Mission Support Planning.
    (iii) CON 111 Mission Strategy Execution.
    (iv) CON 112 Mission Performance Assessment.
    (v) CON 120 Mission Focused Contracting.
    (vi) 1 Elective.
    (2) FAC-C Level II:
    (i) CON 202 Intermediate Contracting.
    (ii) CON 204 Intermediate Contract Pricing.
    (iii) CON 210 Government Contract Law.
    (iv) 2 Electives.
    (3) FAC-C Level III:
    (i) CON 353 Advanced Business Solutions for Mission Support.
    (ii) 2 Electives.
    (e) Those conducting simplified acquisitions from $2,500 to 
$100,000 will need to be issued an HHS Simplified Acquisition 
Certificate. Required training is as follows:
    (1) HHS Simplified Acquisition Certificate A:
    (ii) Basic Simplified Acquisition Procedures/DAU's CON 237.

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    (iii) Advanced Simplified Acquisition Procedures or Appropriations 
Law.
    (2) HHS Simplified Acquisition Certificate B:
    (i) Basic Simplified Acquisition Procedures/DAU's CON 237.
    (ii) Advanced Simplified Acquisition Procedures or Appropriations 
Law.
    (iii) CON 100 (Shaping Smart Business Arrangements).
    (iv) CON 110 (Mission Support Planning).
    (f) For additional information, see https://www.knownet.hhs.gov/
acquisition/careerhandbookver.1.0.doc.


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, regardless of dollar 
threshold, 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 
listed in the following table:

------------------------------------------------------------------------
                                    Program
        Authority \a\             participant      Required training \b\
------------------------------------------------------------------------
Up to $2,500.................  Prospective/newly  Basic purchase card
                                appointed          course (HHS
                                purchase           University 1-day
                                cardholders and    course) or an
                                Approving          equivalent course
                                Officials.         that has been
                                                   approved by the HHS
                                                   Acquisition Training
                                                   Coordinator prior to
                                                   appointment. Training
                                                   will include green-
                                                   purchasing and
                                                   Section 508
                                                   requirements.
                               Purchase card      Refresher purchase
                                holders and        card training,
                                Approving          including green-
                                Officials.         purchasing training
                                                   and Section 508
                                                   training, every 2
                                                   years.
$2,501 to $25,000............  Prospective/newly   Basic
                                appointed          Purchase Card course.
                                purchase           Basic
                                cardholders and    Simplified
                                Approving          Acquisition
                                Officials.         Procedures/DAU's CON
                                                   237.
                                                   Advanced
                                                   Simplified
                                                   Acquisition
                                                   Procedures or
                                                   Appropriations Law.
                               Purchase card      Refresher purchase
                                holders and        card training,
                                Approving          including green-
                                Officials.         purchasing training
                                                   and Section 508
                                                   training, every 2
                                                   years.
$25,001 to $100,000..........  Prospective/newly   Basic
                                appointed          Purchase Card course.
                                purchase           Basic
                                cardholders and    Simplified
                                Approving          Acquisition
                                Officials.         Procedures/DAU's CON
                                                   237.
                                                   Advanced
                                                   Simplified
                                                   Acquisition
                                                   Procedures or
                                                   Appropriations Law.
                                                   CON 100
                                                   (Shaping Smart
                                                   Business
                                                   Arrangements).
                                                   CON 110
                                                   (Mission Support
                                                   Planning).
                               Purchase           Refresher purchase
                                cardholders and    card training,
                                Approving          including green-
                                Officials.         purchasing training
                                                   and Section 508
                                                   training, every 2
                                                   years.
Not applicable...............  Prospective/newly  Basic Purchase Card
                                appointed Agency/  course, Basic
                                Organization       Simplified
                                Program            Acquisition
                                Coordinators.      Procedures or DAU's
                                                   CON 237, Advanced
                                                   Simplified
                                                   Acquisition
                                                   Procedures or
                                                   Appropriations Law,
                                                   CON 100 (Shaping
                                                   Smart Business
                                                   Arrangements), and
                                                   CON 110 (Mission
                                                   Support Planning).
                               Agency/            Refresher purchase
                                Organization       card training,
                                Program            including green-
                                Coordinators.      purchasing training
                                                   and Section 508
                                                   training, every 2
                                                   years (attendance at
                                                   GSA's annual training
                                                   conference satisfies
                                                   refresher training).
------------------------------------------------------------------------
\a\ Cardholders and Approving Officials with authorized increases in DPA
  have up to 6 months to complete the training requirements for the new
  DPA.
\b\ CON 237, CON 100, and CON 110 are available at the DAU Web site at
  https://www.dau.mil/registrar/enroll.asp. CON 100 is also offered
  through HHS University (see Web site at: https://learning.hhs.gov).

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

    To maintain a FAC-C, GS-1102s, including all warranted Contracting 
Officers regardless of series, shall earn 80 continuous learning points 
(CLPs) every two years beginning January 1, 2008. For GS-1105s and GS-
1106s, a minimum of forty (40) hours (or continuous learning points) is 
required every two years after all mandatory training requirements have 
been met. Certification will expire if the CLPs are not earned every 
two years, and may result in a loss of warrant authority.

PART 302--DEFINITIONS OF WORDS AND TERMS

0
14. Revise section 302.101 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).
    Chief of the Contracting Office (CCO) is typically a mid-level 
management official, usually an office director, division director, or 
branch chief, who manages and monitors the daily contract operations of 
an OPDIV or major component of an OPDIV. The CCO is subordinate to the 
Head of Contracting

[[Page 76492]]

Activity (HCA), except where the HCA and CCO are the same individual.
    Head of the contracting activity (HCA)--
    (1) 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

    (2) 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.
    (3) 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. The Project Officer 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).

0
15. 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

0
16. 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.

0
17. Revise paragraph (a)(2)(i) of section 303.104-7 to read as follows:


303.104-7  Violations or possible violations of the Procurement 
Integrity Act.

    (a) * * *
    (2) * * *
    (i) Refer the matter immediately to the Deputy Assistant Secretary 
for Acquisition Management and Policy (DASAMP), Assistant Secretary for 
Administration and Management, Office of the Secretary, for review, 
which may consult with the Office of General Counsel (OGC) and the 
Office of Inspector General (OIG), as appropriate; and
* * * * *

0
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.

0
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.

0
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

0
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 contracts and

[[Page 76493]]

contract modifications awarded in the previous month.

0
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 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.
* * * * *

0
23. Revise paragraphs (b)(3), (b)(6), and (e) of section 304.7001 to 
read as follows:


304.7001  Numbering acquisitions.

* * * * *
    (b) * * *
    (3) The three digit numeric identification code assigned by the 
Deputy Assistant Secretary for Acquisition Management and Policy 
(DASAMP) to the contracting office within the servicing agency;
* * * * *
    (6) A one digit code describing the type of contract action:

A Commercial Item Acquisition
C New Definitive Contract
P Purchase Using Simplified Acquisition
I Indefinite Delivery Contract (IDIQ)
O Basic Ordering Agreement (BOA)
B Blanket Purchase Agreement (BPA)
F Facilities Contract
U Contracts placed with or through other Government departments, GSA 
contracts, or against mandatory source contracts such as the National 
Industries for the Blind (NIB), the National Industries for the 
Severely Handicapped (NISH), and the Federal Prison Industries (UNICOR)
L Lease Agreement
W Government-wide Acquisition Contract (GWAC)
E Letter Contract
G Federal Supply Schedule
M Micropurchase

    For example, the first contract for NIH, National Cancer Institute, 
for fiscal year 2005 may be numbered HHSN261200500001C.
* * * * *
    (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

0
24. Revise section 305.202 to read as follows:


305.202  Exceptions.

    (b) When a contracting office believes that it has a situation 
where advance notice is not appropriate or reasonable, it shall prepare 
a memorandum citing all pertinent facts and details and send it, 
through normal acquisition channels, to the Deputy Assistant Secretary 
for Acquisition Management and Policy (DASAMP) requesting relief from 
synopsizing. The DASAMP shall review the request and decide whether an 
exception to synopsizing is appropriate or reasonable. If it is, the 
DASAMP shall take the necessary coordinating actions required by FAR 
5.202(b). Whatever the decision is on the request, the DSAMP shall 
promptly notify the contracting office when a determination has been 
made.

0
25. Revise section 305.303 to read as follows:


305.303   Announcement of contract awards.

    (a) Public announcement. Awards over $3.5 million, 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.

0
26. Revise section 305.502 to read as follows:


305.502   Authority.

    The Contracting Officer may advertise or place notices in 
newspapers and periodicals to announce that proposals are being sought.

PART 306--COMPETITION REQUIREMENTS

0
27. 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.)
0
28. Revise section 306.303-1 to read as follows:


306.303-1  Requirements.

    (a)(1) The Program Office must provide a written justification 
whenever it requests that certain goods or services be obtained without 
full and open competition. The justification must explain why full and 
open competition is not feasible and 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

[[Page 76494]]

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.

0
29. Revise section 306.303-2 to read as follows:


306.303-2   Content.

    (a)(1) Each justification shall include the name of the program 
office; the name, address, and phone 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).

0
30. 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 
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.

0
31. Revise section 306.501 to read as follows:


306.501   Requirement.

    The Department's competition advocate is the Director, Strategic 
Acquisition Service, Program Support Center (PSC). The competition 
advocates for each of the Department's contracting activities are as 
follows:

AHRQ--Director, Office of Performance Accountability, Resources and 
Technology
CDC--Chief Information Officer
CMS--Chief Operating Officer
FDA--Chief, Office of Shared Services
HRSA--Associate Administrator, Office of Administration and Financial 
Management
IHS--Director, Office of Management Services
NIH--Senior Scientific Advisor for Extramural Research, Office of 
Extramural Research (R&D) and Senior Advisor to the Director (Other 
than R&D)
PSC--Director, Strategic Acquisition Service
SAMHSA--Executive Officer

PART 307--ACQUISITION PLANNING

0
32. 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).

[[Page 76495]]


0
33. 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 ``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. (*Peer and objective reviewers are excluded from 
these requirements). 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 ``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.) All courses are 
offered through HHS University.

0
34. 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 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.''
0
35. Add sections 307.170-3 through 307.170-9 to subpart 307.1 to read 
as follows:
Subpart 307.1--Acquisition Planning
307.170-3 Earned value training requirement for IT program/project 
managers and IT CORs/COTRs.
307.170-4 Required training in HHS' portfolio management tool.
307.170-5 Maintenance/refresher training requirement for program/
project managers and CORs/COTRs.
307.170-6 Warranting of Other Transaction Officers for Other 
Transactions.
307.170-7 Training Requirements for Other Transaction Officers.
307.170-8 Appointment of an Other Transaction Officer Technical 
Representative for an Other Transaction.
307.170-9 Training requirement for an Other Transaction Officer 
Technical Representative.

Subpart 307.1--Acquisition Planning

* * * * *


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), regardless of dollar threshold, 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  Reqired 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), regardless of dollar threshold, 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.

    Program/Project Managers and CORs/COTRs who monitor one or more 
contracts are required to take 40 CLPs each year.


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

    (a) Other Transaction (OT) Officers shall possess the 
qualifications necessary to ensure that OTs are in compliance with 
applicable laws and regulations. The ASAM/OAMP will have the sole 
authority to warrant OT Officers at HHS. To receive a warrant as an HHS 
OT Officer, the individual must be a Contracting Officer, preferably 
with an unlimited warrant, with a Federal Acquisition Certification in 
Contracting (FAC-C) Level III, or a Level III or IV certified Grants 
Officer within HHS. Nominations for appointment of OT Officers shall be 
submitted to the Head of Contracting Activity in writing through 
appropriate organizational channels for review. The nomination package 
shall include the following:
    (1) A completed Appendix A (``OT Officer's Warrant Application 
Form'') of HHS Other Transaction Authority Guidebook;
    (2) A recommendation from the employee's immediate supervisor 
providing justification for the appointment of an HHS OT Officer;
    (3) Current resume/OF 612/SF 171 and/or other documentation 
describing the employee's experience, education, and training relevant 
to the position for which warrant authority is being sought;
    (4) A copy of the employee's most recent performance appraisal;
    (5) Type of work to be performed under the warrant, i.e., executing 
OTs;
    (6) A copy of the certificate issued under the HHS Acquisition 
Certification Program indicating the employee's current certification 
level and a copy of previous warrant certificate, if applicable; or a 
copy of the certificate issued under the HHS Grants Certification 
Program, if applicable; and
    (7) Proof of successful completion of the ``Cooperative Agreements, 
CRADAs

[[Page 76496]]

& Other Transactions'' course taught by Federal Publications Seminars, 
or an equivalent course.
    (b) For additional information, see https://www.knownet.hhs.gov/
acquisition/hhs_epp_postings/HHSGuidebook1-OTAMarch2005.doc.


307.170-7  Training Requirements for Other Transaction Officers.

    OT Officers must successfully complete the ``Cooperative 
Agreements, CRADAs & Other Transactions'' course, or an equivalent 
course, prior to appointment as an OT Officer. Grants Officers who 
serve as OT Officers are required to have successfully completed the 
following courses: CON 110 (``Mission Support Planning''); CON 111 
(``Mission Strategy Execution,''); CON 112 (``Mission Performance,'') 
or CON 120 (``Mission Focused Contracting.''), or equivalent courses 
prior to being appointed as an OT Officer. The HHS OTA Board will 
determine course equivalency.


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

    The program office nominates the Other Transaction Officer 
Technical Representative (OTR). The OT Officer prepares an OTR 
delegation memorandum that describes the OTR's authority and assigns 
the OTR specific responsibilities, with limitations of authority, in 
writing. The OTR represents the OT Officer only to the extent delegated 
in the written appointment and does not have the authority to change 
the terms and conditions of the OT.


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

    (a) Program personnel selected to serve as an OTR or an alternate 
OTR assigned to an OT, and at least fifty percent of the technical 
evaluators that review the initial and any subsequent proposals or 
revisions thereof, shall successfully complete the Department's ``Basic 
Project Officer'' course, or an equivalent course prior to being 
appointed. Determination of course equivalency shall be made by the HHS 
OTA Board.
    (b) In addition to the Department's required ``Basic Project 
Officer'' course, the OTR or alternate OTR assigned to an OT, and at 
least fifty percent of the technical evaluators that review the initial 
and any subsequent proposals or revisions thereof, shall successfully 
complete the ``Cooperative Agreements, CRADAs & Other Transactions'' 
course, or an equivalent course, prior to being appointed and prior to 
assuming job duties associated with the OT.
    (c) Refresher training in the policies and procedures of awarding 
cooperative agreements, CRADAs and OTs is required every three years.


307.302, 307.303, 307.304, and 307.307  [Removed]

0
36. Remove subpart 307.3 (sections 307.302, 307.303, 307.304, and 
307.307).

0
37. Revise paragraph (b)(2) of section 307.7001 to read as follows:


307.7001  Distinction between acquisition and assistance.

* * * * *
    (b) * * *
    (2) The Department determines in a specific instance that the use 
of a type of contract is appropriate. That is, it is determined in a 
certain situation that specific needs can be satisfied best by using 
the acquisition process. However, this authority does not permit 
circumventing the criteria for use of acquisition or assistance 
instruments. Use of this authority is restricted to extraordinary 
circumstances and only with the prior approval of the Deputy Assistant 
Secretary for Acquisition Management and Policy (DASAMP).
* * * * *

0
38. 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.

0
39. 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. 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. The Contracting Officer/Contract Specialist 
shall provide a comprehensive checklist of these and any OPDIV special 
approvals, clearances, and requirements to the program office. 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.
* * * * *

0
40. 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.
* * * * *
    (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 genera