HHSAR CD 2025-03

Signature Date: August 15, 2025

MEMORANDUM

1. EFFECTIVE DATE:

Immediately upon signature.

2. EXPIRATION DATE:

This CD is effective until incorporated into the HHSAR, superseded, or otherwise rescinded.

3. PURPOSE:

This HHSAR CD implements requirements to comply with EO 14275, Restoring Common Sense to Federal Procurement, and the Revolutionary FAR Overhaul (RFO) initiative. This CD revises HHSAR parts 301, 310, and 334 to align with the FAR Council’s RFO model deviation text for FAR parts 1, 10, and 34.

4. APPLICABILITY:

The requirements in this CD are applicable to all HHS Operating Divisions and Staff Divisions (OpDivs/StaffDivs) for applicable solicitations, contracts, and orders.

5. ROLES AND RESPONSIBILITIES:

Heads of the Contracting Activities (HCAs) must ensure this CD is disseminated to the acquisition workforce and ensure compliance with the requirements in the CD. Additionally, HCAs must review and update any applicable internal procedures and guidance to reflect the policies and guidance contained herein.

6. BACKGROUND:

On April 15, 2025, EO 14275, Restoring Common Sense to Federal Procurement, was signed. Section 2 of the EO establishes the policy that the FAR “should only contain provisions required by statute or essential to sound procurement, and any FAR provisions that do not advance these objectives should be removed.”

Under the RFO initiative, the FAR is being updated to:

• Remove language that is not required by statute
• Remove duplicative or outdated language
• Clarify or provide more plain language
• Revise language for the new FAR framework
• Retain language necessary for governmentwide acquisition standards.

On May 2, 2025, the FAR Council released their RFO model deviation text for FAR parts 1, 34, and affected FAR part 52 provisions and clauses. On May 22, 2025, the FAR Council released their RFO model deviation text for FAR part 10 and affected FAR part 52 provisions and clauses. These changes flow down to and directly impact the HHSAR and require immediate updates.

41 U.S.C. 1707(a)(1) requires that a procurement policy, regulation, procedure, or form, including an amendment or modification, may not take effect until 60 days after it is published for public comment in the Federal Register if it “(A) relates to the expenditure of appropriated funds; and (B)(i) has a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form; or (ii) has a significant cost or administrative impact on contractors or offerors.”

However, to ensure alignment with recently issued EOs, it is necessary to issue this CD in advance of a proposed rule to ensure HHS solicitations, contracts, and orders consistently reflect the policies and priorities of the Administration. HHS intends on developing a rule after the release of this CD.

7. POLICY/GUIDANCE:

Effective immediately, HHS contracting staff must comply with the following:

1. Follow the RFO HHSAR parts 301, 310, and 334 deviation text instead of HHSAR parts 301, 310, and 334 as codified at 48 CFR Chapter 3. The RFO HHSAR deviation texts are shown in the Attachments listed in Section 11.
2. When issuing new solicitations, contracts, or orders:
   • No additional action is needed as this time as there are no associated HHSAR part 352 provisions or clauses for HHSAR parts 301, 310, and 334.
3. For open solicitations:
   • No additional action is needed as this time as there are no associated HHSAR part 352 provisions or clauses for HHSAR parts 301, 310, and 334.
4. For existing contracts and orders:
   • No additional action is needed as this time as there are no associated HHSAR part 352 provisions or clauses for HHSAR parts 301, 310, and 334.

8. AUTHORITY:

This CD is issued under the authority of RFO FAR 1.304, Class deviations; RFO HHSAR 301.103, Authority; and RFO HHSAR 301.302, Policy, for the purpose of immediately implementing policy in the HHSAR via a CD to comply with requirements of certain EOs as identified in Section 9 below.

9. SUMMARY OF HHSAR CHANGES:

To implement or align with the requirements, the HHSAR is deviated, renumbered, and revised, as summarized below. All changes are reflected in the Attachments listed in Section 11.

• HHSAR Part 301—HHS Acquisition Regulation System
  • General – Updated HHSAR content and headings to align with RFO FAR Part 1
  • Subpart 301.1—Framework
    • Section 301.103: Clarified authority of SPE
    • Section 301.104: Added to provide readers clarity on structure and arrangement of the HHSAR
    • Section 301.105: Revised to remove list of OMB control numbers and instead point to the website that contains that information
  • Subpart 301.2—Agency Acquisition Regulations
    • Section 301.201: Added to introduce where to find internal HHS acquisition guidance
  • Subpart 301.3—Deviations from the FAR
    • Section 301.302: Edited for clarity
  • Subpart 301.4—Career Development, Contracting Authority, and Responsibilities
    • Section 301.403: Clarified delegation of acquisition authority
    • Section 301.405: Removed internal agency procedures
  • Subpart 301.5—Determinations and Findings
    • Section 301.506: Added this new section under new subpart to clarify where delegated signatory authority is located
  • HHSAR Part 310—Market Research
    • General – Removed unnecessary existing text that referred back to the FAR text only
  • HHSAR Part 334—Major System Acquisitions
    • General – Updated HHSAR content and headings to align with RFO FAR Part 34
    • Subpart 334.2—Earned Value Management System
      • Section 334.201: Deleted existing coverage under this section
      • Section 334.202: Edited for clarity and to remove coverage more appropriate for internal agency guidance

10. CONTACT:

Acquisition workforce members with questions regarding this CD should contact their cognizant OpDiv/StaffDiv Acquisition Office or Acquisition Policy Council (APC) Representative(s), as appropriate.

The current list of APC Representatives may be found on the Acquisition Councils and Workgroups Page of the HHS Acquisition Portal (HHSAP). (Note: The HHSAP is accessible only by HHS employees and contractors on the HHS network. It is not publicly accessible.)

All other questions should be directed to Acquisition_Policy@hhs.gov.

11. ATTACHMENT(S):

Attachment 1 – RFO HHSAR Part 301 Deviation Text

Attachment 2 – RFO HHSAR Part 310 Deviation Text

Attachment 3 – RFO HHSAR Part 334 Deviation Text