HHSAR CD 2026-05, Attachment 1: RFO HHSAR Part 316 & Applicable Part 352 Deviation Text

Effective Date: 03/29/2026

HHSAR Text Baseline is 48 CFR Chapter 3 as of March 6, 2025.

Changes to baseline shown as [bolded, bracketed additions] and strikethrough deletions.

For HHSAR part 352, only the provisions and clauses associated with part 316 are shown.

HHSAR PART 316 – TYPES OF CONTRACTS [(RFO DEVIATION)]

Subpart 316.3 – Cost-Reimbursement Contracts 
316.307[316.305]                Contract clauses.

Subpart 316.5 – Indefinite-Delivery Contracts 
316.505                 Ordering. 
[316.507                Additional ordering procedures for multiple-award contracts. 
316.507-2             Fair opportunity procedures.]

Subpart 316.6 – Time-and-Materials, Labor-Hour, and Letter Contracts 
316.603                 Letter contracts. 
316.603-3             Limitations.

Subpart 316.3 – Cost-Reimbursement Contracts

316.307[316.305] Contract clauses.

• (a)
  • (1) If a contract for research and development is with a hospital (profit or nonprofit), the contracting officer shall modify the “Allowable Cost and Payment” clause at FAR 52.216-7 by deleting from paragraph (a) the words “Federal Acquisition Regulation (FAR) subpart 31.2” and substituting “45 CFR part 75.”
  • (2) The contracting officer shall also insert[Insert] the clause at 352.216-70, Additional Cost Principles[Allowable Cost and Payment] for Hospitals (Profit or Non-Profit), in solicitations and contracts[, when a cost-reimbursement contract] with a hospital (profit or non-profit) when a cost-reimbursement contract is contemplated [and when the clause at FAR 52.216-7 is inserted in the contract].

Subpart 316.5 – Indefinite-Delivery Contracts

316.505 Ordering.

• (b)
  • (8) The Department of Health and Human Services (HHS) Competition Advocate is the task-order and delivery-order ombudsman for the department. Ombudsmen for each of the HHS contracting activities shall be designated in writing by the head of the contracting activity. See part 306.

[316.507 Additional ordering procedures for multiple-award contracts.

316.507-2 Fair opportunity procedures.

• (b) The list of HHS Task-order and Delivery-order ombudsmen is at https://www.hhs.gov/grants/grants-business-contacts/competition-advocates/index.html.]

Subpart 316.6—Time-and-Materials, Labor-Hour, and Letter Contracts

316.603 Letter contracts.

316.603-3 Limitations.

An official one level above the contracting officer shall make the written determination, to be included in the contract file, that no other contract type is suitable and to approve all letter contract modifications. No letter contract or modification can exceed the limits prescribed in FAR 16.603-2(c).

HHSAR PART 352 – SOLICITATION PROVISIONS AND CONTRACT CLAUSES [(RFO DEVIATION)]

Subpart 352.2 – Texts of Provisions and Clauses 
352.216-70           Additional Cost Principles[Allowable Cost and Payment] for Hospitals (Profit and[or] Non-Profit).

Subpart 352.2 – Texts of Provisions and Clauses

352.216-70 Additional Cost Principles[Allowable Cost and Payment] for Hospitals (Profit and[or] Non-Profit).

As prescribed in HHSAR 316.307(a)(2)[316.305(a)(1)], the Contracting Officer shall insert the following clause:

ADDITIONAL COST PRINCIPLES[ALLOWABLE COST AND PAYMENT] FOR HOSPITALS (PROFIT OR NON-PROFIT) (DEC 2015)[(MAR 2026) (RFO DEVIATION)]

[Payments under this contract are allowable if the Contracting Officer determines the costs are allowable in accordance with FAR 52.216-7, FAR subpart 31.2, and 2 CFR part 300 (including Appendix IX).]

• (a) Bid and proposal (B&P) costs.
  • (1) B&P costs are the immediate costs of preparing bids, proposals, and applications for potential Federal and non-Federal contracts, grants, and agreements, including the development of scientific, cost, and other data needed to support the bids, proposals, and applications.
  • (2) B&P costs of the current accounting period are allowable as indirect costs.
  • (3) B&P costs of past accounting periods are unallowable in the current period. However, if the organization's established practice is to treat these costs by some other method, they may be accepted if they are found to be reasonable and equitable.
  • (4) B&P costs do not include independent research and development (IR&D) costs covered by the following paragraph, or pre-award costs covered by paragraph 36 of Attachment B to OMB Circular A-122.
• (b) IR&D costs.
  • (1) IR&D is research and development conducted by an organization which is not sponsored by Federal or non-Federal contracts, grants, or other agreements.
  • (2) IR&D shall be allocated its proportionate share of indirect costs on the same basis as the allocation of indirect costs to sponsored research and development.
  • (3) The cost of IR&D, including its proportionate share of indirect costs, is unallowable.

(End of clause)