Effective Date: 04/23/2026
HHSAR Text Baseline is 48 CFR Chapter 3 as of December 19, 2025.
Changes to baseline shown as [bolded, bracketed additions] and strikethrough deletions.
For HHSAR part 302, the current codified text is shown and updated to align with the RFO Initiative and to include new terms associated with part 332.
For HHSAR part 352, only the provisions and clauses associated with part 332 are shown.
HHSAR PART 332 – CONTRACT FINANCING [(RFO DEVIATION)]
[332.006 Reduction or suspension of contract payments upon finding of fraud.
332.006-1 Interest.
332.006-3 Responsibilities.]
Subpart 332.4 – Advance Payments for Non-Commercial Items[Other Than Commercial Acquisitions]
332.402 General.
332.407 Interest.
Subpart 332.5 – Progress Payments Based on Cost[Reserved]332.501 General.332.501-2 Unusual progress payments.
Subpart 332.7 – Contract Funding[Reserved]332.702 Policy.332.703 Contract funding requirements.332.703-1 General.332.703-71 Incrementally funded cost-reimbursement contracts.332.703-72 Incremental Funding Table.332.706 Solicitation provision and contract clauses.332.706-2 Provision and clauses for limitation of cost or funds.
Subpart 332.70 – Electronic Submission and Processing of Payment Requests
332.7000 Scope of subpart.332.7001 Definitions.
332.7002[7001] Policy.
332.7003[7002] Contract clause.
[332.006 Reduction or suspension of contract payments upon finding of fraud.
332.006-1 General.
(b) The Senior Procurement Executive (SPE) is authorized to make the determination in FAR 32.006-1(b). This authority may not be redelegated.
332.006-3 Responsibilities.
(a) The Head of the Contracting Activity (HCA) or designee serves as the Remedy Coordination Official (RCO) within their Division.
(b) Government personnel must report suspected fraud related to advance, partial, or progress payments to their Division RCO and in accordance with their Division procedures.]
Subpart 332.4 – Advance Payments for Non-Commercial Items[Other Than Commercial Acquisitions]
332.402 General.
(e) The HCA (non-delegable) shall [is authorized to] make [the] determinations related to advanced payments and assure compliance with [in] FAR 32.402[(c)(1)(iii) and (e). This authority may not be redelegated].
332.407 Interest.
(d) The HCA (non-delegable) shall [is authorized to] make the determinations in FAR 32.407(d). [This authority may not be redelegated.]
Subpart 332.5 – Progress Payments Based on Cost[Reserved]
332.501 General.
332.501-2 Unusual progress payments.
(a)
(3) The HCA (non-delegable) shall approve unusual progress payments.
Subpart 332.7 – Contract Funding[Reserved]
332.702 Policy.
Departmental employees shall report any suspected violation of the Anti-Deficiency Act (31 U.S.C. 1341, 13 U.S.C. 1342, and 31 U.S.C. 1517) immediately to the Operating Division's Chief Financial Officer (CFO), who in turn will report the matter to the HHS Deputy CFO.
332.703 Contract funding requirements.
332.703-1 General.
(b) The following requirements govern all solicitations and contracts using incremental funding, as appropriate:
(1) The contracting officer shall consider the estimated total cost of the contract, including all planned increments of performance when determining the requirements that must be met before contract execution (e.g., Justification and Approvals, clearances, and approvals).
(2) The solicitation and resultant contract shall include a statement of work or performance work statement that describes the total project, covers all proposed increments of performance, and contains a schedule of planned increments of performance. No funding increment may exceed 1 year, and the services rendered during each increment of performance must provide a specific material benefit that can stand alone if the remaining effort is not funded. The resultant contract shall also include the corresponding amount of funds planned for obligation for each increment of performance.
(3) The contracting officer shall request that offerors respond to the solicitation with technical and cost proposals for the entire project, and shall require distinct technical and cost break-outs of the planned increments of performance.
(4) Proposals shall be evaluated and any discussions and negotiations shall be conducted based upon the total project, including all planned increments of performance.
332.703-71 Incrementally funded cost-reimbursement contracts.
Incremental funding may be used in cost-reimbursement contracts for severable services only when all of the following circumstances are present:
(a) Funding of increments after the initial increment of performance is provided from the appropriation account available for obligation at that time;
(b) The project represents a bona fide need of the fiscal year in which the contract is awarded and initially funded (i.e., the initial increment of performance) and is also a bona fide need of each subsequent fiscal year whose appropriation will be used; and
(c) The project's significance provides reasonable assurance that subsequent year appropriations will be made available to fund the project's continuation and completion.
332.703-72 Incremental Funding Table.
(a) The contracting officer shall insert substantially the following language in Section B: Supplies or Services and Prices or Costs, Table 1, in all cost-reimbursement contracts for severable services using incremental funding. The language requires the contracting officer to:
(1) Insert the initial funding obligated by the award;
(2) Identify the increment of performance covered by the funding provided; and
(3) Specify the start and end dates for each increment of performance, as required by the “Limitation of Funds” clause at FAR 52.232-22.
(b) Modification of the language is permitted to fit specific circumstances of the contract, including but not limited to language necessary to reflect the specific type of cost reimbursement contract awarded, but the language may not be omitted completely.
Table 1—B. ____Estimated Cost—Incrementally Funded Contract
(a) The total estimated cost to the Government for full performance of this contract, including all allowable direct and indirect costs, is $____ [insert full amount].
(b) The following represents the schedule* by which the Government expects to allot funds to this contract:
* To be inserted after negotiation
(c) Total funds currently obligated and available for payment under this contract are $____ [insert amount funded to date].
(d) The contracting officer may issue unilateral modifications to obligate additional funds to the contract and make related changes to paragraphs (b) and/or (c) above.
(e) Until this contract is fully funded, the requirements of the clause at FAR 52.232-22, Limitation of Funds, shall govern. Once the contract is fully funded, the requirements of the clause at FAR 52.232-20, Limitation of Cost, govern.
332.706 Solicitation provision and contract clauses.
332.706-2 Provision and clauses for limitation of cost or funds.
(b) In addition to the clause at FAR 52.232-22, Limitation of Funds, the contracting officer shall insert the provision at 352.232-70, Incremental Funding, in all solicitations when a cost-reimbursement contract for severable services using incremental funding is contemplated. The provision requires the contracting officer to insert a specific increment of performance that the initial funding is expected to cover.
Subpart 332.70 – Electronic Submission and Processing of Payment Requests
332.7000 Scope of subpart.
This subpart prescribes policies and procedures for electronic submission and processing of payment requests.
332.7001 Definitions.
Payment request, as used in this subpart, is defined as a bill, voucher, invoice, or request for contract financing payment with associated supporting documentation. The payment request must comply with the requirements identified in FAR 32.905(b), Content of invoices, and the applicable Payment clause included in this contract.
332.7002[7001] Policy.
(a) Contracts shall[must] require the electronic submission of payment requests [through the Department of Treasury Invoice Processing Platform or successor system as identified in the contract], except for –
(1) Purchases paid for with a Government-wide[Governmentwide] commercial purchase card; and [or]
(2) Classified contracts or purchases when electronic submission and processing of payment requests could compromise classified information or national security.
(b) Where a contract otherwise requires the electronic submission of invoices, the C[c]ontracting O[o]fficer may authorize alternate procedures only if the C[c]ontracting O[o]fficer makes a written determination that: [–]
(1) The Department of Health and Human Services (HHS) is unable to receive electronic payment requests or provide acceptance electronically; or
[(2) The contractor has demonstrated that electronic submission would be unduly burdensome; or]
(2)[(3)] The contractor is in the process of transitioning to electronic submission of payment requests, but needs additional time to complete such transition. Authorizations granted on the basis of this paragraph (b)(2)[(3)] must specify a date by which the contractor will transition to electronic submission.
(c) Except as provided in paragraphs (a) and (b) of this section, HHS officials shall process electronic payment submissions through the Department of the Treasury Invoice Processing Platform or successor system.
(d)[(c)] If the requirement for electronic submission of payment requests is waived under paragraph (a)(2) or (b) of this section, the contract or alternate payment authorization, as applicable, shall[must] specify the form and method of payment request submission.
332.7003[7002] Contract clause.
Except as provided in 332.7002(a), use[Insert] the clause at 352.232-71, Electronic Submission of Payment Requests, in all solicitations and contracts[, unless an exception at 332.7001(a) applies].
HHSAR PART 302 – DEFINITIONS OF WORDS AND TERMS [(RFO DEVIATION)]
Subpart 302.1 – Definitions
302.101 Definitions.
Subpart 302.1 – Definitions
302.101 Definitions.
(a) Agency head or head of the agency, unless otherwise stated, means the Secretary of Health and Human Services or specified designee.
(b) Contracting Officer's Representative (COR) is a Federal employee designated in writing by a contracting officer to act as the contracting officer's representative in monitoring and administering specified aspects of contractor performance after award of a contract or order. In accordance with local procedures, operating divisions (OPDIVs) or staff divisions (STAFFDIVs) may designate CORs for firm fixed-price contracts or orders. COR's responsibilities may include verifying that:
(1) The contractor's performance meets the standards set forth in the contract or order;
(2) The contractor meets the contract or order's technical requirements by the specified delivery date(s) or within the period of performance; and
(3) The contractor performs within cost ceiling stated in the contract or order. CORs must meet the training and certification requirements specified in PGI Part 301.604.
(c) Head of the Contracting Activity (HCA) is an official having overall responsibility for managing a contracting activity, i.e. the organization within an OPDIV or STAFFDIV or other HHS organization which has been delegated broad authority regarding the conduct of acquisition functions.
[Payment request means a bill, voucher, invoice, or request for contract financing payment, with associated supporting documentation, submitted by the contractor under a contract. The payment request must comply with the requirements in FAR 32.905(b) and the applicable payment clause included in the contract.]
HHSAR PART 352 – SOLICITATION PROVISIONS AND CONTRACT CLAUSES [(RFO DEVIATION)]
Subpart 352.2 – Texts of Provisions and Clauses
352.232-70 Incremental Funding.[[Reserved]]
352.232-71 Electronic s[S]ubmission of p[P]ayment r[R]equests[.]
Subpart 352.2 – Texts of Provisions and Clauses
352.232-70 Incremental Funding.[[Reserved]]
As prescribed in HHSAR 332.706-2(b), the Contracting Officer shall insert the provision provided below in all solicitations when a cost-reimbursement contract for severable services using incremental funding is contemplated.
INCREMENTAL FUNDING (DEC 2015)[(APR 2026) (RFO DEVIATION)]
The Government intends to negotiate and award a cost-reimbursement contract using incremental funding as described in the clause at FAR 52.232-22, “Limitation of Funds”. The initial obligation of funds under the contract is expected to cover [insert the appropriate increment of performance]. The Government intends to obligate additional funds up to and including the full estimated cost of the contract for the remaining periods of performance by unilateral contract modification. However, the Government is not required to reimburse the Contractor for costs incurred in excess of the total amount obligated, nor is the Contractor required to perform beyond the level supported by the total amount obligated.
(End of provision)
352.232-71 Electronic s[S]ubmission of p[P]ayment r[R]equests[.]
As prescribed in HHSAR 332.7003[7002], use[insert] the following clause:
ELECTRONIC SUBMISSION OF PAYMENT REQUESTS [(APR 2026) (RFO DEVIATION)]
(a) Definitions. As used in this clause –
Payment request means a bill, voucher, invoice, or request for contract financing payment with associated supporting documentation. The payment request must comply with the requirements identified in FAR 32.905(b), “Content of Invoices” and the applicable P[p]ayment clause included in this contract.
(b) [Submission instructions.] Except as provided in paragraph (c) of this clause, the Contractor shall[must] submit payment requests electronically using the Department of Treasury Invoice Processing Platform (IPP) or successor system. Information regarding IPP, including IPP Customer Support contact information, is available at www.ipp.gov or any successor site.
(c) [Alternate submission procedures.] The Contractor may submit payment requests using other than IPP only when the Contracting Officer authorizes alternate procedures in writing in accordance with HHS procedures.
(d) [Submission of alternate payment procedures authorization.] If alternate payment procedures are authorized, the Contractor shall[must] include a copy of the Contracting Officer's written authorization with each payment request.
(End of C[c]lause)