HHSAR Class Deviation 2026-14

Signature Date: June 30, 2026

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This CD is effective until incorporated into the HHSAR, superseded, or otherwise rescinded.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 part 327 and applicable portions of 352 to align with the FAR Council’s RFO model deviation text for FAR parts 27 and 52.

4. APPLICABILITY:

The requirements in this CD are applicable to all HHS Divisions 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• Remove duplicative or outdated language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.

The FAR Council released their RFO FAR part 27 model deviation text and affected part 52 solicitation provisions and contract clauses on September 11, 2025. 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:

HHS contracting staff must comply with the following:

1. Follow the RFO HHSAR part 327 deviation text, including the corresponding part 352 deviation text, instead of HHSAR parts 327 and corresponding 352 as codified at 48 CFR Chapter 3. The RFO HHSAR deviation text is shown in the Attachment listed in Section 11.
   • Clean (without markup) versions of RFO HHSAR deviation texts are available at https://www.hhs.gov/grants-contracts/contracts/contract-policies-regulations/hhsar-overhaul/index.html.
2. When issuing new solicitations, contracts, or orders:
   1. Do not include the following clauses:
      • 352.227-11 Patent Rights – Exceptional Circumstances (Sept 2014)
      • 352.227-14 Rights in Data – Exceptional Circumstances (Sept 2014)
      • 352.227-70 Publications and Publicity (Dec 2015)
   2. Include, if applicable, the following deviated clauses using the deviated text shown in the Attachment listed in Section 11:
      • 352.227-70 Patent Rights – Supplement – Exceptional Circumstances (JUN 2026) (RFO DEVIATION)
      • 352.227-71 Rights in Data – Supplement – Exceptional Circumstances (JUN 2026) (RFO DEVIATION)
      • 352.227-72 Publications and Publicity (JUN 2026) (RFO DEVIATION)
3. For open solicitations:
   1. Amend the solicitation to remove the clauses listed in B.1 above.
   2. Amend the solicitation to include, if applicable, the clauses listed in B.2 above.
4. For existing contracts and orders:
   1. The contracting officer has discretion to modify the contract or order to remove the clauses listed in B.1 and include, if applicable, the deviated clauses listed in B.2.

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.

9. SUMMARY OF HHSAR CHANGES:

To implement or align with the requirements of the RFO, the HHSAR is deviated, renumbered, revised, and updated with plain language edits. Notable changes are summarized below, and all changes are reflected in the Attachment listed in Section 11.

• HHSAR Part 327 – Patents, Data, and Copyrights
  • Subpart 327.3 – Patent Rights Under Government Contracts
    • Retitled section 327.303 from “Solicitation provision and contract clauses” to “Contract clauses” and added a paragraph (b) designation to the existing text to align with the RFO title and structure.
    • Revised the existing prescription text for plain language and to reflect the new clause at 352.227-70, Patent Rights – Supplement – Exceptional Circumstances, which can now be inserted on a “substantially the same” basis.
  • Subpart 327.4 – Rights in Data and Copyrights
    • Removed subsection 327.404-70 and relocated the clause prescription text to new paragraph (b) under subsection 327.409-70.
    • Retitled section 327.409 from “Solicitation provision and contract clause” to “Solicitation provisions and contract clauses” and added a new subsection 327.409-70 to contain the prescription text for two HHSAR clauses.
    • Added a paragraph (a) designation to the existing prescription text which was revised for plain language and to reflect the new clause at 352.227-71, Rights in Data – Supplement – Exceptional Circumstances, which can now be inserted on a “substantially the same” basis.
    • Added paragraph (b) to include the prescription text for the renumbered clause at 352.227-72, Publications and Publicity.
• HHSAR Part 352 – Solicitation Provisions and Contract Clauses
  • 352.227-11 Patent Rights – Exceptional Circumstances
    • Reserved clause 352.227-11 and moved its content to new clause 352.227-70.
  • NEW Clause: 352.227-70, Rights in Data – Supplement – Exceptional Circumstances
    • This new clause was added to address supplemental patent rights that apply when a Determination of Exceptional Circumstances (DEC) is executed.
    • This new clause retains the substantive requirements and language of the now reserved clause 352.227-11, but has been revised to improve clarity and readability.
    • Revisions include plain‑language edits, removal of definitions already defined in the FAR, restructuring where appropriate, and updates to FAR citations, references, and internal cross‑references.
  • 352.227-14 Rights in Data – Exceptional Circumstances
    • Reserved clause 352.227-14 and removed its content in its entirety because the existing codified text is largely duplicative of FAR clause 52.227-14, Rights in Data-General. The HHS-specific requirements are now captured in new clause 352.227-71.
  • NEW Clause: 352.227-71, Rights in Data – Supplement – Exceptional Circumstances
    • This new clause was added to address supplemental rights in data that apply when a DEC is executed.
    • This new clause includes the HHS‑specific requirements that previously appeared in paragraphs (d)(4), (d)(5), and (d)(6) of the now‑reserved 352.227‑14.
    • Revisions include plain‑language edits, restructuring where appropriate, and updates to FAR citations, references, and internal cross‑references.
    • Additional updates include an applicability section explaining how this new clause operates in conjunction with FAR 52.227-14, as well as the addition of a subcontractor flowdown requirement.
  • 352.227-70 Publications and Publicity
    • Renumbered the clause as 352.227-72.
    • Updated the prescription line citation to reflect the updated reference number.
    • Revised the clause for plain language and reorganized the text under paragraph (a) into subparagraphs to improve clarity and readability.

10. CONTACT:

Acquisition workforce members with questions regarding this CD should contact their cognizant Division 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 327 & Applicable Part 352 Deviation Text