Signature Date: 8/16/2026
Deputy Assistant Secretary for Acquisitions and Senior Procurement Executive
Office of Acquisitions (OA)
Office of the Assistant Secretary for Financial Resources (ASFR)
Department of Health and Human Services (HHS)
1. EFFECTIVE DATE:
October 1, 2026
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This CD is effective until incorporated into the HHSAR, superseded, or otherwise rescinded.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 323 and applicable portions of 352 to align with the FAR Council’s RFO model deviation text for FAR parts 23 and 52.
This HHSAR CD supersedes and rescinds the part 323 deviation guidance in HHSAR CD 2025-02, entitled, “Updates to HHSAR Parts 309, 322, 323, 337, and 352,” issued on March 31, 2025.
4. APPLICABILITY:
The requirements in this CD apply 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- Remove duplicative or outdated language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 23 model deviation text and affected part 52 solicitation provisions and contract clauses on September 30, 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:
- Follow the RFO HHSAR part 323 deviation text, including the corresponding part 352 deviation text, instead of HHSAR parts 323 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.
- When issuing new solicitations, contracts, or orders:
- Do not include the following clause and provision:
- Clause 352.223-70, Safety and Health (DEC 2015)
- Provision 352.223-71, Instructions to Offerors—Sustainable Acquisition (DEC 2015)
- Include, if applicable, the following deviated clause using the deviated text shown in the Attachment listed in Section 11:
- Clause 352.223-70, Safety and Health (OCT 2026) (RFO DEVIATION)
- Do not include the following clause and provision:
- For open solicitations:
- Amend the solicitation to remove the clause and provision listed in B.1 above.
- Amend the solicitation to include, if applicable, the clause listed in B.2 above.
- For existing contracts and orders, at the next available opportunity:
- Modify the contract or order to remove the clause listed in B.1 above.
- Modify the contract or order to include, if applicable, the deviated clause listed in B.2 above.
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 323 – Sustainable Acquisition, Material Safety, and Pollution Prevention
- Part 323 – Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace
- Revised part title to reflect FAR part 23 title revision.
- Section 323.7000 - Scope of subpart.
- Removed. The existing codified text is unnecessary as the FAR adequately describes scope.
- Section 323.7001 – Policy.
- Removed. The existing codified text is unnecessary.
- Section 323.7002 – Actions required.
- Removed. Clause prescription moved to 323.304-70, Contract clause, aligned under RFO FAR subpart 23.3 – Material Safety, as noted below.
- Subpart 323.3 – Material Safety
- Added this subpart and section 323.304 with underlying subsection 323.304-70, Contract clause, to prescribe clause 352.223-70, Safety and Health. Moved prescription for this clause from the removed section 323.7002, Actions required. Aligns with similar subject matter FAR clauses prescribed at FAR 23.304, Contract clauses. Revised existing prescription for plain language.
- Subpart 323.71 – Sustainable Acquisition Requirements
- Removed in its entirety. This deletion is based on the revocation of E.O. 14057, Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability, December 8, 2021 by E.O. 14148 issued on January 20, 2026, Initial Rescissions of Harmful Executive Orders and Actions. This includes the removal of the following underlying sections in their entirety:
- Section 323.7100, Policy.
- Section 323.7101, Applicability.
- Section 323.7102, Procedures.
- Section 323.7103, Solicitation Provision, including the prescription for provision 352.223-71, Instruction to Offerors—Sustainable Acquisition.
- Part 323 – Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace
- HHSAR Part 352 – Solicitation Provisions and Contract Clauses
- Clause 352.223-70, Safety and Health
- Updated the prescription line citation to reflect the updated reference number.
- Revised the clause for plain language.
- Updated the clause to reflect proper citations, updated website and general address to obtain materials regarding health and safety operating procedures and practices.
- Provision 352.223-71, Instructions to Offerors—Sustainable Acquisition.
- Reserved clause 352.223-71 and removed the content in its entirety due to removal of subpart 323.71, Sustainable Acquisition Requirements, to comport with the revocation of E.O. 14057.
- Clause 352.223-70, Safety and Health
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 323 & Applicable Part 352 Deviation Text