HHSAR Class Deviation 2026-25

Signature Date: 9/16/2026

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This CD is effective until incorporated into the HHSAR, superseded, or otherwise rescinded.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 326 and applicable portions of 352 to align with the FAR Council’s RFO model deviation text for FAR parts 26 and 52.

This HHSAR CD supersedes and rescinds the deviation guidance related to the clause at 352.226-1, Indian Preference, 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• Remove duplicative or outdated language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 26 model deviation text and affected part 52 solicitation provisions and contract clauses on August 8, 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 326 deviation text, including the corresponding part 352 deviation text, instead of HHSAR parts 326 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 clause(s) and provision(s):
      Note: The codified HHSAR part 326 contains seven associated part 352 clauses and provisions. In addition, this HHSAR CD supersedes and rescinds any previously deviated clauses or provisions associated with HHSAR part 326. Therefore, both the codified clauses and provisions, as well as the deviated clause listed below, should no longer be used. The list below reflects both the codified and deviated clauses and provisions that are now obsolete.
      • Clause 352.226-1, Indian Preference (DEC 2015)
      • Clause 352.226-1, Indian Preference (DEC 2015) (DEVIATION) (MAR 2025) (Deviated version from the March 31, 2025 HHSAR CD 2025-02 and now superseded and rescinded by this class deviation.)
      • Clause 352.226-2, Indian Preference Program (DEC 2015)
      • Clause 352.226-3, Native American Graves Protection and Repatriation Act (DEC 2015)
      • Provision 352.226-4, Notice of Indian Small Business Economic Enterprise Set-Aside
      • Provision 352.226-5, Notice of Indian Economic Enterprise Set-Aside
      • Clause 352.226-6, Indian Economic Enterprise Subcontracting Limitations
      • Provision 352.226-7, Indian Economic Enterprise Representation
   2. Include, if applicable, the following deviated clause(s) and provision(s) using the deviated text shown in the Attachment listed in Section 11:
      • Clause 352.226-70, Indian Preference (OCT 2026) (RFO DEVIATION)
      • Clause 352.226-71, Indian Preference Program (OCT 2026) (RFO DEVIATION)
      • Clause 352.226-72, Native American Graves Protection and Repatriation Act (OCT 2026) (RFO DEVIATION)
      • Provision 352.226-73, Notice of Indian Small Business Economic Enterprise Set-Aside (OCT 2026) (RFO DEVIATION)
      • Clause 352.226-74, Notice of Indian Economic Enterprise Set-Aside (OCT 2026) (RFO DEVIATION)
      • Clause 352.226-75, Indian Economic Enterprise Subcontracting Limitations (OCT 2026) (RFO DEVIATION)
      • Provision 352.226-76, Indian Economic Enterprise Representation (OCT 2026) (RFO DEVIATION)
3. For open solicitations:
   1. Amend the solicitation to remove the clause(s) and provision(s) listed in B.1 above.
   2. Amend the solicitation to include, if applicable, the clause(s) and provision(s) listed in B.2 above.
4. For existing contracts and orders:
   1. No action needed. Contracting officers can continue to enforce the clauses and provisions listed in B.1, including the deviated clause associated with the now superseded and rescinded HHSAR CD 2025-02, if the clauses and provisions were included in contracts or orders awarded prior to October 1, 2026.

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 326 – Other Socioeconomic Programs
  • Updated Part 326 to make limited revisions to fully align with RFO FAR streamlining principles including aligning with RFO numbering; incorporate plain language for clarity; to remove internal procedures more appropriate to internal agency guidance; and to update citations and definitions to current usage and terminology.
  • Subpart 326.5 – Indian Preference in Employment, Training, and Subcontracting Opportunities – now Subpart 326.70
    • Renumbered subpart 326.5 to a unique HHSAR subpart, to now read subpart 326.70. This aligns with agency-specific requirements and FAR drafting numbering and style.
    • Renumbered section 326.501 as section 326.7001; restructured its content for clarity and brevity; and included statutory references.
    • Renumbered section 326.502 as section 326.7002; added new terms and removed unnecessary terms; rearranged terms order for clarity; and includes plain language edits.
    • Removed section 326.503 as more appropriate to internal agency procedures.
    • Renumbered section 326.504 as section 326.7003; updated clause number reference; removed internal agency guidance; and includes plain language edits.
    • Renumbered and retitled section 326.505 as section 326.7004, Contract clauses; updated statutory references, revised clause numbering, revised acquisition dollar amount threshold for non-construction work, and included plain language edits.
  • Subpart 326.6 – Acquisitions Under the Buy Indian Act – now Subpart 326.71
    • Renumbered subpart 326.6 as subpart 326.71 to align with agency-specific regulation numbering format.
    • Renumbered section 326.600 as section 326.7100.
    • Renumbered 326.600-1 to 326.7100-1 and revised title to “Scope of subpart.”
    • Renumbered 326.600-2 to 326.7100-2, removed paragraph (b), and renumbered paragraph (c) to paragraph (b).
    • Renumbered section 326.601 as 326.7101; added new terms and removed unnecessary terms; expanded the definition of Indian Economic Enterprise (IEE) to align with statutory requirements for clarity; updated FAR reference to align with RFO FAR revision; rearranged terms order for clarity; and includes plain language edits.
    • Renumbered section 326.602 to section 326.7102.
    • Removed 326.602-1 number and title only. Text updated and retained under section 326.7102.
    • Renumbered 326.602-2 as 326.7102-1 and includes plain language edits.
    • Renumbered section 326.603 as section 326.7103.
    • Renumbered 326.603-1 as 326.7103-1; added paragraph (b) regarding acquisitions set-aside for Indian Small Business Economic Enterprises or Indian Economic Enterprises; deleted existing paragraphs (e) – (g) as shown as more appropriate to internal agency guidance; redesignated remaining paragraphs as shown and includes plain language edits.
    • Renumbered 326.603-2 as 326.7103-2 and removed paragraph (b) as internal agency guidance.
    • Renumbered 326.603-3 as 326.7103-3 and retitled to “Buy Indian Act deviations.” Removed existing paragraphs (a) – (f) and Table 1 to paragraph (c) text as more appropriate as internal agency guidance. Added policy on when a Buy Indian Act deviation determination is not required for certain acquisitions.
    • Renumbered section 326.604 as section 326.7104, Procedures.
    • Removed 326.604-1, General, and its underlying content as unnecessary.
    • Renumbered 326.604-2 as 326.7104-1; revised various content to align with RFO FAR styling and formatting; moved solicitation provision and contract clause prescriptions from paragraph (e) to new section 326.7105, Solicitation provisions and contract clauses; and includes plain language edits.
    • Renumbered 326.604-3 as 326.7104-2 and includes plain language edits.
    • Removed section 326.605 and underlying 326.605-1; moved contract clause prescriptions to new section 326.7105, Solicitation provisions and contract clauses.
    • Renumbered 326.605-2 as 326.7104-3; and includes plain language edits.
    • Added new section 326.7105, Solicitation provisions and contract clauses, to include the solicitation provision and contract clause prescriptions previously located in 326.604-2(e) and 326.605-1; updated part 326 references where necessary; and includes plain language edits.
    • Renumbered section 326.606 as section 326.7106 and includes minor section title edit.
    • Renumbered 326.606-1 as 326.7106-1; updated part 326 and other references where necessary; streamlines text and includes plain language edits.
    • Renumbered 326.606-2 as 326.7106-2 and removed internal agency guidance in paragraphs (a) and (b). Existing paragraph (b) retained as an undesignated paragraph.
    • Renumbered 326.606-3 as 326.7106-3; updated part 326 references where necessary; removed internal agency guidance; and includes plain language edits.
    • Renumbered section 326.607 as 326.7107 and includes plain language edits.
    • Renumbered 326.607-1 as 326.7107-1; updated part 326 references where necessary; and includes plain language edits.
    • Renumbered 326.607-2 as 326.7107-2; updated part 326 references where necessary; and includes plain language edits.
    • Renumbered 326.607-3 as 326.7107-3; revised title with minor edits and includes content plain language edits.
    • Renumbered 326.607-4 as 326.7107-4; revised title with minor edits and includes content plain language edits.
  • Subpart 326.7 – Acquisitions Requiring the Native American Graves Protection and Repatriation Act – now Subpart 326.72
    • Renumbered subpart 326.7 as subpart 326.72.
    • Renumbered section 326.700 as section 326.7200 and includes plain language edits.
    • Renumbered section 326.701 as section 326.7201 and retitled as, “Contract clause”; renumbered clause number; and includes plain language edits.
• HHSAR Part 352 – Solicitation Provisions and Contract Clauses
  • General updates to clauses and provisions include limited revisions to fully align with RFO FAR streamlining principles including aligning with RFO numbering; incorporate plain language for clarity; to remove internal procedures more appropriate to internal agency guidance; and to update citations and definitions to current usage and terminology. Clauses/provisions renumbered to incorporate usage of supplementary -70 through -76 designations required by FAR drafting principles.
  • Clause 352.226-1, Indian Preference. Renumbered clause 352.226-1 as 352.226-70; updated prescription reference; updated definitions; removed paragraph referencing now obsolete Equal Opportunity clause; updated paragraph numbering; and includes plain language edits.
  • Clause 352.226-2, Indian Preference Program. Renumbered clause 352.226-2 as 352.226-71; updated prescription and statutory references where necessary; updated definitions; and includes plain language edits.
  • Clause 352.226-3, Native American Graves Protection and Repatriation Act. Renumbered clause 352.226-3 as 352.226-72; updated prescription reference; and includes plain language edits.
  • Provision 352.226-4, Notice of Indian Small Business Economic Enterprise Set-Aside. Renumbered provision 352.226-4 as 352.226-73; updated prescription and HHSAR references where necessary; and includes plain language edits.
  • Clause 352.226-5, Notice of Indian Economic Enterprise Set-Aside. Renumbered clause 352.226-5 as 352.226-74; updated prescription and statutory references where necessary; updated definitions; expanded the eligibility requirements to include System for Award Management (SAM.gov) requirements when a contractor is unable to regain eligibility, including notification requirements; and includes plain language edits.
  • Clause 352.226-6, Indian Economic Enterprise Subcontracting Limitations. Renumbered clause 352.226-6 as 352.226-75; updated prescription reference and definitions; and includes plain language edits.
  • Provision 352.226-7, Indian Economic Enterprise Representation. Renumbered provision 352.226-7 as 352.226-76; updated prescription and part 326 references where necessary; and includes plain language edits.

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 326 & Applicable Part 352 Deviation Text