Interim HHSAR Coverage on HHS Acquisition Plan (AP)

**PART 307---ACQUISITION PLANNING**

1\. Revise the following sections to read as follows:

**307.104 General procedures.**

(a) Each contracting activity shall prepare an Annual Acquisition Plan
    (AAP) three to six months prior to the beginning of each fiscal
    year, but, in no event, later than the beginning of the applicable
    fiscal year. The AAP shall contain all anticipated acquisition
    actions for the coming fiscal year that exceed the simplified
    acquisition threshold, including new acquisitions and contract/order
    modifications. The AAP must include the aggregate dollars planned
    for simplified acquisitions by quarter. The Head of the Contracting
    Activity (HCA) or the Chief of the Contracting Office (CCO), as
    appropriate, shall prepare the AAP and obtain the information needed
    for its preparation from the responsible program planning/budget
    office and/or the program offices. The AAP shall be used for
    reporting purposes and workload scheduling and monitoring. The
    HCA/CCO and Small Business Specialist (SBS) shall carry out a review
    of the AAP at least quarterly and modify it, as appropriate, during
    the fiscal year.

(b) For each action in the AAP that exceeds the simplified acquisition
    threshold, the plan shall contain, at a minimum:

> \(i\) a descriptive title or brief description;
>
> \(ii\) identification of the type of action (e.g., new award,
> follow-on,
>
> exercise of an option);
>
> \(iii\) estimated award amount;
>
> \(iv\) planned award date;
>
> \(v\) small business considerations, including set-aside possibilities
> and
>
> subcontracting opportunities, if known;
>
> \(vi\) name, telephone number, and e-mail address of the Project
> Officer
>
> (PO); and

\(vii\) any other OPDIV-required information.

(c) Once the AAP is completed, the Contracting Officer (CO)/Contract
    Specialist (CS) shall initiate discussions as early as possible with
    the assigned PO, in consultation with the OSDBU Small Business
    Specialist, for each action covered by paragraph (b) above. The
    discussions should include the following, as appropriate:

> \(i\) determining the intended acquisition strategy and contract/order
> type,
>
> including the use of options;
>
> \(ii\) reviewing the statement of work/specification, if available,
> for
>
> adequacy and ensuring that a performance work statement is used for
>
> services, where practicable;
>
> \(iii\) evaluating the potential for, and maximizing the use of,
> competitive
>
> procedures;
>
> \(iv\) performing market research, identifying potential sources, and
>
> determining set-aside potential and small business subcontracting
>
> opportunities;

\(v\) assessing the availability of commercial items;

> \(vi\) determining required clearances/approvals and supporting
>
> documentation; and

\(vii\) preparing an acquisition milestone schedule.

(d) The HCA or designee (not lower than the CCO) shall establish
    standard lead-times for processing various types of acquisitions and
    applicable fiscal year deadlines for receipt of requirements to
    allow for well-planned and timely awards. The PO shall initiate
    planning, to the extent possible, for certain requirements, such as
    major information technology investments, large construction
    projects, and R & D projects that require peer review, at least 24
    months before planned award, given the clearance/approval
    requirements and lead-time required for such complex acquisitions.

> \(e\) The outcome of the discussions referenced in paragraph (c) above
> shall be an agreement concerning the acquisition approach and
> documentation required. For those actions that require development of
> a written acquisition plan (see 307.7101), for which the PO has
> ultimate responsibility, these discussions shall also result in an
> agreement concerning:
>
> \(i\) which elements of the acquisition plan the CO/CS will assist the
> PO in
>
> preparing; and
>
> \(ii\) the date (as specified in the milestone schedule) the PO will
> provide the
>
> acquisition plan to the CCO or designee.

**307.105 Contents of written acquisition plans.**

FAR 7.105 specifies the content requirements of a written acquisition
plan. Subpart 307.71 incorporates and supplements those requirements.

**Subpart 307.71 Acquisition Plan**

**307.7100 Scope of subpart.**

FAR 7.102 requires that acquisition planning be performed for all
acquisitions. This subpart establishes: (a) when a written acquisition
plan (hereafter referred to as an AP) is required; (b) its contents and
format; and (c) the need for review of the AP to certify that it is
accurate, complete, and in the proper format. This subpart also
establishes the documentation requirements for those acquisitions not
requiring an AP.

**307.7101 Policy.**

> \(a\) An AP is required for all acquisitions to be placed by an HHS
> contracting office expected to exceed \$500,000 (inclusive of options)
> with the following exceptions:

(i) letter contracts;

(ii) unsolicited proposals;

(iii) regulated utility services available from only one source;

(iv) proposals under the Small Business Innovative Research (SBIR) and

Small Business Technology Transfer (STTR) programs;

\(v\) acquisition of commercial items/services (see FAR 2.101),
including

orders placed under Federal Supply Schedule contracts meeting the

> definition of a commercial item/service, not exceeding \$5.5 million
>
> (\$11 million for acquisitions as described in FAR 13.500(e)\];

\(vi\) task orders or delivery orders of any dollar amount placed under:
(a) an

Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract, other than a

Government-wide Acquisition Contract (GWAC), or (b) a Blanket

Purchase Agreement (BPA), provided there is an approved acquisition

planning document for the original action, and there is no significant

deviation from that plan;

\(vii\) orders of any dollar amount placed under HHS-wide Acquisition

Contracts (HWACs);

\(viii\) contract/order modifications that (a) exercise options; (b)
provide

incremental funding; or (c) make changes authorized by the Changes

clause; and

\(ix\) assisted acquisitions (see 317.7002) processed pursuant to an

interagency agreement. However, the OPDIV must comply with the

requirements specified in Subpart 317.70, Interagency Acquisition.

> \(b\) In urgent or other justifiable cases, such as an emergency
> acquisition (see FAR Part 18), the HCA may waive in writing the
> requirement for completion of an AP. A waiver request shall not be
> approved due to the lack of advance planning. At a minimum, a waiver
> request must include the following:

\(i\) a description of the requirement, including estimated cost/price

> and period of performance (inclusive of options);
>
> \(ii\) the rationale for the waiver request; and

\(iii\) signatures of the PO and CO.

> The OPDIV shall provide the Assistant Secretary for Administration and
> Management, Office of Acquisition Management Policy (ASAM/OAMP), a
> copy of an approved waiver request within 5 business days after HCA
> approval.
>
> \(c\) For those acquisitions not requiring an AP, other than assisted
> acquisitions processed pursuant to an interagency agreement \[see
> 307.7101(a)(ix)\], the PO must provide a document (e.g., memorandum,
> requisition, or other form of transmittal) to the CCO or designee,
> requesting that the required action be completed. The request must
> include, as applicable: a statement of work/specification (including
> deliverables and reporting requirements); a certified funding
> document; source selection strategy and criteria; necessary
> clearances, approvals, and justifications (e.g., justification for
> non-use of an applicable HWAC or Justification for Other Than Full and
> Open Competition); a milestone schedule; and an independent Government
> cost estimate. In addition, OPDIVs should use the content requirements
> of the AP as a reference in determining what other information and
> documentation is necessary to support the intended acquisition.
> Alternatively, OPDIVs may prescribe use of an AP for acquisitions
> excepted under 307.7101(a)(i) through (a)(viii).

**307.7102 Content.**

In accordance with 307.105, the FAR, HHSAR, and other Federal
requirements that must be considered in developing an AP, as well as its
format, are stipulated in 307.7103. An AP must address each applicable
element. As indicated in the instructions, elements that are not
applicable to an individual acquisition shall be marked "N/A." The scope
and depth of an AP may vary depending on the nature, complexity, and
estimated cost of the proposed acquisition. As a result of new or
revised FAR requirements or other Federal directives:

> \(a\) the HCA or designee may make any needed interim changes to the
> AP;
>
> \(b\) the HCA or designee must notify ASAM/OAMP of the need for
>
> revision(s) to the AP; and
>
> \(c\) ASAM/AOMP will update the AP, which would supersede any interim
>
> HCA (or designee) changes made to the AP for future acquisitions.

**307.7103 Format.**

> \(a\) HHS has established a standard format for preparing an AP, which
> can be accessed at: (*[specify website address -- to be
> determined]{.underline}*).
>
> \(b\) OPDIVs may (i) use the prescribed format without modification;
> or (ii) use it as a guideline, as long as the format used by the OPDIV
> complies with the requirements specified in subparagraphs (c) and (d)
> below.

\(c\) An AP must consist of seven (7) parts with standard headings, as
follows:

> Part I Transmittal and Approval Form
>
> Part II Summary Sheet
>
> Part III Project Considerations and Information
>
> Part IV Clearance/Approval Checklist
>
> Part V Acquisition Milestone Schedule
>
> Part VI Independent Government Cost Estimate
>
> Part VII Attachments
>
> \(d\) Within each of the seven parts, there are required components
> that cannot
>
> be modified by an OPDIV and specific areas where changes may be made.
>
> The table in the *Requirements and Responsibilities* section of the AP
> cites
>
> the titles, paragraph/subparagraph headings, narrative, and other
>
> requirements that must appear in each part of an AP in the specified
> format,
>
> as well as permissible modifications.

**307.7104 Review and Certification.**

Before the PO transmits the AP to the CCO or designee (see 307.7105),
the head of the sponsoring program office (typically a Division Director
or equivalent), PO, Funds Certification Official, CO, and other
signatories in accordance with OPDIV policies, shall review the AP and
certify that it provides all required information in the prescribed
format and the following:

> \(a\) vague and ambiguous language has been eliminated;
>
> \(b\) a thorough technical review of the statement of
>
> work/specification has been completed;
>
> \(c\) the project is structured by phases or tasks, as appropriate;
>
> \(d\) methods are available to assess the contractor's performance;
>
> \(e\) the acquisition mechanism is appropriate (i.e., the principal
> purpose
>
> of the project is to acquire supplies or services for the direct
> benefit or use
>
> of the Government); and
>
> \(f\) the planned obligation of appropriated funds for the project
> satisfies a bona
>
> fide need of the requiring office arising in the fiscal year for which
> the
>
> appropriation was made.

**307.7105 Transmittal.**

The PO shall convey the signed AP to the CCO or designee by providing a
completed Part I -- Transmittal and Approval Form, with other parts of
the AP attached, no later than the date agreed to in the acquisition
milestone schedule, unless a different date has been established by
mutual agreement.

**307.7106 Acquisition milestones.**

The CO/CS shall retain the acquisition milestone schedule in the
contract file and update/revise it to track progress of the acquisition.
The milestone schedule signatories (see the *Requirements and
Responsibilities* section of the AP -- Part V of the table) must
mutually agree to any revisions to the milestone dates that will impact
meeting the scheduled award date. Failure to meet established milestones
should be reported to a higher level official in accordance with OPDIV
procedures.

**307.7107 Responsibilities**

The following table summarizes the responsibilities of the various
organizations and officials for acquisition planning:

+--------------------------------+------------------+-----------------+
| **Acquisition Planning**       | **Responsible    | **HHSAR         |
|                                | Organiz          | Reference**     |
|                                | ation/Official** |                 |
+================================+==================+=================+
| Make necessary interim changes | OPDIV HCA or     | 307.7102        |
| to the AP and notify ASAM/OAMP | designee         |                 |
| of changes needed              |                  |                 |
+--------------------------------+------------------+-----------------+
| Update the AP to reflect new   | ASAM/OAMP        | 307.7102        |
| or revised FAR and other       |                  |                 |
| Federal directives             |                  |                 |
+--------------------------------+------------------+-----------------+
| Prepare the AAP and update it  | OPDIV -- HCA/CCO | 307.104,        |
| quarterly, as appropriate      |                  | subparagraph    |
|                                |                  | (a)             |
+--------------------------------+------------------+-----------------+
| Establish standard acquisition | OPDIV -- HCA/CCO | 307.104,        |
| lead-times and deadlines for   |                  | subparagraph    |
| receipt of requirements for    |                  | (d)             |
| award in an applicable fiscal  |                  |                 |
| year                           |                  |                 |
+--------------------------------+------------------+-----------------+
| Identify and plan              | OPDIV - PO       | 307.104,        |
| requirements, particularly     |                  | subparagraph    |
| complex, long lead-time        |                  | (d)             |
| acquisitions, well in advance  |                  |                 |
| of the fiscal year in which    |                  |                 |
| they are to be awarded         |                  |                 |
+--------------------------------+------------------+-----------------+
| \(i\) Participate in           | OPDIV -- PO      | \(i\) 307.104,  |
| acquisition planning; (ii)     |                  | subparagraph    |
| prepare the AP; and (iii)      |                  | (c);            |
| provide the AP to the CO       |                  |                 |
|                                |                  | \(ii\) 307.104, |
|                                |                  | subparagraph    |
|                                |                  | (e); and (iii)  |
|                                |                  | 307.7105        |
+--------------------------------+------------------+-----------------+
| \(i\) Participate in           | OPDIV -- CO/CS   | \(i\) 307.104,  |
| acquisition planning; and (ii) |                  | subparagraph    |
| assist the PO in AP            |                  | (c);            |
| preparation                    |                  |                 |
|                                |                  | \(ii\) 307.104, |
|                                |                  | subparagraph    |
|                                |                  | (e)             |
+--------------------------------+------------------+-----------------+
| Waive requirement for          | OPDIV -- HCA     | 307.7101,       |
| development of an AP when      |                  | subparagraph    |
| justified                      |                  | (b)             |
+--------------------------------+------------------+-----------------+
| Review and certify that an AP  | OPDIV -- Head of | 307.7104        |
| is complete, accurate, and in  | the Sponsoring   |                 |
| the proper format              | Program Office,  |                 |
|                                | PO, Funds        |                 |
|                                | Certification    |                 |
|                                | Official, CO,    |                 |
|                                | and other        |                 |
|                                | signatories in   |                 |
|                                | accordance with  |                 |
|                                | OPDIV policies   |                 |
+--------------------------------+------------------+-----------------+
| Meet established acquisition   | OPDIV -- PO and  | 307.7106        |
| milestone dates                | CO/CS            |                 |
+--------------------------------+------------------+-----------------+

**307.7108 Statement of Work**

[NOTE]{.underline}: No changes were made to this subpart. However, this
section was moved here since it is more appropriately placed after the
narrative regarding the AP requirements.