Interim Changes to HHSAR 307.104 regarding the Annual Acquisition Plan (AAP)

307.104 General procedures.

1. Each contracting activity shall prepare an Annual Acquisition Plan (AAP) as far in advance of each fiscal year as possible, in accordance with the following:

   1. 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 AAP must also include any long lead-time acquisitions that will be awarded in future fiscal years (see paragraph (c) below).

   2. 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.

   3. The AAP shall be used for reporting purposes and workload scheduling and monitoring.

   4. The HCA/CCO and Small Business Specialist (SBS) shall review the AAP at least quarterly, with input from the cognizant program office, and modify it, as appropriate, during the fiscal year, with updated information, particularly regarding the specific acquisition method to be used.

   5. HHS requires use of a standard format for an AAP, available at: (specify website address – to be determined). For the data elements specified in the AAP format, the HCA/CCO may include information in addition to that required by the standard instructions accompanying the format.

2. As early as possible following completion of the AAP, the Contracting Officer (CO)/Contract Specialist (CS) shall initiate discussions with the assigned Project Officer (PO), in consultation with the OSDBU Small Business Specialist for each action that exceeds the simplified acquisition threshold. The discussions should include the following, as appropriate:

3. 1. Determining the intended acquisition strategy and contract/order type, including the use of options;

   2. Reviewing the statement of work/specification, if available, for adequacy and ensuring that a performance work statement is used for services, where practicable;

   3. Evaluating the potential for, and maximizing the use of, competitive procedures;

   4. Performing market research, identifying potential sources, and determining set-aside potential and small business subcontracting opportunities;

   5. Assessing the availability of commercial items;

   6. Determining required clearances/approvals and supporting documentation; and

   7. Preparing an acquisition milestone schedule.

Remainder of section remains unchanged; however paragraphs need to be renumbered as (c) and (d). Reference in 307.104(a)(1) above to subparagraph (c) reflects this change.