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April 9, 1998

TO: NITAAC Customers and Prime Contractors

FROM: NITAAC Director

SUBJECT: NITAAC Clarification and Approved Statutory Authority for Providing Information Technology Acquisition Services

The purpose of this letter is to provide you with pertinent information concerning the National Institutes of Health Information Technology Acquisition and Assessment Center’s (NITAAC) statutory authority to operate its suite of contracts, and provide Information Technology (IT) acquisition services to meet the needs of Federal agencies. NITAAC’s authority covers its suite of contracts which includes the Chief Information Officer Solutions and Partners (CIO-SP), Electronic Computer Store II (ECS-II), and Image World (IW).

NITAAC is a commercial program that operates as a not-for-profit business through the National Institutes of Health’s (NIH) Service and Supply Fund. NIH’s authority is at 42 U.S.C. 231, Service and Supply Fund; Uses; Reimbursement which has been formally delegated to NIH by the DHHS Secretary. Under this statute NITAAC operates and provides services that can be performed more advantageously as central services to meet, in whole or in part, requirements of NIH, DHHS components, and other Federal Government agencies. NIH is permitted to be reimbursed from applicable appropriations or funds available when services are performed on the basis of rates that include estimated or actual charges for personal services, materials, equipment (including maintenance, repairs, and depreciation), and other expenses.

In clarifying NITAAC's authority to provide services and charge a processing fee it is necessary to emphasize that NITAAC, customers, and contractors are responsible for complying with the FAR specifically Part 16, other governing regulations, and customer agency requirements when placing and administering awards. In accordance with the Economy Act (31 U.S.C. 1535) and FAR subpart 17.500 (b), Interagency Acquisitions Under the Economy Act, "…The Economy Act applies when more specific statutory authority does not exist." It is our formal interpretation that 42 U.S.C. 231 and all its provisions as delegated to NIH/NITAAC is the specific governing authority used by NITAAC to administer its contracts. It is under this authority that NITAAC does not require interagency agreements or a determination and finding when orders are placed for IT.

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We hope this clarifies issues pertaining to the use of NITAAC contracts. If NITAAC staff can be of assistance in areas of order placement or contract administration issues, please do not hesitate to contact our contract staff. We look forward to working with you on future orders to meet your information technology acquisition needs.

//Signed//

Leamon M. Lee, Ph.D.