[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR95.611]



[Page 492-494]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 95_GENERAL ADMINISTRATION_GRANT PROGRAMS (PUBLIC ASSISTANCE, MEDICAL 

ASSISTANCE AND STATE CHILDREN'S HEALTH INSURANCE PROGRAMS)--Table of 

Contents

 

 Subpart F_Automatic Data Processing Equipment and Services_Conditions 

                for Federal Financial Participation (FFP)

 

Sec.  95.611  Prior approval conditions.



    (a) General acquisition requirements. (1) A State shall obtain prior 

written approval from the Department as specified in paragraph (b) of 

this section, when the State plans to acquire ADP equipment or services 

with proposed FFP at the regular matching rate that it anticipates will 

have total acquisition costs of $5,000,000 or more in Federal and State 

funds.

    (2) A State shall obtain prior written approval from the Department 

as specified in paragraph (b) of this section,



[[Page 493]]



when the State plans to acquire ADP equipment or services with proposed 

FFP at the enhanced matching rate authorized by 45 CFR 205.35, 45 CFR 

part 307 or 42 CFR part 433, subpart C, regardless of the acquisition 

cost.

    (3) A State shall obtain prior written approval from the Department 

of its justification for a sole source acquisition, when it plans to 

acquire noncompetitively from a nongovernmental source ADP equipment or 

services, with proposed FFP at the regular matching rate, that has a 

total State and Federal acquisition cost of more than $1,000,000 but no 

more than $5,000,000. Noncompetitive acquisitions of more than 

$5,000,000 are subject to the provisions of paragraph (b) of this 

section.

    (4) Except as provided for in paragraph (a)(5) of this section, the 

State shall submit requests for Department approval, signed by the 

appropriate State official, to the Director, Administration for Children 

and Families, Office of State Systems. The State shall send to ACF one 

copy of the request for each HHS component, from which the State is 

requesting funding, and one for the State Systems Policy Staff, the 

coordinating staff for these requests. The State must also send one copy 

of the request directly to each Regional program component and one copy 

to the Regional Director.

    (5) States shall submit requests for approval which involve solely 

Title XIX funding (i.e., State Medicaid Systems), to CMS for action.

    (6) The Department will not approve any Planning or Implementation 

APD that does not include all information required as defined in Sec.  

95.605.

    (b) Specific prior approval requirements. The State agency shall 

obtain written approval of the Department prior to the initiation of 

project activity.

    (1) For regular FFP requests.

    (i) For the Planning APD subject to the dollar thresholds specified 

in paragraph (a) of this section.

    (ii) For the Implementation APD subject to the dollar thresholds 

specified in paragraph (a) of this section.

    (iii) For the Request for Proposal and Contract, unless specifically 

exempted by the Department, prior to release of the RFP or prior to the 

execution of the contract when the contract is anticipated to or will 

exceed $5,000,000 for competitive procurement and $1,000,000 for 

noncompetitive acquisitions from nongovernmental sources. States will be 

required to submit RFPs and contracts under these threshold amounts on 

an exception basis or if the procurement strategy is not adequately 

described and justified in an APD.

    (iv) For contract amendments, unless specifically exempted by the 

Department, prior to execution of the contract amendment involving 

contract cost increases exceeding $1,000,000 or contract time extensions 

of more than 120 days. States will be required to submit contract 

amendments under these threshold amounts on an exception basis or if the 

contract amendment is not adequately described and justified in an APD.

    (2) For enhanced FFP requests.

    (i) For the Planning APD.

    (ii) For the Implementation APD.

    (iii) For the Request for Proposal and contract, unless specifically 

exempted by the Department, prior to release of the RFP or prior to 

execution of the contract when the contract is anticipated to or will 

exceed $100,000.

    (iv) For contract amendments, unless specifically exempted by the 

Department, prior to execution of the contract amendment, involving 

contract cost increases exceeding $100,000 or contract time extensions 

of more than 60 days.

    (3) Failure to submit any of the above to the satisfaction of the 

Department may result in disapproval or suspension of project funding.

    (c) Specific approval requirements. The State agency shall obtain 

written approval from the Department:

    (1) For regular FFP requests.

    (i) For an annual APDU for projects with a total acquisition cost of 

more than $5,000,000, when specifically required by the Department.

    (ii) For an ``As Needed APDU'' when changes cause any of the 

following:

    (A) A projected cost increase of $1,000,000 or more.

    (B) A schedule extension of more than 60 days for major milestones;



[[Page 494]]



    (C) A significant change in procurement approach, and/or scope of 

procurement activities beyond that approved in the APD;

    (D) A change in system concept, or a change to the scope of the 

project;

    (E) A change to the approved cost allocation methodology.



The State shall submit the ``As Needed APDU'' to the Department, no 

later than 60 days after the occurrence of the project changes to be 

reported in the ``As Needed APDU''.

    (2) For enhanced FFP requests.

    (i) For an Annual APDU.

    (ii) For an ``As needed'' APDU when changes cause any of the 

following:

    (A) A projected cost increase of $100,000 or 10 percent of the 

project cost, whichever is less;

    (B) A schedule extension of more than 60 days for major milestones. 

For Aid to Families with Dependent Children (AFDC) Family Assistance 

Management Information System (FAMIS)-type projects, in accordance with 

section 402(e)(2)(C) of the Social Security Act, any schedule change 

which affects the State's implementation date as specified in the 

approved APD requires that the Department recover 40 percent of the 

amount expended. The Secretary may extend the implementation date, if 

the implementation date is not met because of circumstances beyond the 

State's control. Examples of circumstances beyond the State's control 

are:

    (1) Equipment failure due to physical damage or destruction; or,

    (2) Change imposed by Federal judicial decisions, or by Federal 

legislation or regulations;

    (C) A significant change in procurement approach, and/or a scope of 

procurement activities beyond that approved in the APD;

    (D) A change in system concept or scope of the project;

    (E) A change to the approved cost methodology;

    (F) A change of more than 10% of estimated cost benefits.



The State shall submit the ``As Needed APDU'' to the Department, no 

later than 60 days after the occurrence of the project changes to be 

reported in the ``As Needed APDU''.



    (3) Failure to submit any of the above to the satisfaction of the 

Department may result in disapproval or suspension of project funding.

    (d) Prompt action on requests for prior approval. The ACF will 

promptly send to the approving components the items specified in 

paragraph (b) of this section. If the Department has not provided 

written approval, disapproval, or a request for information within 60 

days of the date of the Departmental letter acknowledging receipt of a 

State's request, the request will automatically be deemed to have 

provisionally met the prior approval conditions of paragraph (b) of this 

section.



[51 FR 45326, Dec. 18, 1986, as amended at 55 FR 4377, Feb. 7, 1990; 56 

FR 12356, Mar. 25, 1991; 59 FR 30708, June 15, 1994; 61 FR 39897, July 

31, 1996]