U.S. Department of Health & Human Services
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Part 331--Contract Cost Principles and Procedures
HHS Acquisition Regulation (HHSAR)
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Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).
(a) Beginning in fiscal year 1990, Congress has stipulated in HHS appropriations acts and continuing resolutions that, under applicable NIH, SAMHSA, and AHRQ contracts, appropriated funds cannot be used to pay the direct salary of an individual at a rate in excess of the federal Executive Schedule Level I.
(b) The Contracting Officer shall insert the clause in 352.231-70, Salary Rate Limitation, in NIH, SAMHSA, and AHRQ solicitations and contracts that exceed the simplified acquisition threshold when a cost-reimbursement, fixed-price level-of-effort, time-and-materials, or labor-hour contract is contemplated, including modifications of contracts of those types for projects that support extramural program activities. For purposes of this clause, for NIH: projects that support extramural program activities are basic and applied research projects; and for SAMHSA and AHRQ: projects that support extramural program activities are mission-related projects, exclusive of contracts for general support services.
The Contracting Officer shall insert the clause in 352.231-71, Pricing of Adjustments, in solicitations and contracts when a fixed-price contract is contemplated.