(a) General. Procurements of ADP equipment and services are subject to the procurement standards prescribed by part 75 regardless of any conditions for prior approval. The Department retains the authority to provide greater oversight including requiring a State to comply with § 75.328 if the Department determines that the State procurement process is an impediment to competition that could substantially impact project cost or risk of failure.

(b) Those standards, as well as the requirement for prior approval, apply to ADP services and equipment acquired by a State or local agency, and the ADP services and equipment acquired by a State or local Central Data Processing facility primarily to support the Social Security Act programs covered by this subpart. Service agreements are exempt from these procurement standards.