Service

Tribal Self-Determination (638) Health Program Contracting Readiness

Last updated: November 2026

Tribal self-determination (638) health program contracting readiness is the preparation of a Title I contract proposal under 25 CFR Part 900, including the statement that the tribe will meet the Subpart F financial, procurement and property standards, subject to any waiver already granted under Subpart K. Integral Healthcare Solutions (IHS) maps the proposal and standards, then drafts documents for tribal leadership and counsel to approve.

This page is the program development line. Here IHS means Integral Healthcare Solutions, and the federal agency is the Indian Health Service.

What is a tribal self-determination (638) contract?

It is a contract that the Department of Health and Human Services or the Department of the Interior awards to an Indian tribe or tribal organization under Title I of the Indian Self-Determination and Education Assistance Act, Public Law 93-638. The rules are in 25 CFR Part 900 (eCFR text built October 28, 2026; page opened November 5, 2026). An initial contract proposal, under 900.6, is a proposal for programs, functions, services or activities that the Secretary is authorized to perform but that the tribe or tribal organization is not now carrying out.

Who needs readiness work, and what triggers it?

Readiness support can help at three points under Part 900:

What must a proposal contain, and how long does the Secretary have?

Section 900.8 lists thirteen items, (a) through (m), and 900.9 answers "No" to whether the Secretary may require anything beyond them. The program statement must include a statement that the tribe will meet the Subpart F procurement, property and financial management standards, subject to any waiver granted under Subpart K.

The Secretary has 90 days after receipt to approve and award or to decline (900.16). The period can be extended with the written consent of the tribe or tribal organization; without consent the 90-day deadline applies (900.17). A proposal not declined within 90 days, or within any agreed extension, is deemed approved, and the Secretary must award the contract, amendment or renewal within that 90-day period and add the full section 106(a) funds (900.18).

Section 900.22 allows declination for one of five reasons:

  1. The service to the Indian beneficiaries of the program or function will not be satisfactory.
  2. Adequate protection of trust resources is not assured.
  3. The project or function cannot be properly completed or maintained by the proposed contract.
  4. The funds proposed exceed the applicable funding level under section 106(a) of the Act.
  5. The program, function, service or activity, or a portion of it, is beyond the scope of programs, functions, services or activities covered under section 102(a)(1) of the Act because the proposal includes activities that cannot lawfully be carried out by the contractor.

The Secretary may not decline over an objection that will be overcome through the contract (900.23), and must approve any severable portion that supports no declination finding, subject to any alteration in scope that the Secretary and the tribe approve (900.25).

Which financial, procurement and property standards apply?

Subpart F requires financial, procurement and property systems when carrying out contracts, subject to waivers (900.35, 900.36). Section 900.40 evaluates the standards at the initial contract proposal and the systems through an independent auditor's annual single agency audit report. It names OMB Circular A-128; this page does not determine the current audit framework.

Financial. Fiscal control and accounting procedures must permit preparing the reports the contract and the Act require, and tracing contract funds to a level of expenditure adequate to show they were not used in violation of any restriction or prohibition in a statute that applies to the contract (900.44). Section 900.45 lists seven elements: financial reports, accounting records, internal controls, budget controls, allowable costs, source documentation and cash management.

Procurement. A tribe relying on different standards must identify them as a proposed waiver in the initial proposal or as a waiver request on an existing contract (900.47). Unless a standard has been waived (900.36), 900.48 requires, among other things, conduct standards with penalties, purchasing reviews, competition for major procurements to the extent necessary for efficient expenditure of contract funds and feasible locally, responsible awards, procurement records, vendor performance and dispute handling, with Indian and tribal preferences under sections 7(b) and (c) of the Act.

Property. The system tracks personal property with an acquisition value above 5,000 dollars per item, sensitive personal property (subject to theft and pilferage, as the tribe defines it; all firearms count) and real property the Secretary provided for use under the contract (900.52). A physical inventory should occur at least every two years, and the results must be reconciled with property and accounting records (900.55).

Reports. Unless a statute requires them, program reports are not mandatory; the tribe negotiates with the Secretary the type and frequency of reports that respond to the contracting parties' needs and suit the contract's purposes, considering available resources (900.65).

How IHS helps

IHS works in four steps:

  1. Gap assessment. The draft proposal against 900.8; the three systems against 900.44 through 900.55.
  2. Evidence mapping. An index of which document answers each requirement.
  3. Drafting. Missing policies, procedures and requested proposal sections, for leadership and counsel to approve.
  4. Readiness review. A final read against the checklist below.

The client supplies authorizations, organizational documents, policies, program details and budgets. IHS does not contact, negotiate with or submit to federal agencies; tribal representatives handle agency dealings and counsel reviews policies.

What to have ready

References are to 25 CFR Part 900 (eCFR text built October 28, 2026; opened November 5, 2026). These are preparation prompts, not extra proposal requirements.

Use the free introductory call to discuss which documents need work.

How does a self-determination contract compare with a self-governance compact?

A self-governance compact runs under a separate regulation, 42 CFR Part 137 (eCFR text built November 4, 2026; page opened November 5, 2026).

PointContract (25 CFR Part 900)Compact (42 CFR Part 137)
EntryInitial proposal with the 900.8 contents.Successful planning, participation requested by resolution or other official action of the governing body of each tribe to be served, and three fiscal years of demonstrated financial stability and financial management capability (137.18).
Financial testStandards evaluated at the initial proposal; systems by independent audit (900.40).No uncorrected significant and material audit exceptions in the required annual audit of the tribe's self-determination contracts or self-governance funding agreements with any Federal agency for the three years before participation (137.21).
AgreementA contract with annual funding agreements (900.6, 900.12).A legally binding, mutually enforceable written agreement affirming the government-to-government relationship, which a tribe must have to participate (137.30, 137.32).

What does it cost?

Section 900.8 lists the contents of an initial proposal, and a filing fee is not among them. Section 900.7 says the Secretary, on request and subject to the availability of appropriations, provides technical assistance on a non-reimbursable basis to develop a new proposal. Verify current terms with the agency that would receive the proposal.

IHS scopes each engagement after a free introductory call.

What this is not

Frequently asked questions

What is a self-determination (638) contract?

The Department of Health and Human Services or the Department of the Interior awards it to an Indian tribe or tribal organization under Title I of Public Law 93-638. The governing rules are in 25 CFR Part 900.

What must an initial contract proposal contain?

Section 900.8 lists thirteen items, (a) through (m), including resolutions, a program statement and the funds requested. Section 900.9 says the Secretary may not require more.

How long does the Secretary have to decide?

The period is 90 calendar days after receipt, extendable with the written consent of the tribe or tribal organization (900.16, 900.17). A last day on a weekend or Federal holiday carries to the next business day unless law prohibits it (900.6). Without declination in that period, or an agreed extension, the proposal is deemed approved (900.18).

On what grounds can the Secretary decline a proposal?

Section 900.22 permits five grounds, from unsatisfactory service to the Indian beneficiaries of the contracted program to activities outside section 102(a)(1) because the contractor cannot lawfully carry them out. An objection that the contract will overcome cannot justify declination (900.23).

What policies should a tribe have before it files?

Subpart F requires financial, procurement and property systems when carrying out contracts, subject to granted waivers (900.36). The proposal must state that the tribe will meet those minimum standards, subject to any waiver granted under Subpart K (900.8(g)(8)).

How does a self-governance compact differ?

A compact is a legally binding, mutually enforceable written agreement that affirms the government-to-government relationship between a Self-Governance Tribe and the United States; a tribe must have one to participate in self-governance (137.30, 137.32). Eligibility requires successful planning, participation requested by resolution or other official action of each served tribe's governing body, and three fiscal years of demonstrated financial stability and financial management capability (137.18).

What happens if a proposal is declined?

The Secretary must give written objections, a specific finding that clearly demonstrates, or that controlling legal authority supports, that a 900.22 ground exists, a detailed explanation, written notice of appeal rights and, within 20 days, the documents relied on (900.29). The tribe may appeal, with a hearing on the record and full discovery relevant to any issue raised, or instead sue in Federal district court (900.31).

What does IHS draft, and what does the tribe approve?

IHS drafts the gap assessment, evidence index, policies, procedures and any proposal sections requested. Tribal leadership and counsel approve each one. The tribe decides whether to contract, signs the proposal and deals with the agencies.

Related pages

Talk with IHS's CEO

A 30-minute introductory meeting with Thomas G. Goddard, JD, PhD, to scope what your organization needs.

Schedule a Free Discovery Session