1. (a) A replacement system must meet all standards and conditions of initial approval of a mechanized claims processing and information retrieval system.

2. (b) The agency must submit a APD that includes—

   1. (1) The date the replacement system will be in operation; and
   2. (2) A plan for orderly transition from the system being replaced to the replacement system.

3. (c) FFP is available at—

   1. (1) 90 percent in expenditures for design, development, and installation in accordance with the provisions of § 433.112; and
   2. (2) 75 percent in expenditures for operation of an approved replacement system in accordance with the provisions of § 433.116(b) through (j), from the date that the system met the conditions of initial approval, as established by CMS.
4. (d) FFP is available at 75 percent in expenditures for the operation of an approved system that is being replaced (or at a reduced rate determined under § 433.120 of this subpart for a system that has been disapproved) until the replacement system is in operation and approved.

[50 FR 30847, July 30, 1985, as amended at 76 FR 21974, Apr. 19, 2011]