[Federal Register: December 2, 1999 (Volume 64, Number 231)] [Rules and Regulations] [Page 67470-67471] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr02de99-2] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Commodity Credit Corporation 7 CFR Part 1407 RIN 0560-AF47 Debarment and Suspension AGENCY: Commodity Credit Corporation, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule will revise CCC's regulations setting forth its policies with regard to the debarment and suspension of individuals or firms from participation in Federal procurement and nonprocurement activities. The U.S. Department of Agriculture (USDA) has published USDA-wide nonprocurement debarment and suspension regulations, and CCC will proceed under such regulations in nonprocurement debarment and suspension actions. CCC will continue to proceed under this part in procurement debarment and suspension actions but will apply the provisions of the USDA procurement debarment and suspension regulations, with the exception of the specified debarring and suspending official, in such procurement actions. EFFECTIVE DATE: January 3, 2000. FOR FURTHER INFORMATION CONTACT: Sharon Hadder, Contract Management Branch, Farm Service Agency, telephone 202-720-3816, fax (202) 690- 1809, or e-mail to Sharon__Hadder@wdc.fsa.usda.gov. SUPPLEMENTARY INFORMATION: Executive Order 12866 This rule has been determined to be not significant for purposes of Executive Order 12866 and, therefore, has not been reviewed by the Office of Management and Budget (OMB). Executive Order 12372 This activity is not subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. See the Notice related to 7 CFR part 3015, subpart V, published at 48 FR 29115 (June 24, 1983). Executive Order 12988 This final rule has been reviewed under Executive Order 12988, Civil Justice Reform. The final rule would have preemptive effect with respect to any state or local laws, regulations, or policies which conflict with its provisions or which otherwise impede their full implementation. The final rule does not have retroactive effect. The final rule does not require that administrative remedies be exhausted before suit may be filed. Regulatory Flexibility Act This final rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act. The Executive Vice President, CCC, has certified that this final rule will not have a significant economic impact on a substantial number of small entities. The principal regulatory change made by the final rule would be to provide that CCC will proceed under the USDA- wide regulations when taking action to debar or suspend participants or potential participants in CCC's nonprocurement activities. These USDA- wide regulations are similar to the government-wide common rule and would not impact on small businesses as a group, but only upon specific entities when necessary to protect the interests of CCC. A copy of this final rule has been submitted to the General Counsel, Small Business Administration. Paperwork Reduction Act These regulations do not contain information collections that require clearance by OMB under the provisions of 44 U.S.C. chapter 35. Discussion of Proposed Rule This final rule will revise existing CCC regulations to specify policies that CCC will follow in taking action to debar or suspend individuals or firms from participation in Federal procurement and nonprocurement activities. Currently the CCC debarment and suspension regulations at 7 CFR part 1407 provide that 48 CFR part 409, subpart 409.4 (Secs. 409.403 et seq.) shall be applicable to all CCC debarment and suspension proceedings, except that the authority to debar and suspend shall be reserved to the Executive Vice President, CCC, or his designee. The regulations at 48 CFR part 409, subpart 409.4, are the procurement debarment and suspension regulations for USDA. USDA has published USDA-wide nonprocurement debarment and suspension regulations at 7 CFR part 3017. Effective February 5, 1996, these regulations were amended to remove certain requirements that would have had a detrimental effect if they had been applied to certain CCC programs. Consequently, CCC is now proposing that, as a matter of policy, CCC will proceed under 7 CFR part 3017 when taking action to debar or suspend individuals or firms that are participants or potential participants in CCC's nonprocurement activities. CCC will continue to proceed under 7 CFR part 1407 when taking action to debar or suspend individuals or firms that are contractors with CCC or participants or potential participants in CCC's procurement activities. As a matter of policy, CCC will continue to apply the provisions of 48 CFR part 409, subpart 409.4, with the exception of the specified debarring and suspending official, in such procurement actions. This will foster uniformity and consistency with regard to USDA and CCC debarment and suspension procedures. Under the current regulations at 7 CFR part 1407, the debarring and suspending official is the Executive Vice President, CCC, who is also the Administrator of the Farm Service Agency (FSA), or a designee. The Executive Vice President, CCC, or a designee, would continue to be the debarring and suspending official for [[Page 67471]] CCC procurement debarment and suspension actions. The USDA-wide nonprocurement suspension and debarment regulations at 7 CFR part 3017 provide that the debarring and suspending official will be the head of the agency initiating the action and that this authority cannot be delegated to a designee. As a matter of policy, CCC has decided that, for nonprocurement debarment and suspension actions initiated by an agency on behalf of CCC under 7 CFR part 3017, the agency head will be the debarring and suspending official. Delegations to a designee would not be authorized. Public Comments On December 30, 1998, the Commodity Credit Corporation (CCC) issued a proposed rule at 63 FR 71796. No comments were received and the rule will be issued without change. List of Subjects in 7 CFR Part 1407 Administrative practice and procedure, Government procurement, Grant programs. Accordingly, 7 CFR Ch. XIV is amended as follows: 1. Part 1407 is revised to read as follows: PART 1407--DEBARMENT AND SUSPENSION Sec. 1407.1 Purpose. 1407.2 Nonprocurement debarment and suspension. 1407.3 Procurement debarment and suspension. Authority: 15 U.S.C. 714b. Sec. 1407.1 Purpose. This part specifies the policies that CCC will follow in taking action to debar or suspend individuals or firms from participation in Federal nonprocurement and procurement activities. Sec. 1407.2 Nonprocurement debarment and suspension. (a) CCC will proceed under 7 CFR part 3017 when taking action to debar or suspend participants or potential participants in CCC's nonprocurement activities. (b) The debarring and suspending official for nonprocurement actions taken by CCC shall be as follows: For actions initiated on behalf of CCC by the Foreign Agricultural Service (FAS), the Food and Nutrition Service (FNS), or the Agricultural Marketing Service (AMS), the debarring and suspending official will be the Vice President, CCC, who is the Administrator FAS, FNS, or AMS, respectively. For actions initiated on behalf of CCC by the Natural Resources Conservation Service (NRCS), the official will be the Vice President, CCC, who is the Chief, NRCS. Sec. 1407.3 Procurement debarment and suspension. CCC will proceed under this part when taking action to debar or suspend contractors with CCC or participants or potential participants in CCC's procurement activities. CCC will apply the provisions of 48 CFR part 409, subpart 409.4, in such actions, with the exception that the debarring and suspending official will be the Executive Vice President, CCC, or a designee. Signed at Washington, DC, on November 19, 1999. Keith Kelly, Executive Vice President, Commodity Credit Corporation. [FR Doc. 99-30949 Filed 12-1-99; 8:45 am] BILLING CODE 3410-05-P