Practice and precedure: Procurement and nonprocurement activities; debarment and suspension policies,

[Federal Register: December 30, 1998 (Volume 63, Number 250)]

[Proposed Rules]

[Page 71796-71797]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr30de98-25]

Proposed Rules Federal Register

This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules.

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1407

RIN 0560-AF47

Debarment and Suspension

AGENCY: Farm Service Agency, USDA.

ACTION: Proposed rule.

SUMMARY: Commodity Credit Corporation (CCC) proposes to revise the 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 proposes to 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.

DATES: Comments must be submitted on or before January 29, 1999.

ADDRESSES: Comments regarding this proposed rule may be directed to Dean Jensen, Chief, Contract Management Branch, Room 5755-S, STOP 0551, 1400 Independence Avenue, SW, Washington, DC 20250-0551, telephone (202) 720-2115, fax (202) 690-1809. All comments received will be available for public inspection at the above address during regular business hours.

FOR FURTHER INFORMATION CONTACT: Dean Jensen, 202-720-2115.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed 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 proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. The proposed 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 would not have retroactive effect. The rule does not require that administrative remedies be exhausted before suit may be filed.

Regulatory Flexibility Act

This proposed rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act.

The Executive Vice President, CCC, has certified that this rule will not have a significant economic impact on a substantial number of small entities. The principal regulatory change made by the proposed 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 proposed 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 proposed rule would 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 7 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 of 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 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

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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.

List of Subjects in 7 CFR Part 1407

Administrative practice and procedure, Government procurement, Grant programs.

Accordingly, it is proposed that 7 CFR Part 1407 be revised to read 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 the Commodity Credit Corporation (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:

(1) For actions initiated by the Farm Service Agency (FSA) on behalf of CCC: the Executive Vice President of CCC, who is also the Administrator of FSA.

(2) For actions initiated by the Foreign Agricultural Service (FAS) on behalf of CCC: the Vice President of CCC who is the Administrator of FAS.

(3) For actions initiated by the Food and Nutrition Service (FNS) on behalf of CCC: the Vice President of CCC who is the Administrator of FNS.

(4) For actions initiated by the Agricultural Marketing Service (AMS) on behalf of CCC: the Vice President of CCC who is the Administrator of AMS.

(5) For actions initiated by the Natural Resources Conservation Service (NRCS) on behalf of CCC: the Vice President of CCC who is the Chief of 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 of CCC, or a designee.

Signed at Washington, D.C., on December 22, 1998. Keith Kelly, Executive Vice President, Commodity Credit Corporation.

[FR Doc. 98-34521Filed12-29-98; 8:45 am]

BILLING CODE 3410-05-P

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