[Federal Register Volume 60, Number 120 (Thursday, June 22, 1995)]
[Notices]
[Pages 32504-32507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15323]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
[Docket No. 950616159-5159-01; I.D. 061695C]
RIN 0648-ZA16
The Fishing Capacity Reduction Demonstration Program (FCRDP);
Funding Availability
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic
Atmospheric Administration (NOAA), Commerce.
ACTION: Notice of availability of Federal assistance.
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SUMMARY: NMFS issues this notice describing the FCRDP and how NMFS will
review and select applications for funding. The FCRDP is a $2 million
demonstration program to provide grants to the owners of fishing
vessels participating in the Northeast multi-species limited access
groundfish fishery, who are willing to scrap their vessels and
surrender associated Federal fish harvesting permits.
DATES: Applications must be postmarked by September 5, 1995.
ADDRESSES: Applications should be sent to the Northeast Financial
Services Branch, National Marine Fisheries Service, One Blackburn
Drive, Gloucester, MA 01930-2298.
FOR FURTHER INFORMATION CONTACT: Leo Erwin, NMFS at (508) 281-9203.
SUPPLEMENTARY INFORMATION:
I. Background
Under the provisions of Public Law 103-211, the Emergency
Supplemental Appropriations Act of 1994, $30 million has been provided
to the U.S. Department of Commerce (DOC) for the Northeast Fisheries
Assistance Program to address the needs of those directly affected by
the decline of traditional fisheries in the Northeast. Of that total
amount, $2 million is being made available for the FCRDP to pilot test
an approach for permanently reducing the fishing capacity in the
Northeast multispecies groundfish fishery. NMFS is conducting the FCRDP
under authority contained in 15 U.S.C. 713c-3(d).
The goal of the FCRDP is to demonstrate that a vessel removal
program can be successfully designed and implemented and that such a
program can be an effective tool in the conservation and management of
U.S. fisheries. The FCRDP is a voluntary program which is intended to
target full-time groundfish vessels. Consequently, only permit holders
of the following types of permits under the Northeast Multispecies
Fishery Management Plan are eligible: Multispecies limited access
individual days-at-sea (DAS), fleet das or multispecies limited access
gillnet vessel (categories I, II, or VI). A successful applicant will
have to scrap the offered vessel and surrender all Federal fishing
permits associated with that vessel.
II. How to Apply
A. Eligible Applicants
Applications for FCRDP grants can only be made by owners of
eligible fishing vessels, in accordance with the procedures set forth
in this notice. An owner may be an individual who is a citizen or
national of the United States, or a citizen of the Northern Mariana
Islands, or a corporation, partnership, association or other entity
(non profit or otherwise) if such entity is a citizen within the
meaning of section 802 of the Shipping Act, 1916, as amended (46 U.S.C.
App. 802). Federal Government agencies or employees, including full-
time, part-time, and intermittent personnel (or their spouses or blood
relatives who are members of their immediate households), are not
eligible to submit an application under this solicitation.
For a vessel to be eligible for FCRDP, it must meet the following
conditions:
1. Have a valid Multispecies limited access individual DAS, fleet
DAS or limited access gillnet fishing permit. Vessel owners will be
required to surrender such permits along with ALL other Federal fishing
permits issued to that vessel if awarded a grant under the FCRDP.
2. Be active and functioning at the time the vessel owner submits
an application, which means that a vessel must be capable of fishing
for groundfish in Federal waters under its own power. Successful
applicants will be required to show proof that their vessel made at
least 2 fishing trips (of any duration for any species) between March
1, 1995, and May 1, 1995.
3. Have derived 65 percent or more of its gross annual revenues
from groundfish regulated under the multi-species plan in 3 of the last
4 years. This means that in 1991, 1992, 1993, and 1994 successful
applicants must be able to prove that 65 percent or more of the gross
revenues (for the vessel involved) in 3 of those years was from the
sale of regulated groundfish. Under the Northeast Multispecies Fishery
Management Plan, the regulated groundfish species are: Cod, haddock,
pollock, yellowtail flounder, winter flounder, gray sole, American
plaice, Windowpane flounder, white hake, and redfish.
B. Submission of Applications
Vessel owners must fill out an FCRDP application form in order to
apply. Proof of eligibility need not be submitted with this
application. However, applicants preliminarily accepted by NMFS for
funding will be expected to provide such documentation upon request.
Applicants must submit one signed original and two copies of their
completed applications. No facsimile applications will be accepted.
Proof of receipt may be obtained by sending an application by certified
mail, return receipt requested. The anticipated time required to
process applications is 90 [[Page 32505]] days from the closing date of
this solicitation.
All Federal NE Multi-species limited access individual DAS, fleet
DAS and gillnet vessel fishing permit holders will be mailed a copy of
the application form along with a copy of this Federal Register notice.
Applications will also be made available at the NMFS offices identified
below:
Fishing Family Assistance Center, National Marine Fisheries
Service, Federal Building, Room 200, 21 Limerock Street, Rockland, ME
04841; Tel: 207-594-2267.
Fishing Family Assistance Center, National Marine Fisheries
Service, Marine Trades Center, Suite 311, 2 Portland Fish Pier,
Portland, ME 04101; Tel: 207-780-3423.
Fishing Family Assistance Center, National Marine Fisheries
Service, Department of Employment and Training, 11-15 Parker Street,
Gloucester, MA 01930; Tel: 508-283-2863.
Fishing Family Assistance Center, National Marine Fisheries
Service, 15-A Market Place, Chatham, MA 02633; Tel: 508-945-5492.
Fishing Family Assistance Center, National Marine Fisheries
Service, Greater New Bedford Reemployment Career Services, 693 Purchase
Street, New Bedford, MA 02740; Tel: 508-979-1750.
Fishing Family Assistance Center, National Marine Fisheries
Service, 118 Point Judith Road, Narragansett, RI 02882; Tel: 401-782-
8640.
III. Application Review and Scoring
All timely submitted and completed applications will be assigned a
score calculated by the following method:
STEP A. Identify Bid
The bid is the dollar amount submitted by the applicant in the
application.
STEP B. Calculate Vessel Performance
Vessel performance will be determined by averaging the annual gross
revenues from the sale of regulated groundfish species for the highest
3 of the last 4 years (1991, 1992, 1993, 1994). Applicants may use
annual regulated groundfish revenues from any 3 years between 1991-94.
STEP C. Determine Vessel Score
Vessel scores will be determined using the following formula:
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Score={time} {time} {time} {time} {time} (bid)
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(average annual revenues from regulated groundfish species of
highest 3 of last 4 years)
Only those years in which an applicant can prove 65 percent or more of
a vessel's gross revenue was from the sale of regulated groundfish may
be used. Provided below are three examples of how vessels will be
scored using the formula described above.
Example 1
The owner of vessel A submits a bid for $200,000. The average
annual revenues for the best 3 out of 4 years (1991, 1992, 1993,
1994) were $225,000.
Step A. Bid=$200,000.
Step B. Ave. Rev.=$200,000+$225,000+ $250,0003=$225,000
Step C. Score=$200,000/$225,000=.888
The score for vessel A is .888
Example 2
The owner of vessel B submits the same bid as vessel A
($200,000). However, the average annual revenues for vessel B are
$283,333.
Step A. Bid=$200,000
Step B. Ave. Rev.=$200,000+$300,000+ $350,0003=$283,333.
Step C. Score=$200,000/$283,333=.705
The score for vessel B is .705.
Example 3
The owner of vessel C submits a bid in the amount of $350,000.
The average annual revenues are $600,000.
Step A. Bid=$350,000
Step B. Ave. Rev.=$500,000+$600,000+ $700,0003=$600,000
Step C. Score=$350,000/$600,000=.583
The score for vessel C is .583.
Even though the bid for vessel C is higher than that of vessels A
and B, vessel C scored lower because of its performance. Consequently,
vessel C would be selected over vessel A or B and vessel B would be
selected before vessel A.
Determining a bid amount is extremely important, since this will be
a key factor in the success of an applicant. If the bid is too high in
relation to the vessel's groundfish production, the bid may not be
competitive. However, an applicant should carefully consider all costs
involved with receiving a FCRDP grant. These costs include satisfying
vessel liens and vessel scrapping costs. However, Federal assistance
funds cannot be used to pay a Federal debt. Applicants may wish to
consider selling vessel gear and equipment separately as a way of
reducing the amount of a bid because only the vessel hull needs to be
scrapped. Vessel owners may retain removable gear and equipment for
private disposition. An applicant also needs to consider all tax
implications. Applicants are advised to consult with their attorneys
and/or accountants.
IV. Ranking and Acceptance of Applications
Applications will be ranked, starting with the lowest score. NMFS
will determine which applications will be accepted for further
consideration based on the ranking of the applications. NMFS reserves
the right to reject any or all applications and may solicit additional
applications under a separate Federal Register notice if an
insufficient number of acceptable applications are submitted that can
meet all award requirements described in this notice. If additional
applications are solicited, all applications submitted previously and
not accepted will be considered rejected.
NMFS will notify accepted applicants in writing and make public the
names of accepted applicants and their vessels, not the amount of their
bids. However, accepted applicants are not guaranteed funding by simply
being accepted. Accepted applicants will be subject to a thorough
investigation described in section V. NMFS may initially accept more
applications than it can fund. However, NMFS will investigate accepted
applications in order of their ranking.
VI. Investigation of Accepted Applications
A representative from the NMFS Financial Services Division will
contact accepted applicants with regard to the following:
1. Ensuring that applicants meet all eligibility requirements and
can document all claims made in their applications,
2. Determining what debts exist against the vessel offered for
scrapping in the application, and
3. Determining how applicants will satisfy all vessel liens before
scrapping vessels. Accepted applicants will have to provide written
evidence of vessel lienors' willingness to satisfy vessel liens for
specific amounts.
Documentation required to support accepted applications includes
the following:
1. Federal multi-species limited access individual DAS, fleet DAS
or gillnet vessel fishing permit. The applicant may provide a copy of
the permit to NMFS, but the actual permit must be surrendered at the
time of grant award closing.
2. Proof of Landings. NMFS will require proof that 65 percent or
more of a vessel's gross revenues came from the sale of regulated
groundfish species in 3 of the last 4 years (1991, 1992, 1993, and
1994). Landing slips or sales tickets may be used to verify claimed
revenues. [[Page 32506]]
3. Proof of Gross Revenues for Highest 3 Out of 4 Years. Vessel
owners must be able to prove the annual gross revenues from the sale of
regulated groundfish species for the highest 3 years used on the
application. Documentation to support groundfish income may include,
but is not limited to, individual or corporate tax returns, or fish
sale receipts accompanied by vessel settlement reports. NMFS may
require sworn affadavits from the reporting party regarding the
accuracy of the information contained in supporting documentation.
Sales of regulated groundfish which can not be substantiated Will Not
Be Included in the calculation of gross revenues.
Proprietary information submitted by applicants will only be
disclosed to Federal officials who are responsible for the FCRDP or
otherwise when required by court order.
VII. Establishment of NMFS Financial Services Division Award Terms
Representatives from the NMFS Financial Services Division will
establish the specific terms of each grant award for accepted
applications validated during the investigation process. These terms
will be binding on the applicants and will control the applicant's post
award rights and obligations. Terms of the award will address such
matters as how the outstanding liens on the vessels will be satisfied
and how the vessel covered in the application will be scrapped. At
their own expense, applicants will be required to retain closing
attorneys to represent their interests. To the extent necessary,
closing attorneys will be required to pay grant funds to vessel lienors
in return for lien releases. Should vessel liens exceed the amount of
the FCRDP award, attorneys must obtain funds from applicants and
exchange them for lien releases.
VIII. Grant Award Closing Procedures
After the Assistant Administrator for Fisheries, NOAA, and the NOAA
Grants Management Division have reviewed and approved the terms of
accepted and validated applications, then applicants will be notified
in writing of the grant award and a closing date will be set.
Applicants will be required to have an attorney present at the closing.
Seventy-five percent of the grant award will be available at the
closing. The remaining 25 percent will be available only when
applicants have made arrangements for vessel scrapping and other
prescrapping dispositions acceptable to NMFS. If these arrangements
have been made by the time of closing, 100 percent of the grant funds
may be available at that time. Vessel scrapping must occur promptly.
NMFS reserves the right to terminate grant award negotiations with
an applicant, if in the opinion of NMFS there are material adverse
changes in an applicant's ability to meet the terms and conditions of a
FCRDP grant agreement.
IX. Administrative Requirements
A. Primary Applicant Certification
Applicants whose applications are selected for funding will be
required to submit a completed Standard Form 424B, ``Assurances--Non-
Construction Programs'' and Form CD-511, ``Certification Regarding
Debarment, Suspension and Other Responsibility Matters; Drug-Free
Workplace Requirements and Lobbying,'' and the following explanations
are hereby provided:
1. Nonprocurement debarment and suspension. Prospective
participants (as defined at 15 CFR 26.105) are subject to 15 CFR part
26, ``Nonprocurement Debarment and Suspension'' and the related section
of the certification form prescribed above applies;
2. Drug-free workplace. Grantees (as defined at 15 CFR 26.605) are
subject to 15 CFR part 26, subpart F, ``Governmentwide Requirements for
Drug-Free Workplace (Grants)'' and the related section of the
certification form prescribed above applies;
3. Anti-lobbying. Persons (as defined at 15 CFR 28.105) are subject
to the lobbying provisions of 31 U.S.C. 1352, ``Limitation on use of
appropriated funds to influence certain Federal contracting and
financial transactions,'' and the lobbying section of the certification
form prescribed above applies to applications/bids for grants,
cooperative agreements, and contracts for more than $100,000, and loans
and loan guarantees for more than $150,000, or the single family
maximum mortgage limit for affected programs, whichever is greater; and
4. Anti-lobbying disclosure. Any applicant who has paid or will pay
for lobbying using any funds must submit an SF-LLL, ``Disclosure of
Lobbying Activities,'' as required under 15 CFR part 28, Appendix B.
5. Lower tier certifications. Applicants shall require applicants/
bidders for subgrants, contracts, subcontracts, or other lower tier
covered transactions at any tier under the award to submit, if
applicable, a completed Form CD-512, ``Certifications Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier
Covered Transactions and Lobbying'' and disclosure form, SF-LLL,
``Disclosure of Lobbying Activities.'' Form CD-512 is intended for the
use of recipients and should not be transmitted to the Department. SF-
LLL submitted by any tier recipient or subrecipient should be submitted
to the Department in accordance with the instructions contained in the
award document.
B. Other Requirements
1. Federal policies and procedures. FCRDP grant recipients and
subrecipients are subject to all Federal laws and Federal and
Department policies, regulations, and procedures applicable to Federal
financial assistance awards.
2. Name check review. Applicants are subject to a name check review
process. Name checks are intended to reveal if any key individuals
associated with the recipient have been convicted of, or are presently
facing, criminal charges such as fraud, theft, perjury, or other
matters that significantly reflect on the recipient's management,
honesty, or financial integrity. A false statement on the application
is grounds for denial or termination of funds and grounds for possible
punishment by a fine or imprisonment (18 U.S.C. 1001).
3. Financial management certification/preaward accounting survey.
Applicants at the discretion of the NOAA Grants Officer, may be
required to have their financial management systems certified by an
independent public accountant as being in compliance with Federal
standards specified in the applicable Office of Management and Budget
(OMB) Circulars prior to execution of the award. Any first-time
applicant for Federal grant funds may be subject to a pre-award
accounting survey by the Department prior to execution of the award.
4. Past performance. Unsatisfactory performance under prior Federal
awards may result in an application not being considered for funding.
5. Delinquent Federal debts. No award of Federal funds shall be
made to an applicant or to its subrecipients who have an outstanding
delinquent Federal debt or fine until either:
a. The delinquent account is paid in full,
b. A negotiated repayment schedule is established and at least one
payment is received, or
c. Other arrangements satisfactory to the Department are made.
6. Buy American-made equipment or products. Applicants are hereby
notified that they are encouraged, to the extent feasible, to purchase
American-made equipment and products with funding under this program.
[[Page 32507]]
7. Pre-award activities. If applicants incur any costs prior to an
award being made, they do so solely at their own risk of not being
reimbursed by the Government. Notwithstanding any verbal or written
assurance that may have been received, there is no obligation on the
part of the Department to cover pre-award costs.
Classification
This action has been determined to be not significant for purposes
of E.O. 12866.
Applications under this program are subject to E.O. 12372,
``Intergovernmental Review of Federal Programs.''
This notice contains a collection-of-information requirement
subject to the Paperwork Reduction Act. The collection of this
information has been approved by OMB (OMB control number 0648-0289).
Public reporting burden for preparation of the grant application is
estimated to be 1 hour per response including the time for reviewing
instructions, gathering and maintaining the data needed, and completing
and reviewing the collection of information. An additional 15 hour
reporting burden is estimated for those applicants who are accepted by
NMFS including time for documenting the income claims on their
applications, how outstanding liens on their vessels will be satisfied,
and how the vessels will be scrapped.
Send comments regarding this burden estimate or any other aspect of
this collection of information, including suggestions for reducing this
burden, to Richard Roberts, NOAA/IRMS, 6010 Executive Blvd., Rm. 722,
WSC-5, Rockville, MD 20852; and to the Office of Information and
Regulatory Affairs, OMB, Washington, D.C. 20503, Attention: NOAA Desk
Officer.
Authority: 15 U.S.C. 713c-3(d).
Dated: June 16, 1995.
Gary Matlock,
Program Management Officer, National Marine Fisheries Service.
[FR Doc. 95-15323 Filed 6-21-95; 8:45 am]
BILLING CODE 3510-22-P