[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]



-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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:

----------------------------------------------------------------------
Score={time} {time} {time} {time} {time}  (bid)

----------------------------------------------------------------------
(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