[Federal Register Volume 63, Number 250 (Wednesday, December 30, 1998)]
[Proposed Rules]
[Pages 71796-71797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34521]


 ========================================================================
 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.
 
 ========================================================================
 

  Federal Register / Vol. 63, No. 250 / Wednesday, December 30, 1998 / 
Proposed Rules  

[[Page 71796]]


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

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

[[Page 71797]]

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. 98-34521 Filed 12-29-98; 8:45 am]
BILLING CODE 3410-05-P