[Federal Register Volume 64, Number 6 (Monday, January 11, 1999)]
[Notices]
[Pages 1646-1647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-537]


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DEPARTMENT OF TRANSPORTATION

Coast Guard
[USCG-1998-4448]


Mariner Licensing and Documentation

AGENCY: Coast Guard, DOT.

ACTION: Extension of comment period.

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SUMMARY: The Coast Guard's National Maritime Center (NMC) is extending 
the comment period on the issue of Mariner Licensing and Documentation. 
The original public notice, published September 21, 1998, requested 
comments on the feasibility of privatizing examinations for mariner 
licenses and merchant mariner documents in the Coast Guard's Mariner 
Licensing and Documentation (MLD) program. We are extending the comment 
period to allow the public more opportunity to comment on this subject.

DATES: Comments must reach the Docket Management Facility on or before 
March 1, 1999.

ADDRESSES: You may mail comments to the Docket Management Facility 
(USCG-1998-4448), U.S. Department of Transportation, room PL-401, 400 
Seventh Street SW., Washington, DC 20590-0001, or deliver them to room 
PL-401, located on the Plaza Level of the Nassif Building at the same 
address between 9 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays. The telephone number is 202-366-9329.
    The Docket Management Facility maintains the public docket for this 
notice. Comments will become part of this docket and will be available 
for inspection or copying at room PL-401, located on the Plaza Level of 
the Nassif Building at the same address between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays. You may also access 
this docket on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For questions on this notice, contact 
Mr. Albert G. Kirchner, Jr., National Maritime Center, U.S. Coast 
Guard, 4200 Wilson Boulevard, Suite 510, Arlington, VA 22203-1804, 
telephone 703-235-1950. For questions on viewing or submitting material 
to the docket, contact Dorothy Walker, Chief, Dockets, Department of 
Transportation, telephone 202-366-9329.

SUPPLEMENTARY INFORMATION:

Request for Comments

    The Coast Guard received several requests to extend the comment 
period at the public meeting held in New Orleans in order to allow the 
public and the testing industry more opportunity to examine the issues. 
The Coast Guard encourages you to participate in this request by 
submitting written data, views, or arguments. If you submit comments, 
you should include your name and address, identify this notice (USCG-
1998-4448) and the specific section or question in this document to 
which your comments apply, and give the reason for each comment. Please 
submit all comments and attachments in an unbound format, no larger 
than 8\1/2\ by 11 inches, suitable for copying and electronic filing to 
the DOT Docket Management Facility at the address under ADDRESSES. If 
you want acknowledgment of receipt of your comments, you should enclose 
a stamped, self-addressed postcard or envelope.
    The Coast Guard will consider all comments received during the 
comment period.
    Although the Coast Guard has not scheduled another public meeting 
concerning this subject, you may request another public meeting by 
submitting a request to the address under ADDRESSES. The request should 
include the reasons why another meeting would be beneficial. If we 
determine that another public meeting should be held, we will hold the 
meeting at a time and place announced by a later notice in the Federal 
Register.

Background and Purpose

    In November 1993, we produced a focus group report, ``Licensing 
2000 and Beyond.'' This report recommended adopting new methods of 
verifying the competency of mariners in our Mariner Licensing and 
Documentation (MLD) program. The report also recommended that we 
consider employing commercial service providers that specialize in 
examination administration and testing using advanced technology. A 
copy of this report is available for inspection in the docket at the 
address listed under ADDRESSES.
    As a result of this focus group report, we published a final rule 
(61 FR 47060) on September 6, 1996, enabling us to implement 
alternative examination and evaluation systems, and to modernize our 
examination methods. As part of our considerations about developing any 
alternative examination and evaluation system, we held a public meeting 
in New Orleans, Louisiana, on October 22 and 23, 1998 which was 
announced in the Federal Register on September 21, 1998 (63 FR 50439). 
The goal of this public meeting was to help us research business issues 
and opportunities associated with employing commercial service 
providers to administer our MLD examinations (outsourcing). A summary 
of these issues is available in the docket at the address listed under 
ADDRESSES. The issues discussed at the public meeting are as follows:
    1. Feasibility of MLD outsourcing;
    2. Service possibilities and cost implications to the mariner;
    3. System integrity and privacy of records;
    4. Elements and sequencing considerations of MLD outsourcing;
    5. Options and arrangements for outsourced service delivery;
    6. Resource and oversight requirements;
    7. Experience of other agencies and professional organizations; and
    8. Valuable lessons of others.

Definitions

    The following definitions should help you review this notice and 
provide comments.
    Fourth Party means someone, other than the Coast Guard or 
designated Third Party, who administers an examination or makes an 
objective judgement about the competency of mariners.
    Outsourcing means using the private sector to deliver certain 
services or functions for the government, with some degree of 
government involvement.
    Privatization means a complete transfer of a government service or 
function to the private sector without further involvement of the 
government.
    Third Party means someone, other than the Coast Guard, who trains 
or teaches mariners.
    Since the publication of the original notice requesting comments on 
using commercial service providers to administer MLD examinations, the 
direction of this type of examination process has evolved. The process 
we now envision is more accurately termed ``outsourcing.'' The original 
MLD notice and the supporting documents located in the docket use the 
term ``privatization.'' Since we plan maintaining the examination 
database and developing and implementing an oversight mechanism to 
ensure the

[[Page 1647]]

integrity of the examination system and private records, this and any 
future publications on this topic will use the term ``outsourcing'' 
instead of ``privatization.''

Issues and Questions

    We are seeking information that will help us consider whether 
outsourcing examinations in our MLD program is feasible and what other 
alternatives are available. Any comments, concerns, issues, and written 
data should address the business aspects of outsourced examination 
systems. We encourage you to review the supporting documents and past 
written comments to help you in submitting comments. The documents and 
comments are located in the docket at the address listed under 
ADDRESSES.
    Please submit any comments, information, or data to the docket at 
the address under ADDRESSES.
    The Coast Guard needs feedback on the following issues:
    1. Feasibility of MLD outsourcing. Before we can decide whether or 
not to implement an outsourced examination system, we need to determine 
its feasibility and if it's in the best interest of both the Coast 
Guard and mariners. The core business information we presented at the 
public meeting in New Orleans is available for review in the docket and 
will help commercial service providers to determine whether the 
administration of MLD examinations is a potentially attractive business 
opportunity. We are seeking information from commercial service 
providers in the training industry about the levels of automation they 
would employ for such a system, and their ability to provide quality 
services to mariners that are affordable, yet profitable.
     Is outsourcing mariner licensing and documentation 
examinations feasible and profitable for commercial service providers?
     What is the most efficient way to transition from the 
current system to an outsourced system?
    2. Service possibilities and cost implications to the mariner. We 
are seeking information and cost estimates from the commercial training 
and examination industry.
     How could better, more responsive examinations systems be 
delivered to mariners?
     How are the costs for outsourcing examination systems 
determined?
     What are the three greatest factors affecting cost?
     What are the ``break even'' points associated with these 
cost estimates?
    3. System integrity and privacy of records. One of our primary 
concerns about outsourcing our MLD examinations is the potential for 
compromising the integrity of our current system. Another significant 
concern is maintaining the highest level of protection of private 
information and records.
     What capabilities do commercial service providers have to 
ensure the integrity of the examination system and private records?
     How do you address similar concerns with your current 
clientele?
    4. Elements and sequencing considerations of MLD outsourcing. Since 
the core MLD activity we would outsource is the conducting of the 
actual licensing and documentation examinations, we are seeking 
information about the timing and sequence for implementing an 
outsourced examination system.
     How do commercial providers implement an outsourced 
examination system?
     How long would the transition take?
     What staff training is required?
     What site preparations are necessary?
     How would the new examination system interface with our 
random examination generating capability?
    5. Options and arrangements for outsourced service delivery. There 
are a number of possible ways we can structure our outsourced MLD 
examination system. These possibilities, each with their own advantages 
and disadvantages, are as follows:
     Awarding competitive no-cost contracts to a single, 
nation-wide provider;
     Awarding a competitive no-cost contract to an unlimited 
number of ``qualified'' service providers;
     Allowing the current Regional Examination Centers (RECs) 
to operate as Government-owned, Contractor-operated (GO-CO) facilities, 
or to convert entirely to Contractor-owned, Contractor-operated (CO-CO) 
facilities; or
     Expanding our present training course instead of 
examination program until mariners can obtain every Coast Guard license 
and document through this program. For more information regarding this 
program please see 46 CFR part 10.
    We are seeking information about range of options and arrangements 
available for outsourced examination systems.
    6. Resource and oversight requirements. Before we decide if 
outsourcing our MLD examinations adds value to our program, we must 
weigh the costs against the benefits. Outsourcing the MLD examinations 
would shift many of our current costs to the commercial service 
provider(s), causing us to reconfigure our remaining costs. One of our 
remaining costs would come from developing and maintaining an active 
and effective oversight mechanism to ensure the integrity and security 
of the examination system and private records. We need to learn more 
about how commercial service providers determine the resources we would 
need to conduct oversight of an outsourced examinations system.
     What considerations should we take into account in 
developing an oversight mechanism for an outsourced examination system?
     What resources would we need to implement an oversight 
mechanism?
    7. Experience of other agencies and professional organizations. We 
are seeking views and information from other agencies that currently 
outsource an examination system for critical professional examinations. 
We are also interested in learning information from those who have 
helped others successfully put these types of systems in place.
    8. Valuable lessons of others. Finally, we would like to hear from 
anyone who is willing to share ``lessons learned'' in making the 
decision whether or not to outsource a professional qualifications or 
competency system similar to our MLD licensing and documentation 
examinations.
     What is the most effective way to make cost calculations 
and comparisons of outsourced examinations systems?
     What contractual provisions and specifications should we 
consider if we decide to outsource the MLD examinations?
     What information should we consider in developing and 
implementing audit and oversight mechanisms?
     What type of quality control techniques and performance 
metrics have proven most reliable in an outsourced examination system?

    Dated: January 4, 1999.
Joseph J. Angelo,
Director of Standards, Acting Assistant Commandant for Marine Safety 
and Environmental Protection.
[FR Doc. 99-537 Filed 1-8-99; 8:45 am]
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