[Federal Register Volume 64, Number 231 (Thursday, December 2, 1999)]
[Rules and Regulations]
[Pages 67470-67471]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30949]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1407

RIN 0560-AF47


Debarment and Suspension

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This final rule will revise CCC's 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 
will 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.

EFFECTIVE DATE: January 3, 2000.

FOR FURTHER INFORMATION CONTACT: Sharon Hadder, Contract Management 
Branch, Farm Service Agency, telephone 202-720-3816, fax (202) 690-
1809, or e-mail to Sharon__H[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

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

Regulatory Flexibility Act

    This final rule has been reviewed with regard to the requirements 
of the Regulatory Flexibility Act.
    The Executive Vice President, CCC, has certified that this final 
rule will not have a significant economic impact on a substantial 
number of small entities. The principal regulatory change made by the 
final 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 
final 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 final rule will 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 48 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, 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

[[Page 67471]]

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 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.

Public Comments

    On December 30, 1998, the Commodity Credit Corporation (CCC) issued 
a proposed rule at 63 FR 71796. No comments were received and the rule 
will be issued without change.

List of Subjects in 7 CFR Part 1407

    Administrative practice and procedure, Government procurement, 
Grant programs.
    Accordingly, 7 CFR Ch. XIV is amended 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 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: For actions initiated on 
behalf of CCC by the Foreign Agricultural Service (FAS), the Food and 
Nutrition Service (FNS), or the Agricultural Marketing Service (AMS), 
the debarring and suspending official will be the Vice President, CCC, 
who is the Administrator FAS, FNS, or AMS, respectively. For actions 
initiated on behalf of CCC by the Natural Resources Conservation 
Service (NRCS), the official will be the Vice President, CCC, who is 
the Chief, 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, CCC, or a designee.

    Signed at Washington, DC, on November 19, 1999.
Keith Kelly,


Executive Vice President, Commodity Credit Corporation.

[FR Doc. 99-30949 Filed 12-1-99; 8:45 am]
BILLING CODE 3410-05-P