[Federal Register Volume 71, Number 225 (Wednesday, November 22, 2006)]
[Rules and Regulations]
[Pages 67431-67432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-9369]



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 Rules and Regulations
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  Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / 
Rules and Regulations  

[[Page 67431]]


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PEACE CORPS

2 CFR Part 3700

22 CFR Part 310

RIN 04420-AA19


Peace Corps Implementation of OMB Guidance on Nonprocurement 
Debarment and Suspension

AGENCY: Peace Corps.

ACTION: Direct final rule.

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SUMMARY: The Peace Corps is establishing a new Part 3700 in 2 CFR that 
adopts the Office of Management and Budget's (OMB's) guidance in 2 CFR 
Part 180, as supplemented by this new part, as Peace Corps policies and 
procedures for nonprocurement debarment and suspension. The Peace Corps 
is also removing 22 CFR Part 310, the part containing the Peace Corps 
implementation of the government-wide common rule on nonprocurement 
debarment and suspension. 2 CFR Part 3700 would serve the same purpose 
as the common rule in a simpler way. These changes constitute an 
administrative simplification that would make no substantive change in 
Peace Corps policy or procedures for nonprocurement debarment and 
suspension.

DATES: This final rule is effective on January 8, 2007 without further 
action, unless adverse comment is received by Peace Corps by December 
22, 2006. If adverse comment is received, Peace Corps will publish a 
timely withdrawal of the rule in the Federal Register.

ADDRESSES: You may submit comments by e-mail to [email protected]. 
Include RIN 0420-AA19 in the subject line of the message. You may also 
submit comments by mail to Nancy G. Miller, Office of the General 
Counsel, Peace Corps, Suite 8200, 1111 20th Street, NW., Washington, DC 
20526. Contact Nancy G. Miller for copies of comments.

FOR FURTHER INFORMATION CONTACT: Nancy G. Miller, Associate General 
Counsel, 202-692-2150, [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Peace Corps' current regulation on nonprocurement suspension and 
debarment is found in 22 CFR Part 310. This regulation is Peace Corps' 
promulgation of the government-wide ``common rule'' on this subject 
issued November 26, 2003 (68 FR 66586).
    On August 31, 2005, the Office of Management and Budget (OMB) 
issued interim final guidance for government-wide nonprocurement 
suspension and debarment (70 FR 51863). This guidance, located in 2 CFR 
Part 180, is substantively the same as the common rule, but is 
published in a form that each agency can adopt, thus eliminating the 
need for each agency to publish its separate version of the same rule. 
It also facilitates the ability to update government-wide requirements 
without each agency having to re-promulgate its own rules.
    The Peace Corps is therefore establishing new 2 CFR Part 3700, 
which adopts as its regulation the OMB guidance set forth in 2 CFR Part 
180 as supplemented with the few required agency-specific provisions. 
Current 22 CFR Part 310 is being removed.
    No substantive change in Peace Corps' nonprocurement suspension and 
debarment regulation is intended by these actions.

Executive Order 12866

    OMB has determined this rule to be not significant.

Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b))

    This regulatory action will not have a significant adverse impact 
on a substantial number of small entities.

Unfunded Mandates Act of 1995 (Sec. 202, Pub. L. 104-4)

    This regulatory action does not contain a Federal mandate that will 
result in the expenditure by State, local, and tribal governments, in 
aggregate, or by the private sector of $100 million or more in any one 
year.

Paperwork Reduction Act of 1995 (44 U.S.C., Chapter 35)

    This regulatory action will not impose any additional reporting or 
recordkeeping requirements under the Paperwork Reduction Act.

Federalism (Executive Order 13132)

    This regulatory action does not have Federalism implications, as 
set forth in Executive Order 13132. It will not have substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.

List of Subjects

2 CFR Part 3700

    Administrative practice and procedure, Debarment and suspension, 
Grant programs, Reporting and recordkeeping requirements.

22 CFR Part 310

    Administrative practice and procedure, Government contracts, Grant 
programs, Loan programs, Reporting and recordkeeping requirements, 
Technical assistance.

0
Accordingly, under the authority of 22 U.S.C. 2503(b), Peace Corps 
amends the Code of Federal Regulations, Title 2, Subtitle B, and Title 
22, Chapter III, as follows:

Title 2--Grants and Agreements

0
1. Add Chapter 37, consisting of Part 3700, to Subtitle B to read as 
follows:

Chapter 37--Peace Corps

PART 3700--NONPROCUREMENT DEBARMENT AND SUSPENSION

Sec.
3700.10 What does this part do?
3700.20 Does this part apply to me?
3700.30 What policies and procedures must I follow?
3700.137 Who in the Peace Corps may grant an exception to let an 
excluded person participate in a covered transaction?
3700.220 What contracts and subcontracts, in addition to those 
listed in 2 CFR 180.220, are covered transactions?
3700.332 What methods must I use to pass requirements down to 
participants at lower tiers with whom I intend to do business?
3700.437 What method do I use to communicate to a participant the 
requirements described in the OMB guidance at 2 CFR 180.435?


[[Page 67432]]


    Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 
12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 
235; 22 U.S.C. 2503(b).


Sec.  3700.10  What does this part do?

    This part adopts the Office of Management and Budget (OMB) guidance 
in Subparts A through I of 2 CFR part 180, as supplemented by this 
part, as the Peace Corps policies and procedures for nonprocurement 
debarment and suspension. It thereby gives regulatory effect for the 
Peace Corps to the OMB guidance as supplemented by this part. This part 
satisfies the requirements in section 3 of Executive Order 12549, 
``Debarment and Suspension'' (3 CFR 1986 Comp., p. 189), Executive 
Order 12689, ``Debarment and Suspension'' (3 CFR 1989 Comp., p. 235) 
and 31 U.S.C. 6101 note (Section 2455, Pub. L. 103-355, 108 Stat. 
3327).


Sec.  3700.20  Does this part apply to me?

    This part and, through this part, pertinent portions of the OMB 
guidance in Subparts A through I of 2 CFR part (see table at 2 CFR 
180.100(b)) apply to you if you are a--
    (a) Participant or principal in a ``covered transaction'' (see 
Subpart B of 2 CFR part 180 and the definition of ``nonprocurement 
transaction'' at 2 CFR 180.970);
    (b) Respondent in a Peace Corps suspension or debarment action;
    (c) Peace Corps debarment or suspension official; or
    (d) Peace Corps grants officer, agreements officer, or other 
official authorized to enter into any type of nonprocurement 
transaction that is a covered transaction.


Sec.  3700.30  What policies and procedures must I follow?

    The Peace Corps policies and procedures that you must follow are 
the policies and procedures specified in each applicable section of the 
OMB guidance in Subparts A through I of 2 CFR part 180, as that section 
is supplemented by the section in this part with the same section 
number. The contracts that are covered transactions, for example, are 
specified by section 220 of the OMB guidance (i.e., 2 CFR 180.220) as 
supplemented by section 220 in this part (i.e., Sec.  3700.220). For 
any section of OMB guidance in Subparts A through I of 2 CFR 180 that 
has no corresponding section in this part, Peace Corps policies and 
procedures are those in the OMB guidance.


Sec.  3700.137  Who in the Peace Corps may grant an exception to let an 
excluded person participate in a covered transaction?

    The Director of the Peace Corps has the authority to grant an 
exception to let an excluded person participate in a covered 
transaction, as provided in the OMB guidance at 2 CFR 180.135.


Sec.  3700.220  What contracts and subcontracts, in addition to those 
listed in 2 CFR 180.220, are covered transactions?

    Although the OMB guidance at 2 CFR 180.220(c) allows a Federal 
agency to do so (also see optional lower tier coverage in the figure in 
the Appendix to 2 CFR part 180), Peace Corps does not extend coverage 
of nonprocurement suspension and debarment requirements beyond first-
tier procurement contracts under a covered nonprocurement transaction.


Sec.  3700.332  What methods must I use to pass requirements down to 
participants at lower tiers with whom I intend to do business?

    You as a participant must include a term or condition in lower-tier 
transactions requiring lower-tier participants to comply with Subpart C 
of the OMB guidance in 2 CFR part 180.


Sec.  3700.437  What method do I use to communicate to a participant 
the requirements described in the OMB guidance at 2 CFR 180.435?

    To communicate to a participant the requirements described in 2 CFR 
180.435 of the OMB guidance, you as an agency official must include a 
term or condition in the transaction that requires the participant's 
compliance with subpart C of 2 CFR part 180, and requires the 
participant to include a similar term or condition in lower-tier 
covered transactions.

Title 22--Foreign Relations

Chapter III--Peace Corps

0
2. Remove Part 310.

    Dated: November 6, 2006.
Suzanne B. Glasow,
Acting General Counsel.
[FR Doc. 06-9369 Filed 11-21-06; 8:45 am]
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