[Federal Register Volume 72, Number 22 (Friday, February 2, 2007)]
[Rules and Regulations]
[Pages 4943-4945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1419]



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 Rules and Regulations
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  Federal Register / Vol. 72, No. 22 / Friday, February 2, 2007 / Rules 
and Regulations  

[[Page 4943]]



NATIONAL SCIENCE FOUNDATION

2 CFR Chapter XXV

45 CFR Parts 620 and 689

[Docket Number: NSF-2006-OGC-0106]
RIN 3145AA47


National Science Foundation Implementation of OMB Guidance on 
Nonprocurement Debarment and Suspension

ACTION: Final rule.

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

SUMMARY: The National Science Foundation (NSF) is issuing a new part 
2520 on nonprocurement debarment and suspension in title 2 of the Code 
of Federal Regulations (CFR). This new part is NSF's implementation of 
the Office of Management and Budget's (OMB) guidance provided at 2 CFR 
part 180. In light of the new part 2520, NSF removes 45 CFR part 620, 
the part containing its implementation of the government-wide common 
rule on nonprocurement debarment and suspension. The new part in 2 CFR 
serves the same purpose as the common rule, but in a simpler way. NSF 
also is amending a provision in its research misconduct rule (45 CFR 
part 689) to update the reference to NSF's nonprocurement debarment and 
suspension regulations. This final rule is part of OMB's initiative to 
streamline and consolidate all federal regulations on nonprocurement 
debarment and suspension. It is an administrative simplification that 
makes no substantive change in NSF policy or procedures for 
nonprocurement debarment and suspension.

DATES: This final rule is effective February 2, 2007.

FOR FURTHER INFORMATION CONTACT: Eric S. Gold, Assistant General 
Counsel, Office of the General Counsel, National Science Foundation, 
telephone (703) 292-8060 and e-mail [email protected].

SUPPLEMENTARY INFORMATION: On May 11, 2004, OMB established title 2 of 
the CFR with two subtitles (69 FR 26275). Subtitle A, ``Government-wide 
Grants and Agreements,'' contains OMB policy guidance to Federal 
agencies on grants and agreements. Subtitle B, ``Federal Agency 
Regulations for Grants and Agreements,'' contains Federal agencies' 
regulations implementing the OMB guidance, as it applies to grants and 
other financial assistance agreements and nonprocurement transactions.
    On August 31, 2005, OMB published interim final guidance for 
government-wide nonprocurement debarment and suspension in the Federal 
Register (70 FR 51863). The guidance is located in title 2 of the CFR 
as new subtitle A, chapter 1, part 180. The interim final guidance 
updated previous OMB guidance that was issued pursuant to Executive 
Order 12549, ``Debarment and Suspension'' (February 18, 1996), which 
gave government-wide effect to each agency's nonprocurement debarment 
and suspension actions. Section 6 of the Executive order authorized OMB 
to issue guidance to Executive agencies on nonprocurement debarment and 
suspension, including provisions prescribing government-wide criteria 
and minimum due process procedures. Section 3 directed Executive 
agencies to issue regulations implementing the Executive order that are 
consistent with the OMB guidelines. The interim final guidance at 2 CFR 
part 180 conforms the OMB guidance with the Federal agencies' November 
26, 2003, update to the common rule on nonprocurement debarment and 
suspension (see 70 FR 51864). On November 15, 2006, OMB published a 
final rule adopting the interim final guidance with changes (71 FR 
66431).
    In accordance with OMB's guidance, this final rule places NSF's 
nonprocurement debarment regulations in subtitle B of title 2 of the 
CFR, along with other agencies' nonprocurement debarment and suspension 
rules. The new CFR part 2520 adopts the OMB guidelines with the same 
additions and clarifications that NSF made to the common rule on 
nonprocurement suspension and debarment in November 2003 [68 FR 66633]. 
The substance of NSF's nonprocurement debarment and suspension 
regulations is unchanged. In light of the new part 2520, NSF is 
removing 45 CFR part 620, which is the current location for NSF's 
nonprocurement debarment and suspension regulations. NSF is also 
amending a provision in its research misconduct rule (45 CFR part 689) 
to update the reference to NSF's nonprocurement debarment and 
suspension regulations.

Executive Order 12866

    OMB has determined this rule to be nonsignificant.

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 2520

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

45 CFR Part 620

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

45 CFR Part 689

    Research misconduct.

[[Page 4944]]


0
Accordingly, under the authority of 42 U.S.C. 1870, NSF amends the Code 
of Federal Regulations, Title 2, Subtitle B, and Title 45, Chapter VI, 
as follows:

Title 2--Grants and Agreements

0
1. Add Chapter XXV, consisting of Part 2520 to Subtitle B to read as 
follows:

Chapter XXV--NATIONAL SCIENCE FOUNDATION

PART 2520--NONPROCUREMENT DEBARMENT AND SUSPENSION

SEC.
2520.10 What does this part do?
2520.20 Does this part apply to me?
2520.30 What policies and procedures must I follow?
Subpart A--General
2520.137 Who in NSF may grant an exception to let an excluded person 
participate in a covered transaction?
Subpart B--Covered Transactions
2520.220 What contracts and subcontracts, in addition to those 
listed in 2 CFR 180.220, are covered transactions?
Subpart C--Responsibilities of Participants Regarding Transactions
2520.332 What methods must I use to pass requirements down to 
participants at lower tiers with whom I intend to do business?
Subpart D--Responsibilities of Federal Agency Officials Regarding 
Transactions
2520.437 What method do I use to communicate to a participant the 
requirements described in the OMB guidance at 2 CFR 180.435?
Subparts E-I [Reserved]

    Authority: 42 U.S.C. 1870(a); 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.


Sec.  2520.10  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 NSF policies and procedures for nonprocurement debarment 
and suspension. It thereby gives regulatory effect for NSF 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, Public Law 103-355, 108 Stat. 3327).


Sec.  2520.20  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 180 (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 an NSF suspension or debarment action.
    (c) NSF debarment or suspension official.
    (d) NSF grants officer, agreements officer, or other official 
authorized to enter into any type of nonprocurement transaction that is 
a covered transaction.


Sec.  2520.30  What policies and procedures must I follow?

    The NSF 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.  2520.220). For 
any section of OMB guidance in Subparts A through I of 2 CFR 180 that 
has no corresponding section in this part, NSF policies and procedures 
are those in the OMB guidance.

Subpart A--General


Sec.  2520.137  Who in NSF may grant an exception to let an excluded 
person participate in a covered transaction?

    The NSF Director and the Deputy Director have the authority to 
grant an exception to let an excluded person participate in a covered 
transaction.

Subpart B--Covered Transactions


Sec.  2520.220  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), NSF does not extend coverage of 
nonprocurement suspension and debarment requirements beyond first-tier 
procurement contracts under a covered nonprocurement transaction.

Subpart C--Responsibilities of Participants Regarding Transactions


Sec.  2520.332  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, as supplemented by this subpart.

Subpart D--Responsibilities of Federal Agency Officials Regarding 
Transactions


Sec.  2520.437  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 must include a term or condition in 
the transaction that requires the participant's compliance with subpart 
C of 2 CFR part 180, as supplemented by Subpart C of this part, and 
requires the participant to include a similar term or condition in 
lower-tier covered transactions.

Subparts E-I [Reserved]

Title 45--Public Welfare

CHAPTER VI--NATIONAL SCIENCE FOUNDATION

PART 620--[REMOVED]

0
2. Under the authority of 42 U.S.C. 1870(a); Sec. 2455, Pub. L. 103-
355, 108 Stat. 3327 (31 U.S.C. 6101 note); E.O. 12549 (3 CFR, 1986 
Comp., p. 189); E.O. 12689 (3 CFR, 1989 Comp., p. 235) part 620 is 
removed.

PART 689--[AMENDED]

0
3. The authority citation for part 689 continues to read as follows:

    Authority: 42 U.S.C. 1870(a).

0
4. Section 689.8 is amended by revising paragraph (b) to read as 
follows:


Sec.  689.8  Interim Administrative Actions

* * * * *
    (b) When suspension is determined to be appropriate, the case will 
be referred to the suspending official pursuant to 2 CFR Part 180, and 
the suspension procedures of 2 CFR Part 180 will be followed, but the 
suspending official will be either the Deputy Director or an official 
designated by the Deputy Director.

0
5. Section 689.9 is amended by revising paragraph (c)(1) introductory 
text to read as follows:

[[Page 4945]]

Sec.  689.9  Dispositions

    (c) * * *
    (1) In cases in which debarment is considered by OIG to be an 
appropriate disposition, the case will be referred to the debarring 
official pursuant to 2 CFR part 180 and the procedures of 2 CFR part 
180 will be followed, but:
* * * * *

Lawrence Rudolph,
General Counsel.
[FR Doc. E7-1419 Filed 2-1-07; 8:45 am]
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