[Federal Register Volume 84, Number 235 (Friday, December 6, 2019)]
[Notices]
[Pages 66871-66873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26326]


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DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

[Docket Number FSIS-2019-0027]


2020 Rate Changes for the Basetime, Overtime, Holiday, and 
Laboratory Services Rates

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Notice.

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SUMMARY:  The Food Safety and Inspection Service (FSIS) is announcing 
the 2020 rates it will charge meat and poultry establishments, egg 
products plants, and importers and exporters for providing voluntary, 
overtime, and holiday inspection and identification, certification, and 
laboratory services. The 2020 basetime, overtime, holiday, and 
laboratory services rates will be applied on January 5, 2020.

DATES: FSIS will charge the rates announced in this notice beginning 
January 5, 2020.

FOR FURTHER INFORMATION CONTACT: For further information contact 
Michael Toner, Director, Budget Division, Office of the Chief Financial 
Officer, FSIS, U.S. Department of Agriculture, Room 2159, South 
Building, 1400 Independence Avenue SW, Washington, DC 20250-3700; 
Telephone: (202) 690-8398, Fax: (202) 690-4155.

SUPPLEMENTARY INFORMATION: 

Background

    On April 12, 2011, FSIS published a final rule amending its 
regulations to establish formulas for calculating the rates it charges 
meat and poultry establishments, egg products plants, and importers and 
exporters for providing voluntary, overtime, and holiday inspection and 
identification, certification, and laboratory services (76 FR 20220).
    In the final rule, FSIS stated that it would use the formulas to 
calculate the annual rates, publish the rates in Federal Register 
notices prior to the start of each calendar year, and apply the rates 
on the first FSIS pay period at the beginning of the calendar year.
    This notice provides the 2020 rates, which will be applied starting 
on January 5, 2020.

2020 Rates and Calculations

    The following table lists the 2020 Rates per hour, per employee, by 
type of service:

------------------------------------------------------------------------
                                                             2020 rate
                                                            (estimates
                                                            rounded to
                         Service                              reflect
                                                             billable
                                                             quarters)
------------------------------------------------------------------------
Basetime................................................          $64.84
Overtime................................................           79.88
Holiday.................................................           94.88
Laboratory..............................................           82.32
------------------------------------------------------------------------

    The regulations state that FSIS will calculate the rates using 
formulas that include the Office of Field Operations (OFO) inspection 
program personnel's previous fiscal year's regular direct pay and 
regular hours (9 CFR 391.2, 391.3, 391.4, 590.126, 590.128, 592.510, 
592.520, and 592.530). In 2013, an Agency reorganization eliminated the 
Office of International Affairs program office and transferred all of 
its inspection program personnel to OFO. Therefore, inspection program 
personnel's pay and hours are identified

[[Page 66872]]

in the calculations as ``OFO inspection program personnel's'' pay and 
hours.
    FSIS determined the 2020 rates using the following calculations:
    Basetime Rate = The quotient of dividing the OFO inspection program 
personnel's previous fiscal year's regular direct pay by the previous 
fiscal year's regular hours, plus the quotient multiplied by the 
calendar year's percentage of cost of living increase, plus the 
benefits rate, plus the travel and operating rate, plus the overhead 
rate, plus the allowance for bad debt rate.
    The calculation for the 2020 basetime rate per hour per program 
employee is:
    [FY 2019 OFO Regular Direct Pay divided by the previous fiscal 
year's Regular Hours ($431,891,249/14,748,261)] = $29.28 + ($29.28 * 
2.6% (calendar year 2020 Cost of Living Increase)) = $30.05 + $10.38 
(benefits rate) + $2.49 (travel and operating rate) + $21.92 (overhead 
rate) + $0.02 (bad debt allowance rate) = $64.84, which is already 
divisible by 4.
    Overtime Rate = The quotient of dividing the OFO inspection program 
personnel's previous fiscal year's regular direct pay by the previous 
fiscal year's regular hours, plus that quotient multiplied by the 
calendar year's percentage of cost of living increase, multiplied by 
1.5 (for overtime), plus the benefits rate, plus the travel and 
operating rate, plus the overhead rate, plus the allowance for bad debt 
rate.
    The calculation for the 2020 overtime rate per hour per program 
employee is:
    [FY 2019 OFO Regular Direct Pay divided by previous fiscal year's 
Regular Hours ($431,891,249/14,748,261)] = $29.28 + ($29.28 * 2.6% 
(calendar year 2020 Cost of Living Increase)) = $30.05 * 1.5 = $45.07 + 
$10.38 (benefits rate) + $2.49 (travel and operating rate) + $21.92 
(overhead rate) + $0.02 (bad debt allowance rate) = $79.86 rounded up 
to $79.88, so that it is divisible by 4.
    Holiday Rate = The quotient of dividing the OFO inspection program 
personnel's previous fiscal year's regular direct pay by the previous 
fiscal year's regular hours, plus that quotient multiplied by the 
calendar year's percentage of cost of living increase, multiplied by 2 
(for holiday pay), plus the benefits rate, plus the travel and 
operating rate, plus the overhead rate, plus the allowance for bad debt 
rate.
    The calculation for the 2020 holiday rate per hour per program 
employee calculation is:
    [FY 2019 OFO Regular Direct Pay divided by Regular Hours 
($431,891,249/14,748,261)] = $29.28 + ($29.28 * 2.6% (calendar year 
2019 Cost of Living Increase)) = $30.05 * 2 = $60.09 + $10.38 (benefits 
rate) + $2.49 (travel and operating rate) + $21.92 (overhead rate) + 
$0.02 (bad debt allowance rate) = $94.88, which is already divisible by 
4.
    Laboratory Services Rate = The quotient of dividing the Office of 
Public Health Science's (OPHS's) previous fiscal year's regular direct 
pay by the OPHS previous fiscal year's regular hours, plus the quotient 
multiplied by the calendar year's percentage cost of living increase, 
plus the benefits rate, plus the travel and operating rate, plus the 
overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2020 laboratory services rate per hour per 
program employee is:
    [FY 2019 OPHS Regular Direct Pay/OPHS Regular hours ($22,973,965/
496,184)] = $46.30 + ($46.30 * 2.6% (calendar year 2020 Cost of Living 
Increase)) = $47.51 + $10.38 (benefits rate) + $2.49 (travel and 
operating rate) + $21.92 (overhead rate) + $0.02 (bad debt allowance 
rate) = $82.30, rounded up to 82.32, so that it is divisible by 4.

Calculations for the Benefits, Travel and Operating, Overhead, and 
Allowance for Bad Debt Rates

    These rates are components of the basetime, overtime, holiday, and 
laboratory services rates formulas.
    Benefits Rate: The quotient of dividing the previous fiscal year's 
direct benefits costs by the previous fiscal year's total hours 
(regular, overtime, and holiday), plus that quotient multiplied by the 
calendar year's percentage cost of living increase. Some examples of 
direct benefits are health insurance, retirement, life insurance, and 
Thrift Savings Plan basic and matching contributions.
    The calculation for the 2020 benefits rate per hour per program 
employee is:
    [FY 2019 Direct Benefits/(Total Regular hours + Total Overtime 
hours + Total Holiday hours) ($184,242,174/18,205,950)] = $10.12 + 
($10.12 * 2.6% (calendar year 2019 Cost of Living Increase)) = $10.38.
    Travel and Operating Rate: The quotient of dividing the previous 
fiscal year's total direct travel and operating costs by the previous 
fiscal year's total hours (regular, overtime, and holiday), plus that 
quotient multiplied by the calendar year's percentage of inflation.
    The calculation for the 2020 travel and operating rate per hour per 
program employee is:
    [FY 2019 Total Direct Travel and Operating Costs/(Total Regular 
hours + Total Overtime hours + Total Holiday hours) ($44,335,973/
18,205,950)] = $2.44 + ($2.44 * 2.3% (2020 Inflation) = $2.49.
    Overhead Rate: The quotient of dividing the previous fiscal year's 
indirect costs plus the previous fiscal year's information technology 
(IT) costs in the Public Health Data Communication Infrastructure 
System Fund plus the provision for the operating balance less any 
Greenbook costs (i.e., costs of USDA support services prorated to the 
service component for which fees are charged) that are not related to 
food inspection by the previous fiscal year's total hours (regular, 
overtime, and holiday) worked across all funds, plus the quotient 
multiplied by the calendar year's percentage of inflation.
    The calculation for the 2020 overhead rate per hour per program 
employee is:
    [FY 2019 Total Overhead/(Total Regular hours + Total Overtime hours 
+ Total Holiday hours) ($ 390,080,911/18,205,950)] = $21.43 + ($21.43 * 
2.3% (2019 Inflation) = $21.92.
    Allowance for Bad Debt Rate = Previous fiscal year's total 
allowance for bad debt (for example, debt owed that is not paid in full 
by plants and establishments that declare bankruptcy) divided by 
previous fiscal year's total hours (regular, overtime, and holiday) 
worked.
    The 2020 calculation for bad debt rate per hour per program 
employee is:
    [FY 2019 Total Bad Debt/(Total Regular hours + Total Overtime hours 
+ Total Holiday hours) = ($317,344/18,205,950)] = $0.02.

Additional Public Notification

    FSIS will make copies of this Federal Register publication 
available through the FSIS Constituent Update, which is used to provide 
information regarding FSIS policies, procedures, regulations, Federal 
Register notices, FSIS public meetings, and other types of information 
that could affect or would be of interest to our constituents and 
stakeholders. The Constituent Update is available on the FSIS web page. 
Through the web page, FSIS can provide information to a much broader, 
more diverse audience. In addition, FSIS offers an email subscription 
service which provides automatic and customized access to selected food 
safety news and information. This service is available at: http://www.fsis.usda.gov/subscribe. Options range from recalls to export 
information, regulations, directives, and notices. Customers can add or 
delete subscriptions themselves and have the option to password protect 
their accounts.

[[Page 66873]]

USDA Non-Discrimination Statement

    No agency, officer, or employee of the USDA shall, on the grounds 
of race, color, national origin, religion, sex, gender identity, sexual 
orientation, disability, age, marital status, family/parental status, 
income derived from a public assistance program, or political beliefs, 
exclude from participation in, deny the benefits of, or subject to 
discrimination any person in the United States under any program or 
activity conducted by the USDA.

How To File a Complaint of Discrimination

    To file a complaint of discrimination, complete the USDA Program 
Discrimination Complaint Form, which may be accessed online at http://www.ocio.usda.gov/sites/default/files/docs/2012/Complain_combined_6_8_12.pdf, or write a letter signed by you or your 
authorized representative.
    Send your completed complaint form or letter to USDA by mail, fax, 
or email:
    Mail: U.S. Department of Agriculture, Director, Office of 
Adjudication, 1400 Independence Avenue SW, Washington, DC 20250-9410, 
Fax: (202) 690-7442, Email: [email protected].
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audiotape, etc.), should contact 
USDA's TARGET Center at (202) 720-2600 (voice and TDD).

    Done at Washington, DC.
Carmen Rottenberg,
Administrator.
[FR Doc. 2019-26326 Filed 12-5-19; 8:45 am]
 BILLING CODE 3410-DM-P