10440 Federal Register / Vol. 86, No. 33 / Monday, February 22, 2021 / Rules and Regulations 

180 as well as individual Federal agency 

suspension and debarment regulations 

in title 2 of the Code of Federal 

Regulations. 

* * * * * 

■ 9. In § 200.318, revise paragraph (e) to 

read as follows: 

§ 200.318 General Procurement standards. 

* * * * * 

(e) To foster greater economy and 

efficiency, and in accordance with 

efforts to promote cost-effective use of 

shared services across the Federal 

Government, the non-Federal entity is 

encouraged to enter into state and local 

intergovernmental agreements or interentity agreements where appropriate for 

procurement or use of common or 

shared goods and services. Competition 

requirements will be met with 

documented procurement actions using 

strategic sourcing, shared services, and 

other similar procurement 

arrangements. 

* * * * * 

■ 10. In § 200.332, revise paragraph 

(d)(4) to read as follows: 

§ 200.332 Requirements for pass-through 

entities. 

* * * * * 

(d) * * * 

(4) The pass-through entity is 

responsible for resolving audit findings 

specifically related to the subaward and 

not responsible for resolving 

crosscutting findings. If a subrecipient 

has a current Single Audit report posted 

in the Federal Audit Clearinghouse and 

has not otherwise been excluded from 

receipt of Federal funding (e.g., has been 

debarred or suspended), the passthrough entity may rely on the 

subrecipient’s cognizant audit agency or 

cognizant oversight agency to perform 

audit follow-up and make management 

decisions related to cross-cutting 

findings in accordance with section 

§ 200.513(a)(3)(vii). Such reliance does 

not eliminate the responsibility of the 

pass-through entity to issue subawards 

that conform to agency and awardspecific requirements, to manage risk 

through ongoing subaward monitoring, 

and to monitor the status of the findings 

that are specifically related to the 

subaward. 

* * * * * 

■ 11. In § 200.416, revise paragraph (c) 

to read as follows: 

§ 200.416 Cost allocation plans and 

indirect cost proposals. 

* * * * * 

(c) The requirements for development 

and submission of cost allocation plans 

(for central service costs and public 

assistance programs) and indirect cost 

rate proposals are contained in 

appendices V, VI and VII to this part. 

* * * * * 

■ 12. In § 200.509, revise paragraph (a) 

to read as follows: 

§ 200.509 Auditor selection. 

(a) Auditor procurement. In procuring 

audit services, the auditee must follow 

the procurement standards prescribed 

by the Procurement Standards in 

§§ 200.317 through 200.327 of subpart D 

of this part or the FAR (48 CFR part 42), 

as applicable. In requesting proposals 

for audit services, the objectives and 

scope of the audit must be made clear 

and the non-Federal entity must request 

a copy of the audit organization’s peer 

review report which the auditor is 

required to provide under GAGAS. 

Factors to be considered in evaluating 

each proposal for audit services include 

the responsiveness to the request for 

proposal, relevant experience, 

availability of staff with professional 

qualifications and technical abilities, 

the results of peer and external quality 

control reviews, and price. Whenever 

possible, the auditee must make positive 

efforts to utilize small businesses, 

minority-owned firms, and women’s 

business enterprises, in procuring audit 

services as stated in § 200.321, or the 

FAR (48 CFR part 42), as applicable. 

* * * * * 

■ 13. In § 200.514, revise paragraph 

(c)(4) to read as follow: 

§ 200.514 Scope of audit. 

* * * * * 

(c) * * * 

(4) When internal control over some 

or all of the compliance requirements 

for a major program are likely to be 

ineffective in preventing or detecting 

noncompliance, the planning and 

performing of testing described in 

paragraph (c)(3) of this section are not 

required for those compliance 

requirements. However, the auditor 

must report a significant deficiency or 

material weakness in accordance with 

§ 200.516, assess the related control risk 

at the maximum, and consider whether 

additional compliance tests are required 

because of ineffective internal control. 

* * * * * 

■ 14. Revise Appendix IX to Part 200 to 

read as follows: 

Appendix IX to Part 200—Hospital Cost 

Principles 

Until such time as revised guidance is 

proposed and implemented for 

hospitals, the existing principles located 

at 45 CFR part 75 Appendix IX, entitled 

‘‘Principles for Determining Cost 

Applicable to Research and 

Development Under Grants and 

Contracts with Hospitals,’’ remain in 

effect. 

Deidre A. Harrison, 

Deputy Controller (Acting). 

[FR Doc. 2021–02969 Filed 2–19–21; 8:45 am] 

BILLING CODE 3110–01–P 

DEPARTMENT OF AGRICULTURE 

Farm Service Agency 

7 CFR Parts 761 

[Docket ID USDA–2019–0007] 

RIN 0560–AA16 

Farm Loan Programs, Debt Settlement 

AGENCY: Farm Service Agency, USDA. 

ACTION: Correcting amendments. 

SUMMARY: The Farm Service Agency 

(FSA) amended the Farm Loan Programs 

Debt Settlement regulations in through 

a final rule published in the Federal 

Register on June 17, 2020. This 

correction is to remove a certain word 

that erroneously appeared in the 

regulation. 

DATES: Effective: February 22, 2021. 

FOR FURTHER INFORMATION CONTACT: Bill 

Cobb; telephone (202) 720–4671; email: 

Bill.Cobb@usda.gov. Persons with 

disabilities who require alternative 

means for communication should 

contact the USDA Target Center at (202) 

720–2600 (voice). 

SUPPLEMENTARY INFORMATION: This 

document corrects the regulations in 7 

CFR part 761, which was implemented 

in the final rule that was published in 

the Federal Register on June 17, 2020 

(85 FR 36670–36714). This correction is 

to remove the word ‘‘or’’ at the end of 

the sentence and to end the sentence 

with a period in 7 CFR 761.403(c)(3). 

List of Subjects in 7 CFR Part 761 

Accounting, Administrative practice 

and procedure, Loan programsagriculture, Reporting and 

recordkeeping requirements, Rural 

areas. 

Accordingly, 7 CFR part 761 is 

corrected by making the following 

correcting amendment: 

PART 761—FARM LOAN PROGRAMS; 

GENERAL PROGRAM 

ADMINISTRATION 

■ 1. The authority citation for part 761 

continues to read as follows: 

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989. 


tkelley on DSKBCP9HB2PROD with RULES
Federal Register / Vol. 86, No. 33 / Monday, February 22, 2021 / Rules and Regulations 10441 

Subpart F—Farm Loan Programs Debt 

Settlement 

■ 2. Amend § 761.403 by revising 

paragraph (c)(3) to read as follows: 

§ 761.403 General. 

* * * * * 

(c) * * * 

(3) The debtor’s account is involved 

in a fiscal irregularity investigation in 

which final action has not been taken or 

the account shows evidence that a 

shortage may exist and an investigation 

will be requested. 

* * * * * 

Steven Peterson, 

Acting Administrator, Farm Service Agency. 

[FR Doc. 2021–03186 Filed 2–19–21; 8:45 am] 

BILLING CODE 3410–05–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–0459; Product 

Identifier 2020–NM–049–AD; Amendment 

39–21380; AD 2021–01–04] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all The 

Boeing Company Model 737 series 

airplanes, excluding Model 737–100, 

–200, –200C, –300, –400, and –500 

series airplanes. This AD was prompted 

by reports of cracked or completely 

severed lugs in the upper aft corner stop 

fitting assembly of the forward entry 

door. This AD requires an inspection, a 

measurement, or a records check of that 

assembly to determine the part number, 

and replacement if a certain part is 

found. The FAA is issuing this AD to 

address the unsafe condition on these 

products. 

DATES: This AD is effective March 29, 

2021. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of March 29, 2021. 

ADDRESSES: For service information 

identified in this final rule, contact 

Boeing Commercial Airplanes, 

Attention: Contractual & Data Services 

(C&DS), 2600 Westminster Blvd., MC 

110–SK57, Seal Beach, CA 90740–5600; 

telephone 562–797–1717; internet 

https://www.myboeingfleet.com. You 

may view this service information at the 

FAA, Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available on the internet at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2020–0459. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2020– 

0459; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this final rule, 

any comments received, and other 

information. The address for Docket 

Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Michael Bumbaugh, Aerospace 

Engineer, Airframe Section, FAA, 

Seattle ACO Branch, 2200 South 216th 

St., Des Moines, WA 98198; phone and 

fax: 206–231–3522; email: 

michael.bumbaugh@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all The Boeing Company Model 

737 series airplanes, excluding Model 

737–100, –200, –200C, –300, –400, and 

–500 series airplanes. The NPRM 

published in the Federal Register on 

June 3, 2020 (85 FR 34136). The NPRM 

was prompted by reports of cracked or 

completely severed lugs in the upper aft 

corner stop fitting assembly of the 

forward entry door. Analysis of the 

design of the stop fitting assembly 

revealed that undersized wall thickness 

of the lug made it susceptible to fatigue 

cracking, which may result in the 

forward entry door being unable to 

sustain limit load. In the NPRM, the 

FAA proposed to require an inspection, 

a measurement, or a records check of 

that assembly to determine the part 

number, and replacement if a certain 

part-numbered assembly is installed. 

The FAA is issuing this AD to address 

cracked or completely severed lugs, 

which could result in reduced structural 

integrity of the forward entry door and 

consequent rapid decompression of the 

airplane. 

Discussion of Final Airworthiness 

Directive 

Comments 

The FAA received comments from 

four commenters. The following 

presents the comments received on the 

NPRM and the FAA’s response to each 

comment. 

Effect of Winglets on Accomplishment 

of the Proposed Actions 

Aviation Partners Boeing stated that 

the installation of winglets per 

Supplemental Type Certificate (STC) 

ST00830SE does not affect compliance 

with the proposed actions. 

The FAA agrees that the installation 

of winglets per STC ST00830SE would 

not affect the ability to replace the 

affected stop fitting assembly with a 

newly designed stop fitting assembly as 

required by this AD. Operators of 

airplanes with these winglets do not 

need to request a ‘‘change in product’’ 

alternative method of compliance 

(AMOC) approval as specified in 14 CFR 

39.17. The FAA has redesignated 

paragraph (c) of the proposed AD as 

paragraph (c)(1) of this AD, and added 

paragraph (c)(2) accordingly. 

Request for Compliance Actions at the 

Component Level 

Southwest Airlines (SWA) asked that 

the compliance actions be reported at 

the component level due to the 

interchangeability of the forward entry 

doors between the Model 737 NG and 

737 MAX fleets. 

The FAA infers that the commenter is 

requesting that the AD’s applicability 

point towards the component parts, 

rather than the airplane. The FAA 

acknowledges that the component most 

likely to be rotated is the forward entry 

door because doors are likely removed 

with the stop fittings intact. However, 

the FAA disagrees with changing the 

applicability of this AD because the 

unsafe condition is related to the stop 

fitting assembly and an affected stop 

fitting assembly may be installed on a 

forward entry door of any airplane 

identified in paragraph (c) of this AD. In 

addition, paragraph (i) of this AD, ‘‘Parts 

Installation Prohibition,’’ states that no 

person may install a forward entry door 

that has a stop fitting assembly with part 

number (P/N) 141A6104–3 on any 

airplane. The FAA used this language 

because doors are often rotated among 

aircraft with the stop fitting assembly 

already installed. The FAA has therefore 

determined that an airplane-level 

applicability is appropriate and has not 

changed this AD in this regard. 


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