Federal Register / Vol. 65, No. 87 / Thursday, May 4, 2000 / Notices 25967

1999, OMB stated that the statutory 30-

day and 28-day challenge and challenge

response periods would be calendar

days, while the 10-day appeal period

would be working days. OMB is aware

that the 30-day deadline for filing

challenges was very difficult to meet in

1999. Appendix 2, paragraph g.3., of the

Revised Supplemental Handbook is,

therefore, revised to reflect 30-working

days. Appendix 2, paragraph g.4., is also

changed to reflect 28-working days.

Concern has been expressed that Part

1, Chapter 3, paragraph K.1.e., may be

in conflict with the statement at Part 1,

Chapter 3, paragraph K.7., that provides

that sequential administrative cost

comparison appeals are not authorized.

It is OMB’s view that all concerns

regarding the conduct of a cost

comparison should be brought forward

to the designated appeal authority

within the single appeal period.

Therefore, to ensure that all relevant

concerns with the conduct of a cost

comparison are brought forward, Part 1,

Chapter 3, paragraph K.1.e. is hereby

voided.

And finally, OMB has been concerned

that the use of Federal employees on

Source Selection Teams, when those

employees are subject to losing their

jobs or otherwise being adversely

affected by the award of the contract

being reviewed by that Source Selection

Team, is a poor business practice. OMB

is also concerned that such a practice

puts certain important skills that are

developed by participating on a Source

Selection Team at Risk. Therefore, OMB

revises Part 1, Chapter 3 paragraph H.

3.b. of the Revised Supplemental

Handbook as follows:

b. ‘‘The Government should establish

a source selection evaluation or

advisory team. Individuals who hold

positions in the function under study

should not be members of the team,

unless an exception is authorized by the

head of the contracting activity.

Exceptions will be authorized only in

compelling circumstances and, in such

cases, the head of the contracting

activity shall provide a written

statement of the reasons for the action.

As a result, OMB has decided to

strengthen its long standing policy

limiting such participation, as a better

business practice. Individuals who hold

positions in an A–76 study should not

be members of the Source Selection

Team, unless an exception is authorized

by the head of the contracting activity.

Exceptions may be authorized only in

compelling circumstances and, in such

cases, the head of the contracting

activity will provide a written statement

of the reasons for the action.’’

All changes in this Transmittal

Memorandum are effective immediately

and shall apply to all cost comparisons

in process where the Government’s inhouse cost estimate has not been

publicly revealed before this date.

Current A–76 guidance can be accessed

at OMB’s homepage at http://

www.whitehouse.gov/OMB/circulars/

index.html#numerical.

Sylvia M. Mathews,

Deputy Director.

[FR Doc. 00–11155 Filed 5–3–00; 8:45 am]

BILLING CODE 3110–01–P

OFFICE OF MANAGEMENT AND

BUDGET

Issuance of Transmittal Memorandum

No. 21 Amending OMB Circular No. A–

76, ‘‘Performance of Commercial

Activities’’

AGENCY: Office of Management and

Budget, Executive Office of the

President.

ACTION: Issuance of Transmittal

Memorandum No. 21, amending OMB

Circular No. A–76, ‘‘Performance of

Commercial Activities.’’

SUMMARY: This Transmittal

Memorandum updates the annual

Federal pay raise assumptions and

inflation factors used for computing the

Government’s in-house personnel and

non-pay costs, as generally provided in

the President’s Budget for Fiscal Year

2001.

DATES: All changes in the Transmittal

Memorandum are effective immediately

and shall apply to all cost comparisons

in process where the Government’s inhouse cost estimate has not been

publicly revealed before this date.

FOR FURTHER INFORMATION CONTACT: Mr.

David C. Childs, Office of Federal

Procurement Policy, NEOB Room 9013,

Office of Management and Budget, 725

17th Street, NW, Washington, DC 20503,

Tel. No. (202) 395–6104.

AVAILABILITY: Copies of the OMB

Circular A–76, its Revised

Supplemental Handbook and currently

applicable Transmittal Memoranda may

be obtained at the OMB Homepage on

the Internet. The online address (URL)

is http://www.whitehouse.gov/OMB/

circulars/index.html#numerical.

Sylvia M. Mathews,

Deputy Director.

Circular No. A–76 (Revised)

Transmittal Memorandum No. 21

To the Heads of Executive Departments

and Agencies

Subject: Performance of Commercial

Activities

This Transmittal Memorandum

updates the annual Federal pay raise

assumptions and inflation factors used

for computing the Government’s inhouse personnel and non-pay costs, as

generally provided in the President’s

Budget for Fiscal Year 2001.

The non-pay inflation factors are for

purposes of A–76 cost comparison

determinations only. They reflect the

generic non-pay inflation assumptions

used to develop the FY 2001 Budget

baseline estimates required by law. The

law requires that a specific inflation

factor (FY/FY G.D.P. chain price index)

be used for this purpose. These inflation

factors should not be viewed as

estimates of expected inflation rates for

specific major long-term procurement

items or as an estimate of inflation for

any particular agency’s non-pay

purchases mix.

Federal pay raise assumptions

effective date

Military/

civilian

(percent)

January 2000 ................................ 4.8

January 2001 ................................ 3.7

January 2002 ................................ 3.7

January 2003 ................................ 3.2

January 2004 ................................ 3.2

January 2005 ................................ 3.2

Non-pay categories (supplies and

equipment, etc.) Percent

FY 1999 ........................................ 1.3

FY 2000 ........................................ 1.5

FY 2001 ........................................ 2.0

FY 2002 ........................................ 2.0

FY 2003 ........................................ 2.0

FY 2004 ........................................ 2.0

FY 2005 ........................................ 2.0

The pay rate (including geographic

pay differentials) that are in effect for

2000 shall be included for the

development of in-house personnel

costs. The pay raise factors provided for

2001 and beyond shall be applied to all

employees, with no assumption being

made as to how they will be distributed

between possible locality and ECI-based

increases.

Agencies are reminded that OMB

Circular No. A–76, Transmittal

Memoranda 1 through Transmittal

Memorandum 14 are canceled.

Transmittal Memorandum No. 15

provided the Revised Supplemental

Handbook dated March 27, 1996

(Federal Register, April 1, 1996, pages

14338–14346) and remains in effect.

Transmittal Memoranda No. 16, 17 and

18, which provided previous A–76

related Federal pay raise and inflation

factor assumptions are canceled.

25968 Federal Register / Vol. 65, No. 87 / Thursday, May 4, 2000 / Notices

Transmittal Memorandum No. 19, to the

extent that it provided last year’s A–76

related Federal pay raise and inflation

factor assumptions, is canceled. The

standard retirement cost factors for the

weighted average CSRS/FERS pension

and Federal retiree health cost numbers

and the post-retirement health costs also

provided by Transmittal Memorandum

No. 19, remain in effect. Transmittal 20,

with implemented the Federal Activities

Inventory Reform (FAIR) Act, remains

in effect. Current A–76 guidance can be

accessed at OMB’s Homepage at http://

www.whitehouse.gov/OMB/circulars/

index.html#numerical

Sylvia M. Mathews,

Deputy Director.

[FR Doc. 00–11156 Filed 5–3–00; 8:45 am]

BILLING CODE

SECURITIES AND EXCHANGE

COMMISSION

[Rel. No. IC–24425; 812–11752]

Cohesion Technologies, Inc.; Notice of

Application

April 27, 2000.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of application for an

order under sections 6(c) and 6(e) of the

Investment Company Act of 1940 (the

‘‘Act’’).

SUMMARY OF APPLICATION: Applicant

requests an order exempting it from all

provisions of the Act, except sections 9,

17(e) (as modified in the application),

17(f) (as modified in the application),

and 37 through 53 of the Act, and the

rules and regulations under those

sections, from the date the requested

order is issued until the earlier of (a)

August 18, 2001 or (b) the date

applicant may no longer be deemed an

investment company.

Filing Dates: The application was filed

on August 18, 1999 and amended on

November 18, 1999. Applicant has

agreed to file an amendment, the

substance of which is reflected in this

notice, during the notice period.

Hearing or Notification of Hearing: An

order granting the requested relief will

be issued unless the SEC orders a

hearing. Interested persons may request

a hearing by writing to the SEC’s

Secretary and serving applicant with a

copy of the request, personally or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

May 22, 2000 and should be

accompanied by proof of service on

applicant, in the form of an affidavit or,

for lawyers, a certificate of service.

Hearing requests should state the nature

of the writer’s interest, the reason for the

request, and the issues contested.

Persons who wish to be notified of a

hearing may request notification by

writing to the SEC’s Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street, N.W., Washington, DC 20549–

0609. Applicant, Cohesion Technology,

Inc., 2500 Faber Place, Palo Alto, CA

94303.

FOR FURTHER INFORMATION CONTACT:

Mary T. Geffroy, Senior Counsel, at

(202) 942–0553, or Nadya Roytblat,

Assistant Director, at (202) 942–0564

(Office of Investment Company

Regulation, Division of Investment

Management).

SUPPLEMENTARY INFORMATION: The

following is a summary of the

application. The complete application

may be obtained for a fee at the SEC’s

Public Reference Branch, 450 Fifth

Street, N.W., Washington, DC, 20549–

0102 (tel. 202–942–8090).

Applicant’s Representations

1. Applicant is a Delaware

corporation that is engaged in the

business of developing and

commercializing proprietary surgical

products. Applicant also is engaged

directly or indirectly through majorityowned subsidiaries in the development

and marketing of collagen-based

biomaterials. Applicant became a public

company on August 18, 1998, when it

was spun-off from Collagen Aesthetics,

Inc., formerly known as Collagen

Corporation (‘‘Collagen’’). Collagen was

engaged in the business of designing,

developing, manufacturing, and

marketing biomedical devices for the

treatment of defective, diseased,

traumatized or aging human tissues.

Collagen currently focuses on the

aesthetic and reconstructive cosmetic

business. In anticipation of the spin-off,

Collagen contributed several assets to

applicant. Among the assets contributed

to applicant by Collagen were minority

interests in Boston Scientific

Corporation (‘‘Boston Scientific’’),

Innovasive Devices, Inc. (‘‘Innovasive’’),

and Pharming, B.V. (‘‘Pharming’’).

2. Boston Scientific is a leading

manufacturer of catheter-based devices.

Collagen acquired its interest in Boston

Scientific in January 1988 as a result of

a joint venture between Collagen and Eli

Lilly and Company. Since then,

applicant has not acquired any

additional shares of Boston Scientific

and has continued to sell portions of its

holdings in Boston Scientific to fund

applicant’s research and development

activities. As of December 31, 1999,

approximately 29% of applicant’s total

assets on an unconsolidated basis

(exclusive of cash items and government

securities) consisted of the stock of

Boston Scientific. Applicant currently

owns less than 1% of Boston Scientific’s

common stock. Applicant also acquired

from Collagen certain rights and

undertook certain obligations pursuant

to various equity collar instruments to

protect against fluctuations in the

market value of its Boston Scientific

stock.

3. Collagen also transferred to

applicant a minority interest in

Innovasive, a company engaged in the

development, manufacture and

marketing of tissue and bone

reattachment systems. Collagen

acquired Innovasive stock in connection

with a joint venture (‘‘Innovasive

Agreements’’) between the two

companies to develop tissue fixation

devices. Applicant assumed Collagen’s

rights and obligations under the

Innovasive Agreements. As of December

31, 1999, applicant has an

approximately 9% ownership interest in

Innovasive, which represented

approximately 9.6% of applicant’s total

assets on an unconsolidated basis

(exclusive of cash items and government

securities).

4. Finally, Collagen transferred to

applicant a minority interest in

Pharming, a company engaged in

developing and commercializing human

health care produced in transgenic

animals. Collagen’s investment in

Pharming was made in connection with

a collaborative agreement between the

two companies for the development of

a product to produce collagen in the

milk of transgenic animals (‘‘Pharming

Agreement’’). Applicant assumed

Collagen’s rights and obligations under

the Pharming Agreement. As of

December 31, 1999, applicant had an

approximately 6% ownership interest in

Pharming, which represented

approximately 11.3% of applicant’s

total assets on an unconsolidated basis

(exclusive of cash items and government

securities).

Applicant’s Legal Analysis

1. Section 3(a)(1)(C) of the Act defines

‘‘investment company’’ to include any

issuer which is engaged or proposes to

engage in the business of investing,

reinvesting, owning, holding, or trading

in securities, and owns or proposes to

acquire investment securities having a

value exceeding 40% of the value of that

issuer’s total assets (exclusive of

Government securities and cash items)

on an unconsolidated basis. Under

section 3(a)(2), ‘‘investment securities’’

included all securities except