This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

10033 

Vol. 72, No. 44 

Wednesday, March 7, 2007 

DEPARTMENT OF STATE 

2 CFR Part 601 

22 CFR Parts 133, 137, and 145 

[Public Notice 5710] 

RIN 1400–AB83 

Department of State’s Implementation 

of OMB Guidance on Nonprocurement 

Debarment and Suspension 

AGENCY: Department of State. 

ACTION: Final rule. 

SUMMARY: The Department of State 

(DOS) is moving its regulations on 

nonprocurement debarment and 

suspension from their current location 

in title 22 of the Code of Federal 

Regulations (CFR) to title 2 of the CFR, 

and is adopting the format established 

by the Office of Management and 

Budget (OMB) in a document of interim 

final guidance on nonprocurement 

debarment and suspension published in 

the Federal Register on August 31, 

2005. In today’s rule, DOS establishes a 

new 2 CFR part 601 that adopts OMB’s 

final government-wide guidance on 

nonprocurement debarment and 

suspension and contains supplemental 

DOS nonprocurement debarment and 

suspension provisions. In addition, this 

rule removes 22 CFR part 137, the 

existing DOS nonprocurement 

debarment and suspension regulations 

and updates references to 22 CFR part 

137 in 22 CFR part 145 and 22 CFR part 

133 to conform with this change. These 

changes constitute an administrative 

simplification that makes no substantive 

change in DOS policy or procedures for 

nonprocurement debarment and 

suspension. 

EFFECTIVE DATE: This rule is effective 

March 7, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Georgia Hubert, Director, Federal 

Assistance Division, Office of the 

Procurement Executive, A/OPE/FA, 

Department of State, SA–6, Suite 600, 

Washington, DC 20520; Telephone: 

703–812–2526; e-mail: hubertgk@state. 

SUPPLEMENTARY INFORMATION: 

Background 

On May 11, 2004, OMB established 

title 2 of the CFR with two subtitles (69 

FR 2627). Subtitle A, ’’Governmentwide 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 governmentwide nonprocurement debarment and 

suspension in the Federal Register (70 

FR 51863). The guidance was 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, 1986), 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). Although substantively the 

same as the common rule, OMB’s 

interim final guidance was published in 

a form suitable for agency adoption, 

thus eliminating the need for each 

agency to repeat the full text of the OMB 

government-wide guidance in its 

implementing regulations. This new 

approach is intended to make it easier 

for recipients of covered transactions or 

respondents in suspension or debarment 

actions to discern agency-to-agency 

variations from the common rule 

language; reduce the volume of Federal 

regulations in the CFR; and streamline 

the process for updating the 

government-wide requirements on 

nonprocurement debarment and 

suspension (70 FR 51864). 

On November 15, 2006, OMB 

published a final rule adopting the 

interim final guidance with changes (71 

FR 66431). This final rule places DOS’s 

nonprocurement debarment and 

suspension regulations in subtitle B of 

title 2 of the CFR, along with other 

agencies’ nonprocurement debarment 

and suspension rules. This action was 

required by the OMB interim final 

guidance, which was made final on 

November 15, 2006 (see 2 CFR 180.20, 

180.25, 180.30 and 180.35). 

The new CFR part 601 adopts the 

OMB guidelines with additions and 

clarifications that DOS made to the 

common rule on nonprocurement 

suspension and debarment in the DOS 

rule published on November 26, 2003 

(68 FR 66582–84). The substance of 

DOS’s nonprocurement debarment and 

suspension regulations is unchanged. 

DOS is removing 22 CFR part 137, 

which was added to the CFR as part of 

the November 2003 common rule. DOS 

is also amending references in both 

Grants and Agreements with Institutions 

of Higher Education, Hospitals, and 

Other Non-Profit Organizations (22 CFR 

part 145) and Government-wide 

Requirements for Drug-Free Workplace 

(22 CFR part 133) to update the 

reference to DOS’s nonprocurement 

debarment and suspension regulations. 

Regulatory Findings 

Executive Order 12866 

OMB has determined this rule 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 

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. 


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10034 Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations 

Paperwork Reduction Act of 1995 

This final rule does 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. 

Executive Order 13211 

This rule is not subject to Executive 

Order 13211, ‘‘Actions Concerning 

Regulations That Significantly Affect 

Energy Supply, Distribution, or Use’’ (66 

FR 28355 (May 22, 2001)) because it is 

not a significant regulatory action under 

Executive Order 12866. 

Congressional Review Act 

The Congressional Review Act, as 

added by the Small Business Regulatory 

Enforcement Fairness Act of 1996, 

generally provides that before a rule 

may take effect, the agency 

promulgating the rule must submit a 

rule report, which includes a copy of 

the rule, to each House of the Congress 

and to the Comptroller General of the 

United States. DOS will submit a report 

containing this rule and other required 

information to the U.S. Senate, the U.S. 

House of Representatives, and the 

Comptroller General of the United 

States prior to publication of the rule in 

the Federal Register. A major rule 

cannot take effect until 60 days after it 

is published in the Federal Register. 

This action is not a ‘‘major rule’’ as 

defined by 5 U.S.C. 804(2). This rule 

will be effective 30 days from the date 

of publication in the Federal Register. 

List of Subjects 

2 CFR Part 601 

Administrative practice and 

procedure, Debarment and suspension, 

Assistance programs, Reporting and 

recordkeeping requirements. 

22 CFR Part 133 

Administrative practice and 

procedure, Assistance programs, DrugFree Workplace. 

22 CFR Part 137 

Administrative practice and 

procedure, Debarment and suspension, 

Assistance programs, Suspension and 

Debarment, Reporting and 

recordkeeping requirements. 

22 CFR Part 145 

Administrative practice and 

procedure, Assistance programs, 

Reporting and recordkeeping 

requirements. 

■ For the reasons stated in the preamble, 

under the authority at 22 U.S.C. 2658 

and 31 U.S.C. 6101, the Department of 

State amends Title 2, subtitle B and 

Title 22, Parts 133, 137, 145 chapter I of 

the Code of Federal Regulations as 

follows: 

■ 1. Add Chapter 6, consisting of Part 

601 to Subtitle B to read as follows: 

Title 2—Grants and Agreements 

Chapter 6—Department of State 

PART 601—NONPROCUREMENT 

DEBARMENT AND SUSPENSION 

Sec. 

601.10 What does this part do? 

601.20 Does this part apply to me? 

601.30 What policies and procedures must 

I follow? 

Subpart A—General 

601.137 Who in the Department of State 

may grant an exception to let an 

excluded person participate in a covered 

transaction? 

Subpart B—Covered Transactions 

601.220 What contracts and subcontracts, 

in addition to those listed in 2 CFR 

180.220, are covered transactions? 

Subpart C—Responsibilities of Participants 

Regarding Transactions 

601.332 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 

601.437 What method do I use to 

communicate to a participant the 

requirements described in the OMB 

guidance at 2 CFR 180.435? 

Subpart E Through H [Reserved] 

Subpart I—Definitions 

601.930 Debarring Official (Department of 

State supplement to government-wide 

definition at 2 CFR 180.930. 

601.1010 Suspending Official (Department 

of State supplement to government-wide 

definition at 2 CFR 180.1010 

Subpart J [Reserved] 

Authority: 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). 

§ 601.10 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 DOS policies and 

procedures for nonprocurement 

debarment and suspension. It thereby 

gives regulatory effect for DOS 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 section 

2455 of the Federal Acquisition 

Streamlining Act of 1994, Pub. L. 103–

355 (31 U.S.C. 6101 note). 

§ 601.20 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 a DOS suspension 

or debarment action; 

(c) DOS debarment or suspension 

official; and 

(d) DOS grants officer, agreements 

officer, or other official authorized to 

enter into any type of nonprocurement 

transaction that is a covered transaction. 

§ 601.30 What policies and procedures 

must I follow? 

The DOS 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 and any 

supplemental policies and procedures 

set forth in this part. 

Subpart A—General 

§ 601.137 Who in the Department of State 

may grant an exception to let an excluded 

person participate in a covered 

transaction? 

The Procurement Executive, Office of 

the Procurement Executive, DOS, may 

grant an exception permitting an 

excluded person to participate in a 

particular covered transaction. If the 

Procurement Executive, Office of the 

Procurement Executive, DOS, grants an 

exception, the exception must be in 

writing and state the reason(s) for 

deviating from the government-wide 

policy in Executive Order 12549. 

Subpart B—Covered Transactions 

§ 601.220 What contracts and 

subcontracts, in addition to those listed in 

2 CFR 180.220, are covered transactions? 

In addition to the contracts covered 

under 2 CFR 180.220(b) of the OMB 


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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations 10035 

guidance, this part applies to any 

contract, regardless of tier, that is 

awarded by a contractor, subcontractor, 

supplier, consultant, or its agent or 

representative in any transaction, if the 

contract is to be funded or provided by 

the DOS under a covered 

nonprocurement transaction and the 

amount of the contract is expected to 

equal or exceed $25,000. This extends 

the coverage of the DOS 

nonprocurement suspension and 

debarment requirements to all lower 

tiers of subcontracts under covered 

nonprocurement transactions, as 

permitted under the OMB guidance at 2 

CFR 180.220(c) (see optional lower tier 

coverage in the figure in the appendix 

to 2 CFR part 180). 

Subpart C—Responsibilities of 

Participants Regarding Transactions 

§ 601.332 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 

§ 601.437 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. 

Subpart E Through H [Reserved] 

Subpart I—Definitions 

§ 601.930 Debarring official (Department of 

State supplement to government-wide 

definition at 2 CFR 180.930). 

The Debarring Official for the 

Department of State is the Procurement 

Executive, Office of the Procurement 

Executive (A/OPE). 

§ 601.1010 Suspending official 

(Department of Energy supplement to 

government-wide definition at 2 CFR 

180.1010). 

The Debarring Official for the 

Department of State is the Procurement 

Executive, Office of the Procurement 

Executive (A/OPE). 

Subpart J [Reserved] 

Title 22—Foreign Relations 

Chapter I—Department of State 

PART 133—[AMENDED] 

■ 2. The authority citation for part 133 

continues to read as follows: 

Authority: 22 U.S.C. 2658; 41 U.S.C. 701, 

et seq. 

§ 133.510 [Amended] 

■ 3. Section 133.510, paragraph (c) is 

amended by revising the citation, ‘‘22 

CFR part 137’’ to read: ‘‘2 CFR Part 

601.’’

PART 137 [Removed] 

■ 4. Part 137 is removed. 

PART 145 [Amended] 

■ 5. The authority citation for part 145 

continues to read as follows: 

Authority: 22 U.S.C. 2658.1; OMB Circular 

A–110 (64 FR 54926, October 8, 1999). 

§ 145.13 [Amended] 

■ 4. Section 145.13 is amended by 

revising the citation, ‘‘22 CFR part 137’’

to read, ‘‘2 CFR 601.’’

§ 145.44 [Amended] 

■ 5. Section 145.44 is amended by 

revising the citation, ‘‘22 CFR part 137’’

to read, ‘‘2 CFR 601.’’

§ 145.62 [Amended] 

■ 6. Section 145.62 paragraph (d) is 

amended by revising the citation, ‘‘22 

CFR part 137’’ to read, ‘‘2 CFR 601.’’

Appendix A to Part 145 [Amended] 

■ 7. Appendix A to part 145 is amended 

by revising the second sentence of 

paragraph (8) to read, ‘‘No contract shall 

be made to parties listed on the General 

Services Administration’s Excluded 

Parties List System (http:// 

www.epls.gov) from Federal 

Procurement or Nonprocurement 

Programs in accordance with Executive 

Orders 12549 and 12689, ‘Debarment 

and Suspension.’ ’’

Dated: February 26, 2007. 

Georgia Hubert, 

Director, Office of the Procurement Executive, 

Federal Assistance Division, Department of 

State. 

[FR Doc. E7–3872 Filed 3–6–07; 8:45 am] 

BILLING CODE 4710–24–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 52 

[Docket # AMS–FV–07–0025; FV–05–379] 

RIN 0581–AC56 

Processed Fruits and Vegetables 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule revises the 

regulations governing inspection and 

certification for processed fruits, 

vegetables, and processed products by 

increasing the fees charged for these 

products by 19 to 26 percent. 

Furthermore, it revises the regulations 

so applicants entering into an in-plant 

inspection contract with the 

Agricultural Marketing Service (AMS) 

will incur the costs for the plant survey 

and sanitation inspection. Finally, the 

revision provides that applicants 

entering into a year-round inspection 

contract, less than year-round (four or 

more consecutive 40 hour weeks) 

contract, or lot inspection will incur 

costs for Sunday differential when an 

employee works on Sunday. Also 

affected are the fees charged to persons 

required to have inspections on 

imported commodities in accordance 

with the Agricultural Marketing 

Agreement Act of 1937. In addition, 

various editorial changes are being 

made to enhance clarity. These 

revisions are necessary in order to 

recover, as nearly as practicable, the 

costs of performing inspection services 

under the Agricultural Marketing Act of 

1946 and to ensure the program’s 

financial stability. 

DATES: Effective April 6, 2007. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Terry B. Bane at the Office of the Branch 

Chief, Processed Products Branch, Fruit 

and Vegetable Programs, Agricultural 

Marketing Service, U.S. Department of 

Agriculture, STOP 0247, Washington, 

DC 20250–0247, telephone, (202) 720–

4693, or e-mail Terry.Bane@usda.gov. 

SUPPLEMENTARY INFORMATION: 


sroberts on PROD1PC70 with RULES