67256 Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices

successfully design, manufacture, and

market these products. It would take a

new entrant over two years to

accomplish these steps and achieve a

significant market impact. Additionally,

new entry into the CBSSB market is

unlikely to occur because the costs of

entering the market and producing

CBSSBs are high relative to the limited

sales opportunities available to new

entrants.

The Consent Agreement effectively

remedies the acquisition’s

anticompetitive effects in the worldwide

market for CBSSBs by requiring INA

and FAG to divest FAG’s CBSSB

business. This business consists of,

among other things, FAG’s specialized

tooling equipment, technical drawings,

advertising and training materials,

customer lists, and other assets used in

the research, development,

manufacturing, quality assurance,

marketing, customer support and sale of

CBSSBs (collectively ‘‘CBSSB Assets’’).

Pursuant to the Consent Agreement,

INA and FAG are required to divest the

CBSSB Assets to SKF within twenty (20)

business days from the date on which

INA begins its acquisition of FAG. If the

Commission determines that SKF is not

an acceptable buyer or that the manner

of the divestiture is not acceptable, INA

and FAG must rescind the sale to SKF

within three (3) business days, and

divest the CBSSB Assets to a

Commission-approved buyer within

three (3) months. If INA and FAG have

not divested the CBSSB Assets within

the time and in the manner required by

the Consent Agreement, the

Commission may appoint a trustee to

divest these assets and any additional

FAG machinery that the trustee deems

appropriate, subject to Commission

approval.

The Commission’s goal in evaluating

possible purchasers of divested assets is

to maintain the competitive

environment that existed prior to the

acquisition. A proposed buyer of

divested assets must not itself present

competitive problems. The Commission

is satisfied that SKF is a well-qualified

acquirer of the divested assets. SKF is a

publicly-traded Swedish corporation

and the largest supplier of ball and

roller bearings worldwide. SKF has been

active in the bearings industry since

1907, and currently has production sites

in 22 countries around the world and

sales activities in almost every country

in the world. SKF is also a current

producer of ball screw support bearings,

the product from which CBSSBs were

originally derived. Thus, SKF has the

necessary industry expertise to

manufacture and sell CBSSBs, and its

entry into the CBSSB market will

effectively replace the competition

being eliminated by INA’s acquisition of

FAG. Furthermore, SKF does not pose

separate competitive issues as the

acquirer of the divested assets.

The Consent Agreement includes a

number of provisions that are designed

to ensure that the divestiture of the

CBSSB Assets is successful. The

Consent Agreement requires that, for a

period of six (6) months, INA and FAG

provide SKF with personnel, assistance,

and training at no cost to SKF. This

provision will ensure that SKF is able to

effectively manufacture and market

CBSSBs of the same quality as those

currently produced by FAG.

Additionally, if requested by SKF, INA

and FAG are required to provide

transitional manufacturing services at

variable cost to SKF for up to six (6)

months. This will ensure that SKF is

able to serve customers in the CBSSB

market without delay. In order to further

facilitate SKF’s entry into the CBSSB

market, the Consent Agreement also

prohibits INA and FAG from using any

catalog numbers currently used by FAG

to identify its CBSSBs.

To preserve the competitive viability

and independence of the CBSSB Assets

pending divestiture, the Consent

Agreement includes an Order to

Maintain Assets. This Order contains a

number of provisions designed to

ensure that the viability,

competitiveness, and marketability of

the CBSSB Assets and other FAG

machinery are not diminished. The

Order to Maintain Assets also provides

that the Commission may appoint one

or more monitors to ensure that INA and

FAG expeditiously comply with their

obligations under the Consent

Agreement.

In order to ensure that the

Commission remains informed about

the status of the pending divestiture,

and about efforts being made to

accomplish the divestiture, the Consent

Agreement requires INA and FAG to file

an initial status report with the

Commission within ten (10) days of the

date the Consent Agreement is executed,

and additional reports every thirty (30)

days thereafter until the Commission’s

Decision and Order becomes final. Once

the Commission’s Order becomes final,

INA and FAG have sixty (60) days

within which to submit a verified

written report detailing the manner in

which they have complied, or intend to

comply, with the Commission’s Order.

This reporting requirement continues

until INA and FAG have fully complied

with the Commission’s Order.

In addition to the divestiture outlined

above, the Commission’s Order also

addresses potential competitive issues

raised by a possible future joint venture

between FAG and NTN Corporation of

Japan (‘‘NTN’’), another large producer

of bearings worldwide. Although no

joint activities have taken place to date,

a preliminary agreement between FAG

and NTN indicates that a wide range of

possible joint marketing, joint

production and joint sales activities are

contemplated by the joint venture

between the two companies. INA has

publicly asserted that it welcomes the

alliance with NTN and is prepared to

continue this cooperation with NTN

after INA’s acquisition of FAG. Given

that this scenario creates the possibility

of a future global three-firm alliance,

and given that such joint venture

activities may not otherwise trigger

Hart-Scott-Rodino reporting

requirements, the Commission’s Order

requires INA and FAG to provide prior

notice to the Commission before

entering into any such joint venture

activities with NTN affecting North

America. This requirement will give the

Commission an opportunity to review

such activities for potential competitive

harm before they take place.

The purpose of this analysis is to

facilitate public comment on the

Consent Agreement, and it is not

intended to constitute an official

interpretation of the Consent Agreement

or to modify its terms in any way.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 01–31912 Filed 12–27–01; 8:45 am]

BILLING CODE 6750–01–P

GENERAL SERVICES

ADMINISTRATION

[GSA Bulletin FPMR D–259]

Federal Buildings and Space

This notice contains GSA Bulletin

FPMR D–259 which announces the

designation of a park on Federal

grounds. The text of the bulletin

follows:

To: Heads of Federal Agencies

Subject: Designation of Federal Building

Grounds

1. Purpose. This bulletin announces

the designation of a park on Federal

grounds.

2. Expiration date. This bulletin

expires May 11, 2002. However, the

Federal building grounds designation

announced by this bulletin will remain

in effect until canceled or superseded.

3. Designation. The grounds directly

in front of the John M. Shaw United

States Courthouse in Lafayette,

Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices 67257

Louisiana, to be used as a park, are

designated as follows: Richard J.

Putnam Park, on the grounds of the John

M. Shaw United States Courthouse, 800

Lafayette Street, Lafayette, LA 70501.

Dated: December 19, 2001.

Stephen A. Perry,

Administrator of General Services.

[FR Doc. 01–31883 Filed 12–27–01; 8:45 am]

BILLING CODE 6820–24–M

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Centers for Medicare & Medicaid

Services

[CMS–4021–GNC]

RIN 0938–ZA22

Medicare Program; Criteria and

Standards for Evaluating Intermediary,

Carrier, and Durable Medical

Equipment, Prosthetics, Orthotics, and

Supplies (DMEPOS) Regional Carrier

Performance During Fiscal Year 2002

AGENCY: Centers for Medicare &

Medicaid Services (CMS), Health and

Human Services (HHS).

ACTION: General notice with comment

period.

SUMMARY: This notice describes the

criteria and standards to be used for

evaluating the performance of fiscal

intermediaries, carriers, and DMEPOS

regional carriers in the administration of

the Medicare program beginning the

first day of the month following

publication in the Federal Register. The

results of these evaluations are

considered whenever we enter into,

renew, or terminate an intermediary

agreement, carrier contract, or DMEPOS

regional carrier contract or take other

contract actions, for example, assigning

or reassigning providers or services to

an intermediary or designating regional

or national intermediaries. The criteria

and standards for DMEPOS regional

carriers (also referred to as Durable

Medical Equipment Regional Carriers

(DMERCs)) were previously published

under a separate Federal Register

notice, but with this release will now be

incorporated in the notice of criteria and

standards for the intermediaries and

carriers. We are requesting public

comment on these criteria and

standards.

EFFECTIVE DATE: The criteria and

standards are effective January 2, 2002.

COMMENTS: Comments will be

considered if we receive them at the

appropriate address as provided below

no later than 5 p.m. (EDT) on January

28, 2002.

ADDRESSES: In commenting, please refer

to file code CMS–4021–GNC. Because of

staff and resource limitations, we cannot

accept comments by facsimile (fax)

transmission. Mail written comments

(one original and three copies) to the

following address: Centers for Medicare

& Medicaid Services, Department of

Health and Human Services, Attention:

CMS–4021–GNC, P.O. Box 8016,

Baltimore, MD 21244–8016.

If you prefer, you may deliver (by

hand or courier) your written comments

(one original and three copies) to one of

the following addresses:

Room 443–G, Hubert H. Humphrey

Building, 200 Independence Avenue,

SW., Washington, DC, 20201 or

Room C5–16–03, 7500 Security

Boulevard, Baltimore, Maryland

21244–8016.

Comments mailed to the addresses

indicated as appropriate for hand or

courier delivery may be delayed and

could be considered late.

For information on viewing public

comments, see the beginning of the

SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Sue

Lathroum, (410) 786–7409.

SUPPLEMENTARY INFORMATION

Inspection of Public Comments:

Comments received timely will be

available for public inspection as they

are received, generally beginning

approximately 3 weeks after publication

of a document, at the headquarters of

the Centers for Medicare & Medicaid

Services, 7500 Security Boulevard,

Baltimore, Maryland 21244, Monday

through Friday of each week from 8:30

a.m. to 4 p.m. To schedule an

appointment to view public comments,

phone (410) 786–7197.

I. Background

A. Part A—Hospital Insurance

Under section 1816 of the Social

Security Act (the Act), public or private

organizations and agencies participate

in the administration of Part A (Hospital

Insurance) of the Medicare program

under agreements with us. These

agencies or organizations, known as

fiscal intermediaries, determine whether

medical services are covered under

Medicare, determine correct payment

amounts and then make payments to the

health care providers (for example,

hospitals, skilled nursing facilities

(SNFs), community mental health

centers, etc.) on behalf of the

beneficiaries. Section 1816(f) of the Act

requires us to develop criteria,

standards, and procedures to evaluate

an intermediary’s performance of its

functions under its agreement.

Evaluations of Medicare fee-for-service

performance need not be limited to the

current fiscal year (FY), other fixed term

basis, or agreement term. We may

evaluate performance using a time frame

that does not mirror the FY or other

fixed term. The evaluation of

intermediary performance is part of our

contract management process.

B. Part B Medical Insurance

Under section 1842 of the Act, we are

authorized to enter into contracts with

carriers to fulfill various functions in

the administration of Part B

(Supplementary Medical Insurance) of

the Medicare program. Beneficiaries,

physicians, and suppliers of services

submit claims to these carriers. The

carriers determine whether the services

are covered under Medicare and the

amount payable for the services or

supplies, and then make payment to the

appropriate party.

Under section 1842(b)(2) of the Act,

we are required to develop criteria,

standards, and procedures to evaluate a

carrier’s performance of its functions

under its contract. Evaluations of

Medicare fee-for-service performance

need not be limited to the current FY,

other fixed term basis, or contract term.

We may evaluate performance using a

timeframe that does not mirror the FY.

The evaluation of carrier performance is

part of our contract management

process.

C. Durable Medical Equipment,

Prosthetics, Orthotics, and Supplies

(DMEPOS) Regional Carriers

In accordance with section

1834(a)(12) of the Act, CMS has entered

into contracts with four DMEPOS

regional carriers to perform all of the

duties associated with the processing of

claims for DMEPOS, under Part B of the

Medicare program. These DMEPOS

regional carriers process claims based

on a Medicare beneficiary’s principal

residence by State. Section 1842(a) of

the Act authorizes contracts with

carriers for the payment of Part B claims

for Medicare covered services and

items. Section 1842(b)(2) of the Act

requires us to publish in the Federal

Register criteria and standards for the

efficient and effective performance of

carrier contract obligations. The criteria

and standards to be used for evaluating

the performance of DMEPOS regional

carriers were first published on June 18,

1992 at 57 FR 27302. The evaluation of

DMEPOS regional carrier performance is

part of our contract management

process.