        DEPARTMENT OF COMMERCE
        National Oceanic and Atmospheric Administration
        50 CFR Part 679
        [I.D. 010301D]
        RIN 0648-AL95
        Fisheries of the Exclusive Economic Zone Off Alaska; Amendments to Alaska Groundfish and Crab Fishery Management Plans to Revise  the License Limitation Program

          AGENCY:
          National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.

          ACTION:
          Notice of availability of amendments to fishery management plans; request for comments.

          SUMMARY:
          The North Pacific Fishery Management Council (Council) has submitted Amendment 60 to the Fishery Management Plan for the Groundfish Fishery of the Bering Sea and Aleutian Islands Area, Amendment 58 to the Fishery Management Plan for Groundfish of the Gulf of Alaska and Amendment 10 to the Fishery Management Plan for the Commercial King and Tanner Crab Fisheries in the Bering Sea and the Aleutian Islands (FMPs).  These plan amendments are necessary to implement changes to the License Limitation Program (LLP) as recommended by the Council and are intended to further the objectives of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) and the FMPs.

          DATES:
          Comments on Amendments 60, 58, and 10 must be submitted by March 19, 2001.

          ADDRESSES:
          Comments on the proposed plan amendments should be submitted to Sue Salveson, Assistant Regional Administrator for Sustainable Fisheries, Alaska Region, NMFS, P.O. Box 21668, Juneau, Alaska, 99802, Attn: Lori Gravel, or delivered to the Federal Building, 709 West 9th Street, Juneau, AK.  Comments may also be sent by facsimile (fax) to 907-586-7465.  Comments will not be accepted if submitted via e-mail or Internet.  Copies of Amendments 60, 58, and 10 and the Environmental Assessment/Regulatory Impact Review/Initial Regulatory Flexibility Analysis prepared for the proposed plan amendments are available from the North Pacific Fishery Management Council, 605 West 4th Ave., Suite 306, Anchorage, AK  99501-2252; telephone 907-271-2809.

          FOR FURTHER INFORMATION CONTACT:
          Jim Hale, 907-586-7228.

        SUPPLEMENTARY INFORMATION:
        Background

        The Magnuson-Stevens Act requires that each Regional Fishery Management Council submit any fishery management plan or plan amendment it prepares to NMFS for review and approval, disapproval, or partial approval.  The Magnuson-Stevens Act also requires that NMFS, after receiving a fishery management plan or plan amendment, immediately publish a notice in the Federal Register that the fishery management plan or plan amendment is available for public review and comment.  This action constitutes such notice for Amendments 60, 58, and 10 to the FMPs.   NMFS will consider public comments received during the comment period in determining whether to approve these proposed plan amendments. To be considered, a comment must be received by the close of business on the last day of the comment period.
        In June 1995, the Council recommended that NMFS implement the LLP to address concerns of excess capital in the groundfish and crab fisheries off Alaska.  The LLP is the second stage of a multi-staged process to reduce capacity in the affected fisheries.  The LLP will replace the Vessel Moratorium Program (VMP), a program implemented by NMFS on January 1, 1996, to impose a temporary moratorium on the entry of new capacity in the groundfish and crab fisheries off Alaska and to define the class of entities that would be eligible for licenses under the LLP.  The VMP expired on December 31, 1999 (64 FR 3651).  The final rule implementing the LLP specifies that fishing will begin under the LLP on January 1, 2000 (63 FR 52642, October 1, 1998).
        If approved, Amendments 60, 58, and 10 would make several changes to the final rule implementing the LLP.  First, the Council recommended that recent participation criteria be added to the eligibility requirements for a crab species license.  Originally, a person applying for a crab species license had to demonstrate that documented harvests were made from a qualifying vessel during two periods, the general qualification period (GQP) and the endorsement qualification period (EQP).  If approved, Amendment 10 would add a third period, the recent participation period (RPP), in which a person would have to demonstrate that documented harvests of crab were made from a qualifying vessel.  The RPP was added to the eligibility requirements for a crab species license because of the Council’s concern that a crab species license could be issued to a person whose eligibility was based on participation that has been inactive since 1995.  These “latent licenses” could be transferred to persons who would become active in the fishery.  Such transfers would be contrary to the purpose of the LLP because it would create the potential to increase fishing effort above the current levels in the crab fisheries.  Except under specific exemptions provided in the FMP amendments, the RPP would require that a person demonstrate that at least one documented harvest of any crab species was made during the period beginning January 1, 1996, through February 7, 1998.

        The Council’s second recommendation is to require that the vessel designated on the LLP license be transferred with the LLP license, if that LLP license was issued based on documented harvests made from a vessel without a Federal Fisheries Permit.  A Federal Fisheries Permit is required for any vessel that participates in a Federal groundfish fishery off Alaska.  If a vessel did not participate in Federal groundfish fisheries off Alaska, its qualifying documented harvests must have occurred in waters of the State of Alaska or other waters shoreward of the exclusive economic zone (EEZ) off Alaska.  Groundfish fisheries in state waters or other waters shoreward of the EEZ off Alaska will not be managed under the LLP.  The Council reasoned that if a person is licensed to participate in a Federally managed fishery on the basis of participation in a State-managed fishery, certain restrictions should be placed on that license.  Therefore, NMFS would restrict the transfer of a license issued to a vessel without a Federal Fishery Permit unless the licensed vessel is transferred with the license.  The Council did not consider it a hardship to the license recipient to directly link the transfer of a license to the vessel, whether the recipient decides to keep or to transfer the license and vessel.
        Third, the Council recommended that a gear designation be added to a groundfish license.  The gear designation is intended to prevent movement between the trawl sector and the non-trawl sector.  A license would be issued with a “trawl,” “non-trawl,” or “trawl/non-trawl” gear designation based on gear participation before June 17, 1995, with two exceptions.  Under the first exception, a person could exercise a one-time option to switch gear designations if that person used a new gear between June 18, 1995, and February 7, 1998.  For example, a person used only trawl gear before June 17, 1995.  However, in 1997, that person used pot gear to catch Pacific cod.  The use of a new gear in 1997 would allow the person to exercise a one-time option to change the gear designation from trawl gear to non-trawl gear.  A person could not qualify for a trawl/non-trawl gear designation by use of this exception.  Under the second exception, a person could request a gear designation change based on a significant financial investment.  To qualify under the second exception, a person would have to (1) demonstrate that a significant financial investment was made in converting a vessel or purchasing fishing gear on or before February 7, 1998, and (2) demonstrate that a documented harvest was made from the qualifying vessel with the new gear type on or before December 31, 1998.  A significant financial investment is defined as at least $100,000 toward vessel conversion or gear to change from a non-trawl to a trawl gear designation, or having acquired groundline, hooks or pots, and hauling equipment to change from a trawl to a non-trawl gear designation.
        Fourth, the Council recommended that a community development quota (CDQ) vessel exemption, which originally had no ending date for eligibility, be limited to a specific time period (November 18, 1992, through October 9, 1998).  The exemption was intended to facilitate the ability of CDQ organizations to enter and conduct groundfish fisheries through the purchase of new vessels that may not meet eligibility criteria.  Concerns over excess capacity in the groundfish fisheries, and acknowledgment that CDQ organizations are integrating into the existing fishing industry at a reasonable pace, prompted the Council’s recommendation.  Further support for limiting this exemption came from public testimony that CDQ organizations did not use this exemption under the VMP.
        Fifth, the Council recommended that limited processing ability, defined as 1 metric ton of round fish per day, be granted to a person deploying a vessel that is less that 60 ft (18.3 m) length overall, based on a groundfish license with a catcher vessel designation.  This limited processing exemption is intended to assist small catcher vessels in exploiting niche markets not otherwise available.
        Sixth, although not formally part of Amendments 60/58/10, the Council recommended that the name of the vessel to be deployed by the LLP license holder must be designated on the license.  The Council recommended this change  to address concerns about the movement of license holders among vessels contributing to excess capacity in the fisheries.  The ability to move among vessels would have contributed to excess capacity by allowing a license holder to deploy a second vessel to fish while the first vessel was in port, or by allowing a license holder to alternate between vessels in different fisheries in different geographical locations.  In both cases, a license holder could engage in uninterrupted fishing because breaks for unloading, vessel repairs, or running time could be eliminated through the use of another vessel.  The Council recommended that NMFS make this change as a regulatory amendment.
        Public comments will be accepted on these proposed amendments through the end of the comment period specified in this notification.  A proposed rule that would implement the amendments may be published in the Federal Register for public comment following NMFS's evaluation under the Magnuson-Stevens Act procedures.  All comments received by the end of the comment period specified in this notice, whether specifically directed to the amendments or to the proposed rule, will be considered in the decision to approve, disapprove, or partially approve these amendments.

          Authority:
          16 U.S.C. 1801 et seq.

          Dated:  January 11, 2001.
          Bruce C. Morehead,
          Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.

      [FR Doc. 01-1380 Filed 1-16-01; 8:45 am]
      BILLING CODE:  3510-22-S


        DEPARTMENT OF DEFENSE
        GENERAL SERVICES ADMINISTRATION
        NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
        48 CFR Parts 2, 3, and 52
        [FAR Case 2006-007; Docket 2007-0001; Sequence 1]
        RIN 9000-AK67
        Federal Acquisition Regulation; FAR Case 2006-007, Contractor Code of Ethics and Business Conduct

          AGENCIES:
          Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

          ACTION:
          Proposed rule with request for comments.

          SUMMARY:
          The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) are proposing to amend the Federal Acquisition Regulation (FAR) to address Contractor Code of Ethics and Business Conduct and the display of Federal agency Office of the Inspector General (OIG) Fraud Hotline Poster.

          DATES:
          Interested parties should submit written comments to the FAR Secretariat on or before April 17, 2007 to be considered in the formulation of a final rule.

          ADDRESSES:
          Submit comments identified by FAR case 2006-007 by any of the following methods:

        • Federal eRulemaking Portal: http://www.regulations.gov.Search for any document by first selecting the proper document types and selecting “Federal Acquisition Regulation” as the agency of choice.  At the “Keyword” prompt, type in the FAR case number (for example, FAR Case 2006-007) and click on the “Submit” button.  Please include any personal and/or business information inside the document.You may also search for any document by clicking on the “Advanced search/document search” tab at the top of the screen, selecting from the agency field “Federal Acquisition Regulation”, and typing the FAR case number in the keyword field.  Select the “Submit” button.
        • Fax:  202-501-4067.
        • Mail:  General Services Administration, Regulatory Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN:  Laurieann Duarte, Washington, DC  20405.

          Instructions: Please submit comments only and cite FAR case 2006-007 in all correspondence related to this case.  All comments received will be posted without change to http://www.regulations.gov, including any personal and/or business confidential information provided.

          FOR FURTHER INFORMATION CONTACT:
          Mr. Ernest Woodson, Procurement Analyst, at (202) 501-3775 for clarification of content. For information pertaining to status or publication schedules, contact the FAR Secretariat at (202) 501-4755.  Please cite FAR case 2006-007.

        SUPPLEMENTARY INFORMATION:
        A.  Background
        FAR Part 3 provides guidance on improper business practices and personal conflicts of interest, but it does not discuss the contractor’s responsibilities with regard to code of ethics and business conduct and the avoidance of improper business practices.  Currently, three agencies (the Departments of Defense, Veterans Affairs, and the Environmental Protection Agency) maintain policy for contractor code of ethics and business conduct and the contractor’s responsibility to avoid improper business practices. With few exceptions, the agencies’ clauses and prescriptions are very similar to one another, in that they- establish agency policy and recommend contents of a contractor’s system of management and internal controls in connection with Government contracts; establish contract dollar thresholds for display of the agency Inspector General poster; provide instructions for obtaining the hotline posters; and provide exemptions to displaying posters.  However, the agencies’ policies differ on the contract dollar thresholds and the address and phone number of the Office of the Inspector General (OIG) to obtain a fraud hotline poster.
        In view of the significant sums of Federal dollars spent by agencies to acquire goods and services, this rule establishes a clear and consistent policy regarding contractor code of ethics and business conduct, responsibility to avoid improper business practices, and procedures for displaying an agency OIG Fraud Hotline poster to facilitate the reporting of wrongdoing in Federal contracting.  This rule also recognizes the need for agencies to cooperate with the Department of Homeland Security to ensure that contracts funded with disaster assistance funds require display of any event-specific fraud hotline posters announcing ad hoc or other special hotline reporting information applicable to the specific contract.  This rule proposes amending the FAR to add FAR Subpart 3.10, Contractor Code of Ethics and Business Conduct, that will—
        1. Define the “United States” to mean the 50 States, the District of Columbia and outlying areas as used in FAR 25.003, and exclude contracts performed outside the United States from the requirements of the rule.
        2. Include policy stating that contractors “should” have a code of ethics and business conduct.
        3. Exclude commercial item contracts awarded pursuant to FAR Part 12 from the requirements of the rule, because the rule will not implement statute or executive order, and because ethics programs and hotline posters are not standard commercial practices as stipulated by the Federal Acquisition Streamlining Act.
        4. Provide that contractors receiving awards in excess of $5,000,000 that have performance periods of 120 days or more, shall have a written code of ethics and business conduct within 30 days after contract award.  Furthermore, the contractor shall promote compliance by establishing, within 90 days after contract award, an employee ethics and compliance training program and an internal control system proportionate to the size of the company and extent of its business with the Federal Government.

        5. Provide that contractors receiving awards in excess of $5,000,000 shall display the agency OIG fraud hotline poster and, when appropriate, any special disaster relief poster from Department of Homeland Security, at work locations in the United States and at the company website if the contractor has established a company website for the purposes of providing information to employees.
        6. Provide alternates to the basic clause to accommodate those agencies that do not have posters and to accommodate agencies that choose to require the display of a fraud hotline poster at contract award thresholds at or below $5,000,000.
        7. Include a flowdown provision that applies to subcontracts at the same dollar level as the prime contract.
        8. Provide for remedies if the contractor fails to comply with the clause.
        This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993.  This rule is not a major rule under 5 U.S.C. 804.
        B.  Regulatory Flexibility Act

        The Councils do not expect this proposed rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule does not require contractors to have a written code of ethics and business conduct, employee ethics and compliance training program, or internal control system for contracts valued at $5 million or less; and provides that when such programs are required, they shall be suitable to the size of the company and the extent of the company’s business with the Federal Government.  Under the rule, contractors have the ability to determine the simplicity or complexity and cost of their programs.

        An Initial Regulatory Flexibility Analysis has, therefore, not been performed.  We invite comments from small businesses and other interested parties.  The Councils will consider comments from small entities concerning the affected FAR Parts 2, 3, and 52 in accordance with 5 U.S.C. 610.  Interested parties must submit such comments separately and should cite 5 U.S.C. 601, et seq. (FAR case 2006-007), in correspondence.
        C.  Paperwork Reduction Act

        The Paperwork Reduction Act does not apply because the proposed changes to the FAR do not impose information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

          List of Subjects in 48 CFR Parts 2, 3, and 52

        Government procurement.

          Dated:February 7, 2007.
          Ralph De Stefano,
          Director, Contract Policy Division.

        Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 2, 3, and 52 as set forth below:
        1.  The authority citation for 48 CFR parts 2, 3, and 52 continues to read as follows:

          Authority:
          40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

          PART 2 — DEFINITIONS OF WORDS AND TERMS

          2.  Amend section 2.101 in paragraph (b), in the definition “United States,” by redesignating paragraphs (1) through (6) as paragraphs(2) through)(7), respectively, and adding a new paragraph (1) to read as follows:

            2.101
            Definitions.

            (b)* * *
            “United States,” when used in a geographic sense, means the 50 States and the District of Columbia, except as follows:
            (1)  For use in Subpart 3.10, see the definition at 3.1001.

          PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

          3.  Add Subpart 3.10 to read as follows:

            Sec.
            3.1000
            Scope of subpart.
            3.1001
            Definitions.
            3.1002
            Policy.
            3.1003
            Procedures.
            3.1004
            Contract clause.

            Subpart 3.10—Contractor Code of Ethics and Business Conduct

            3.1000
            Scope of subpart.

          This subpart prescribes policies and procedures for the establishment of contractor code of ethics and business conduct, and display of agency Office of Inspector General (OIG) fraud hotline posters.

            3.1001
            Definitions.

          “United States,”as used in this subpart, means the 50 States, the District of Columbia, and outlying areas.

            3.1002
            Policy.

          Government contractors must conduct themselves with the highest degree of integrity and honesty.  Contractors should have a written code of ethics and business conduct.  To promote compliance with such code of ethics and business conduct, contractors should have an employee ethics and compliance training program and an internal control system that-
          (a)  Are suitable to the size of the company and extent of its involvement in Government contracting;
          (b)  Facilitate timely discovery and disclosure of improper conduct in connection with Government contracts; and
          (c)  Ensure corrective measures are promptly instituted and carried out.

            3.1003
            Procedures.

          Contracting officers shall ensure that the requirements of this subpart are implemented using the following procedures:
          (a) Exceptions. Commercial item contracts performed under Part 12 or performed outside the United States do not apply to this subpart and are not required to —
          (1)  Have an employee ethics and compliance training program and internal control systems; or
          (2)  Have the contractor display the fraud poster.
          (b) Contracts exceeding $5,000,000.
          (1) Contracts exceeding $5,000,000 shall require the contractor to—
          (i) Display the agency OIG fraud hotline poster, unless the agency does not have a fraud hotline poster; and
          (ii) Display the Department of Homeland Security (DHS) disaster assistance poster in accordance with paragraph (d)(2) of this section.
          (2)  In addition to the requirements of paragraph(b)(1) of this section, contracts exceeding $5,000,000 with performance periods of 120 days or more shall require the contractor to—
          (i)  Have a written code of ethics and business conduct; and
          (ii)  Establish an employee ethics and compliance training program and internal control systems commensurate with the size of the company and its involvement in Government contracting.
          (c) Contracts valued at $5,000,000 or less.   Agencies may establish policy and procedures for display of the agency OIG fraud hotline poster, without imposing the requirements of paragraph (b)(2) of this section, in contracts valued at $5,000,000 or less.
          (d) Fraud Hotline Poster. (1)  Agencies are responsible for determining the need for, and content of, their respective agency OIG fraud hotline poster(s).

          (2)  When requested by the Department of Homeland Security (DHS), agencies shall ensure that contracts funded with disaster assistance funds require display of any event-specific fraud hotline poster applicable to the specific contract.  As established by the agency, such posters may be displayed in lieu of, or in addition to, the agency’s standard poster.

            3.1004
            Contract clause.

          (a)(1)  Insert the clause at FAR 52.203-XX, Contractor   Code of Ethics and Business Conduct, in solicitations and contracts expected to exceed $5,000,000 and the performance period is 120 days or more, except when the contract -
          (i)  Will be awarded pursuant to the procedures in FAR Part 12; or to address Contractor Code of Ethics and Business Conduct and the display of Federal agency Office of the Inspector General (OIG) Fraud Hotline Poster.
          (ii)  Will be performed outside the United States.          (2)  The contracting officer shall insert the website link(s) or other contact information for obtaining the agency and/or DHS poster.
          (b)  Insert the clause with its Alternate I-
          (1)  When the agency does not have a fraud hotline poster; and
          (2)  When the requirements of 3.1003(d)(2) do not apply.
          (c)  Insert the clause with its Alternate II-
          (1)  When the contract performance period is less than 120 days; or
          (2)  If the agency has established policies and procedures for display of the OIG fraud hotline poster at a lesser amount.  The contracting officer shall insert the agency authorized lesser amount in paragraph (d) of this section.

          PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

          4. Add section 52.203-XX to read as follows:

            52.203-XX
            Contractor Code of Ethics and Business Conduct.

          As prescribed in 3.1004(a), insert the following clause:

            CONTRACTOR CODE OF ETHICS AND BUSINESS CONDUCT  (DATE)
            (a) Definition.

            “United States,” as used in this clause, means the 50 States, the District of Columbia, and outlying areas.
            (b) Code of ethics and business conduct. (1) Within 30 days after contract award, the Contractor shall have a written code of ethics and business conduct.
            (2) (i)  The Contractor shall promote compliance with its code of ethics and business conduct.  Within 90 days after contract award, the Contractor shall establish—
            (A)  An employee ethics and compliance training program; and
            (B)  An internal control system.
            (ii)  Such program and system shall be suitable to the size of the company and its involvement in Government contracting.
            (c) Internal control system.(1) The Contractor’s internal control system shall—
            (i)  Facilitate timely discovery and disclosure of improper conduct in connection with Government contracts; and
            (ii)  Ensure corrective measures are promptly instituted and carried out.
            (2)  For example, the Contractor’s internal control system should provide for—
            (i)  Periodic reviews of company business practices, procedures, policies, and internal controls for compliance with the Contractor’s code of ethics and business conduct and the special requirements of Government contracting;
            (ii)  An internal reporting mechanism, such as a hotline, by which employees may report suspected instances of improper conduct, and instructions that encourage employees to make such reports;
            (iii)  Internal and/or external audits, as appropriate;
            (iv)  Disciplinary action for improper conduct;
            (v)  Timely reporting to appropriate Government officials of any suspected  violations of law in connection with Government contracts or any other irregularities in connection with such contracts; and
            (vi)  Full cooperation with any Government agencies responsible for either investigation or corrective actions.

            (d)  Display of fraud hotline poster(s). (1)  During contract performance, the Contractor shall prominently display the _________ (Contracting Officer shall insert (i) appropriate agency name(s) and/or (ii) title of applicable DHS event-specific fraud hotline poster) fraud hotline poster(s) in common work areas within business segments performing work under this contract and at contract work sites.  The Contractor is not required to display the poster(s) in common work areas and contract sites outside the United States.
            (2)  Additionally, if the Contractor maintains a company website as a method of providing information to employees, the Contractor shall display an electronic version of the poster(s) at the website.

            (3)  The _______ poster(s) may be obtained from _______. (Contracting Officer shall insert the website(s) or other contact information for obtaining the poster(s).)

            (e) Remedies. In addition to the other remedies available to the Government, the Contractor’s failure to comply with the requirements of this clause may render the Contractor subject to—
            (1)  Withholding of contract payments; or
            (2)  Loss of award fee, consistent with the award fee plan, for the performance period in which the Government determined Contractor  non-compliance.
            (f) Subcontracts. (1) The Contractor shall include the substance of this clause, including this paragraph (f), in all subcontracts that exceed $5,000,000, except when the subcontract—
            (i)  Is for the acquisition of a commercial item; or
            (ii) Is performed outside the United States.
            (2)  The Contractor is not required to include the requirements of paragraphs (b) and (c) of this clause in subcontracts that have performance periods of less than 120 days.
            (End of clause)

            Alternate I (DATE).  As prescribed in 3.1004(b), delete paragraph (d), and redesignate paragraphs (e) and (f) as paragraphs (d) and (e).

            Alternate II (DATE).  As prescribed in 3.1004(c), delete paragraphs (b), (c) and (f) from the basic clause, redesignate paragraphs (d) and (e) as paragraphs (b) and (c) and insert the following paragraph (d):
          (d) Subcontracts.  The Contractor shall include the substance of this clause, including this paragraph (d), in all subcontracts that exceed $_______ (Contracting Officer shall insert $5,000,000 or the amount authorized by agency procedures), except when the subcontract—
          (1) Is for the acquisition of a commercial item; or
          (2) Is performed outside the United States.

      [FR Doc. 07-698 Filed 2-15-07; 8:45 am]
      BILLING CODE 6820-EP-S