Changes in Hourly Fee Rates for Science and Technology Laboratory Services-Fiscal Years 2007-2009, 15011-15021 [E7-5787]
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15011
Rules and Regulations
Federal Register
Vol. 72, No. 61
Friday, March 30, 2007
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.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 91 and 92
[Docket Number: AMS–ST–07–0045: ST–05–
01]
RIN 0581–AC48
Changes in Hourly Fee Rates for
Science and Technology Laboratory
Services—Fiscal Years 2007–2009
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
cprice-sewell on PROD1PC66 with RULES
AGENCY:
SUMMARY: The Agricultural Marketing
Service (AMS) is changing the hourly
fee rates for Science and Technology
(S&T) Laboratory Services. The agency
is raising these rates to reflect, among
other factors, national and locality pay
increases for Federal employees and
inflation, operating costs,
instrumentation and training, and
program and agency administrative
overhead costs. In the past, AMS has
amended its regulations on an as needed
basis in order to recover laboratory
program costs. With this regulation,
AMS is providing for three annual
standard hourly fee rate increases for
fiscal years 2007–2009. This will
provide the agricultural commodity
industries and other stakeholders with
more timely and relevant information
regarding user fees for voluntary
laboratory testing services. The agency
is also removing tables and schedules
with listings of individual tests and
services. Three annual hourly fee rate
adjustments are established by this
action for appeals, holiday, and
overtime services to reflect the
anticipated increase cost of providing
these laboratory services each fiscal
year. The regulations also are updated to
identify current facility addresses. Part
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92 is obsolete and therefore has been
removed.
DATES: Effective March 31, 2007.
FOR FURTHER INFORMATION CONTACT:
James V. Falk, Docket Manager, USDA,
AMS, Science and Technology
Programs, 1400 Independence Avenue,
SW., Mail Stop 0272, Washington, DC
20250–0272; telephone (202) 690–4089;
fax (202) 720–4631, or e-mail:
James.falk@usda.gov.
SUPPLEMENTARY INFORMATION:
Background
Science and Technology (S&T)
Programs has been performing voluntary
laboratory services under the
Agricultural Marketing Act of 1946, as
amended, for the AMS commodity
programs (Fruit and Vegetable, Cotton,
Livestock and Seed, Poultry, Dairy, and
Tobacco) and applicable customers in
these industries since its inception on
August 17, 1988. Before that, voluntary
laboratory testing was provided for a
user fee by AMS under the various
commodity programs. The current
standard hourly rate of $45.00 and the
premium hourly rate of $67.50 have
been in effect since publication in the
Federal Register on October 27, 2000
(65 FR 64302). The standard fee rate for
laboratory services will be $60.00 per
hour for the remainder of fiscal year
2007, and will increase to $63.00 per
hour in fiscal year 2008, and $67.00 per
hour in fiscal year 2009. The premium
hourly fee rates will also be adjusted for
fiscal years 2007 through 2009. An
increase in the premium hourly rates
over the three fiscal years for laboratory
services performed on holidays, appeal
samples, and overtime basis is also
needed since Science and Technology
laboratory personnel may be required to
work extended hours of service at the
time and a half pay or the double hourly
pay to accommodate clients. This is due
to stakeholder demand for immediate
test results. Generally, the processing of
all laboratory samples is continuous
over a 24/7 timeframe due to the recent
introduction of automated equipment.
The AMS laboratory testing programs
are voluntary, user fee services,
conducted under the authority of the
Agricultural Marketing Act of 1946
(AMA), as amended (7 U.S.C. 1621, et
seq.). The AMA authorizes the Secretary
of Agriculture to provide Federal
analytical testing services that facilitate
marketing and trade. In addition,
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consumers may be able to determine the
quality and wholesomeness
characteristics of a commodity or
product through laboratory testing. This
allows agricultural products to be
assigned official AMS grade
designations or to meet specifications.
The AMA also requires that reasonable
fees be collected from the users of the
services to cover as nearly as possible
the costs of maintaining the programs.
With this rulemaking, AMS will
amend its regulations to provide for
annual hourly fee rate increases for
laboratory services over three years (FYs
2007 through 2009) in one action. AMS
will continue to perform a yearly cost
analysis to determine whether the
voluntary hourly fee rates established
for its user-fee-supported laboratory
service programs are adequate to cover
expenses. The most recent review
determined that the existing fee
schedules and tables of individual tests
or services, which have been in place
since October 27, 2000, will not
generate sufficient revenues to recover
operating costs.
A more flexible user fee system, using
set hourly rates for multiple fiscal years,
is established by this rulemaking to
ensure that AMS properly recovers its
full costs for providing laboratory
services, and that all stakeholders are
charged reasonable fees. By enacting a
three year fee increase instead of a
single year fee increase, AMS will help
ensure that the fee increases are
effective at the beginning of each fiscal
year (October 1).
In addition, the existing fee schedules
and tables in 7 CFR, part 91, § 91.37 will
be removed. The analytical tests listed
in the tables are not specific to
individual commodity testing
requirements or stakeholder needs. The
current tables do not represent the
actual operational costs to perform
single tests and newer methodologies.
Laboratory services are provided for five
types of analytical testing:
Microbiological, physical, residue
chemistry, proximate analysis for
composition, and biomolecular testing.
AMS must recover the costs of
providing these services. The new
hourly fee rates will recover these costs,
and none of the fees collected for testing
services referenced in this final rule are
used for a biotechnology verification
program specified in Federal Register
Notice (67 FR 50853), August 6, 2002.
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Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations
AMS calculated its actual costs for
fiscal years 2001 through 2006 and its
projected increases in salaries and
inflation in fiscal years 2007 through
2009. The increases in salaries for fiscal
year 2006 as the base year and the
succeeding out years are from the Office
of Management and Budget’s (OMB)
multi-year ‘‘Economic Assumptions’’
tables. The Federal pay raise for
calendar years 2002, 2003, and 2004
were 4.6 percent, 4.1 percent and 4.1
percent, respectively. This information
comes from Table 11–1, ‘‘Economic
Assumptions’’, of the Office of
Management and Budget’s Fiscal Year
2005 Budget which is available at
https://www.whitehouse.gov/omb/
budget/fy2005/econ.html. The average
fiscal year pay raise for Federal
employees in calendar years 2005 and
2006 was 3.5 percent effective January
2005 and 3.1 percent effective January
2006. The average combined national
and locality pay raise is estimated to be
2.2 percent for fiscal years 2007, 2008,
and 2009. Inflation for fiscal year 2006
is 2.1 percent. Inflation for fiscal year
2007 is estimated to be 2.2 percent.
Inflation for fiscal year 2008 is
estimated to be 2.1 percent. Inflation for
fiscal year 2009 is estimated to be 2.1
percent. These estimates for inflation
percent can be obtained from Table 12–
1, ‘‘Economic Assumptions’’, of the
OMB’s Fiscal Year 2007 Budget which
is available at
https://www.whitehouse.gov/omb/
budget/fy2007/econ.html.
The Agency will initiate another
rulemaking to adjust any fee
established, only if estimated increases
for pay and inflation do not adequately
cover the Agency’s costs of providing
the services. The cost of providing
laboratory services includes both direct
and overhead costs. Direct costs include
the cost of salaries, employee benefits,
operation cost and infrastructure cost.
The Agency is able to estimate the
employee benefits attributable to
overtime work and has included these
in the fee calculations.
TABLE 1.—CURRENT AND NEW HOURLY FEE RATES (PER HOUR) BY TYPE OF SERVICE
Service
Current rate
Laboratory ........................................................................................................
Appeal ..............................................................................................................
Overtime ..........................................................................................................
Legal Holiday ...................................................................................................
1 2 3 Hourly
$ 45.00
67.50
67.50
67.50
FY 2007 rate 1
FY 2008 rate 2
FY 2009 rate 3
$ 60.00
71.00
71.00
82.00
$ 63.00
74.00
74.00
85.00
$ 67.00
78.00
78.00
89.00
values for FY 2007–FY 2009 are rounded off to nearest whole dollar.
With this action, the AMS will amend
its regulations to provide for three
annual fee increases in one action. Table
1 shows the summary of the current
rates and the new hourly fee rates for
fiscal years 2007 through 2009 for the
four different types of services (regular
laboratory, appeal, overtime, and legal
holiday work) that Science and
Technology Programs employees
perform.
TABLE 2.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2006
Apportioned
fee rate
Laboratory services
Base Time:
Actual FY 2005 Salaries 1 @ $2,787,474 ....................................................................................................................................
FY 2006 Pay Adjustment 2 = [Actual FY 2005 Salaries ($20.00)] × 0.031 + $0.86 (weighted portion @ $119,500 increase
for the FY 2006 period changes with payroll for within-grade pay step increases for General Schedule salaries, promotion
pay costs and new employee position pay costs) ....................................................................................................................
Benefits 3 .......................................................................................................................................................................................
Operational Costs 4 .......................................................................................................................................................................
Infrastructure Cost 5 ......................................................................................................................................................................
Program Overhead 6 .....................................................................................................................................................................
Agency Overhead 7 .......................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ...................................................................
Total Rate Per Hour¥Base Time .........................................................................................................................................
1 Actual
2 Actual
3 Actual
4 Actual
5 Actual
6 Actual
7 Actual
cost
cost
cost
cost
cost
cost
cost
of
of
of
of
of
of
of
$20.00
1.48
6.90
11.60
8.78
3.44
3.28
0.53
56.01
FY 2005 salaries ($2,787,474) ÷ (2,080 program hours times 67 program employees) = $20.00 unit cost.
FY 2006 pay adjustment ($205,911) ÷ (2,080 program hours times 67 program employees) = $1.48 unit cost.
benefits ($961,668) ÷ (2,080 program hours times 67 program employees) = $6.90 unit cost.
operational costs ($1,616,645) ÷ (2,080 program hours times 67 program employees) = $11.60 unit cost.
infrastructure ($1,223,570) ÷ (2,080 program hours times 67 program employees) = $8.78 unit cost.
Program overhead ($479,000) ÷ (2,080 program hours times 67 program employees) = $3.44 unit cost.
Agency overhead ($457,000) ÷ (2,080 program hours times 67 program employees) = $3.28 unit cost.
TABLE 3.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2007
Apportioned
fee rate
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Laboratory services
Base Time:
FY 2006 Salaries = Actual FY 2005 Salaries ($20.00) + FY 2006 Pay Adjustment ($1.48) ......................................................
FY 2007 Pay Adjustment = FY 2006 Salaries × 0.022 ...............................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
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$21.48
0.47
6.90
11.60
11.75
3.44
Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations
15013
TABLE 3.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2007—
Continued
Apportioned
fee rate
Laboratory services
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ..........................................................................
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] × .022 ..........................................................................
3.28
0.53
0.57
Total Rate Per Hour¥Base Time .........................................................................................................................................
60.02
TABLE 4.— CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2008
Apportioned
fee rate
Laboratory services
Base Time:
FY 2007 Salaries = FY 2006 Salaries ($21.48) + FY 2007 Pay Adjustment ($0.47) .................................................................
FY 2008 Pay Adjustment = FY 2007 Salaries × 0.022 ...............................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ..........................................................................
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] × .022 ..........................................................................
FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ..........................................................................
$21.95
0.48
6.90
11.60
13.47
3.44
3.28
0.53
0.57
0.55
Total Rate Per Hour¥Base Time .........................................................................................................................................
62.77
TABLE 5.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2009
Apportioned
fee rate
Laboratory services
$ 22.43
0.49
6.90
11.60
16.15
3.44
3.28
0.53
0.57
0.55
0.56
Total Rate Per Hour¥Base Time .........................................................................................................................................
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Base Time:
FY 2008 Salaries = FY 2007 Salaries ($21.95) + FY 2008 Pay Adjustment ($0.48) .................................................................
FY 2009 Pay Adjustment = FY 2008 Salaries x 0.022 ................................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ..........................................................................
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] × .022 ..........................................................................
FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ..........................................................................
FY 2009 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ..........................................................................
66.50
In order to project the hourly fee rates
for the laboratory program services for
fiscal years 2007 through 2009, the
current fiscal year 2006 is used as a
base. The total base time hourly fee rate
calculation (Table 2) for fiscal year 2006
begins with the actual salaries for fiscal
year 2005 ($2,787,474) and adds the
fiscal year 2006 pay raises (3.1 percent)
and add other fiscal year 2006 pay
adjustments ($119,500) for within-grade
pay step increases for General Schedule
(GS) salaries, promotion pay costs, and
new employee position pay costs. Table
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2 contains footnotes 1–7 that provide
the common mathematical formula used
to calculate the apportioned rate for
each fee charge category for fiscal year
2006. The formula uses the actual cost
or projected cost in dollars for the
applicable fiscal year for each
individual fee charge category divided
by the available program hours and
further divided by the number of
laboratory service program employees.
The formula derives the apportioned fee
rate for each fee charge category
(salaries with pay adjustment, benefits,
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operational costs, infrastructure cost,
program administrative overhead and
agency overhead). The same formula
that is used in Table 2 and that is
indicated in its footnotes is also applied
in the other tables to derive each
category unit rate with the different
actual costs or variable projected costs
to be inserted in the formula equation
for the applicable fiscal year.
Table 3 through Table 5 show the
calculation of the total standard hourly
fee rates to be rounded off for fiscal
years 2007 through 2009.
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TABLE 6.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR
FY 2006
Apportioned
fee rate
Laboratory services
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half)
FY 2005 Salaries @ 1.5 = [Actual 2005 Salaries ($20.00)] × 1.5 ...............................................................................................
FY 2006 Pay Adjustment = [Actual FY 2005 Salaries ($20.00) × 0.031 + $0.86 (weighted portion @ $119,500 increase for
the FY 2006 period changes with payroll for within-grade pay step increases for General Schedule salaries, promotion
pay costs, and new employee position pay costs)] × 1.5 ........................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ..........................................................................
Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................
$ 30.00
2.22
6.90
11.60
8.78
3.44
3.28
0.53
66.75
TABLE 7.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES
FOR FY 2007
Apportioned
fee rate
Laboratory services
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half)
FY 2006 Salaries @ 1.5 = [Actual 2005 Salaries ($20.00) + 2006 Pay Adjustment ($1.48)] x 1.5 ...........................................
FY 2007 Pay Adjustment = FY 2006 Salaries @ 1.5 x 0.022 .....................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 ..........................................................................
$32.22
0.71
6.90
11.60
11.75
3.44
3.28
0.53
0.57
Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................
71.00
TABLE 8.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR
FY 2008
Apportioned
fee rate
Laboratory services
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half)
FY 2007 Salaries @ 1.5 = [FY 2006 Salaries ($21.48) + FY 2007 Pay Adjustment ($0.47)] x 1.5 ...........................................
FY 2008 Pay Adjustment = FY 2007 Salaries @ 1.5 x 0.022 .....................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 ..........................................................................
FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
$32.93
0.72
6.90
11.60
13.47
3.44
3.28
0.53
0.57
0.55
Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................
73.99
TABLE 9.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR
FY 2009
Apportioned
fee rate
cprice-sewell on PROD1PC66 with RULES
Laboratory services
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half)
FY 2008 Salaries @ 1.5 = [FY 2007 Salaries ($21.95) + FY 2008 Pay Adjustment ($0.48)] x 1.5 ...........................................
FY 2009 Pay Adjustment = FY 2008 Salaries @ 1.5 x 0.022 .....................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
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$33.65
0.74
6.90
11.60
16.15
3.44
3.28
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15015
TABLE 9.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR
FY 2009—Continued
Apportioned
fee rate
Laboratory services
FY
FY
FY
FY
2006
2007
2008
2009
Inflation
Inflation
Inflation
Inflation
(2.1%)
(2.2%)
(2.1%)
(2.1%)
=
=
=
=
[Costs
[Costs
[Costs
[Costs
excluding
excluding
excluding
excluding
..........................................................................
..........................................................................
..........................................................................
..........................................................................
0.53
0.57
0.55
0.56
Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................
77.97
Table 6 through Table 9 show the
calculation of the total appeal and total
overtime hourly fee rates to be rounded
off for fiscal years 2006 through 2009.
infrastructure
infrastructure
infrastructure
infrastructure
and
and
and
and
payroll]
payroll]
payroll]
payroll]
x
x
x
x
.021
.022
.021
.021
These tables incorporate the
differentials in costs associated with the
necessity of laboratory personnel to
work extended hours of service at the
time and a half pay doing either
overtime or appeal sample testing.
TABLE 10.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY
2006
Apportioned
fee rate
Laboratory services
Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2005 Salaries @ 2.0 [Actual 2005 Salaries ($20.00)] x 2.0 ..................................................................................................
FY 2006 Pay Adjustment = [Actual FY 2005 Salaries ($20.00) x 0.031 +$0.86 (weighted portion @ $119,500 increase for
the FY 2006 period changes with payroll for within-grade pay step increases for General Schedule salaries, promotion
pay costs, and new employee position pay costs)] x 2.0 ........................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
Total Rate Per Hour¥Holidays .............................................................................................................................................
$40.00
2.96
6.90
11.60
8.78
3.44
3.28
0.53
77.49
TABLE 11.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY
2007
Apportioned
fee rate
Laboratory services
Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2006 Salaries @ 2.0 = [Actual 2005 Salaries ($20.00) + 2006 Pay Adjustment ($1.48)] x 2.0 ...........................................
FY 2007 Pay Adjustment = FY 2006 Salaries @ 2.0 x 0.022 .....................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 ..........................................................................
$42.96
0.95
6.90
11.60
11.75
3.44
3.28
0.53
0.57
Total Rate Per Hour¥Holidays .............................................................................................................................................
81.98
TABLE 12.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY
2008
Apportioned
fee rate
cprice-sewell on PROD1PC66 with RULES
Laboratory services
Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2007 Salaries @ 2.0 = [FY 2006 Salaries ($21.48) + FY 2007 Pay Adjustment ($0.47)] x 2.0 ...........................................
FY 2008 Pay Adjustment = FY 2007 Salaries @ 2.0 x 0.022 .....................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
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$43.90
0.97
6.90
11.60
13.47
3.44
3.28
0.53
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TABLE 12.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY
2008—Continued
Apportioned
fee rate
Laboratory services
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 ..........................................................................
FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
0.57
0.55
Total Rate Per Hour¥Holidays .............................................................................................................................................
85.21
TABLE 13.— CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY
2009
Apportioned
fee rate
Laboratory services
$44.86
0.99
6.90
11.60
16.15
3.44
3.28
0.53
0.57
0.55
0.56
Total Rate Per Hour¥Holidays .............................................................................................................................................
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Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2008 Salaries @ 2.0 = [FY 2007 Salaries ($21.95) + FY 2008 Pay Adjustment ($0.48)] x 2.0 ...........................................
FY 2009 Pay Adjustment = FY 2008 Salaries @ 2.0 x 0.022 .....................................................................................................
Benefits .........................................................................................................................................................................................
Operational Costs .........................................................................................................................................................................
Infrastructure Cost ........................................................................................................................................................................
Program Overhead .......................................................................................................................................................................
Agency Overhead .........................................................................................................................................................................
FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 ..........................................................................
FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
FY 2009 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 ..........................................................................
89.43
Table 10 through Table 13 show the
calculation of the total legal holiday
hourly fee rates to be rounded off for
fiscal years 2006 through 2009. These
tables incorporate the differentials in
costs associated with the necessity of
laboratory personnel to work extended
hours of service at the double hourly
pay rate doing sample testing on a
Federal holiday or a designated day for
the Federal holiday.
The Agency must recover the actual
cost of services for multiple fiscal years
covered by this rule. These fee increases
are essential for the continued sound
financial management of the Agency’s
budget. In order to enhance the
transparency of the hourly fee rates in
the aforementioned Tables 3 through 13
for fiscal year 2007, fiscal year 2008 and
fiscal year 2009, a description is
provided of each fee charge category.
Federal salaries with national and
locality pay adjustments and choices in
benefits are made available on an
annual basis by the Office of Personnel
Management (OPM). Operational costs
include expenses for rents,
communications, utilities, medical
examinations, safety equipment, sample
preparation equipment, training, trash
and hazardous waste disposal, travel
and transportation costs.
Communication expenditures include
costs for photocopying, printing, emailing, Internet services, telephone,
and faxing equipment. There have been
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large capital improvement expenditures
in the laboratories in recent years. These
expenditures include costs for the Food
Emergency Response Network (FERN)
and the capital improvements for the
Environmental Management Systems
(EMS) in accordance with the applicable
mandates for Federal laboratories of
Executive Order 13148 of April 21,
2000, Greening the Government
Through Leadership in Environmental
Management (65 FR 24593). These
capital improvement costs are included
in the normal operations of the Science
and Technology field service
laboratories. In addition, operational
costs include expenses for office and
laboratory supplies, chemicals, reagents,
security and guard services, waste
removal, robots, cleaning and internal
building maintenance, billing and
collection services, and a Laboratory
Information Management System
(LIMS). Infrastructure costs are mainly
laboratory instruments and capital
equipment with service and
maintenance contracts and replacement
spare parts. Infrastructure expenses
include consumable supply costs
associated directly with the proper
operation of analytical instruments and
laboratory equipment. Stakeholders
demand that AMS provide cost effective
and timely product testing requiring
modern and sometimes automated
instrumentation. These instruments are
expensive and undergo equipment
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capitalization for determining costs.
Equipment capitalization is the
determined cost per year to replace the
equipment after its useful service life
has been established. Infrastructure
costs include database acquisitions and
maintenance for e-business.
Infrastructure costs include large
computer hardware and software
expenses. Agency and Program
overhead is the pro-rated share,
attributable to a particular service, of the
agency’s management and support costs.
Management and administrative support
costs include the costs of providing
budget and accounting services,
regulatory services, investigative and
enforcement services, debt-management
services, personnel services, public
information services, legal services,
statistical services, and other general
program and agency management
services of support activities above the
local laboratory level. Overhead
expenditures are allocated across the
Agency for each direct hour of
laboratory service.
AMS no longer uses the Billings and
Collections System (BLCO) for billings
and collections through the National
Finance Center (NFC) in New Orleans,
LA. The Agency now uses the ‘‘accounts
receivable’’ functions in Foundation
Financial Information System (FFIS) as
the document feeder system for
customer billings and the collections
now come through our lockbox.
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Accordingly, § 91.42 will be updated to
reflect these changes. The regulations
also are updated to identify current
facility addresses.
This rule will also remove and reserve
7 CFR Part 92. Part 92 is obsolete
because it relates to the mandatory
testing of imported tobacco for
prohibited pesticide residues and the
statutory requirement for such testing
has been removed by the Fair and
Equitable Tobacco Reform Act of 2004
(7 U.S.C. 518). The tests had been
conducted by Science and Technology
(S&T) Programs for the AMS Tobacco
Program, which sampled imported
tobacco and administered the program
for imported tobacco.
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Proposed Rule and Comments
AMS published a proposed rule on
September 22, 2006 (71 FR 55369),
stating that it was proposing changing
fees for laboratory services for FYs 2007
through 2009. AMS provided for a 30
day comment period, ending October
23, 2006. AMS received no comments.
Executive Order 12866, Regulatory
Flexibility Act, and Paperwork
Reduction Act
This rule has been reviewed under
Executive Order 12866. Although not
economically significant, this rule has
been determined to be significant for the
purposes of Executive Order 12866 and,
therefore, has been reviewed by the
Office of Management and Budget
(OMB).
An economic analysis follows to
review the impacts on laboratory
customers of the new revisions in AMS
voluntary user fees for laboratory
services. The economic analysis
provides a cost-benefit analysis as
required by Executive Order 12866 and
an analysis of the potential economic
effects on small entities as required by
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601 et seq.). In accordance with
5 U.S.C. 604, AMS has prepared a final
Regulatory Flexibility Analysis for this
rule.
Regulations must be designed in the
most cost-effective manner possible to
obtain the objective of a sustainable cost
recovery program while imposing the
least burden on society. AMS has
prepared a Regulatory Impact
Assessment (RIA) consisting of a
statement of the need for the rulemaking
action, an examination of alternative
approaches, and an economic analysis
of the benefits and costs.
Need for the Rule
The AMS laboratory testing programs
are voluntary, user fee services
conducted under the authority of the
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Agricultural Marketing Act of 1946
(AMA), as amended (7 U.S.C. 1621, et
seq.). The AMA authorizes the Secretary
of Agriculture to provide Federal
analytical testing services that facilitate
marketing and trade. The AMA also
requires that reasonable fees be
collected from the users of the services
to cover as nearly as practicable the
costs of maintaining the programs.
Science and Technology (S&T)
Programs of AMS regularly reviews its
user-fee-financed laboratory service
programs to determine if the fee levels
are adequate. The most recent review
determined that the existing fee
schedule, effective October 27, 2000 (65
FR 64302) will not generate sufficient
revenues to recover operating costs. For
fiscal year 2005 the Science and
Technology program reported a
$702,000 deficit at the current fee levels.
The Science and Technology program
costs and revenues for fiscal year 2005
were $6,393,000 and $5,691,000,
respectively. Program costs for fiscal
year 2006 were projected at $6,602,000
and revenues were projected at
$5,834,000 for a deficit of $768,000.
With this action, the Agency expects to
collect an estimated $6,521,000,
$7,186,000, and $7,553,000 in fiscal
years 2007 through 2009 respectively, to
cover the cost of routine laboratory
services, appeal requests, overtime, and
holiday services for Science and
Technology customers and other
program stakeholders.
Alternatives
Alternatives to the rate increase were
considered by the Agency. One
alternative to this rule would be to make
no changes to the current user fees. As
a result, AMS would not recover the full
cost of program activities and services
would have to be reduced or terminated.
Were this to happen, the users of AMS
laboratory services would be unable to
meet certain AMS program
requirements, would find it more
difficult to meet foreign government or
importer testing requirements, and
would lose the opportunity to support
their marketing efforts with what they
believe to be preferred government
laboratory test results. Consequently,
AMS does not consider this alternative
to be reasonable.
Another alternative considered would
be to calculate the fee increases needed
over the next three year period and then
spread this overall increase evenly in
annual increments. Because the
increases are necessary to cover ongoing costs, e.g., rent, salaries and
benefits, and equipment replacement,
and financial stability needs to be
maintained for this program, adequate
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funds must be generated immediately,
rather than spread over a three year
period. Thus, AMS does not consider
this alternative to be reasonable.
To ensure full costs are being covered
as they are incurred, the preferred
alternative is to match fee increases
with expected costs on an annual basis
over the next three years. This
alternative will assure costs are
appropriately covered and that
laboratory testing services remain
available as program customers request
them. With this action, the Agency
expects to collect an estimated
$6,521,000, $7,186,000, and $7,553,000
in fiscal years 2007 through 2009,
respectively, to cover the cost of routine
laboratory services, appeal requests,
overtime, and holiday services.
Summary of Impacts
Under this rule AMS will continue to
offer laboratory testing services under
the Agricultural Marketing Act of 1946
as amended, to facilitate marketing and
allow products to obtain grade
designations or meet marketing
standards. As such, the program
provides a viable option for a wide
variety of clients by delivering scientific
and analytical support services to the
agricultural community and provides a
valuable resource for those businesses
and industries that wish to use a USDA
shield.
Further, by having a three year fee
increase instead of a single year fee
increase, the Agency will help ensure
that the fee increases are effective at the
beginning of each fiscal year on October
1. An increase over three fiscal years
will permit customers and other
program stakeholders an opportunity to
plan for annual changes in costs of
laboratory service and to incorporate
them into their budgetary plans.
For analytical purposes, projected
collections are based on calculations
using an effective date of January 1,
2007 for the fiscal year 2007 user fees.
There are essentially three rate increases
being changed for the basic laboratory
services—$45 to $60 or 33.3 percent in
fiscal year 2007, $60 to $63 or 5.0
percent in fiscal year 2008 and $63 to
$67 or 6.4 percent in fiscal year 2009.
The rate increases for overtime and
appeals are $67.50 to $71 or 5.2 percent,
$71 to $74 or 4.2 percent, and $74 to
$78 or 5.4 percent in fiscal years 2007,
2008, and 2009, respectively. The rate
increases for holiday service are $67.50
to $82 or 21.5 percent, $82 to $85 or 3.7
percent, and $85 to $89 or 4.7 percent
in fiscal years 2007, 2008, and 2009,
respectively. This is a voluntary
program and the costs to each user
would be proportional to their use of
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laboratory services each year. The
increased fees will cover inflation and
national and locality pay raises and
replacement of equipment and other
infrastructure improvements.
Under the Regulatory Flexibility Act,
the impact of this rule on small
businesses must be analyzed. There are
811 current users of AMS laboratory
testing services. Such users of services
include food processors, handlers,
growers, Federal and State government
agencies, and exporters. Many of these
users are small entities under the
criteria established by the Small
Business Administration (13 CFR
121.201). Any decision by stakeholders
and customers to discontinue the use of
the laboratory services because of
increased fees would not hinder food
processors or other industry members
from marketing their products.
For the following cost analysis,
certain assumptions are used. First, base
year data is actual fiscal year 2006
amount billed for voluntary services
performed for the public. Second, seven
percent of the total amount billed
represents overtime costs and five
percent represents costs related to
appeals. Third, the calculated amounts
in fiscal year 2007 are using the base
year data as if the base year was fiscal
year 2006. Fourth, each of the 811
customers had the exact same tests,
using the same amount of time, and thus
were billed the exact same amount. This
customer is the ‘‘average’’ laboratory
customer.
Table 14 sets the total levels for the
dollar ($) amounts billed in the base
year (Fiscal Year 2006).
TABLE 14.—BASE YEAR DATA (FISCAL
YEAR 2006)
Total Billed ........................
Basic Laboratory Services
Overtime Costs (7%) ........
Appeal Costs (5%) ...........
$1,536,688
1,352,285
107,568
76,834
Table 15 presents the base year costs
and estimates costs in fiscal year 2007,
fiscal year 2008, and fiscal year 2009 for
the ‘‘average’’ laboratory customer. The
base year values are derived by dividing
basic laboratory services, overtime costs,
and appeal costs by 811. The values for
fiscal years 2007, 2008, and 2009 are
derived multiplying each year by the
appropriate percentage rate.
TABLE 15.—COSTS ($) FOR THE ‘‘AVERAGE’’ CUSTOMER, BASE YEAR THROUGH FISCAL YEAR 2009
Base year
FY 2007
FY 2008
Total Diff.1
FY 2009
Lab Services ......................................................................................................
Overtime .............................................................................................................
Appeals ..............................................................................................................
1,667
133
95
2,223
140
100
2,334
146
104
2,483
154
110
816
21
15
Total .....................................................................................................
1,895
2,463
2,584
2,747
852
1 Net
difference calculated between costs in dollars ($) between base year and Fiscal Year 2009.
After the third increase, the customer
will pay an additional average of $852
for all laboratory services. This is a
44.96 percent increase over the base
year. The percentage increase for the
basic laboratory services is 49.0 percent,
overtime is 15.8 percent, and an appeal
sample is 15.8 percent.
TABLE 16.—COSTS ($) FOR A ‘‘LARGE BUSINESS’’ CUSTOMER, BASE YEAR THROUGH FISCAL YEAR (FY) 2009
Base total
FY 2007
FY 2008
Total Diff. 1
FY 2009
Lab Services ........................................................................
Overtime ...............................................................................
Appeals ................................................................................
704,000
56,000
40,000
938,432
58,912
42,080
985,354
61,386
43,847
1,048,417
64,701
46,215
344,417
8,701
6,215
Total .......................................................................
800,000
1,039,424
1,090,587
1,159,333
359,333
1 Net
difference calculated between costs in dollars ($) between base year and Fiscal Year 2009.
Table 16 presents the base year costs
and estimates costs in fiscal years 2007,
2008, and 2009 for a ‘‘large business’’
laboratory customer. While the
numerical values increase significantly,
the percentages are the same. Even
though the ‘‘large business’’ customer is
paying $359,333 more then what was
paid for the same services in the base
year, the increase is still approximately
44.9 percent above what was billed in
the base year.
The same is true for a ‘‘small
business’’ customer. Table 17 presents
the costs associated with a customer
billed $29,000. Again the total
difference between the billing in fiscal
year 2009 and the base year is
significantly smaller than the billing of
an ‘‘average’’ customer, but the
percentage increase is still near 44.9
percent.
TABLE 17.—COSTS ($) FOR A ‘‘SMALL BUSINESS’’ CUSTOMER, BASE YEAR THROUGH FISCAL YEAR (FY) 2009
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Base
year
FY 2007
FY 2008
FY 2009
Total
Diff. 1
Lab Services ................................................................................................................
Overtime .......................................................................................................................
Appeals ........................................................................................................................
25,520
2,030
1,450
34,018
2,136
1,525
35,719
2,226
1,589
38,005
2,346
1,675
12,485
316
225
Total ...............................................................................................................
29,000
37,679
39,534
42,026
13,026
1 Net
difference calculated between costs in dollars ($) between base year and FY 2009.
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Under the Regulatory Flexibility Act,
the impact of this rule on small
businesses must be considered. The
Agency estimates that 25 percent of the
laboratory fees billed in fiscal year 2006
was to small businesses. Thus, a total of
$384,172 was billed to small businesses.
If the entire increase had been
implemented, small businesses would
have been billed $556,665, a 44.9
percent increase.
One question is how each of these
customers including small businesses
will react to cost increases at these
amounts. The increases are spread over
a three year period which will mitigate
some of the impact. But the focus
should be on the reaction to the increase
occurring in fiscal year 2007 which is a
one third increase over the base year.
The answer is dependent on the
customer’s business, and is proportional
to the number of samples involved. The
lower the cost per unit of product being
sampled, the higher the probability the
customer will continue to use AMS
laboratory services and pass on some or
all of the anticipated additional costs,
the exact amount of which is not
known. Also, use of AMS laboratory
services is voluntary and other private
or public laboratory options are
available.
This rule contains no new
information collection or recordkeeping
requirements that are subject to the
Office of Management and Budget
(OMB) approval under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520). AMS is committed to
implementation of the Government
Paperwork Elimination Act which
provides for the use of information
resources to improve the efficiency and
effectiveness of governmental
operations, including providing the
public with the option of submitting
information or transacting business
electronically to the extent practicable.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
Unfunded Mandate Analysis
Title II of the Unfunded Mandate
Reform Act of 1995 (UMRA), Public
Law 104–4, establishes requirements for
Federal agencies to assess the effects of
their regulatory actions on State, local,
and tribal governments and the private
sector. Under section 202 of UMRA, the
Department generally must prepare a
written statement, including a cost
benefit analysis, for proposed and final
rules with ‘‘Federal mandates’’ that may
result in expenditures to State, local, or
tribal governments, in the aggregate, or
to the private sector, of $100 million or
more in any one year. When such a
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statement is needed for a rule, section
205 of UMRA generally requires that the
Department identify and consider a
reasonable number of regulatory
alternatives and adopt the least costly,
more cost-effective or least burdensome
alternative that achieves the objectives
of the rule.
This rule contains no Federal
mandates (under the regulatory
provisions of Title II of the UMRA) that
impose costs on State, local, or tribal
governments or to the private sector of
$100 million or more in any one year.
Thus, this rule is not subject to the
requirements of section 202 and 205 of
UMRA.
Civil Justice Reform (Executive Order
12988)
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect. This rule does not
preempt any State or local laws,
regulation, or policies, unless they
present an irreconcilable conflict with
this rule. There are no administrative
procedures which must be exhausted
prior to any judicial challenge to this
rule or the application of its provisions.
Civil Rights Review
AMS has considered the potential
civil rights implications of this rule on
minorities, women, or persons with
disabilities to ensure that no person or
group shall be discriminated against on
the basis of race, color, national origin,
gender, religion, age, disability, sexual
orientation, marital or family status,
political beliefs, parental status, or
protected genetic information. AMS has
included at § 91.7 the provision in the
regulation under part 91 to describe in
detail the requirements for
nondiscrimination when reviewing or
granting any person or entity the
benefits of Science and Technology
Programs laboratory service. This
regulation is consistent with USDA
regulations which prohibit
discrimination in its programs and
activities.
This rule does not require affected
entities to relocate or alter their
operations in ways that could adversely
affect such persons or groups. Further,
this rule does not deny any persons or
groups the benefits of the program or
subject any persons or groups to
discrimination.
AMS has reviewed this rule in
accordance with the Department
Regulation 4300–4,‘‘Civil Rights Impact
Analysis.’’ AMS has determined this
action ensures the civil rights of all
Science and Technology Programs
applicants and customers. They
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represent minorities (24.4%), women
(51.1%), and persons with disabilities
(14.5%) in the same percent proportions
to the entire customer base as their
compositions are represented in the
total approximate general population
(300.2 million) of the United States of
America available in descriptive tables
at https://www.census.gov/. In addition,
each and every customer would receive
the same user fee for each identical
service.
Comments and Effective Date
A thirty day comment period was
provided for interested persons to
comment on the proposed rule
published in Federal Register (71 FR
55369) regarding changes in user fees
for voluntary laboratory testing services.
No comments were received by the end
of the comment period on October 23,
2006. The existing fee schedules have
been in place since October 2000. AMS
regularly reviews its user-fee-supported
programs to determine if the fees are
adequate to cover expenses. The agency
is unable to recover the full cost of its
laboratory testing services. With this
regulation, AMS is providing for three
annual hourly fee rate increases for
fiscal years 2007–2009. Accordingly, for
these reasons, pursuant to 5 U.S.C. 553,
it is found and determined that good
cause exists for not postponing the
effective date of this rule until 30 days
after publication in the Federal
Register. Therefore, this final rule is
effective one day after the date of
publication in the Federal Register.
List of Subjects
7 CFR Part 91
Administrative practice and
procedure, Agricultural commodities,
Laboratories, Reporting and
recordkeeping requirements.
7 CFR Part 92
Agricultural commodities,
Laboratories, Pesticides and pests,
Tobacco.
I For the reasons set forth in the
preamble, the Agricultural Marketing
Service amends part 91 and under the
authority of 7 U.S.C. 1622, 1624
removes part 92 of Title 7, chapter I,
subchapter E, of the Code of Federal
Regulations as follows:
PART 91—SERVICES AND GENERAL
INFORMATION
1. The authority citation part 91
continues to read as follows:
I
Authority: 7 U.S.C. 1622, 1624.
2. Section 91.5 is revised to read as
follows:
I
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Where services are offered.
(a) Services are offered to applicants
at the Science and Technology
laboratories and facilities as listed
below.
(1) Science and Technology Programs
National Science Laboratory. A variety
of proximate, chemical, microbiological
and biomolecular tests and laboratory
analyses performed on fruits and
vegetables, poultry, meat and meat
products, fiber products and processed
foods are performed at the Science and
Technology Programs (S&T) laboratory
located at: USDA, AMS, Science and
Technology Programs, National Science
Laboratory (NSL), 801 Summit Crossing
Place, Suite B, Gastonia, North Carolina
28054–2193.
(2) Science and Technology (S&T)
Programs Science Satellite Laboratories.
The specialty satellite laboratories
performing aflatoxin and other testing
on peanuts, peanut products, dried
fruits, grains, edible seeds, tree nuts,
shelled corn products, oilseed products,
vegetable oils, juices, citrus products,
and other commodities are located as
follows:
(i) USDA, AMS, Science &
Technology, Citrus Laboratory, 98 Third
Street, SW.,
Winter Haven, Florida 33880–2905.
(ii) USDA, AMS, Science &
Technology, 6567 Chancey Mill Road,
Blakely, Georgia 39823–2785.
(iii) USDA, AMS, Science &
Technology, c/o Golden Peanut
Company LLC, (Mail: P.O. Box 272), 715
Martin Luther King Drive, Dawson,
Georgia 39842–1002.
(iv) USDA, AMS, Science &
Technology, 107 South Fourth Street,
Madill, Oklahoma 73446–3431.
(v) USDA, AMS, Science &
Technology, (Mail: P.O. Box 1130), 308
Culloden Street, Suffolk, VA 23434–
4706.
(3) Program laboratories. Laboratory
services are available in all areas
covered by cooperative agreements
providing for this laboratory work and
entered on behalf of the Department
with cooperating Federal or State
laboratory agencies pursuant to
authority contained in Act(s) of
Congress. Also, services may be
provided in other areas not covered by
a cooperative agreement if the
Administrator determines that it is
possible to provide such laboratory
services.
(4) Other alternative laboratories.
Laboratory analyses may be conducted
at alternative Science and Technology
Programs laboratories and can be
reached from any commodity market in
which a laboratory facility is located to
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the extent laboratory personnel are
available.
(5) The Plant Variety Protection (PVP)
Office. The PVP office and plant
examination facility of the Science and
Technology programs issues certificates
of protection to developers of novel
varieties of plants which reproduce
sexually. The PVP office is located as
follows: USDA, AMS, Science &
Technology Programs, Plant Variety
Protection Office, National Agricultural
Library Building, Room 401, 10301
Baltimore Boulevard, Beltsville, MD
20705–2351.
(6) Science and Technology Programs
headquarters offices. The examination,
licensure, quality assurance reviews,
laboratory approval/certification and
consultation services are provided by
headquarters staff located in
Washington, DC. The main headquarters
office is located as follows: USDA,
AMS, Science and Technology
Programs, Office of the Deputy
Administrator, South Agriculture Bldg.,
Mail Stop 0270, 1400 Independence
Ave., SW., Washington, DC 20250–0270.
(7) The Information Technology (IT)
Group. The IT office of the Science and
Technology Programs is headed by the
Associate Deputy Administrator for
Technology/Chief Information Officer
and provides information technology
services and management systems to the
Agency and other agencies within the
USDA. The main IT office is located as
follows: USDA, AMS, Science and
Technology, Office of the Associate
Deputy Administrator for Technology,
1752 South Agriculture Bldg., Mail Stop
0204, 1400 Independence Ave., SW.,
Washington, DC 20250–0204.
(8) Statistics Branch Office. The
Statistics Branch office of Science and
Technology Programs (S&T) provides
statistical services to the Agency and
other agencies within the USDA. In
addition, the Statistics Branch office
generates sample plans and performs
consulting services for research studies
in joint efforts with or in a leading role
with other program areas of AMS or of
the USDA. The Statistics Branch office
is located as follows: USDA, AMS, S&T
Statistics Branch, 0603 South
Agriculture Bldg., Mail Stop 0223, 1400
Independence Ave., SW., Washington,
DC 20250–0223.
(9) Technical Services Branch Office.
The Technical Services Branch office of
Science and Technology (S&T) provides
technical support services to all Agency
programs and other agencies within the
USDA. In addition, the Technical
Services Branch office provides
certification and approval services of
private and State government
laboratories as well as oversees quality
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assurance programs; import and export
certification of laboratory tested
commodities. The Technical Services
Branch mailing address is as follows:
USDA, AMS, S&T Technical Services
Branch, South Agriculture Bldg., Mail
Stop 0272, 1400 Independence Ave.,
SW., Washington, DC 20250–0272. The
Technical Services Branch office is
located as follows: USDA, AMS, Science
and Technology Technical Services
Branch, Room 306, Cotton Annex Bldg.,
300 12th Street, SW., Washington, DC
20250.
(10) Monitoring Programs Office.
Services afforded by the Pesticide Data
Program (PDP) and Microbiological Data
Program (MDP) are provided by USDA,
AMS, Science and Technology
Monitoring Programs Office 8609
Sudley Road, Suite 206, Manassas, VA
20110–8411.
(11) Pesticide Records Branch Office.
Services afforded by the Federal
Pesticide Record Keeping Program for
restricted-use pesticides by private
certified applicators are provided by
USDA, AMS, Science and Technology,
Pesticide Records Branch, 8609 Sudley
Road, Suite 203, Manassas, VA 20110–
8411.
(b) The addresses of the various
laboratories and offices appear in the
pertinent parts of this subchapter. A
prospective applicant may obtain a
current listing of addresses and
telephone numbers of Science and
Technology Programs laboratories,
offices, and facilities by addressing an
inquiry to the Administrative Officer,
Science and Technology Programs,
Agricultural Marketing Service, United
States Department of Agriculture
(USDA), 1400 Independence Ave., SW.,
Room 0725 South Agriculture Building,
Mail Stop 0271, Washington, DC 20250–
0271.
I 3. Section 91.37 is revised to read as
follows:
§ 91.37 Standard hourly fee rate for
laboratory testing, analysis, and other
services.
(a) The standard hourly fee rate in this
section for the individual laboratory
analyses cover the costs of Science and
Technology laboratory services,
including issuance of certificates and
personnel and overhead costs other than
the commodity inspection fees referred
to in 7 CFR 52.42 through 52.46, 52.48
through 52.51, 55.510 through 55.530,
55.560 through 55.570, 58.38 through
58.43, 58.45 through 58.46, 70.71
through 70.72, and 70.75 through 70.78.
The hourly fee rates in this part 91
apply to all commodity and processed
commodity products. The new fiscal
year for Science and Technology
E:\FR\FM\30MRR1.SGM
30MRR1
Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations
Programs commences on October 1 of
each calendar year. The rate for
laboratory services is $60.00 per hour in
fiscal year 2007, $63.00 per hour in
fiscal year 2008, and $67.00 per hour in
fiscal year 2009.
(b) Printed updated schedules of the
laboratory testing fees for processed
fruits and vegetables (7 CFR part 93),
poultry and egg products (7 CFR part
94), and meat and meat products (7 CFR
part 98) will be available for distribution
to Science and Technology’s
constituents and stakeholders by the
individual Laboratory Managers of
Science and Technology laboratories
listed in § 91.5. These single test
laboratory fee schedules are based upon
the applicable hourly fee rate stated in
§ 91.37(a).
(c) Except as otherwise provided in
this section, charges will be made at the
applicable hourly rate stated in
§ 91.37(a) for the time required to
perform the service. A charge will be
made for service pursuant to each
request or certificate issued.
(d) When a laboratory test service is
provided for AMS by a commercial or
State government laboratory, the
applicant will be assessed a fee which
covers the costs to the Science and
Technology program for the service
provided.
(e) When Science and Technology
staff provides applied and
developmental research and training
activities for microbiological, physical,
chemical, and biomolecular analyses on
agricultural commodities the applicant
will be charged a fee on a reimbursable
cost to AMS basis.
I 4. Section 91.38 is revised to read as
follows:
6. Section 91.42 is revised to read as
follows:
I
§ 91.42
Billing.
(a) The applicant for appeal sample
testing will be charged a fee at the
hourly rate for laboratory service that
appears in this paragraph. The new
fiscal year for Science and Technology
Programs commences on October 1 of
each calendar year. The appeal rate for
laboratory service is $71.00 per hour in
fiscal year 2007, $74.00 per hour in
fiscal year 2008, and $78.00 per hour in
fiscal year 2009.
(b) The appeal fee will not be waived
for any reason if analytical testing was
completed in addition to the original
analysis.
I 5. Section 91.39 is revised to read as
follows:
(a) Each billing cycle will end on the
25th of the month. The applicant will be
billed by the National Finance Center
(NFC) using the Foundation Financial
Information System (FFIS) on the 1st
day, following the end of the billing
cycle in which voluntary laboratory
services and other services were
rendered at a particular Science and
Technology laboratory or office.
(b) The total charge or fee shall
normally be stated directly on the
analysis report or on a standardized
official certificate form for the
laboratory analysis of a specific
agricultural commodity and related
commodity products.
(c) The actual bill for collection will
be issued by the USDA, National
Finance Center Billings and Collection
Branch, (Mail: P.O. Box 60075), 13800
Old Gentilly Road, New Orleans,
Louisiana 70160–0001.
§ 91.39 Premium hourly fee rates for
overtime and legal holiday service.
PART 92—[REMOVED AND
RESERVED]
(a) When analytical testing in a
Science and Technology facility
I
§ 91.38 Additional fees for appeal of
analysis.
cprice-sewell on PROD1PC66 with RULES
requires the services of laboratory
personnel beyond their regularly
assigned tour of duty on any day or on
a day outside the established schedule,
such services are considered as overtime
work. When analytical testing in a
Science and Technology facility
requires the services of laboratory
personnel on a Federal holiday or a day
designated in lieu of such a holiday,
such services are considered holiday
work. Laboratory analyses initiated at
the request of the applicant to be
rendered on Federal holidays, and on an
overtime basis will be charged fees at
hourly rates for laboratory service that
appear in this paragraph. The new fiscal
year for Science and Technology
Programs commences on October 1 of
each calendar year. The laboratory
analysis rate for overtime service is
$71.00 per hour in fiscal year 2007,
$74.00 per hour in fiscal year 2008, and
$78.00 per hour in fiscal year 2009. The
laboratory analysis rate for Federal
holiday or designed holiday service is
$82.00 per hour in fiscal year 2007,
$85.00 per hour in fiscal year 2008, and
$89.00 per hour in fiscal year 2009.
(b) Information on legal holidays or
what constitutes overtime service at a
particular Science and Technology
laboratory is available from the
Laboratory Manager or facility
supervisor.
VerDate Aug<31>2005
15:49 Mar 29, 2007
Jkt 211001
7. Part 92 is removed and reserved.
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
15021
Dated: March 23, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–5787 Filed 3–29–07; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 981
[Docket No. FV06–981–1 FR]
Almonds Grown in California;
Outgoing Quality Control
Requirements
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule adds outgoing
quality control requirements under the
administrative rules and regulations of
the California almond marketing order
(order). The order regulates the handling
of almonds grown in California and is
administered locally by the Almond
Board of California (Board). This rule
provides for a mandatory program under
the order to reduce the potential for
Salmonella bacteria in almonds. This
action will help ensure that quality
almonds are available for human
consumption.
DATES: This rule is effective on March
31, 2007. Handler treatment plans for
the 2007–08 crop year must be
submitted by May 31, 2007. Mandatory
compliance with this rule begins
September 1, 2007.
FOR FURTHER INFORMATION CONTACT:
Maureen T. Pello, Assistant Regional
Manager, or Kurt J. Kimmel, Regional
Manager, California Marketing Field
Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, Telephone: (559) 487–
5901, Fax: (559) 487–5906, or E-mail:
Maureen.Pello@usda.gov, or
Kurt.Kimmel@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or E-mail:
Jay.Guerber@usda.gov.
This final
rule is issued under Marketing Order
No. 981, as amended (7 CFR part 981),
regulating the handling of almonds
grown in California, hereinafter referred
SUPPLEMENTARY INFORMATION:
E:\FR\FM\30MRR1.SGM
30MRR1
Agencies
[Federal Register Volume 72, Number 61 (Friday, March 30, 2007)]
[Rules and Regulations]
[Pages 15011-15021]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5787]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
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.
========================================================================
Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules
and Regulations
[[Page 15011]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 91 and 92
[Docket Number: AMS-ST-07-0045: ST-05-01]
RIN 0581-AC48
Changes in Hourly Fee Rates for Science and Technology Laboratory
Services--Fiscal Years 2007-2009
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Agricultural Marketing Service (AMS) is changing the
hourly fee rates for Science and Technology (S&T) Laboratory Services.
The agency is raising these rates to reflect, among other factors,
national and locality pay increases for Federal employees and
inflation, operating costs, instrumentation and training, and program
and agency administrative overhead costs. In the past, AMS has amended
its regulations on an as needed basis in order to recover laboratory
program costs. With this regulation, AMS is providing for three annual
standard hourly fee rate increases for fiscal years 2007-2009. This
will provide the agricultural commodity industries and other
stakeholders with more timely and relevant information regarding user
fees for voluntary laboratory testing services. The agency is also
removing tables and schedules with listings of individual tests and
services. Three annual hourly fee rate adjustments are established by
this action for appeals, holiday, and overtime services to reflect the
anticipated increase cost of providing these laboratory services each
fiscal year. The regulations also are updated to identify current
facility addresses. Part 92 is obsolete and therefore has been removed.
DATES: Effective March 31, 2007.
FOR FURTHER INFORMATION CONTACT: James V. Falk, Docket Manager, USDA,
AMS, Science and Technology Programs, 1400 Independence Avenue, SW.,
Mail Stop 0272, Washington, DC 20250-0272; telephone (202) 690-4089;
fax (202) 720-4631, or e-mail: James.falk@usda.gov.
SUPPLEMENTARY INFORMATION:
Background
Science and Technology (S&T) Programs has been performing voluntary
laboratory services under the Agricultural Marketing Act of 1946, as
amended, for the AMS commodity programs (Fruit and Vegetable, Cotton,
Livestock and Seed, Poultry, Dairy, and Tobacco) and applicable
customers in these industries since its inception on August 17, 1988.
Before that, voluntary laboratory testing was provided for a user fee
by AMS under the various commodity programs. The current standard
hourly rate of $45.00 and the premium hourly rate of $67.50 have been
in effect since publication in the Federal Register on October 27, 2000
(65 FR 64302). The standard fee rate for laboratory services will be
$60.00 per hour for the remainder of fiscal year 2007, and will
increase to $63.00 per hour in fiscal year 2008, and $67.00 per hour in
fiscal year 2009. The premium hourly fee rates will also be adjusted
for fiscal years 2007 through 2009. An increase in the premium hourly
rates over the three fiscal years for laboratory services performed on
holidays, appeal samples, and overtime basis is also needed since
Science and Technology laboratory personnel may be required to work
extended hours of service at the time and a half pay or the double
hourly pay to accommodate clients. This is due to stakeholder demand
for immediate test results. Generally, the processing of all laboratory
samples is continuous over a 24/7 timeframe due to the recent
introduction of automated equipment.
The AMS laboratory testing programs are voluntary, user fee
services, conducted under the authority of the Agricultural Marketing
Act of 1946 (AMA), as amended (7 U.S.C. 1621, et seq.). The AMA
authorizes the Secretary of Agriculture to provide Federal analytical
testing services that facilitate marketing and trade. In addition,
consumers may be able to determine the quality and wholesomeness
characteristics of a commodity or product through laboratory testing.
This allows agricultural products to be assigned official AMS grade
designations or to meet specifications. The AMA also requires that
reasonable fees be collected from the users of the services to cover as
nearly as possible the costs of maintaining the programs.
With this rulemaking, AMS will amend its regulations to provide for
annual hourly fee rate increases for laboratory services over three
years (FYs 2007 through 2009) in one action. AMS will continue to
perform a yearly cost analysis to determine whether the voluntary
hourly fee rates established for its user-fee-supported laboratory
service programs are adequate to cover expenses. The most recent review
determined that the existing fee schedules and tables of individual
tests or services, which have been in place since October 27, 2000,
will not generate sufficient revenues to recover operating costs.
A more flexible user fee system, using set hourly rates for
multiple fiscal years, is established by this rulemaking to ensure that
AMS properly recovers its full costs for providing laboratory services,
and that all stakeholders are charged reasonable fees. By enacting a
three year fee increase instead of a single year fee increase, AMS will
help ensure that the fee increases are effective at the beginning of
each fiscal year (October 1).
In addition, the existing fee schedules and tables in 7 CFR, part
91, Sec. 91.37 will be removed. The analytical tests listed in the
tables are not specific to individual commodity testing requirements or
stakeholder needs. The current tables do not represent the actual
operational costs to perform single tests and newer methodologies.
Laboratory services are provided for five types of analytical testing:
Microbiological, physical, residue chemistry, proximate analysis for
composition, and biomolecular testing. AMS must recover the costs of
providing these services. The new hourly fee rates will recover these
costs, and none of the fees collected for testing services referenced
in this final rule are used for a biotechnology verification program
specified in Federal Register Notice (67 FR 50853), August 6, 2002.
[[Page 15012]]
AMS calculated its actual costs for fiscal years 2001 through 2006
and its projected increases in salaries and inflation in fiscal years
2007 through 2009. The increases in salaries for fiscal year 2006 as
the base year and the succeeding out years are from the Office of
Management and Budget's (OMB) multi-year ``Economic Assumptions''
tables. The Federal pay raise for calendar years 2002, 2003, and 2004
were 4.6 percent, 4.1 percent and 4.1 percent, respectively. This
information comes from Table 11-1, ``Economic Assumptions'', of the
Office of Management and Budget's Fiscal Year 2005 Budget which is
available at https://www.whitehouse.gov/omb/budget/fy2005/econ.html. The
average fiscal year pay raise for Federal employees in calendar years
2005 and 2006 was 3.5 percent effective January 2005 and 3.1 percent
effective January 2006. The average combined national and locality pay
raise is estimated to be 2.2 percent for fiscal years 2007, 2008, and
2009. Inflation for fiscal year 2006 is 2.1 percent. Inflation for
fiscal year 2007 is estimated to be 2.2 percent. Inflation for fiscal
year 2008 is estimated to be 2.1 percent. Inflation for fiscal year
2009 is estimated to be 2.1 percent. These estimates for inflation
percent can be obtained from Table 12-1, ``Economic Assumptions'', of
the OMB's Fiscal Year 2007 Budget which is available at https://
www.whitehouse.gov/omb/budget/fy2007/econ.html.
The Agency will initiate another rulemaking to adjust any fee
established, only if estimated increases for pay and inflation do not
adequately cover the Agency's costs of providing the services. The cost
of providing laboratory services includes both direct and overhead
costs. Direct costs include the cost of salaries, employee benefits,
operation cost and infrastructure cost. The Agency is able to estimate
the employee benefits attributable to overtime work and has included
these in the fee calculations.
Table 1.--Current and New Hourly Fee Rates (Per Hour) by Type of Service
----------------------------------------------------------------------------------------------------------------
FY 2007 rate FY 2008 rate FY 2009 rate
Service Current rate \1\ \2\ \3\
----------------------------------------------------------------------------------------------------------------
Laboratory...................................... $ 45.00 $ 60.00 $ 63.00 $ 67.00
Appeal.......................................... 67.50 71.00 74.00 78.00
Overtime........................................ 67.50 71.00 74.00 78.00
Legal Holiday................................... 67.50 82.00 85.00 89.00
----------------------------------------------------------------------------------------------------------------
1 2 3 Hourly values for FY 2007-FY 2009 are rounded off to nearest whole dollar.
With this action, the AMS will amend its regulations to provide for
three annual fee increases in one action. Table 1 shows the summary of
the current rates and the new hourly fee rates for fiscal years 2007
through 2009 for the four different types of services (regular
laboratory, appeal, overtime, and legal holiday work) that Science and
Technology Programs employees perform.
Table 2.--Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2006
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
Actual FY 2005 Salaries \1\ @ $2,787,474............ $20.00
FY 2006 Pay Adjustment \2\ = [Actual FY 2005 1.48
Salaries ($20.00)] x 0.031 + $0.86 (weighted
portion @ $119,500 increase for the FY 2006 period
changes with payroll for within-grade pay step
increases for General Schedule salaries, promotion
pay costs and new employee position pay costs).....
Benefits \3\........................................ 6.90
Operational Costs \4\............................... 11.60
Infrastructure Cost \5\............................. 8.78
Program Overhead \6\................................ 3.44
Agency Overhead \7\................................. 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.............
---------------
Total Rate Per Hour-Base Time................... 56.01
------------------------------------------------------------------------
\1\ Actual cost of FY 2005 salaries ($2,787,474) / (2,080 program hours
times 67 program employees) = $20.00 unit cost.
\2\ Actual cost of FY 2006 pay adjustment ($205,911) / (2,080 program
hours times 67 program employees) = $1.48 unit cost.
\3\ Actual cost of benefits ($961,668) / (2,080 program hours times 67
program employees) = $6.90 unit cost.
\4\ Actual cost of operational costs ($1,616,645) / (2,080 program hours
times 67 program employees) = $11.60 unit cost.
\5\ Actual cost of infrastructure ($1,223,570) / (2,080 program hours
times 67 program employees) = $8.78 unit cost.
\6\ Actual cost of Program overhead ($479,000) / (2,080 program hours
times 67 program employees) = $3.44 unit cost.
\7\ Actual cost of Agency overhead ($457,000) / (2,080 program hours
times 67 program employees) = $3.28 unit cost.
Table 3.--Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2007
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
FY 2006 Salaries = Actual FY 2005 Salaries ($20.00) $21.48
+ FY 2006 Pay Adjustment ($1.48)...................
FY 2007 Pay Adjustment = FY 2006 Salaries x 0.022... 0.47
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 11.75
Program Overhead.................................... 3.44
[[Page 15013]]
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
---------------
Total Rate Per Hour-Base Time................... 60.02
------------------------------------------------------------------------
Table 4.-- Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2008
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
FY 2007 Salaries = FY 2006 Salaries ($21.48) + FY $21.95
2007 Pay Adjustment ($0.47)........................
FY 2008 Pay Adjustment = FY 2007 Salaries x 0.022... 0.48
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 13.47
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Base Time................... 62.77
------------------------------------------------------------------------
Table 5.--Calculations for the Standard Hourly Rate for Laboratory
Program Services for FY 2009
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Base Time:
FY 2008 Salaries = FY 2007 Salaries ($21.95) + FY $ 22.43
2008 Pay Adjustment ($0.48)........................
FY 2009 Pay Adjustment = FY 2008 Salaries x 0.022... 0.49
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 16.15
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
FY 2009 Inflation (2.1%) = [Costs excluding 0.56
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Base Time................... 66.50
------------------------------------------------------------------------
In order to project the hourly fee rates for the laboratory program
services for fiscal years 2007 through 2009, the current fiscal year
2006 is used as a base. The total base time hourly fee rate calculation
(Table 2) for fiscal year 2006 begins with the actual salaries for
fiscal year 2005 ($2,787,474) and adds the fiscal year 2006 pay raises
(3.1 percent) and add other fiscal year 2006 pay adjustments ($119,500)
for within-grade pay step increases for General Schedule (GS) salaries,
promotion pay costs, and new employee position pay costs. Table 2
contains footnotes 1-7 that provide the common mathematical formula
used to calculate the apportioned rate for each fee charge category for
fiscal year 2006. The formula uses the actual cost or projected cost in
dollars for the applicable fiscal year for each individual fee charge
category divided by the available program hours and further divided by
the number of laboratory service program employees. The formula derives
the apportioned fee rate for each fee charge category (salaries with
pay adjustment, benefits, operational costs, infrastructure cost,
program administrative overhead and agency overhead). The same formula
that is used in Table 2 and that is indicated in its footnotes is also
applied in the other tables to derive each category unit rate with the
different actual costs or variable projected costs to be inserted in
the formula equation for the applicable fiscal year.
Table 3 through Table 5 show the calculation of the total standard
hourly fee rates to be rounded off for fiscal years 2007 through 2009.
[[Page 15014]]
Table 6.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2006
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time
and a half)
FY 2005 Salaries @ 1.5 = [Actual 2005 Salaries $ 30.00
($20.00)] x 1.5....................................
FY 2006 Pay Adjustment = [Actual FY 2005 Salaries 2.22
($20.00) x 0.031 + $0.86 (weighted portion @
$119,500 increase for the FY 2006 period changes
with payroll for within-grade pay step increases
for General Schedule salaries, promotion pay costs,
and new employee position pay costs)] x 1.5........
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 8.78
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 66.75
------------------------------------------------------------------------
Table 7.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2007
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time
and a half)
FY 2006 Salaries @ 1.5 = [Actual 2005 Salaries $32.22
($20.00) + 2006 Pay Adjustment ($1.48)] x 1.5......
FY 2007 Pay Adjustment = FY 2006 Salaries @ 1.5 x 0.71
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 11.75
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 71.00
------------------------------------------------------------------------
Table 8.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2008
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time
and a half)
FY 2007 Salaries @ 1.5 = [FY 2006 Salaries ($21.48) $32.93
+ FY 2007 Pay Adjustment ($0.47)] x 1.5............
FY 2008 Pay Adjustment = FY 2007 Salaries @ 1.5 x 0.72
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 13.47
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 73.99
------------------------------------------------------------------------
Table 9.--Calculations for the Appeal and Overtime Hourly Rates for
Laboratory Program Services for FY 2009
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Appeal and Overtime Rates: Actual Salaries @ 1.5 (time
and a half)
FY 2008 Salaries @ 1.5 = [FY 2007 Salaries ($21.95) $33.65
+ FY 2008 Pay Adjustment ($0.48)] x 1.5............
FY 2009 Pay Adjustment = FY 2008 Salaries @ 1.5 x 0.74
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 16.15
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
[[Page 15015]]
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
FY 2009 Inflation (2.1%) = [Costs excluding 0.56
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Appeal and Overtime......... 77.97
------------------------------------------------------------------------
Table 6 through Table 9 show the calculation of the total appeal
and total overtime hourly fee rates to be rounded off for fiscal years
2006 through 2009. These tables incorporate the differentials in costs
associated with the necessity of laboratory personnel to work extended
hours of service at the time and a half pay doing either overtime or
appeal sample testing.
Table 10.--Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2006
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2005 Salaries @ 2.0 [Actual 2005 Salaries $40.00
($20.00)] x 2.0....................................
FY 2006 Pay Adjustment = [Actual FY 2005 Salaries 2.96
($20.00) x 0.031 +$0.86 (weighted portion @
$119,500 increase for the FY 2006 period changes
with payroll for within-grade pay step increases
for General Schedule salaries, promotion pay costs,
and new employee position pay costs)] x 2.0........
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 8.78
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Holidays.................... 77.49
------------------------------------------------------------------------
Table 11.--Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2007
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2006 Salaries @ 2.0 = [Actual 2005 Salaries $42.96
($20.00) + 2006 Pay Adjustment ($1.48)] x 2.0......
FY 2007 Pay Adjustment = FY 2006 Salaries @ 2.0 x 0.95
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 11.75
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
---------------
Total Rate Per Hour-Holidays.................... 81.98
------------------------------------------------------------------------
Table 12.--Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2008
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2007 Salaries @ 2.0 = [FY 2006 Salaries ($21.48) $43.90
+ FY 2007 Pay Adjustment ($0.47)] x 2.0............
FY 2008 Pay Adjustment = FY 2007 Salaries @ 2.0 x 0.97
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 13.47
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
[[Page 15016]]
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Holidays.................... 85.21
------------------------------------------------------------------------
Table 13.-- Calculations for the Federal Holiday Hourly Rate for
Laboratory Program Services for FY 2009
------------------------------------------------------------------------
Apportioned
Laboratory services fee rate
------------------------------------------------------------------------
Holiday Rate: Actual Salaries @ 2.0 (double time)
FY 2008 Salaries @ 2.0 = [FY 2007 Salaries ($21.95) $44.86
+ FY 2008 Pay Adjustment ($0.48)] x 2.0............
FY 2009 Pay Adjustment = FY 2008 Salaries @ 2.0 x 0.99
0.022..............................................
Benefits............................................ 6.90
Operational Costs................................... 11.60
Infrastructure Cost................................. 16.15
Program Overhead.................................... 3.44
Agency Overhead..................................... 3.28
FY 2006 Inflation (2.1%) = [Costs excluding 0.53
infrastructure and payroll] x .021.................
FY 2007 Inflation (2.2%) = [Costs excluding 0.57
infrastructure and payroll] x .022.................
FY 2008 Inflation (2.1%) = [Costs excluding 0.55
infrastructure and payroll] x .021.................
FY 2009 Inflation (2.1%) = [Costs excluding 0.56
infrastructure and payroll] x .021.................
---------------
Total Rate Per Hour-Holidays.................... 89.43
------------------------------------------------------------------------
Table 10 through Table 13 show the calculation of the total legal
holiday hourly fee rates to be rounded off for fiscal years 2006
through 2009. These tables incorporate the differentials in costs
associated with the necessity of laboratory personnel to work extended
hours of service at the double hourly pay rate doing sample testing on
a Federal holiday or a designated day for the Federal holiday.
The Agency must recover the actual cost of services for multiple
fiscal years covered by this rule. These fee increases are essential
for the continued sound financial management of the Agency's budget. In
order to enhance the transparency of the hourly fee rates in the
aforementioned Tables 3 through 13 for fiscal year 2007, fiscal year
2008 and fiscal year 2009, a description is provided of each fee charge
category. Federal salaries with national and locality pay adjustments
and choices in benefits are made available on an annual basis by the
Office of Personnel Management (OPM). Operational costs include
expenses for rents, communications, utilities, medical examinations,
safety equipment, sample preparation equipment, training, trash and
hazardous waste disposal, travel and transportation costs.
Communication expenditures include costs for photocopying, printing, e-
mailing, Internet services, telephone, and faxing equipment. There have
been large capital improvement expenditures in the laboratories in
recent years. These expenditures include costs for the Food Emergency
Response Network (FERN) and the capital improvements for the
Environmental Management Systems (EMS) in accordance with the
applicable mandates for Federal laboratories of Executive Order 13148
of April 21, 2000, Greening the Government Through Leadership in
Environmental Management (65 FR 24593). These capital improvement costs
are included in the normal operations of the Science and Technology
field service laboratories. In addition, operational costs include
expenses for office and laboratory supplies, chemicals, reagents,
security and guard services, waste removal, robots, cleaning and
internal building maintenance, billing and collection services, and a
Laboratory Information Management System (LIMS). Infrastructure costs
are mainly laboratory instruments and capital equipment with service
and maintenance contracts and replacement spare parts. Infrastructure
expenses include consumable supply costs associated directly with the
proper operation of analytical instruments and laboratory equipment.
Stakeholders demand that AMS provide cost effective and timely product
testing requiring modern and sometimes automated instrumentation. These
instruments are expensive and undergo equipment capitalization for
determining costs. Equipment capitalization is the determined cost per
year to replace the equipment after its useful service life has been
established. Infrastructure costs include database acquisitions and
maintenance for e-business. Infrastructure costs include large computer
hardware and software expenses. Agency and Program overhead is the pro-
rated share, attributable to a particular service, of the agency's
management and support costs. Management and administrative support
costs include the costs of providing budget and accounting services,
regulatory services, investigative and enforcement services, debt-
management services, personnel services, public information services,
legal services, statistical services, and other general program and
agency management services of support activities above the local
laboratory level. Overhead expenditures are allocated across the Agency
for each direct hour of laboratory service.
AMS no longer uses the Billings and Collections System (BLCO) for
billings and collections through the National Finance Center (NFC) in
New Orleans, LA. The Agency now uses the ``accounts receivable''
functions in Foundation Financial Information System (FFIS) as the
document feeder system for customer billings and the collections now
come through our lockbox.
[[Page 15017]]
Accordingly, Sec. 91.42 will be updated to reflect these changes. The
regulations also are updated to identify current facility addresses.
This rule will also remove and reserve 7 CFR Part 92. Part 92 is
obsolete because it relates to the mandatory testing of imported
tobacco for prohibited pesticide residues and the statutory requirement
for such testing has been removed by the Fair and Equitable Tobacco
Reform Act of 2004 (7 U.S.C. 518). The tests had been conducted by
Science and Technology (S&T) Programs for the AMS Tobacco Program,
which sampled imported tobacco and administered the program for
imported tobacco.
Proposed Rule and Comments
AMS published a proposed rule on September 22, 2006 (71 FR 55369),
stating that it was proposing changing fees for laboratory services for
FYs 2007 through 2009. AMS provided for a 30 day comment period, ending
October 23, 2006. AMS received no comments.
Executive Order 12866, Regulatory Flexibility Act, and Paperwork
Reduction Act
This rule has been reviewed under Executive Order 12866. Although
not economically significant, this rule has been determined to be
significant for the purposes of Executive Order 12866 and, therefore,
has been reviewed by the Office of Management and Budget (OMB).
An economic analysis follows to review the impacts on laboratory
customers of the new revisions in AMS voluntary user fees for
laboratory services. The economic analysis provides a cost-benefit
analysis as required by Executive Order 12866 and an analysis of the
potential economic effects on small entities as required by the
Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.). In accordance
with 5 U.S.C. 604, AMS has prepared a final Regulatory Flexibility
Analysis for this rule.
Regulations must be designed in the most cost-effective manner
possible to obtain the objective of a sustainable cost recovery program
while imposing the least burden on society. AMS has prepared a
Regulatory Impact Assessment (RIA) consisting of a statement of the
need for the rulemaking action, an examination of alternative
approaches, and an economic analysis of the benefits and costs.
Need for the Rule
The AMS laboratory testing programs are voluntary, user fee
services conducted under the authority of the Agricultural Marketing
Act of 1946 (AMA), as amended (7 U.S.C. 1621, et seq.). The AMA
authorizes the Secretary of Agriculture to provide Federal analytical
testing services that facilitate marketing and trade. The AMA also
requires that reasonable fees be collected from the users of the
services to cover as nearly as practicable the costs of maintaining the
programs.
Science and Technology (S&T) Programs of AMS regularly reviews its
user-fee-financed laboratory service programs to determine if the fee
levels are adequate. The most recent review determined that the
existing fee schedule, effective October 27, 2000 (65 FR 64302) will
not generate sufficient revenues to recover operating costs. For fiscal
year 2005 the Science and Technology program reported a $702,000
deficit at the current fee levels. The Science and Technology program
costs and revenues for fiscal year 2005 were $6,393,000 and $5,691,000,
respectively. Program costs for fiscal year 2006 were projected at
$6,602,000 and revenues were projected at $5,834,000 for a deficit of
$768,000. With this action, the Agency expects to collect an estimated
$6,521,000, $7,186,000, and $7,553,000 in fiscal years 2007 through
2009 respectively, to cover the cost of routine laboratory services,
appeal requests, overtime, and holiday services for Science and
Technology customers and other program stakeholders.
Alternatives
Alternatives to the rate increase were considered by the Agency.
One alternative to this rule would be to make no changes to the current
user fees. As a result, AMS would not recover the full cost of program
activities and services would have to be reduced or terminated. Were
this to happen, the users of AMS laboratory services would be unable to
meet certain AMS program requirements, would find it more difficult to
meet foreign government or importer testing requirements, and would
lose the opportunity to support their marketing efforts with what they
believe to be preferred government laboratory test results.
Consequently, AMS does not consider this alternative to be reasonable.
Another alternative considered would be to calculate the fee
increases needed over the next three year period and then spread this
overall increase evenly in annual increments. Because the increases are
necessary to cover on-going costs, e.g., rent, salaries and benefits,
and equipment replacement, and financial stability needs to be
maintained for this program, adequate funds must be generated
immediately, rather than spread over a three year period. Thus, AMS
does not consider this alternative to be reasonable.
To ensure full costs are being covered as they are incurred, the
preferred alternative is to match fee increases with expected costs on
an annual basis over the next three years. This alternative will assure
costs are appropriately covered and that laboratory testing services
remain available as program customers request them. With this action,
the Agency expects to collect an estimated $6,521,000, $7,186,000, and
$7,553,000 in fiscal years 2007 through 2009, respectively, to cover
the cost of routine laboratory services, appeal requests, overtime, and
holiday services.
Summary of Impacts
Under this rule AMS will continue to offer laboratory testing
services under the Agricultural Marketing Act of 1946 as amended, to
facilitate marketing and allow products to obtain grade designations or
meet marketing standards. As such, the program provides a viable option
for a wide variety of clients by delivering scientific and analytical
support services to the agricultural community and provides a valuable
resource for those businesses and industries that wish to use a USDA
shield.
Further, by having a three year fee increase instead of a single
year fee increase, the Agency will help ensure that the fee increases
are effective at the beginning of each fiscal year on October 1. An
increase over three fiscal years will permit customers and other
program stakeholders an opportunity to plan for annual changes in costs
of laboratory service and to incorporate them into their budgetary
plans.
For analytical purposes, projected collections are based on
calculations using an effective date of January 1, 2007 for the fiscal
year 2007 user fees. There are essentially three rate increases being
changed for the basic laboratory services--$45 to $60 or 33.3 percent
in fiscal year 2007, $60 to $63 or 5.0 percent in fiscal year 2008 and
$63 to $67 or 6.4 percent in fiscal year 2009. The rate increases for
overtime and appeals are $67.50 to $71 or 5.2 percent, $71 to $74 or
4.2 percent, and $74 to $78 or 5.4 percent in fiscal years 2007, 2008,
and 2009, respectively. The rate increases for holiday service are
$67.50 to $82 or 21.5 percent, $82 to $85 or 3.7 percent, and $85 to
$89 or 4.7 percent in fiscal years 2007, 2008, and 2009, respectively.
This is a voluntary program and the costs to each user would be
proportional to their use of
[[Page 15018]]
laboratory services each year. The increased fees will cover inflation
and national and locality pay raises and replacement of equipment and
other infrastructure improvements.
Under the Regulatory Flexibility Act, the impact of this rule on
small businesses must be analyzed. There are 811 current users of AMS
laboratory testing services. Such users of services include food
processors, handlers, growers, Federal and State government agencies,
and exporters. Many of these users are small entities under the
criteria established by the Small Business Administration (13 CFR
121.201). Any decision by stakeholders and customers to discontinue the
use of the laboratory services because of increased fees would not
hinder food processors or other industry members from marketing their
products.
For the following cost analysis, certain assumptions are used.
First, base year data is actual fiscal year 2006 amount billed for
voluntary services performed for the public. Second, seven percent of
the total amount billed represents overtime costs and five percent
represents costs related to appeals. Third, the calculated amounts in
fiscal year 2007 are using the base year data as if the base year was
fiscal year 2006. Fourth, each of the 811 customers had the exact same
tests, using the same amount of time, and thus were billed the exact
same amount. This customer is the ``average'' laboratory customer.
Table 14 sets the total levels for the dollar ($) amounts billed in
the base year (Fiscal Year 2006).
Table 14.--Base Year Data (Fiscal Year 2006)
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Billed.......................................... $1,536,688
Basic Laboratory Services............................. 1,352,285
Overtime Costs (7%)................................... 107,568
Appeal Costs (5%)..................................... 76,834
------------------------------------------------------------------------
Table 15 presents the base year costs and estimates costs in fiscal
year 2007, fiscal year 2008, and fiscal year 2009 for the ``average''
laboratory customer. The base year values are derived by dividing basic
laboratory services, overtime costs, and appeal costs by 811. The
values for fiscal years 2007, 2008, and 2009 are derived multiplying
each year by the appropriate percentage rate.
Table 15.--Costs ($) for the ``Average'' Customer, Base Year Through Fiscal Year 2009
----------------------------------------------------------------------------------------------------------------
Total
Base year FY 2007 FY 2008 FY 2009 Diff.\1\
----------------------------------------------------------------------------------------------------------------
Lab Services........................................ 1,667 2,223 2,334 2,483 816
Overtime............................................ 133 140 146 154 21
Appeals............................................. 95 100 104 110 15
-----------------------------------------------------------
Total....................................... 1,895 2,463 2,584 2,747 852
----------------------------------------------------------------------------------------------------------------
\1\ Net difference calculated between costs in dollars ($) between base year and Fiscal Year 2009.
After the third increase, the customer will pay an additional
average of $852 for all laboratory services. This is a 44.96 percent
increase over the base year. The percentage increase for the basic
laboratory services is 49.0 percent, overtime is 15.8 percent, and an
appeal sample is 15.8 percent.
Table 16.--Costs ($) for a ``Large Business'' Customer, Base Year Through Fiscal Year (FY) 2009
----------------------------------------------------------------------------------------------------------------
Total Diff.
Base total FY 2007 FY 2008 FY 2009 \1\
----------------------------------------------------------------------------------------------------------------
Lab Services.................... 704,000 938,432 985,354 1,048,417 344,417
Overtime........................ 56,000 58,912 61,386 64,701 8,701
Appeals......................... 40,000 42,080 43,847 46,215 6,215
-------------------------------------------------------------------------------
Total................... 800,000 1,039,424 1,090,587 1,159,333 359,333
----------------------------------------------------------------------------------------------------------------
\1\ Net difference calculated between costs in dollars ($) between base year and Fiscal Year 2009.
Table 16 presents the base year costs and estimates costs in fiscal
years 2007, 2008, and 2009 for a ``large business'' laboratory
customer. While the numerical values increase significantly, the
percentages are the same. Even though the ``large business'' customer
is paying $359,333 more then what was paid for the same services in the
base year, the increase is still approximately 44.9 percent above what
was billed in the base year.
The same is true for a ``small business'' customer. Table 17
presents the costs associated with a customer billed $29,000. Again the
total difference between the billing in fiscal year 2009 and the base
year is significantly smaller than the billing of an ``average''
customer, but the percentage increase is still near 44.9 percent.
Table 17.--Costs ($) for a ``Small Business'' Customer, Base Year Through Fiscal Year (FY) 2009
----------------------------------------------------------------------------------------------------------------
Total
Base year FY 2007 FY 2008 FY 2009 Diff. \1\
----------------------------------------------------------------------------------------------------------------
Lab Services............................................. 25,520 34,018 35,719 38,005 12,485
Overtime................................................. 2,030 2,136 2,226 2,346 316
Appeals.................................................. 1,450 1,525 1,589 1,675 225
------------------------------------------------------
Total............................................ 29,000 37,679 39,534 42,026 13,026
----------------------------------------------------------------------------------------------------------------
\1\ Net difference calculated between costs in dollars ($) between base year and FY 2009.
[[Page 15019]]
Under the Regulatory Flexibility Act, the impact of this rule on
small businesses must be considered. The Agency estimates that 25
percent of the laboratory fees billed in fiscal year 2006 was to small
businesses. Thus, a total of $384,172 was billed to small businesses.
If the entire increase had been implemented, small businesses would
have been billed $556,665, a 44.9 percent increase.
One question is how each of these customers including small
businesses will react to cost increases at these amounts. The increases
are spread over a three year period which will mitigate some of the
impact. But the focus should be on the reaction to the increase
occurring in fiscal year 2007 which is a one third increase over the
base year. The answer is dependent on the customer's business, and is
proportional to the number of samples involved. The lower the cost per
unit of product being sampled, the higher the probability the customer
will continue to use AMS laboratory services and pass on some or all of
the anticipated additional costs, the exact amount of which is not
known. Also, use of AMS laboratory services is voluntary and other
private or public laboratory options are available.
This rule contains no new information collection or recordkeeping
requirements that are subject to the Office of Management and Budget
(OMB) approval under the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3520). AMS is committed to implementation of the Government
Paperwork Elimination Act which provides for the use of information
resources to improve the efficiency and effectiveness of governmental
operations, including providing the public with the option of
submitting information or transacting business electronically to the
extent practicable. USDA has not identified any relevant Federal rules
that duplicate, overlap, or conflict with this rule.
Unfunded Mandate Analysis
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of UMRA, the
Department generally must prepare a written statement, including a cost
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures to State, local, or tribal
governments, in the aggregate, or to the private sector, of $100
million or more in any one year. When such a statement is needed for a
rule, section 205 of UMRA generally requires that the Department
identify and consider a reasonable number of regulatory alternatives
and adopt the least costly, more cost-effective or least burdensome
alternative that achieves the objectives of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the UMRA) that impose costs on State, local,
or tribal governments or to the private sector of $100 million or more
in any one year. Thus, this rule is not subject to the requirements of
section 202 and 205 of UMRA.
Civil Justice Reform (Executive Order 12988)
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule does not preempt any State or local laws, regulation, or policies,
unless they present an irreconcilable conflict with this rule. There
are no administrative procedures which must be exhausted prior to any
judicial challenge to this rule or the application of its provisions.
Civil Rights Review
AMS has considered the potential civil rights implications of this
rule on minorities, women, or persons with disabilities to ensure that
no person or group shall be discriminated against on the basis of race,
color, national origin, gender, religion, age, disability, sexual
orientation, marital or family status, political beliefs, parental
status, or protected genetic information. AMS has included at Sec.
91.7 the provision in the regulation under part 91 to describe in
detail the requirements for nondiscrimination when reviewing or
granting any person or entity the benefits of Science and Technology
Programs laboratory service. This regulation is consistent with USDA
regulations which prohibit discrimination in its programs and
activities.
This rule does not require affected entities to relocate or alter
their operations in ways that could adversely affect such persons or
groups. Further, this rule does not deny any persons or groups the
benefits of the program or subject any persons or groups to
discrimination.
AMS has reviewed this rule in accordance with the Department
Regulation 4300-4,``Civil Rights Impact Analysis.'' AMS has determined
this action ensures the civil rights of all Science and Technology
Programs applicants and customers. They represent minorities (24.4%),
women (51.1%), and persons with disabilities (14.5%) in the same
percent proportions to the entire customer base as their compositions
are represented in the total approximate general population (300.2
million) of the United States of America available in descriptive
tables at https://www.census.gov/. In addition, each and every customer
would receive the same user fee for each identical service.
Comments and Effective Date
A thirty day comment period was provided for interested persons to
comment on the proposed rule published in Federal Register (71 FR
55369) regarding changes in user fees for voluntary laboratory testing
services. No comments were received by the end of the comment period on
October 23, 2006. The existing fee schedules have been in place since
October 2000. AMS regularly reviews its user-fee-supported programs to
determine if the fees are adequate to cover expenses. The agency is
unable to recover the full cost of its laboratory testing services.
With this regulation, AMS is providing for three annual hourly fee rate
increases for fiscal years 2007-2009. Accordingly, for these reasons,
pursuant to 5 U.S.C. 553, it is found and determined that good cause
exists for not postponing the effective date of this rule until 30 days
after publication in the Federal Register. Therefore, this final rule
is effective one day after the date of publication in the Federal
Register.
List of Subjects
7 CFR Part 91
Administrative practice and procedure, Agricultural commodities,
Laboratories, Reporting and recordkeeping requirements.
7 CFR Part 92
Agricultural commodities, Laboratories, Pesticides and pests,
Tobacco.
0
For the reasons set forth in the preamble, the Agricultural Marketing
Service amends part 91 and under the authority of 7 U.S.C. 1622, 1624
removes part 92 of Title 7, chapter I, subchapter E, of the Code of
Federal Regulations as follows:
PART 91--SERVICES AND GENERAL INFORMATION
0
1. The authority citation part 91 continues to read as follows:
Authority: 7 U.S.C. 1622, 1624.
0
2. Section 91.5 is revised to read as follows:
[[Page 15020]]
Sec. 91.5 Where services are offered.
(a) Services are offered to applicants at the Science and
Technology laboratories and facilities as listed below.
(1) Science and Technology Programs National Science Laboratory. A
variety of proximate, chemical, microbiological and biomolecular tests
and laboratory analyses performed on fruits and vegetables, poultry,
meat and meat products, fiber products and processed foods are
performed at the Science and Technology Programs (S&T) laboratory
located at: USDA, AMS, Science and Technology Programs, National
Science Laboratory (NSL), 801 Summit Crossing Place, Suite B, Gastonia,
North Carolina 28054-2193.
(2) Science and Technology (S&T) Programs Science Satellite
Laboratories. The specialty satellite laboratories performing aflatoxin
and other testing on peanuts, peanut products, dried fruits, grains,
edible seeds, tree nuts, shelled corn products, oilseed products,
vegetable oils, juices, citrus products, and other commodities are
located as follows:
(i) USDA, AMS, Science & Technology, Citrus Laboratory, 98 Third
Street, SW.,
Winter Haven, Florida 33880-2905.
(ii) USDA, AMS, Science & Technology, 6567 Chancey Mill Road,
Blakely, Georgia 39823-2785.
(iii) USDA, AMS, Science & Technology, c/o Golden Peanut Company
LLC, (Mail: P.O. Box 272), 715 Martin Luther King Drive, Dawson,
Georgia 39842-1002.
(iv) USDA, AMS, Science & Technology, 107 South Fourth Street,
Madill, Oklahoma 73446-3431.
(v) USDA, AMS, Science & Technology, (Mail: P.O. Box 1130), 308
Culloden Street, Suffolk, VA 23434-4706.
(3) Program laboratories. Laboratory services are available in all
areas covered by cooperative agreements providing for this laboratory
work and entered on behalf of the Department with cooperating Federal
or State laboratory agencies pursuant to authority contained in Act(s)
of Congress. Also, services may be provided in other areas not covered
by a cooperative agreement if the Administrator determines that it is
possible to provide such laboratory services.
(4) Other alternative laboratories. Laboratory analyses may be
conducted at alternative Science and Technology Programs laboratories
and can be reached from any commodity market in which a laboratory
facility is located to the extent laboratory personnel are available.
(5) The Plant Variety Protection (PVP) Office. The PVP office and
plant examination facility of the Science and Technology programs
issues certificates of protection to developers of novel varieties of
plants which reproduce sexually. The PVP office is located as follows:
USDA, AMS, Science & Technology Programs, Plant Variety Protection
Office, National Agricultural Library Building, Room 401, 10301
Baltimore Boulevard, Beltsville, MD 20705-2351.
(6) Science and Technology Programs headquarters offices. The
examination, licensure, quality assurance reviews, laboratory approval/
certification and consultation services are provided by headquarters
staff located in Washington, DC. The main headquarters office is
located as follows: USDA, AMS, Science and Technology Programs, Office
of the Deputy Administrator, South Agriculture Bldg., Mail Stop 0270,
1400 Independence Ave., SW., Washington, DC 20250-0270.
(7) The Information Technology (IT) Group. The IT office of the
Science and Technology Programs is headed by the Associate Deputy
Administrator for Technology/Chief Information Officer and provides
information technology services and management systems to the Agency
and other agencies within the USDA. The main IT office is located as
follows: USDA, AMS, Science and Technology, Office of the Associate
Deputy Administrator for Technology, 1752 South Agriculture Bldg., Mail
Stop 0204, 1400 Independence Ave., SW., Washington, DC 20250-0204.
(8) Statistics Branch Office. The Statistics Branch office of
Science and Technology Programs (S&T) provides statistical services to
the Agency and other agencies within the USDA. In addition, the
Statistics Branch office generates sample plans and performs consulting
services for research studies in joint efforts with or in a leading
role with other program areas of AMS or of the USDA. The Statistics
Branch office is located as follows: USDA, AMS, S&T Statistics Branch,
0603 South Agriculture Bldg., Mail Stop 0223, 1400 Independence Ave.,
SW., Washington, DC 20250-0223.
(9) Technical Services Branch Office. The Technical Services Branch
office of Science and Technology (S&T) provides technical support
services to all Agency programs and other agencies within the USDA. In
addition, the Technical Services Branch office provides certification
and approval services of private and State government laboratories as
well as oversees quality assurance programs; import and export
certification of laboratory tested commodities. The Technical Services
Branch mailing address is as follows: USDA, AMS, S&T Technical Services
Branch, South Agriculture Bldg., Mail Stop 0272, 1400 Independence
Ave., SW., Washington, DC 20250-0272. The Technical Services Branch
office is located as follows: USDA, AMS, Science and Technology
Technical Services Branch, Room 306, Cotton Annex Bldg., 300 12th
Street, SW., Washington, DC 20250.
(10) Monitoring Programs Office. Services afforded by the Pesticide
Data