Partner Vetting in USAID Assistance, 53375-53379 [2013-20846]

Agencies

• Agency for International Development

[Federal Register Volume 78, Number 168 (Thursday, August 29, 2013)]
[Proposed Rules]
[Pages 53375-53379]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-20846]


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AGENCY FOR INTERNATIONAL DEVELOPMENT

22 CFR Part 226

RIN 0412-AA71


Partner Vetting in USAID Assistance

AGENCY: United States Agency for International Development.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The United States Agency for International Development (USAID) 
proposes to amend its regulation governing the administration of USAID-
funded assistance awards to implement a Partner Vetting System (PVS). 
The purpose of the Partner Vetting System is to help ensure that USAID 
funds and other resources do not inadvertently benefit individuals or 
entities that are terrorists, supporters of terrorists or affiliated 
with terrorists, while also minimizing the impact on USAID programs and 
its implementing partners. In order to apply the PVS to USAID 
assistance, USAID proposes to amend 22 CFR Part 226. The Office of 
Management and Budget has approved a 30 day comment period. This 
proposed regulatory revision is a key requirement of the Agency's plan 
for the pilot program and any other vetting programs.

DATES: Submit comments on or before September 30, 2013.

ADDRESSES: Because security screening precautions have slowed the 
delivery and dependability of surface mail to USAID/Washington, USAID 
recommends sending all comments by electronic mail or by fax to the 
email address or fax number listed directly below (please note, all 
comments must be in writing to be reviewed).
    Electronic Access and Filing. You may submit written electronic 
comments by sending electronic mail [email] to: 
M.OAA.RuleMaking@usaid.gov.
    Please submit comments as a Microsoft Word file avoiding the use of 
any special characters and any form of encryption.
    Surface Mail (again, not advisable due to security screening): 
Michael Gushue, M/OAA/P, USAID/Washington, 1300 Pennsylvania Avenue 
NW., Washington, DC 20523.

FOR FURTHER INFORMATION CONTACT: Michael Gushue, Telephone: 202-567-
4678, Email: mgushue@usaid.gov.

SUPPLEMENTARY INFORMATION: 

A. Executive Summary

    The Purpose of Regulatory Action: The purpose of this regulatory 
action is to amend 22 CFR Part 226, Administration of Assistance Awards 
to U.S. Non-Governmental Organizations, to add new pre-award and award 
terms. The new terms will implement procedures for a new Partner 
Vetting System.
    A Summary of the Provisions: There are two provisions included in 
this amendment to 22 CFR Part 226. The first is an application 
provision, Partner Vetting Pre-Award Requirements, which delineates the 
vetting process and the applicant's responsibilities for submitting 
information on individuals who will be vetted, prior to award. The 
second is an award term, Partner Vetting, which sets forth the 
recipient's responsibilities for vetting during the award period, and 
the partner vetting process that takes place after award.
    Costs and Benefits: USAID has determined that this Rule is not an 
``economically significant regulatory action'' under Section 3(f)(1) of 
Executive Order (E.O.) 12866. However, as this rule is a ``significant 
regulatory action'' under Section 3(f)(4) of the E.O., USAID submitted 
it to OMB for review.
    This regulatory action will help USAID meet its fiduciary 
responsibilities by helping to ensure that agency funds and other 
resources do not inadvertently benefit individuals or entities that are 
terrorists, supporters of terrorists, or affiliated with terrorists.
    USAID estimates that Partner Vetting will add an additional 15 
minutes to each of the 10,120 grant applications. We estimate the 
annual cost of implementing partner vetting for assistance is $31,676 
for applicants, and $391,810 for the annual cost to the government.

B. Background

    USAID is implementing a PVS pilot program for USAID assistance and 
acquisition awards. It is expected that this pilot program, which 
includes vetting of both acquisition and assistance solicitations and 
awards, will provide USAID (and the Department of State) with a more 
comprehensive understanding of ways to mitigate risk in the provision 
of foreign assistance as well as the feasibility and utility of 
implementing PVS worldwide. Because the pilot is intended to help 
further refine and adjust PVS, the need for any future amendments to 
USAID's assistance regulation, related to implementation of PVS, likely 
will not be determined until after the assessment of the PVS pilot 
program. The intention of the PVS is to help ensure that USAID funds 
and other resources do not inadvertently benefit individuals or 
entities that are terrorists, supporters of terrorists or affiliated 
with terrorists, while also minimizing the impact on USAID programs and 
its implementing partners. USAID established the PVS as a new system of 
records pursuant to the Privacy Act of 1974 on July 17, 2007 (72 FR 
39042). On May 6, 2009, USAID set the final effective date for 
exempting portions of the PVS from provisions of the Privacy Act as 
August 4, 2009 (74 FR 20871), although the Agency did not implement PVS 
at that time. USAID initiated rule-making to revise its acquisition 
regulation, 48 CFR chapter 7, publishing its final rule for making PVS 
applicable to acquisitions on February 14, 2012 (77 FR 8166) with an 
effective date of March 15, 2012.
    At the time USAID initiated rulemaking for acquisition, USAID 
determined that its assistance regulations could accommodate pre-award 
vetting without revisions. Subsequently, however, as USAID refined its 
intent for PVS and clarified its goals and purpose, the Agency 
concluded that in order to apply PVS to assistance to the same extent 
as to acquisition by allowing for post-award vetting, the Agency needed 
to revise its assistance regulation, 22 CFR part 226. USAID's previous 
rule making generated numerous comments

[[Page 53376]]

regarding the proposed PVS program. As part of the rule making process 
for the Final Rule for Partner Vetting in USAID Acquisitions (77 FR 
8166), published in the Federal Register on February 14, 2012, USAID 
provided a comprehensive response to all of the comments received 
during that rule making period. USAID seeks comments through this 
proposed rule to help ensure the successful implementation of PVS to 
USAID assistance by minimizing the impact on the Agency's programs and 
recipients while still protecting against the possibility that USAID 
funds could benefit terrorist groups.
    Need for partner vetting. USAID set forth the rationale and need 
for partner vetting previously in its notice establishing PVS (72 FR 
39042) and notice of proposed rulemaking for its acquisition 
regulation, 48 CFR chapter 7 (74 FR 30494). As stated therein, USAID 
already has taken a number of steps, consistent with applicable law and 
agency policy, to help ensure that agency funds and other resources do 
not inadvertently benefit individuals or entities that are terrorists, 
supporters of terrorists or affiliated with terrorists. USAID 
recognized, however, that more can be done to ensure adequate due 
diligence in certain situations, and established PVS to complement its 
requirements for terrorist financing clauses, terrorist financing 
certifications, and review of public lists of designated groups and 
individuals.
    USAID functions in areas of high terrorist activity, and vetting 
enables the Agency to enhance oversight of tax payer dollars by 
accessing intelligence and law enforcement databases as a further 
safeguard of program funds.
    USAID currently conducts vetting programs in certain high [threat 
or risk--choose one] areas of the world. These vetting programs have 
proven successful in preventing funds going to unintended recipients 
and provide a further deterrent to individuals associated with 
terrorism applying for contracts and/or grants from USAID. However, 
USAID functions in other parts of the world where the risks differ from 
these locations. The Agency intends to use the PVS pilot program to 
inform decisions about the future application of vetting to agency 
programs.
    Through the PVS, information collected from individuals, officers, 
employees, or other officials of organizations that seek to receive 
USAID funding will be used to conduct national security screening of 
such individuals and organizations to ensure that USAID funds do not 
inadvertently benefit individuals or entities that are terrorists, 
supporters of terrorists or affiliated with terrorists. To properly 
conduct this screening, it is necessary to collect information on ``key 
individuals''--the principal officers and other key employees and 
personnel of USAID contractors and recipients. Before USAID applies 
vetting to a particular planned award, it will perform a risk based 
assessment (RBA).
    Risk based assessment. USAID will perform an RBA to determine the 
likelihood that the funds, goods, services, or other benefits to be 
provided could inadvertently benefit individuals or entities that are 
terrorists, supporters of terrorists or affiliated with terrorists, 
including people or organizations who are not specifically designated 
by the U.S. Government but who may nevertheless be linked to terrorist 
activities. Key factors that USAID will consider in this assessment 
will include, but are not limited to, the nature of the program, the 
type of entity that will be implementing the activity (for example, 
U.S. Non-Governmental Organization (NGO), U.S. for profit organization, 
foreign NGO, foreign for profit organization, international 
organization), the geographic location of the activity, the safeguards 
available and how easily funds could be diverted or misused. Other 
considerations may include the urgency of the activity and the foreign 
policy importance of the activity. The Agency may identify through the 
RBA process that certain services the recipient procures from vendors 
are subject to vetting.
    Although the details of any risk-based assessment will be dictated 
by the specific circumstances of each activity, the conclusion that a 
particular planned award is subject to partner vetting will be clearly 
stated in any solicitation or other comparable document for that 
activity.
    The partner vetting process for assistance. USAID intends to apply 
PVS to assistance in a manner that protects the integrity of the 
selection process and also ensures that USAID's Office of Security 
(SEC) is able to obtain information necessary to vet key individuals 
and protect sensitive information from disclosure. To accomplish this, 
no individual involved in the selection process, including the 
agreement officer (AO), will have access to the information applicants 
submit for partner vetting, other than to confirm the key individuals 
the applicants have submitted. When vetting is required, a provision in 
the relevant solicitation will notify applicants of the vetting 
requirements and procedures. The AO will instruct applicants when to 
submit the completed USAID Partner Information Form, USAID Form 500-13 
(``Form''), to the vetting official identified in the solicitation. 
Each Mission or office will have flexibility in determining the 
appropriate individual to be the vetting official, but in all cases the 
vetting official will be a U.S. citizen employee of USAID who is not 
involved in the selection process. In addition to receiving the 
completed Forms, the vetting official will be responsible for 
responding to questions from applicants about information to be 
included on the Form, coordinating with SEC, and conveying the vetting 
determination to each vetted applicant and the AO. The Form identifies 
the information required for the key individuals of the applicant and 
any subrecipients or vendors who are subject to vetting. Key 
individuals include principal officers of the organization's governing 
body (for example, chairman, vice chairman, treasurer and secretary of 
the board of directors or board of trustees), the principal officer and 
deputy principal officer of the organization (for example, executive 
director, deputy director, president, vice president), the program 
manager or chief of party for the USG-financed program, and any other 
person with significant responsibilities for administration of the USG-
financed activities or resources.
    The AO determines the appropriate stage of the solicitation process 
for applicants to submit the Form to the vetting official as specified 
in the Request for Application (RFA) or Annual Program Statement (APS).
    After a vetting determination has been made, the vetting official 
notifies the applicant or applicants that they either have passed or 
have not passed vetting. For applicants who have not passed, the 
vetting official will notify the applicant(s) of the vetting 
determination. USAID will determine what information may be released 
consistent with applicable law and Executive Orders, and with the 
concurrence of relevant agencies.
    Concurrently, the vetting official also notifies the AO that all 
vetting determinations have been provided to the applicants. The 
vetting official indicates to the AO whether or not all applicants have 
passed vetting but will not provide the AO with specific vetting 
information.
    Applicants who change any key individuals for any reason, including 
but not limited to failure to pass vetting or for reasons related to 
their applications, must submit a revised Form to the vetting official 
as soon as possible to allow for vetting of individuals not previously 
vetted. The AO makes the award decision

[[Page 53377]]

independently from the vetting process. The AO then confirms with the 
vetting official that the apparently successful applicant has passed 
vetting and proceeds with award. Only applicants who have passed the 
vetting process are eligible for award. If the AO is ready to make an 
award but the vetting official is unable to confirm that the apparently 
successful applicant has passed vetting, the AO will wait as long as is 
practicable for the vetting official's confirmation.
    The AO will proceed with an award to the next apparently successful 
applicant in accordance with the evaluation criteria, provided that 
applicant also passes vetting.
    To apply PVS to USAID assistance, USAID is amending 22 CFR Part 
226, Administration of Assistance Awards to U.S. Non-Governmental 
Organizations.

B. Summary of the Proposed Rule

    USAID is issuing a proposed rule to amend 22 CFR part 226 by adding 
a new subpart 226.92 to 22 CFR part 226, with an associated application 
provision and award term. The application provision, Partner Vetting 
Pre-Award Requirements, delineates the vetting process and the 
applicant's responsibilities for submitting information on individuals 
who will be vetted, prior to award. The award term, Partner Vetting, 
sets forth the recipient's responsibilities for vetting during the 
award period, and the partner vetting process that takes place after 
award.
    The amendment will also add definitions to subpart 226.2.

C. Impact Assessment

Regulatory Planning and Review

    Under E.O. 12866, USAID must determine whether a regulatory action 
is ``significant'' and therefore subject to the requirements of the 
E.O. and subject to review by the Office of Management and Budget 
(OMB).
    USAID has determined that this Rule is not an ``economically 
significant regulatory action'' under Section 3(f)(1) of E.O. 12866. 
The application of the Partner Vetting System to USAID assistance will 
not have an economic impact of $100 million or more. The regulation 
will not adversely affect the economy or any sector thereof, 
productivity, competition, jobs, the environment, nor public health or 
safety in a material way. However, as this rule is a ``significant 
regulatory action'' under Section 3(f)(4) of the E.O., USAID submitted 
it to OMB for review. We have also reviewed these regulations pursuant 
to Executive Order 13563, which supplements and explicitly reaffirms 
the principles, structures, and definitions governing regulatory review 
established in Executive Order 12866.
    This regulatory action is needed for USAID to meet its fiduciary 
responsibilities by helping to ensure that agency funds and other 
resources do not inadvertently benefit individuals or entities that are 
terrorists, supporters of terrorists or affiliated with terrorists. 
NGOs will provide information on key individuals when applying for 
USAID grants or cooperative agreements. This information will be used 
to screen potential recipients and key individuals. The screening will 
help ensure that funds are not diverted to individuals or entities that 
are terrorists, supporters of terrorists or affiliated with terrorists. 
The final benefit to the public will be the increased assurance that 
Federal funds will not inadvertently provide support to entities or 
individuals associated with terrorism.
    Although the primary benefit of vetting will be to prevent the 
diversion of USAID funds, implementing partners will benefit when their 
subrecipients have also been vetted and the prime recipient is working 
with legitimate organizations. In addition, as the vetting program 
becomes better known in the community, it will deter organizations 
associated with terrorism from applying for assistance funds.
    We estimate that 10,120 assistance applicants currently spend 
2,024,000 hours filling out paperwork for grant applications. We 
estimate the additional requirements for Partner Vetting will add 15 
minutes to each application. This number is calculated based on the 
fact that the NGOs are already providing the majority of information 
used for screening. The calculation takes into the account the 
additional pieces of information required for vetting. There are no 
start-up, capital, operation, maintenance, or recordkeeping costs to 
applicants as a result of this collection.
    The collection is essentially a clerical task involving employees 
whose wage rates we estimate average $12.50 dollars per hour. Therefore 
we estimate that the cost of implementing partner vetting is $3.13 for 
each application. USAID estimates the total burden hours for the pilot 
program for both acquisition and assistance at 11,000 hours. Based on 
data from 2009, 2010 and 2011, acquisition accounts for approximately 
77% of all awards and assistance accounts for approximately 23% of all 
awards. USAID therefore estimates the assistance portion of the total 
burden hours for the partner vetting pilot program at 2,530 hours. The 
estimate for the annual cost of implementing partner vetting for 
assistance is $31,676 (15 minutes * 10,120 burden hours * $12.50 per 
hour). We estimate that the government's cost to process assistance 
applications for the partner vetting pilot program is $391,810 
annually. This estimate is based on labor costs for four GS-13 
positions ($147,680 annually for each position) in the USAID Office of 
Security (SEC), five GS-13 vetting officials ($147,680 annually for 
each position), and five foreign service nationals ($74,880 annually 
for each position). USAID estimates that these positions will expend 
approximately 23% of their total annual hours on the assistance portion 
of the partner vetting pilot program. One of the goals of the partner 
vetting pilot program is to further understand the actual costs of 
implementing partner vetting in various environments. While the figures 
above reflect USAID's best estimates of government costs to implement 
the pilot program for assistance, the actual figures may be different. 
The pilot program will be used to inform our estimates of the costs of 
partner vetting in various environments.
    We estimate that the total cost for this proposed rule for 
implementing the partner vetting pilot program is $399,716.

Regulatory Flexibility Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601 et seq.), USAID has considered the economic 
impact of the rule on applicants and has determined that its provisions 
would not have a significant economic impact on a substantial number of 
small entities.
    The proposed regulations would add the requirement for partner 
vetting of key individuals for applicants of USAID-funded assistance 
awards into the existing partner vetting system. USAID estimates that 
completing an assistance application in response to a Request For 
Application takes 200 hours. USAID considers the additional 15 minute 
burden on applicants as de minimis and that this does not significantly 
increase the burden on grant applicants.

Paperwork Reduction Act

    The changes to 22 CFR Part 226 use information collected via USAID 
Partner Information Form, USAID Form 500-13, which was approved in 
accordance with 44 U.S.C. 3501 by the Office of Management and Budget 
on July 25, 2012 (OMB Control Number 0412-0577).
    If this information collection is not conducted, then USAID will be 
unable to use all available means to adequately screen applicants for 
federal funding

[[Page 53378]]

assistance and risks inadvertently giving support to an individual or 
entity associated with terrorism. As for frequency, the information 
will be collected at the time of application for USAID assistance funds 
and will only be collected again if the grant is a multi-year award, in 
which case it will be collected annually; if the key officials within 
the NGO change, in which case it will be re-collected as soon as 
possible after the change; or if other unique circumstances warrant.
    During the initial pilot program, it is estimated that 
approximately, 44,000 NGOs will apply for USAID funds for programs 
implemented in the five PVS pilot countries and will require vetting. 
Each NGO will submit one vetting form per grant application and the 
duration of each USAID grant is typically one year. Thus, the total 
annual responses are also estimated to be 44,000. The projected time 
per response for this information collection is a total of one-quarter 
hour per response. The total annual hours are 11,000. These numbers 
were calculated based on the fact that NGOs already are providing the 
majority of information used for screening. The calculations take into 
account the additional information required. Completing a grant 
application in response to a Request For Application takes many hours. 
The additional 15 minute burden on applicants is clearly de minimis and 
does not significantly increase the burden on grant applicants.

List of Subjects in 22 CFR Part 226

    Foreign Aid, Non-profit Organizations.

Regulatory Text

    For the reasons set forth in the preamble, the U. S. Agency for 
International Development proposes to amend 22 CFR part 226 as follows:

PART 226 [AMENDED]

0
1. The authority citation for 22 CFR Part 226 continues to read as 
follows:

    Authority:  22 U.S.C. 2381(a) and 2401.
    Source: 60 FR 3744, Jan. 19, 1995, unless otherwise noted.

0
2. Amend Sec.  226.2 by adding the following definitions:


Sec.  226.2  Definitions

* * * * *
    Key individual means the principal officer of the organization's 
governing body (for example, chairman, vice chairman, treasurer and 
secretary of the board of directors or board of trustees); the 
principal officer and deputy principal officer of the organization (for 
example, executive director, deputy director, president, vice 
president); the program manager or chief of party for the USG-financed 
program; and any other person with significant responsibilities for 
administration of the USG-financed activities or resources, such as key 
personnel as identified in the solicitation or resulting cooperative 
agreement. Key personnel, whether or not they are employees of the 
prime recipient, must be vetted.
* * * * *
    Key personnel means those individuals identified for approval as 
part of substantial involvement in a cooperative agreement whose 
positions are essential to the successful implementation of an award.
* * * * *
    Vetting official means the USAID employee identified in the 
application or award as having responsibility for receiving vetting 
information, responding to questions about information to be included 
on the Partner Information Form, coordinating with the USAID Office of 
Security (SEC), and conveying the vetting determination to each 
applicant, potential subrecipients and vendors subject to vetting, and 
the agreement officer. The vetting official is not part of the office 
making the award selection and has no involvement in the selection 
process.
* * * * *
0
3. Add Sec.  226.92 to subpart F, to read as follows:


Sec.  226.92  Partner Vetting.

    (a) It is USAID policy that USAID may determine that a particular 
award is subject to vetting in the interest of national security. In 
that case, USAID may require vetting of the key individuals of 
applicants, including key personnel, whether or not they are employees 
of the applicant, first tier subrecipients, vendors, and any other 
class of subawards and procurements as identified in the assistance 
solicitation and resulting award. When USAID conducts partner vetting, 
it will not award to any applicant who does not pass vetting.
    (b) When USAID determines an award to be subject to vetting, the 
agreement officer determines the appropriate stage of the award cycle 
to require applicants to submit the completed USAID Partner Information 
Form, USAID Form 500-13, to the vetting official identified in the 
assistance solicitation. The agreement officer must specify in the 
assistance solicitation the stage at which the applicants will be 
required to submit the USAID Partner Information Form, USAID Form 500-
13.
    (c) Selection of the successful applicant proceeds separately from 
vetting. The agreement officer makes the selection determination 
separately from the vetting process and without knowledge of vetting-
related information other than that the apparently successful applicant 
has passed or not passed vetting.
    (d) For those awards the agency has determined are subject to 
vetting, the agreement officer may only award to an applicant that has 
passed vetting.
    (e) For those awards the agency has determined are subject to 
vetting, the recipient must submit the completed USAID Partner 
Information Form any time it changes:
    (1) Key individuals, and
    (2) Subrecipients and vendors for which vetting is required.
    (f) USAID may vet key individuals of the recipient, subrecipients 
and vendors periodically during program implementation using the 
information already submitted on the Form.
    (g) When the prime recipient is subject to vetting, vetting may be 
required for key individuals of subawards under the prime award when 
prior approval in accordance with 22 CFR 226.25(c)(8) for the subaward, 
transfer or contracting out of any work.
    (h) When the prime recipient is subject to vetting, vetting may be 
required for key individuals of vendors of certain services. The 
agreement officer must identify these services in the assistance 
solicitation and any resulting award.
    (i) When vetting of subawards is required, the agreement officer 
must not approve the subaward, transfer, or contracting out, or the 
procurement of certain classes of items until the organization subject 
to vetting has passed vetting. When vetting of vendors is required, the 
recipient may not procure the identified services until the vendor has 
passed vetting.
    (j) The recipient may instruct prospective subrecipients or vendors 
who are subject to vetting to submit the USAID Partner Information Form 
to the vetting official as soon as the recipient submits the USAID 
Partner Information Form for its key individuals.
    (k) Pre-award provision and award term.
    (1) The agreement officer must insert the pre-award provision 
Partner Vetting Pre-Award Requirements in Appendix B of this part in 
all assistance solicitations USAID identifies as subject to vetting.
    (2) The agreement officer must insert the award term Partner 
Vetting in Appendix B in all assistance solicitations and awards USAID 
identifies as subject to vetting.

[[Page 53379]]

0
4. Add Appendix B to Part 226, to read as follows:

Appendix B to Part 226--Partner Vetting Pre-Award Solicitation 
Provision and Award Term

Partner Vetting Pre-Award Requirements

    (a) USAID has determined that any award resulting from this 
assistance solicitation is subject to vetting. An applicant that has 
not passed vetting is ineligible for award.
    (b) The following are the vetting procedures for this 
solicitation:
    (1) Prospective applicants review the attached USAID Partner 
Information Form, USAID Form 500-13, and submit any questions about 
the USAID Partner Information Form or these procedures to the 
agreement officer by the deadline in the solicitation.
    (2) The agreement officer notifies the applicant when to submit 
the USAID Partner Information Form. For this solicitation, USAID 
will vet [insert in the provision the applicable stage of the 
selection process at which the Agreement Officer will notify the 
applicant(s) who must be vetted]. Within the timeframe set by the 
agreement officer in the notification, the applicant must complete 
and submit the USAID Partner Information Form to the vetting 
official. The designated vetting official is:
Vetting official:
-----------------------------------------------------------------------
Address:
-----------------------------------------------------------------------
Email:
-----------------------------------------------------------------------
---------------- (for inquiries only).
    (3) The applicants must notify proposed subrecipients and 
vendors of this requirement when the subrecipients or vendors are 
subject to vetting.
    Note: Applicants who submit using non-secure methods of 
transmission do so at their own risk.
    (c) Selection proceeds separately from vetting. Vetting is 
conducted independently from any discussions the agreement officer 
may have with an applicant. The applicant and any proposed 
subrecipient or vendor subject to vetting must not provide vetting 
information to other than the vetting official. The applicant and 
any proposed subrecipient or vendor subject to vetting will 
communicate only with the vetting official regarding their vetting 
submission(s) and not with any other USAID or USG personnel, 
including the agreement officer or the agreement officer's 
representatives. The agreement officer designates the vetting 
official as the only individual authorized to clarify the 
applicant's and proposed subrecipient's and vendor's vetting 
information.
    (d)(1) The vetting official notifies the applicant that it:
    (i) Has passed vetting,
    (ii) Has not passed vetting, or
    (iii) Must provide additional information, and resubmit the 
USAID Partner Information Form with the additional information 
within the number of days the vetting official specified in the 
notification.
    (2) The vetting official will include information that the USAID 
determines releasable. USAID will determine what information may be 
released consistent with applicable law and Executive Orders, and 
with the concurrence of relevant agencies.
    (e) Reconsideration. (1) Within 7 calendar days after the date 
of the vetting official's notification, an applicant that has not 
passed vetting may request in writing to the vetting official that 
the Agency reconsider the vetting determination. The request should 
include any written explanation, legal documentation and any other 
relevant written material for reconsideration.
    (2) Within 7 calendar days after the vetting official receives 
the request for reconsideration, the Agency will determine whether 
the applicant's additional information merits a revised decision.
    (3) The Agency's determination of whether reconsideration is 
warranted is final.
    (f) Revisions to vetting information. (1) Applicants who change 
key individuals, whether the applicant has previously passed vetting 
or not, must submit a revised USAID Partner Information Form to the 
vetting official. This includes changes to key personnel resulting 
from revisions to the technical portion of the application.
    (2) The vetting official will follow the vetting process of this 
provision for any revision of the applicant's Form.
    (g) Award. At the time of award, the agreement officer will 
confirm with the vetting official that the apparently successful 
applicant has passed vetting. The agreement officer may award only 
to an apparently successful applicant that has passed vetting.

Partner Vetting

    (a) The recipient must comply with the vetting requirements for 
key individuals under this award.
    (b) Definitions. As used in this provision--
``key individual,'' ``key personnel'' and ``vetting official'' have 
the meaning contained in 22 CFR 226.2.
    (c) The Recipient must submit a USAID Partner Information Form, 
USAID Form 500-13, to the vetting official identified below when the 
Recipient replaces key individuals with individuals who have not 
been previously vetting for this award. Note: USAID will not approve 
any key personnel who have not passed vetting. The designated 
vetting official is:
Vetting official:
-----------------------------------------------------------------------
Address:
-----------------------------------------------------------------------
Email:
-----------------------------------------------------------------------
---------------- (for inquiries only).
    (d)(1) The vetting official will notify the Recipient that it--
    (i) Has passed vetting,
    (ii) Has not passed vetting, or
    (iii) Must provide additional information, and resubmit the 
USAID Partner Information Form with the additional information 
within the number of days the vetting official specifies.
    (2) The vetting official will include information that USAID 
determines releasable. USAID will determine what information may be 
released consistent with applicable law and Executive Orders, and 
with the concurrence of relevant agencies.
    (e) The inability to pass vetting as described in the this award 
term may be determined to be a material failure to comply with the 
terms and conditions of the award and may subject the recipient to 
suspension or termination as specified in 22 CFR 226.61.
    (f) Reconsideration. (1) Within 7 calendar days after the date 
of the vetting official's notification, the recipient or prospective 
subrecipient or vendor that has not passed vetting may request in 
writing to the vetting official that the Agency reconsider the 
vetting determination. The request should include any written 
explanation, legal documentation and any other relevant written 
material for reconsideration.
    (2) Within 7 calendar days after the vetting official receives 
the request for reconsideration, the Agency will determine whether 
the recipient's additional information merits a revised decision.
    (3) The Agency's determination of whether reconsideration is 
warranted is final.
    (g) A notification that the Recipient has passed vetting does 
not constitute any other approval under this award.
    Alternate I. When subrecipients will be subject to vetting, add 
the following paragraphs to the basic award term:
    (h) When the prime recipient anticipates that it will require 
prior approval for a subaward in accordance with 22 CFR 
226.25(c)(8), the subaward is subject to vetting. The prospective 
subrecipient must submit a USAID Partner Information Form, USAID 
Form 500-13, to the vetting official identified in paragraph (c) of 
this provision. The agreement officer must not approve a subaward to 
any organization that has not passed vetting when required.
    (i) The recipient agrees to incorporate the substance of 
paragraphs (a) through (i) of this award term in all first tier 
subawards under this award.
    Alternate II. When specific classes of services are subject to 
vetting, add the following paragraph:
    (j) Prospective vendors at any tier providing the following 
classes of services
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must pass vetting. Recipients must not procure these services until 
they receive confirmation from the vetting official that the 
prospective vendor has passed vetting. (End of award term)
* * * * *

Angelique M. Crumbly,
Agency Regulatory Official, U.S. Agency for International Development.
[FR Doc. 2013-20846 Filed 8-28-13; 8:45 am]
BILLING CODE P