[Federal Register Volume 78, Number 2 (Thursday, January 3, 2013)]
[Notices]
[Pages 283-285]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31556]


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DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

[Docket Number FSIS-2012-0048]
RIN 0583-AD40


2013 Rate Changes for the Basetime, Overtime, Holiday, and 
Laboratory Services Rates

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Notice.

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SUMMMARY:  The Food Safety and Inspection Service (FSIS) is announcing 
the 2013 rates it will charge meat and poultry establishments, egg 
products plants, and importers and exporters for providing voluntary, 
overtime, and holiday inspection and identification, certification, and 
laboratory services. The 2013 basetime, overtime, holiday, and 
laboratory services rates will be applied on the first FSIS pay period 
at the beginning of the calendar year, January 13, 2013.

DATES: FSIS will charge the rates announced in this notice beginning 
January 13, 2013.

FOR FURTHER INFORMATION CONTACT: For further information contact 
Michael Toner, Director, Budget Division, Office of Management, FSIS, 
U.S. Department of Agriculture, Room 2159 South Building, 1400 
Independence Avenue SW., Washington, DC 20250-3700; Telephone (202) 
720-8700, Fax (202) 690-4155.

SUPPLEMENTARY INFORMATION:

Background

    On April 12, 2011, FSIS published a final rule amending its 
regulations to establish formulas for calculating the rates it charges 
meat and poultry establishments, egg products plants, and importers and 
exporters for providing voluntary, overtime, and holiday inspection and 
identification, certification, and laboratory services (76 FR 20220).
    In the final rule, FSIS stated that it would use the formulas to 
calculate the

[[Page 284]]

annual rates, publish the rates in Federal Register notices prior to 
the start of each calendar year, and apply the rates on the first FSIS 
pay period at the beginning of the calendar year.
    This notice provides the 2013 rates, which will be applied starting 
on January 13, 2013.

2013 Rates and Calculations

    The following table lists the 2013 Rates per hour, per employee, by 
type of service:

------------------------------------------------------------------------
                                                           2013 Rate
                                                      (estimates rounded
                       Service                            to reflect
                                                      billable quarters)
------------------------------------------------------------------------
Basetime............................................              $55.18
Overtime............................................               69.36
Holiday.............................................               83.54
Laboratory..........................................               69.01
------------------------------------------------------------------------

    FSIS determined the 2013 rates using the following calculations:
    Basetime Rate = The quotient of dividing the Office of Field 
Operations (OFO) plus Office of International Affairs (OIA) inspection 
program personnel's previous fiscal year's regular direct pay by the 
previous fiscal year's regular hours, plus the quotient multiplied by 
the calendar year's percentage of cost of living increase, plus the 
benefits rate, plus the travel and operating rate, plus the overhead 
rate, plus the allowance for bad debt rate.
    The calculation for the 2013 basetime rate per hour per program 
employee is:

[FY 2012 OFO and OIA Regular Direct Pay divided by the previous fiscal 
year's Regular Hours ($463,760,597/16,663,724)] = $27.83 + ($27.83 * 
1.9% (calendar year 2013 Cost of Living Increase)) = $28.36 + 
$8.96(benefits rate) + $.70 (travel and operating rate) + $17.15 
(overhead rate) + $.01 (bad debt allowance rate) = $55.18.

    Overtime Rate = The quotient of dividing the Office of Field 
Operations (OFO) plus Office of International Affairs (OIA) inspection 
program personnel's previous fiscal year's regular direct pay by the 
previous fiscal year's regular hours, plus that quotient multiplied by 
the calendar year's percentage of cost of living increase, multiplied 
by 1.5, plus the benefits rate, plus the travel and operating rate, 
plus the overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2013 overtime rate per hour per program 
employee is:

[FY 2012 OFO and OIA Regular Direct Pay divided by previous fiscal 
year's Regular Hours ($463,760,597/16,663,724)]= $27.83 + ($27.83 * 
1.9% (calendar year 2013 Cost of Living Increase)) =$28.36 * 1.5 = 
$42.54 + $8.96 (benefits rate) + $.70 (travel and operating rate) + 
$17.15 (overhead rate) + $.01 (bad debt allowance rate) = $69.36.

    Holiday Rate = The quotient of dividing the Office of Field 
Operations (OFO) plus Office of International Affairs (OIA) inspection 
program personnel's previous fiscal year's regular direct pay by the 
previous fiscal year's regular hours, plus that quotient multiplied by 
the calendar year's percentage of cost of living increase, multiplied 
by 2, plus the benefits rate, plus the travel and operating rate, plus 
the overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2013 holiday rate per hour per program 
employee calculation is:

[FY 2012 OFO and OIA Regular Direct Pay divided by Regular Hours 
($463,760,597/16,663,724)]= $27.83 + ($27.83 * 1.9% (calendar year 2013 
Cost of Living Increase)) =$28.36 * 2 = $56.72 + $8.96(benefits rate) + 
$.70 (travel and operating rate) + $17.15 (overhead rate) + $.01 (bad 
debt allowance rate) = $83.54.

    Laboratory Services Rate = The quotient of dividing the Office of 
Public Health Science (OPHS) previous fiscal year's regular direct pay 
by the OPHS previous fiscal year's regular hours, plus the quotient 
multiplied by the calendar year's percentage cost of living increase, 
plus the benefits rate, plus the travel and operating rate, plus the 
overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2013 laboratory services rate per hour per 
program employee is:

[FY 2012 OPHS Regular Direct Pay/OPHS Regular hours ($22,908,043/
553,403)] = $41.39 + ($41.39 * 1.9% (calendar year 2013 Cost of Living 
Increase)) = $42.18 + $8.96 (benefits rate) + $.70 (travel and 
operating rate) + $17.15 (overhead rate) + $.01 (bad debt allowance 
rate) = $69.01.

Calculations for the Benefits, Travel and Operating, Overhead, and 
Allowance for Bad Debt Rates

    These rates are components of the basetime, overtime, holiday, and 
laboratory services rates formulas.
    Benefits Rate: The quotient of dividing the previous fiscal year's 
direct benefits costs by the previous fiscal year's total hours 
(regular, overtime, and holiday), plus that quotient multiplied by the 
calendar year's percentage cost of living increase. Some examples of 
direct benefits are health insurance, retirement, life insurance, and 
Thrift Savings Plan basic and matching contributions.
    The calculation for the 2013 benefits rate per hour per program 
employee is:

[FY 2012 Direct Benefits/(Total Regular hours + Total Overtime hours + 
Total Holiday hours) ($171,649,295/19,514,555)] = $8.80 + ($8.80 * 1.9% 
(calendar year 2013 Cost of Living Increase) = $8.96.

    Travel and Operating Rate: The quotient of dividing the previous 
fiscal year's total direct travel and operating costs by the previous 
fiscal year's total hours (regular, overtime, and holiday), plus that 
quotient multiplied by the calendar year's percentage of inflation.
    The calculation for the 2013 travel and operating rate per hour per 
program employee is:

[FY 2012 Total Direct Travel and Operating Costs/(Total Regular hours + 
Total Overtime hours + Total Holiday hours) ($13,351,831/19,514,555)] = 
$.68 + ($.68 * 1.6% (2013 Inflation) = $.70.

    Overhead Rate: The quotient of dividing the previous fiscal year's 
indirect costs plus the previous fiscal year's information technology 
(IT) costs in the Public Health Data Communication Infrastructure 
System Fund plus the previous fiscal year's Office of Management 
Program cost in the Reimbursable and Voluntary Funds plus the provision 
for the operating balance less any Greenbook costs (i.e., costs of USDA 
support services prorated to the service component for which fees are 
charged) that are not related to food inspection by the previous fiscal 
year's total hours (regular, overtime, and holiday) worked across all 
funds, plus the quotient multiplied by the calendar year's percentage 
of inflation.
    The calculation for the 2013 overhead rate per hour per program 
employee is:

[FY 2012 Total Overhead/(Total Regular hours + Total Overtime hours + 
Total Holiday hours)($329,449,845/19,514,555)] = $16.88 + ($16.88 * 
1.6% (2013 Inflation) = $17.15.

    Allowance for Bad Debt Rate = Previous fiscal year's total 
allowance for bad debt (for example, debt owed that is not paid in full 
by plants and establishments that declare bankruptcy) divided by 
previous fiscal year's total hours (regular, overtime, and holiday) 
worked.
    The 2013 calculation for bad debt rate per hour per program 
employee is:

[FY 2012 Total Bad Debt/(Total Regular hours + Total Overtime hours + 
Total Holiday hours) = ($286,335/19,514,555)] = $.01.

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Additional Public Notification

    FSIS will announce this notice online through the FSIS Web page 
located at http://www.fsis.usda.gov/regulations_&_policies/Federal_Register_Notices/index.asp.
    FSIS will also make copies of this Federal Register publication 
available through the FSIS Constituent Update, which is used to provide 
information regarding FSIS policies, procedures, regulations, Federal 
Register notices, FSIS public meetings, and other types of information 
that could affect or would be of interest to constituents and 
stakeholders. The Constituent Update is communicated via Listserv, a 
free electronic mail subscription service for industry, trade groups, 
consumer interest groups, health professionals, and other individuals 
who have asked to be included. The Update is also available on the FSIS 
Web page. In addition, FSIS offers an electronic mail subscription 
service which provides automatic and customized access to selected food 
safety news and information. This service is available at http://www.fsis.usda.gov/News_&_Events/Email_Subscription/. Options range 
from recalls to export information to regulations, directives and 
notices. Customers can add or delete subscriptions themselves, and have 
the option to password protect their accounts.

USDA Nondiscrimination Statement

    The U.S. Department of Agriculture (USDA) prohibits discrimination 
in all its programs and activities on the basis of race, color, 
national origin, gender, religion, age, disability, political beliefs, 
sexual orientation, and marital or family status. (Not all prohibited 
bases apply to all programs.)
    Persons with disabilities who require alternative means for 
communication of program information (Braille, large print, audiotape, 
etc.) should contact USDA's Target Center at 202-720-2600 (voice and 
TTY).
    To file a written complaint of discrimination, write USDA, Office 
of the Assistant Secretary for Civil Rights, 1400 Independence Avenue 
SW., Washington, DC 20250-9410 or call 202-720-5964 (voice and TTY). 
USDA is an equal opportunity provider and employer.

    Done at Washington, DC, on: December 26, 2012.
Alfred V. Almanza,
Administrator.
[FR Doc. 2012-31556 Filed 1-2-13; 8:45 am]
BILLING CODE 3410-DM-P