Section 1090.55 - Requirements for independent partiesThis section specifies how a third party demonstrates their independence from the regulated party that hires them and their technical ability to perform the specified services.
(a)Independence. The independent third party, their contractors, subcontractors, and their organizations must be independent of the regulated party. All the criteria listed in paragraphs (a)(1) and (2) of this section must be met by each person involved in the specified activities in this part that the independent third party is hired to perform for a regulated party, except that an internal auditor may instead meet the requirements in § 1090.1800(b)(1)(i) . (1)Employment criteria. No person employed by an independent third party, including contractor and subcontractor personnel, who is involved in a specified activity performed by the independent third party under the provisions of this part, may be employed, currently or previously, by the regulated party for any duration within the 12 months preceding the date when the regulated party hired the independent third party to provide services under this part.(2)Financial criteria.(i) The third-party's personnel, the third-party's organization, or any organization or individual that may be contracted or subcontracted by the third party must meet all the following requirements:(A) Have received no more than one-quarter of their revenue from the regulated party during the year prior to the date of hire of the third party by the regulated party for any purpose.(B) Have no interest in the regulated party's business. Income received from the third party to perform specified activities under this part is excepted.(C) Not receive compensation for any specified activity in this part that is dependent on the outcome of the specified activity.(ii) The regulated party must be free from any interest in the third-party's business.(b)Technical ability. The third party must meet all the following requirements in order to demonstrate their technical capability to perform specified activities under this part:(1) An independent surveyor that conducts a survey under subpart O of this part must have personnel familiar with petroleum marketing, the sampling and testing of gasoline and diesel fuel at retail stations, and the designing of surveys to estimate compliance rates for fuel parameters nationwide. The independent surveyor must demonstrate this technical ability in plans submitted under subpart O of this part.(2) A laboratory attempting to qualify alternative procedures must contract with an independent third party to verify the accuracy and precision of measured values as specified in § 1090.1365 . The independent third party must demonstrate work experience and a good working knowledge of the VCSB methods specified in §§ 1090.1365 and 1090.1370 , with training and expertise corresponding to a bachelor's degree in chemical engineering, or combined bachelor's degrees in chemistry and statistics.(3) Any person auditing in-line blending operations must demonstrate work experience and be proficient in the VCSB methods specified in §§ 1090.1365 and 1090.1370 .(c)Suspension and disbarment. Any person suspended or disbarred under 2 CFR part 1532 or 48 CFR part 9, subpart 9.4, is not qualified to perform review functions under this part. 85 FR 78469 , Dec. 4, 2020, as amended at 88 FR 44593 , July 12, 2023 85 FR 78469, 12/4/2020; 88 FR 44593, 9/11/2023