Rule2022-20342
Federal Acquisition Regulation: Update of Historically Underutilized Business Zone Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 23, 2022
Effective
October 28, 2022
Issuing agencies
Defense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement changes to the Small Business Administration's regulations for the Historically Underutilized Business Zone Program to reflect current policies, eliminate ambiguities, and reduce burdens on small businesses and procuring agencies.
Full Text
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[Federal Register Volume 87, Number 184 (Friday, September 23, 2022)]
[Rules and Regulations]
[Pages 58232-58237]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-20342]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 5, 6, 13, 19, and 52
[FAC 2022-08; FAR Case 2019-007; Item III; Docket No. FAR-2019-0007,
Sequence No. 1]
RIN 9000-AN90
Federal Acquisition Regulation: Update of Historically
Underutilized Business Zone Program
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to implement changes to the Small
Business Administration's regulations for the Historically
Underutilized Business Zone Program to reflect current policies,
eliminate ambiguities, and reduce burdens on small businesses and
procuring agencies.
DATES: Effective October 28, 2022.
FOR FURTHER INFORMATION CONTACT: Ms. Malissa Jones, Procurement
Analyst, at 703-605-2815 or by email at <a href="/cdn-cgi/l/email-protection#7f321e13160c0c1e513510111a0c3f180c1e51181009"><span class="__cf_email__" data-cfemail="85c8e4e9ecf6f6e4abcfeaebe0f6c5e2f6e4abe2eaf3">[email protected]</span></a> for
clarification of content. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or <a href="/cdn-cgi/l/email-protection#dc9b8f9d8eb9bb8fb9bf9cbbafbdf2bbb3aa"><span class="__cf_email__" data-cfemail="c186928093a4a692a4a281a6b2a0efa6aeb7">[email protected]</span></a>. Please cite FAC 2022-08, FAR Case
2019-007.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 86 FR 31468 on June 14, 2021, to implement regulatory
changes made by the Small Business Administration (SBA) to the
Historically Underutilized Business Zone (HUBZone) Program. Following a
review of its HUBZone program regulations, SBA issued a final rule on
November 26, 2019, at 84 FR 65222, to update its regulations to reflect
current policies, eliminate ambiguities, and reduce burdens on small
businesses and procuring agencies. For details see the proposed rule
and Section IV below.
Two respondents submitted public comments in response to the
proposed rule.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the public comments in the
development of the final rule; however, no changes were made as a
result of the public comments received. A discussion
[[Page 58233]]
of the comments received is provided as follows:
A. Summary of Significant Changes From The Proposed Rule
There are no significant changes from the proposed rule.
B. Analysis of Public Comments
1. Support for the Rule
Comment: One respondent expressed support for the rule.
Response: The Councils acknowledge the respondent's support for the
rule.
2. Clarifications
Comment: One respondent questioned the need for a checkbox for
HUBZone ``self-certification'' in the representations at FAR 52.212-
3(c)(10)(i) and 52.219-1(c)(8)(i) if a firm's HUBZone status is
determined by the Small Business Administration (SBA).
Response: This rule implements SBA's final rule published November
26, 2019, at 84 FR 65222, which modified the HUBZone certification
process to reduce the burden on HUBZone small business concerns. As a
result, HUBZone entities are certified by SBA annually, which will
allow entities to remain eligible for future HUBZone contracts for the
entire year, rather than having to represent its status with each
offer. However, the checkbox in the representations is still necessary,
as a HUBZone entity must represent whether it is or is not a HUBZone
small business concern certified by SBA in the Dynamic Small Business
Search (DSBS) and represent that it will attempt to maintain an
employment rate of HUBZone residents of 35 percent of its employees
during performance of a HUBZone contract in accordance with 13 CFR
126.200(e)(1).
3. Outside the Scope of the Rule
Comment: One respondent recommended increasing the number of
HUBZone small business set-asides.
Response: This is outside the scope of this rule.
C. Other Changes
This rule makes minor editorial changes from the proposed rule in
FAR parts 2 and 19, in the provisions at FAR 52.212-3, Offeror
Representations and Certifications--Commercial Products and Commercial
Services, and 52.219-1, Small Business Program Representations, and in
the clauses at 52.219-8, Utilization of Small Business Concerns, and
52.219-9, Small Business Subcontracting Plan.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Products, Including Commercially
Available Off-the-Shelf (COTS) Items, or for Commercial Services
This rule amends the provision and clauses at FAR 52.212-3, 52.212-
5, 52.213-4, 52.219-1, 52.219-3, 52.219-4, 52.219-8, 52.219-9, and
52.244-6. The provisions and clauses associated with implementation of
the HUBZone program continue to apply to acquisitions for commercial
products, including COTS items, or for commercial services. As
explained below, this rule also applies all HUBZone program provisions
and clauses to acquisitions at or below the SAT.
A. Applicability to Contracts at or Below the Simplified Acquisition
Threshold
41 U.S.C. 1905 governs the applicability of laws to acquisitions at
or below the SAT. Section 1905 generally limits the applicability of
new laws when agencies are making acquisitions at or below the SAT, but
provides that such acquisitions will not be exempt from a provision of
law under certain circumstances, including when the Federal Acquisition
Regulatory Council (FAR Council) makes a written determination and
finding that it would not be in the best interest of the Federal
Government to exempt contracts and subcontracts in amounts not greater
than the SAT from the provision of law. The FAR Council has made a
determination to apply this statute to acquisitions at or below the
SAT.
B. Determination
The HUBZone Act of 1997, including 15 U.S.C. 657a, tasks SBA with
administering a program to assist participating small businesses
located in areas with low income levels, high poverty and high
unemployment rates, Indian reservations, closed military bases, or
disaster areas with contracting opportunities in the form of set-
asides, sole-source awards, and price-evaluation preferences. Its
primary objectives are job creation and increased capital investment in
distressed communities.
The law is silent on the applicability of these requirements to
acquisitions at or below the SAT and does not independently provide for
criminal or civil penalties; nor does it include terms making express
reference to 41 U.S.C. 1905 and its application to acquisitions at or
below the SAT. Therefore, it does not apply to acquisitions at or below
the SAT unless the FAR Council makes a written determination as
provided at 41 U.S.C. 1905.
The FAR Council implemented the SBA's HUBZone program, which
implemented the HUBZone Act, through an interim rule published on
December 18, 1998 and effective on January 4, 1999 (63 FR 70265). A
final rule was published on September 24, 1999 (64 FR 51830). The FAR
rule added the HUBZone Act to the list of laws inapplicable to
contracts and subcontracts at or below the SAT at FAR 13.005. This
final rule removes the HUBZone Act from the list of laws inapplicable
to contracts and subcontracts at or below the SAT at FAR 13.005 and
makes other conforming changes.
Applying the rule to acquisitions at or below the SAT furthers the
longstanding policy expressed in FAR 19.201 of promoting ``maximum
practicable opportunities'' to HUBZone contractors in Government
contracting and the Administration's express commitment, reflected in
E.O. 13985, Advancing Racial Equity and Support for Underserved
Communities Through the Federal Government, to advance equity for
underserved communities. According to the Federal Procurement Data
System, an average of 108,233 contracts per year resulted from FAR part
19 set-asides and sole-source awards at or below the SAT during fiscal
years 2019 through 2021. Failure to apply the HUBZone Act to the
significant number of acquisitions that are conducted each year at or
below the SAT would prevent agencies from using the authorities of this
program to maximize opportunities for HUBZone small businesses in the
Federal marketplace. The Federal Government has a policy of promoting
HUBZone participation in Government contracting. The Small Business Act
(Section 15(g)(1), 15 U.S.C. 644(g)(1)) includes a 3% annual HUBZone
contracting goal for all prime contracts and subcontract awards each
fiscal year. Historically, the Federal Government has not achieved the
HUBZone goal. Application of the HUBZone Act to procurements at or
below the SAT will aid Federal agencies in achieving the HUBZone
contracting goal.
For these reasons, it is in the best interest of the Federal
Government to apply the requirements of the rule to acquisitions at or
below the SAT.
IV. Expected Impact of the Rule
This final rule will impact the operations of the Government and
HUBZone entities as described in this section. This rule specifies that
SBA
[[Page 58234]]
now certifies firms as HUBZone small business concerns in DSBS. As a
result, HUBZone entities are certified by SBA annually, which will
allow HUBZone entities to remain eligible for HUBZone contracts for the
entire year rather than being required to represent their status for
each offer. HUBZone small business certification data contained in DSBS
is also available in the System for Award Management (SAM); therefore,
contracting officers may use DSBS or SAM to identify certified HUBZone
small business concerns.
Contracting officers may award HUBZone set-aside and sole-source
contracts at or below the simplified acquisition threshold. This change
will increase the benefits from HUBZone set-aside and sole-source
contracts and increase HUBZone small businesses' opportunities in the
Federal marketplace.
Additionally, minor changes are made to the processing of HUBZone
status protests.
This final rule is not expected to result in any costs to
contractors or offerors.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993.
VI. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808)
before an interim or final rule takes effect, DoD, GSA, and NASA will
send the rule and the ``Submission of Federal Rules Under the
Congressional Review Act'' form to each House of the Congress and to
the Comptroller General of the United States. A major rule cannot take
effect until 60 days after it is published in the Federal Register.
This rule is not a major rule under 5 U.S.C. 804.
VII. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared a Final Regulatory Flexibility
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5
U.S.C. 601-612. The FRFA is summarized as follows:
DoD, GSA, and NASA are issuing a final rule amending the Federal
Acquisition Regulation (FAR) to implement revisions the Small
Business Administration (SBA) made in its regulations for the
Historically Underutilized Business Zone (HUBZone) Program.
Following a review of its HUBZone program regulations, SBA issued a
final rule on November 26, 2019, at 84 FR 65222, to update its
regulations to reflect current policies, eliminate ambiguities, and
reduce burdens on small businesses and procuring agencies. This
final FAR rule updates terminology and processes to correspond with
SBA's changes, such as updating the definition of HUBZone small
business concern and procedures for filing and processing HUBZone
protests. This rule also removes the restriction against applying
the HUBZone Act of 1997 (15 U.S.C. 657a) to contracts and
subcontracts at or below the simplified acquisition threshold (SAT).
There were no significant issues raised by the public comments
in response to the initial regulatory flexibility analysis.
This rule may have a positive economic impact on small entities
that qualify for the HUBZone program and that are interested in
participating in Federal procurement. By reducing the burden on
firms interested in becoming HUBZone small business concerns, more
firms may participate in and benefit from the program. SBA's Dynamic
Small Business Search database includes 6,417 small business
concerns with active HUBZone certifications. In fiscal years 2019,
2020, and 2021, the Federal Government made approximately 177,166
awards to SBA certified HUBZone small business concerns.
Approximately 9,104 of these were awarded to 2,416 unique entities
through a HUBZone set-aside under the HUBZone program; 584 were
awarded to 408 unique entities on a sole-source basis under the
HUBZone program; and 54 were awarded to 47 unique entities using the
HUBZone price evaluation preference. Approximately 58,750 were
awarded to HUBZone small businesses in open competition with other
firms. According to the Federal Procurement Data System, an average
of 108,233 contracts per year resulted from FAR part 19 set-asides
and sole-source awards at or below the SAT during fiscal years 2019,
2020, and 2021. Contracting officers will now be able to award
HUBZone set-aside and sole-source contracts at or below the
simplified acquisition threshold. Application of the HUBZone Act of
1997, 15 U.S.C. 657a, to acquisitions at or below the SAT will
increase the benefits from HUBZone set-aside and sole-source
contracts and increase HUBZone small businesses' opportunities in
the Federal marketplace.
This final rule does not include any new reporting,
recordkeeping, or other compliance requirements for small entities.
There are no known significant alternative approaches to the
final rule.
Interested parties may obtain a copy of the FRFA from the
Regulatory Secretariat Division. The Regulatory Secretariat Division
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of
the Small Business Administration.
VIII. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501-3521) applies to the
information collection described in this rule; however, these changes
to the FAR do not impose additional information collection requirements
to the paperwork burden previously approved under OMB Control Numbers
9000-0136, Commercial Acquisitions and 9000-0007, Subcontracting Plans.
List of Subjects in 48 CFR Parts 2, 5, 6, 13, 19, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 5, 6, 13, 19,
and 52 as set forth below:
0
1. The authority citation for 48 CFR parts 2, 5, 6, 13, 19, and 52
continues to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 2--DEFINITIONS OF WORDS AND TERMS
0
2. Amend section 2.101 in paragraph (b)(2) by--
0
a. In the definition ``HUBZone'' removing the phrase ``or redesignated
areas,'' and adding the phrase ``redesignated areas, governor-
designated covered areas, or qualified disaster areas,'' in its place;
0
b. In the definition ``HUBZone contract'' removing from paragraph (1)
the phrase ``sole source'' and adding the phrase ``sole-source'' in its
place; and
0
c. Revising the definition ``HUBZone small business concern''.
The revision reads as follows:
2.101 Definitions.
* * * * *
(b) * * *
(2) * * *
HUBZone small business concern means a small business concern that
meets the requirements described in 13 CFR 126.200, is certified by the
Small Business Administration (SBA) and designated by SBA as a HUBZone
small business concern in the Dynamic Small Business Search (DSBS) (13
CFR 126.103). SBA's designation also appears in SAM.
* * * * *
[[Page 58235]]
PART 5--PUBLICIZING CONTRACT ACTIONS
5.206 [Amended]
0
3. Amend section 5.206 in paragraph (a) introductory text, by removing
the word ``qualified''.
PART 6--COMPETITION REQUIREMENTS
0
4. Amend section 6.205 by revising paragraph (a) and removing from
paragraph (b) the word ``qualified''.
The revision reads as follows:
6.205 Set-asides for HUBZone small business concerns.
(a) To fulfill the statutory requirements relating to the HUBZone
Act of 1997 (15 U.S.C. 631 note), contracting officers may set aside
solicitations to allow only HUBZone small business concerns to compete
(see 19.1305).
* * * * *
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
13.003 [Amended]
0
5. Amend section 13.003 in paragraph (b)(2)(ii) by removing the phrase
``and 19.1306(a)(4)''.
13.005 [Amended]
0
6. Amend section 13.005 by removing paragraph (a)(5), and redesignating
paragraphs (a)(6) through (8) as paragraphs (a)(5) through (7),
respectively.
PART 19--SMALL BUSINESS PROGRAMS
19.301-1 [Amended]
0
7. Amend section 19.301-1 in paragraph (d) by removing the phrase
``concern both at the time of initial offer and at the time of contract
award'' and adding the phrase ``concern at the time of initial offer''
in its place.
0
8. Amend section 19.306 by--
0
a. Revising paragraph (b);
0
b. In paragraph (c) removing the phrase ``HUBZone qualifying'' and
adding the phrase ``HUBZone eligibility'' in its place;
0
c. Revising paragraph (d);
0
d. In paragraph (e)--
0
i. Revising the heading;
0
ii. Removing from paragraph (e)(1) introductory text the word
``protest'' and adding the words ``written protest'' in its place;
0
e. Revising paragraphs (f) and (h)(1)(ii);
0
f. Removing paragraph (h)(3);
0
g. In paragraph (i)--
0
i. Removing from the introductory text ``The HUBZone Program Director''
and ``(AA/GCBD)'' and adding ``SBA'' and ``(AA/GC&BD)'' in their
places, respectively;
0
ii. Revising the second sentence of paragraph (i)(1);
0
iii. Removing from paragraph (i)(2) ``AA/GCBD'' and adding ``AA/GC&BD''
in its place;
0
iv. Revising paragraph (i)(3);
0
v. Removing from paragraph (i)(4) ``(h)(1)(ii) or (h)(3)'' and in two
places removing ``(AA/GCBD)'' and adding ``(h)(1)(ii)(B)'', and ``(AA/
GC&BD)'' in their places, respectively; and
0
vi. Revising paragraph (i)(5).
0
h. In paragraph (l)--
0
i. Adding to the end of paragraph (l)(1)(i) the word ``and'';
0
ii. Removing paragraph (l)(1)(ii) and redesignating paragraph
(l)(1)(iii) as paragraph (l)(1)(ii); and
0
iii. Removing from paragraph (l)(2) ``Director/HUB's decision'' and
adding ``HUBZone Program Director's determination'' in its place; and
0
i. Removing from paragraph (m) ``AA/GCBD'' and adding ``AA/GC&BD'' in
its place and removing ``AA/GCBD's'' and adding ``AA/GC&BD's'' in its
place.
The revisions read as follows:
19.306 Protesting a firm's status as a HUBZone small business concern.
* * * * *
(b)(1) For sole-source procurements, SBA or the contracting officer
may protest the prospective contractor's certified HUBZone status; for
all other procurements, SBA, the contracting officer, or any other
interested party may protest the apparent successful offeror's
certified HUBZone status (see 13 CFR 126.800).
(2) The Director of SBA's Office of the HUBZone Program will
determine whether the concern has certified HUBZone status. If SBA
upholds the protest, SBA will remove the concern's HUBZone status in
the Dynamic Small Business Search (DSBS). SBA's protest regulations are
found in subpart H ``Protests'' at 13 CFR 126.800 through 126.805.
* * * * *
(d)(1) All protests must be in writing and must state all specific
grounds for the protest (i.e., why the protested concern did not meet
the eligibility requirements at 13 CFR 126.200 at the time of the
concern's application to SBA for certification as a HUBZone small
business concern or at the time SBA certified or last recertified the
concern as a HUBZone small business concern). Assertions that a
protested concern is not a HUBZone small business concern, without
setting forth specific facts or allegations, will not be considered by
SBA (see 13 CFR 126.801(b)).
(2) Protests filed against a HUBZone joint venture must state one
or, if applicable, both of the following:
(i) Why the HUBZone small business party to the joint venture did
not meet the eligibility requirements at 13 CFR 126.200 at the time of
its application to SBA for certification or at the time SBA certified
or last recertified the concern as a HUBZone small business concern.
(ii) Why the joint venture did not meet the requirements at 13 CFR
126.616 at the time of submission of its offer for a HUBZone contract.
(e) Submission of a protest. * * *
* * * * *
(f) The contracting officer shall forward all protests with a
referral letter to the Director of SBA's Office of the HUBZone Program,
by email to <a href="/cdn-cgi/l/email-protection#91f9ebe1e3fee5f4e2e5e2d1e2f3f0bff6fee7"><span class="__cf_email__" data-cfemail="bfd7c5cfcdd0cbdacccbccffccddde91d8d0c9">[email protected]</span></a>. The referral letter shall include the
following--
(1) The solicitation number;
(2) The contracting officer's name and contact information;
(3) The type of HUBZone contract (i.e., sole-source, set-aside,
full and open competition with a HUBZone price evaluation preference,
or reserve for HUBZone small business concerns under a multiple-award
contract);
(4) For a procurement conducted using full and open competition
with a HUBZone price evaluation preference, whether the protester's
opportunity for award was affected by the preference;
(5) For a HUBZone set-aside, whether the protester submitted an
offer;
(6) Whether the protested concern was the apparent successful
offeror;
(7) Whether the procurement was conducted using sealed bid or
negotiated procedures;
(8) The bid opening date, if applicable;
(9) The date the protester was notified of the apparent successful
offeror;
(10) The date the contracting officer received the protest;
(11) The date the protested concern submitted its initial offer or
quote to the contracting officer; and
(12) Whether a contract has been awarded, and if so, the date of
award and contract number.
* * * * *
(h) * * *
(1) * * *
(ii) Award the contract if--
(A) SBA does not issue its decision within 15 business days after
receipt of the protest; and
(B) The contracting officer determines in writing that there is an
immediate need to award the contract and that
[[Page 58236]]
waiting for SBA's determination will be disadvantageous to the
Government.
* * * * *
(i) * * *
(1) * * *. If the AA/GC&BD subsequently overturns the initial
determination or dismissal, the contracting officer may apply the AA/
GC&BD decision to the procurement in question.
* * * * *
(3) If the contracting officer has made a written determination in
accordance with (h)(1)(ii)(B) of this section, awarded the contract,
and the Director of SBA's Office of the HUBZone Program's ruling
sustaining the protest is received after award--
(i) The contracting officer shall either--
(A) Terminate the contract; or
(B)(1) Make a written determination that termination is not in the
best interests of the Government; and
(2) Not exercise any options or award further task or delivery
orders under the contract.
(ii) SBA will remove the concern's designation as a certified
HUBZone small business concern in the Dynamic Small Business Search
(DSBS). The concern is not permitted to submit an offer as a HUBZone
small business concern until SBA issues a decision that the
ineligibility is resolved; and
(iii) After SBA updates the concern's designation as a HUBZone
small business in DSBS, the contracting officer shall update the
Federal Procurement Data System (FPDS) to reflect the final decision of
the HUBZone Program Director if no appeal is filed.
* * * * *
(5) If the AA/GC&BD affirms the decision of the HUBZone Program
Director, finding the protested concern is ineligible, and contract
award has occurred--
(i) The contracting officer shall either--
(A) Terminate the contract; or
(B)(1) Make a written determination that termination is not in the
best interests of the Government; and
(2) Not exercise any options or award further task or delivery
orders under the contract;
(ii) SBA will remove the concern's designation as a certified
HUBZone small business concern in DSBS. The concern is not permitted to
submit an offer as a HUBZone small business concern until SBA issues a
decision that the ineligibility is resolved or the AA/GC&BD finds the
concern is eligible on appeal; and
(iii) After SBA updates the concern's designation as a HUBZone
small business in DSBS, the contracting officer shall update FPDS to
reflect the AA/GC&BD decision.
* * * * *
19.1302 [Removed and Reserved]
0
9. Remove and reserve section 19.1302.
0
10. Amend section 19.1303 by revising paragraphs (b) and (d) to read as
follows:
19.1303 Status as a HUBZone small business concern.
* * * * *
(b) If SBA determines that a concern is a HUBZone small business,
it will designate the concern as a HUBZone small business in the
Dynamic Small Business Search (DSBS) at <a href="https://web.sba.gov/pro-net/search/dsp_dsbs.cfm">https://web.sba.gov/pro-net/search/dsp_dsbs.cfm</a>. SBA's designation also appears in SAM. Only firms
designated in DSBS and SAM as HUBZone small business concerns are
eligible for HUBZone preferences. HUBZone preferences are not
contingent on the place of performance.
* * * * *
(d) To be eligible for a HUBZone contract under this section, a
HUBZone small business concern must be a HUBZone small business concern
at the time of its initial offer.
19.1304 [Amended]
0
11. Amend section 19.1304 by--
0
a. Adding to the end of paragraph (d) the word ``or'';
0
b. Removing paragraph (e); and
0
c. Redesignating paragraph (f) as paragraph (e).
19.1305 [Amended]
0
12. Amend section 19.1305 by--
0
a. Removing from paragraph (a)(3) the phrase ``sole source'' and adding
the phrase ``sole-source'' in its place;
0
b. Removing from paragraph (c) the word ``qualified'';
0
c. In paragraph (d)--
0
i. Removing from the introductory text the phrase ``, except for
acquisitions not exceeding the simplified acquisition threshold,''; and
0
ii. Removing from paragraph (d)(2) the word ``acquisition'' and adding
the phrase ``acquisition until the head of the contracting activity
issues a written decision on the appeal,'' in its place.
0
13. Amend section 19.1306 by--
0
a. Revising the section heading;
0
b. In paragraph (a)--
0
i. Removing from the introductory text the phrase ``sole source'' and
adding the phrase ``sole-source'' in its place;
0
ii. Removing paragraph (a)(4);
0
iii. Redesignating paragraphs (a)(5) and (6) as paragraphs (a)(4) and
(5); and
0
c. Removing from paragraph (b) the phrase ``sole source award'' and
adding the phrase ``sole-source award (see 13 CFR 126.610)'' in its
place.
The revision reads as follows:
19.1306 HUBZone sole-source awards.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
14. Amend section 52.212-3 by revising the date of the provision and
paragraph (c)(10)(i) to read as follows:
52.212-3 Offeror Representations and Certifications--Commercial
Products and Services.
* * * * *
Offeror Representations and Certifications--Commercial Products and
Services (Oct 2022)
* * * * *
(c) * * *
(10) * * *
(i) It [square] is, [square] is not a HUBZone small business
concern listed, on the date of this representation, as having been
certified by SBA as a HUBZone small business concern in the Dynamic
Small Business Search and SAM, and will attempt to maintain an
employment rate of HUBZone residents of 35 percent of its employees
during performance of a HUBZone contract (see 13 CFR 126.200(e)(1));
and
* * * * *
0
15. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(11) the date ``(SEP 2021)'' and adding
the date ``(OCT 2022)'' in its place;
0
c. Removing from paragraph (b)(12) the date ``(SEP 2021)'' and adding
the date ``(OCT 2022)'' in its place;
0
d. Removing from paragraph (b)(16) the date ``(OCT 2018)'' and adding
the date ``(OCT 2022)'' in its place;
0
e. Removing from paragraph (b)(17)(i) the date ``(NOV 2021)'' and
adding the date ``(OCT 2022)'' in its place;
0
f. In paragraph (e)(1)--
0
i. Removing from the introductory text the phrase ``(e)(1) of this
paragraph'' and adding the phrase ``(e)(1),'' in its place; and
0
ii. Removing from paragraph (e)(1)(v) the date ``(OCT 2018)'' and
adding the date ``(OCT 2022)'' in its place;
0
g. In Alternate II--
0
i. Revising the date; and
0
ii. In paragraph (e)(1)(ii)(E) removing the date ``(OCT 2018)'' and
adding the date ``(OCT 2022)'' in its place.
The revisions read as follows:
52.212-5 Contract Terms and Conditions Required To Implement Statutes
or Executive Orders--Commercial Products and Commercial Services.
* * * * *
[[Page 58237]]
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Products and Commercial Services (OCT
2022)
* * * * *
Alternate II (OCT 2022). * * *
* * * * *
0
16. Amend section 52.213-4 by revising the date of the clause and
removing from paragraph (a)(2)(viii) the date ``(JAN 2022)'' and adding
the date ``(OCT 2022)'' in its place.
The revision reads as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Products and Commercial Services).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Products and Commercial Services) (Oct 2022)
* * * * *
0
17. Amend section 52.219-1 by revising the date of the provision and
paragraph (c)(8)(i) to read as follows:
52.219-1 Small Business Program Representations.
* * * * *
Small Business Program Representations (Oct 2022)
* * * * *
(c) * * *
(8) * * *
(i) It [ballot] is, [ballot] is not a HUBZone small business
concern listed, on the date of this representation, as having been
certified by SBA as a HUBZone small business concern in the Dynamic
Small Business Search and SAM, and will attempt to maintain an
employment rate of HUBZone residents of 35 percent of its employees
during performance of a HUBZone contract (see 13 CFR 126.200(e)(1));
and
* * * * *
0
18. Amend section 52.219-3 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (d) and (e); and
0
c. Removing paragraph (f).
The revisions read as follows:
52.219-3 Notice of HUBZone Set-Aside or Sole-Source Award.
* * * * *
Notice of HUBZone Set-Aside or Sole-Source Award (Oct 2022)
* * * * *
(d) Joint venture. A joint venture may be considered a HUBZone
concern if--
(1) At least one party to the joint venture is a HUBZone small
business concern and complies with 13 CFR 126.616(c); and
(2) Each party to the joint venture qualifies as small under the
size standard for the solicitation, or the prot[eacute]g[eacute] is
small under the size standard for the solicitation in a joint
venture comprised of a mentor and prot[eacute]g[eacute] with an
approved mentor-prot[eacute]g[eacute] agreement under the SBA
mentor-prot[eacute]g[eacute] program.
(e) A HUBZone joint venture agrees that, in the performance of
the contract, at least 40 percent of the aggregate work performed by
the joint venture shall be completed by the HUBZone small business
parties to the joint venture. Work performed by the HUBZone small
business party or parties to the joint venture must be more than
administrative functions.
* * * * *
0
19. Amend section 52.219-4 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (c); and
0
c. Removing paragraph (d).
The revisions read as follows:
52.219-4 Notice of Price Evaluation Preference for HUBZone Small
Business Concerns.
* * * * *
Notice of Price Evaluation Preference for HUBZone Small Business
Concerns (OCT 2022)
* * * * *
(c) Joint venture. A HUBZone joint venture agrees that, in the
performance of the contract, at least 40 percent of the aggregate
work performed by the joint venture shall be completed by the
HUBZone small business parties to the joint venture. Work performed
by the HUBZone small business parties to the joint venture must be
more than administrative functions.
0
20. Amend section 52.219-8 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), revising the definition ``HUBZone small business
concern''; and
0
c. Revising paragraph (e)(5).
The revisions read as follows:
52.219-8 Utilization of Small Business Concerns.
* * * * *
Utilization of Small Business Concerns (OCT 2022)
(a) * * *
HUBZone small business concern means a small business concern
that meets the requirements described in 13 CFR 126.200, certified
by the Small Business Administration (SBA) and designated by SBA as
a HUBZone small business concern in the Dynamic Small Business
Search (DSBS) and SAM.
* * * * *
(e) * * *
(5) The Contractor shall confirm that a subcontractor
representing itself as a HUBZone small business concern is certified
by SBA as a HUBZone small business concern by accessing SAM or by
accessing DSBS at <a href="https://web.sba.gov/pro-net/search/dsp_dsbs.cfm">https://web.sba.gov/pro-net/search/dsp_dsbs.cfm</a>.
If the subcontractor is a joint venture, the Contractor shall
confirm that at least one party to the joint venture is certified by
SBA as a HUBZone small business concern. The Contractor may confirm
the representation by accessing SAM.
* * * * *
0
21. Amend section 52.219-9 by revising the date of the clause and
paragraph (e)(4) to read as follows:
52.219-9 Small Business Subcontracting Plan.
* * * * *
Small Business Subcontracting Plan (OCT 2022)
* * * * *
(e) * * *
(4) Confirm that a subcontractor representing itself as a
HUBZone small business concern is certified by SBA as a HUBZone
small business concern by accessing SAM or by accessing the Dynamic
Small Business Search (DSBS) at <a href="https://web.sba.gov/pro-net/search/dsp_dsbs.cfm">https://web.sba.gov/pro-net/search/dsp_dsbs.cfm</a>.
* * * * *
0
22. Amend section 52.244-6 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c)(1)(vii) the date ``(Oct 2018)'' and
adding the date ``(OCT 2022)'' in its place.
The revision reads as follows:
52.244-6 Subcontracts for Commercial Products and Commercial
Services.
* * * * *
Subcontracts for Commercial Products and Commercial Services (OCT 2022)
* * * * *
[FR Doc. 2022-20342 Filed 9-22-22; 8:45 am]
BILLING CODE 6820-EP-P
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</html>Indexed from Federal Register on September 23, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.