Proposed Rule2024-10518
Women-Owned Small Business Federal Contract Program Updates and Clarifications
Primary source
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Published
May 16, 2024
Issuing agencies
Small Business Administration
Abstract
This proposed rule would make several changes to the Small Business Administration's (SBA or Agency) Women-Owned Small Business Federal Contract (WOSB) Program regulations, including adding definitions that are not currently included in the regulations and conforming the regulations to current statutes that have not yet been integrated. The rule would also adopt similar language to that used in SBA's other government contracting program regulations regarding the length of time that a firm that has been declined three times must wait before reapplying to the WOSB Program, and limits on outside employment. The Agency requests comment on all aspects of this proposed rule.
Full Text
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<title>Federal Register, Volume 89 Issue 96 (Thursday, May 16, 2024)</title>
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[Federal Register Volume 89, Number 96 (Thursday, May 16, 2024)]
[Proposed Rules]
[Pages 42816-42820]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-10518]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 89, No. 96 / Thursday, May 16, 2024 /
Proposed Rules
[[Page 42816]]
SMALL BUSINESS ADMINISTRATION
13 CFR Parts 124, 127, and 128
[Docket ID SBA-2024-0004]
RIN 3245-AI04
Women-Owned Small Business Federal Contract Program Updates and
Clarifications
AGENCY: U.S. Small Business Administration.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would make several changes to the Small
Business Administration's (SBA or Agency) Women-Owned Small Business
Federal Contract (WOSB) Program regulations, including adding
definitions that are not currently included in the regulations and
conforming the regulations to current statutes that have not yet been
integrated. The rule would also adopt similar language to that used in
SBA's other government contracting program regulations regarding the
length of time that a firm that has been declined three times must wait
before reapplying to the WOSB Program, and limits on outside
employment. The Agency requests comment on all aspects of this proposed
rule.
DATES: Comments must be received on or before July 15, 2024.
ADDRESSES: You may submit comments, identified by RIN 3245-AI04 or
Docket No. 2024-0004, by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>
and follow the instructions for submitting comments.
<bullet> Mail (for paper, disk, or CD-ROM submissions): Harry T.
Alexander Jr., Business Opportunity Specialist, Office of Contracting
Assistance, U.S. Small Business Administration, 409 Third Street SW,
Washington, DC 20416.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
rulemaking. All comments received will be posted on <a href="https://www.regulations.gov">https://www.regulations.gov</a>. If you wish to submit confidential business
information (CBI) as defined in the User Notice at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, please submit the comments to Harry T. Alexander
Jr. and highlight the information that you consider to be CBI and
explain why you believe this information should be held confidential.
FOR FURTHER INFORMATION CONTACT: Harry T. Alexander Jr., U.S. Small
Business Administration, Office of Contracting Assistance, 409 Third
Street SW, Washington, DC 20416; (202) 619-0314,
<a href="/cdn-cgi/l/email-protection#1078716262693e717c7568717e7475627a62506372713e777f66"><span class="__cf_email__" data-cfemail="88e0e9fafaf1a6e9e4edf0e9e6ecedfae2fac8fbeae9a6efe7fe">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: SBA proposes to make changes to the process
by which an application for certification is reviewed by SBA in order
to implement a statutory amendment from the National Defense
Authorization Act for Fiscal Year 2022 regarding the effects of a
status determination on a small business concern. SBA also proposes to
remove outdated references to the U.S. Department of Veterans Affairs
Center for Verification and Evaluation, instead referring to SBA's
Veteran Small Business Certification Program. The rule would also
provide additional definitions of terms used in the regulations,
attempt to provide consistency across the regulations used in SBA's
other government contracting programs, and define who is authorized to
represent a firm when validating or signing certification pages during
the certification process.
Section-by-Section Analysis
Sections 124.106(a), 127.202(c), and 128.203(i)
Sections 124.106(a) (for the 8(a) Business Development (BD)
program), 127.202(c) (for the women-owned small business (WOSB
program), and 128.203(i) (for the veteran small business certification
(VetCert) program) address limitations on outside employment that can
affect a business concern's eligibility for participation in the 8(a)
BD, WOSB, and VetCert programs based on a qualifying individual's lack
of control. Basically, each of these provisions generally requires the
qualifying individual to devote fulltime or the number of hours of
normal operation to the business. Each also requires the business
concern to demonstrate how a qualifying individual does in fact control
the day-to-day operations of the business concern if the qualifying
individual does devotes fewer hours to the business than its normal
hours of operation. The language of the three provisions, however, is
not identical. This has led to questions as to whether SBA intended
different application of the control requirements for different
programs. In order to clear up any confusion, this rule proposes to
change the wording of the three provisions to make them identical to
ensure that the control requirement is consistently applied. Basically,
the rule would align the language of the restrictions in 8(a) BD and
WOSB programs to the current restriction in the VetCert Program.
Section 127.102
Section 127.102 sets out the definitions for the Women-Owned Small
Business (WOSB) Federal Contract Program. This rule first proposes to
add a definition for the term ``Applicant'' as a definition was not
included in the previous version of the regulations and appears in the
regulations of SBA's other government contracting programs. SBA
believes that including this definition will provide consistency in the
rules that apply to its various certification programs and make clear
that a concern applying for certification in the WOSB Program is an
``Applicant.''
The proposed rule would amend the current definition of the term
``System for Award Management (SAM) (or any successor system).'' SBA
believes that the definition is outdated and should match the
definition that is used in the FAR for consistency purposes.
The proposed rule would also remove the definition for ``WOSB
Program Repository'' as this definition refers to the old repository
system that is no longer in use. SBA believes that removing this
definition, which is not used elsewhere in 13 CFR part 127, will
alleviate any confusion.
Lastly, the proposed rule would amend the current definition of
``Interested party,'' limiting it to certified WOSB concerns or
concerns that have a pending application for WOSB certification, either
at SBA or a third-party certifier, that submit an offer for a specific
Economically Disadvantaged Women-Owned Small Business (EDWOSB) or WOSB
requirement, rather than any concern
[[Page 42817]]
who submits an offer for a specific EDWOSB or WOSB requirement. SBA
believes that only certified WOSBs and EDWOSBs or concerns pending WOSB
certification should be able to submit a protest against an apparent
successful offeror's EDWOSB or WOSB status. It is not uncommon for an
incumbent contractor to file a bid or size/status protest in order for
its performance to be extended pending the resolution of the protest.
SBA does not want to encourage firms that are not certified WOSBs or
certified EDWOSBs to submit offers merely to be able to file a status
protest that could prolong their performance under a preceding
contract. Such firms have no chance to be awarded a WOSB/EDWOSB
contract, and such protests may be nothing more than delay tactics.
Only firms that are capable of winning the WOSB set-aside contract or
order should be able to protest the WOSB status of an apparent
successful offeror.
Section 127.202
Current Sec. 127.202 generally requires that a woman devote
sufficient time to the business with a rebuttable presumption that the
business is not a WOSB if a woman devotes fewer hours to the business
than its normal hours of operation. Where the presumption applies, the
woman must provide evidence to SBA that she has ultimate managerial and
supervisory control over both the long-term decision making and day-to-
day management and administration of the business. This rule proposes
to align this language to the current restriction in the Veteran Small
Business Certification Program. The business still will be generally
required to have the qualified woman that controls the concern devote
the woman's full time to the business during the business's normal
hours of operation. The business may, however, demonstrate to SBA that
the woman has ultimate managerial and supervisory control over both the
long-term decision making and day-to-day management of the business.
Section 127.300
The proposed rule would amend the outdated references in Sec.
127.300(a)(2) and (b)(3) to certifications made by the U.S. Department
of Veterans Affairs (VA) Center for Verification and Evaluation.
Instead, the regulation would refer to SBA's Veteran Small Business
Certification Program. SBA believes this change would resolve any
confusion caused by reference to the VA's Verification Program, which
no longer certifies veteran-owned or service-disabled veteran-owned
small business concerns following its transfer to SBA pursuant to
section 862 of the National Defense Authorization Act for Fiscal Year
2021.
The proposed rule would also amend Sec. 127.300(c) by referring to
SAM, in addition to the Dynamic Small Business Search (DSBS) system.
This change would recognize that a concern that is a qualified WOSB or
EDWOSB will be designated as such in both SAM and the DSBS system.
Section 127.303
The proposed rule would add a new paragraph and reorganize Sec.
127.303(a)(1) to provide that a concern certified as a veteran-owned or
service-disabled veteran-owned small business for the Veteran Small
Business Certification Program and owned and controlled by one or more
women may use documentation of its Veteran-Owned Small Business Concern
(VOSB) or Service-Disabled Veteran-Owned Small Business Concern
(SDVOSB) certification or more recent recertification in support of its
application for WOSB certification. The proposed rule would further
provide that if the concern is also seeking EDWOSB certification, it
must submit documentation that demonstrates it is owned and controlled
by one or more women who are economically disadvantaged in accordance
with Sec. 127.203. This change would recognize a concern's ability to
use documentation from SBA's other certification program in support of
its application for WOSB certification and refer to the current
veteran-owned and service-disabled veteran-owned certification program.
Section 127.305
The proposed rule would incorporate the same language used in Sec.
124.207 for purposes of applying to the 8(a) Business Development (BD)
Program. Section 124.207 provides that a concern that has applied to
the 8(a) BD program and has been declined three times within 18 months
of the date of the first final Agency decision finding the concern
ineligible cannot submit a new application for admission to the program
until 12 months from the date of the third final Agency decision to
decline. SBA seeks to provide consistency among its various
certification programs and believes that an applicant that has applied
three times within a relatively short timeframe and has not corrected
its deficiencies should be required to wait 12 months before applying
again. SBA wants to encourage concerns to submit accurate applications
in the first instance and to fully respond to all deficiencies noted in
its decline decisions.
Section 127.356(c)
The proposed rule would revise Sec. 127.356(c) to provide
consistency between Sec. 127.356(c) and Sec. 127.356(a) and (b).
Currently, Sec. 127.356(c) states that an approved third-party
certifier must ensure that all of a concern's documents are uploaded in
<a href="https://certify.sba.gov">https://certify.sba.gov</a> or any successor system. SBA believes that is
inconsistent with SBA's intent that it is the responsibility of the
concern, not the SBA-approved third-party certifier, to ensure that all
its documents are uploaded. Section 127.356(a) and (b) require the
applicant concern to apply directly with a third-party certifier and
register in SAM. Consistent with paragraphs (a) and (b), SBA believes
that it is the responsibility of the applicant concern, and not the
third-party certifier, to ensure that all documents necessary to
determine its eligibility for certification by an approved certifier
are uploaded with its application. SBA believes this uniformity within
the section will lead to less confusion about whose duty it is to make
sure documents have been made available to SBA when a third-party
certifier is involved. Furthermore, a system has not yet been put in
place for a third-party certifier to upload the documents on behalf of
the concern.
Section 127.504(a)
Section 127.504 permits a concern that has submitted a complete
application for WOSB or EDWOSB certification to SBA or a third-party
certifier and has not received a negative determination regarding that
application to submit an offer for a competitive WOSB or EDWOSB award.
The proposed rule would define ``pending application,'' as this term is
not currently defined in this section or elsewhere in the WOSB
regulations. SBA believes providing this definition will lead to less
confusion amongst concerns and contracting officers who have been
unsure when an application is pending and believed an application to be
pending at the point of application. This change will support the
acquisition process for WOSB and EDWOSB set-asides.
Section 127.604(f)
The proposed rule would add the language describing the effects of
a status determination on a concern and the obligation of a concern to
update the System for Award Management (or any successor system) within
two business days of a final determination. This change would be made
to implement a
[[Page 42818]]
statutory amendment of the National Defense Authorization Act of Fiscal
Year 2022, which amended section 863 of the Small Business Act, to
provide such language in the status determination of a concern.
Section 127.701
The proposed rule would remove this section entirely as it contains
outdated language regarding the previous WOSB program and system
whereby a concern certified its WOSB or EDWOSB status on SAM in
relation with specific eligibility requirements. This section, in its
entirety, is no longer necessary, as 13 CFR 127.304(f) and other WOSB
program regulations specify that SBA will update DSBS and SAM to
indicate that a concern has been certified by SBA as a WOSB and/or
EDWOSB.
Request for Comments
SBA invites all interested parties to participate in this
rulemaking by submitting written data, views, comments, and arguments
on all aspects of this proposed rule. Comments that will provide the
most assistance to SBA in implementing these changes will reference a
specific portion of the proposed rule, explain the reason for any
recommended change, and include data, information, or authority that
support such recommended change. Comments submitted in a manner other
than the methods listed above will not be considered comments on the
proposed rule and may not receive a response from SBA.
Compliance With Executive Orders 12866, 12988, 13132, 13563, and the
Paperwork Reduction Act (44 U.S.C. Ch. 35), the Regulatory Flexibility
Act (5 U.S.C. 601-612)
Executive Order 12866
The Office of Management and Budget has determined that this
proposed rule is not a ``significant regulatory action'' under
Executive Order 12866. This proposed rule would amend the WOSB
regulations to provide uniformity amongst SBA's government contracting
programs and to clarify certain regulations that have been
misunderstood by concerns and contract officers. As such, the proposed
rule has no effect on the amount or dollar value of any Federal
contract requirements or of any financial assistance provided through
SBA. Therefore, the proposed rule is not likely to have an annual
economic effect of $200 million or more, result in a major increase in
costs or prices, or have a significant adverse effect on competition or
the United States economy. In addition, this proposed rule does not
create a serious inconsistency or otherwise interfere with an action
taken or planned by another agency, materially alter the budgetary
impact of entitlements, grants, user fees, loan programs, or the rights
and obligations of such recipients, nor raise novel legal or policy
issues arising out of legal mandates, the President's priorities, or
the principles set forth in the Executive order.
Executive Order 13563
Executive Order 13563, Improving Regulation and Regulatory Review
(January 18, 2011), requires agencies to adopt regulations through a
process that involves public participation, and to the extent feasible,
base regulations on the open exchange of information and perspectives
from affected stakeholders and the public as a whole. SBA has developed
this proposed rule in a manner consistent with these requirements, and
the public will have the opportunity to provide comments following the
publication of this proposed rule.
Executive Order 12988
This action meets applicable standards set forth in section 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
Executive Order 13132
This proposed rule does not have Federalism implications as defined
in Executive Order 13132. It will not have substantial direct effects
on the States, on the relationship between the National Government and
the States, or on the distribution of power and responsibilities among
the various levels of government, as specified in the Executive order.
As such, it does not warrant the preparation of a Federalism
Assessment.
Paperwork Reduction Act
The SBA has determined that this proposed rule does not impose
additional reporting or recordkeeping requirements under the Paperwork
Reduction Act, 44 U.S.C. chapter 35.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980, as amended (RFA), 5 U.S.C.
601-612, requires Federal agencies to prepare an initial regulatory
flexibility analysis (IRFA) to consider the potential impact of the
regulations on small entities. Small entities include small businesses,
small not-for-profit organizations, and small governmental
jurisdictions. Section 605 of the RFA allows an agency to certify a
rule, in lieu of preparing an IRFA, if the rulemaking is not expected
to have a significant economic impact on a substantial number of small
entities.
This proposed rule would revise the WOSB regulations to update
definitions and adopt similar language to that used in SBA's other
government contracting program regulations. Specifically, the proposed
rule would amend the length of time in which a firm that has been
declined three times must wait before reapplying to the WOSB Program
and remove reference to the 15-calendar day timeframe in which SBA will
notify an applicant for certification to the WOSB Program that their
application is either complete or incomplete. While SBA does not
anticipate that this proposed rule would have a significant economic
impact on any small business, we do welcome comments from any small
business setting out how and to what degree this proposed rule would
affect it economically. Therefore, the Administrator of SBA certifies
under 5 U.S.C. 605(b) that this proposed rule would not have a
significant economic impact on a substantial number of small entities.
List of Subjects
13 CFR Part 124
Administrative practice and procedure, Government procurement,
Government property, Small businesses.
13 CFR Part 127
Government contracts, Reporting and recordkeeping requirements,
Small businesses.
13 CFR Part 128
Government contracts, Government procurement, Reporting and
recordkeeping requirements, Small businesses, Technical assistance,
Veterans.
Accordingly, for the reasons stated in the preamble, SBA proposes
to amend 13 CFR parts 124, 127, and 128 as follows:
PART 124--8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS
STATUS DETERMINATIONS
0
1. The authority citation for part 124 continues to read as follows:
Authority: 15 U.S.C. 634(b)(6), 636(j), 637(a), 637(d), 644, 42
U.S.C. 9815; and Pub. L. 99-661, 100 Stat. 3816; Sec. 1207, Pub. L.
100-656, 102 Stat. 3853; Pub. L. 101-37, 103 Stat. 70; Pub. L. 101-
574, 104 Stat. 2814; Sec. 8021, Pub. L. 108-87, 117 Stat. 1054; and
Sec. 330, Pub. L. 116-260.
[[Page 42819]]
0
2. Amend Sec. 124.106 by:
0
a. Revising paragraphs (a)(3) and (4);
0
b. Redesignating paragraph (a)(5) as paragraph (a)(6); and
0
c. Adding a new paragraph (a)(5).
The revisions and addition read as follows:
Sec. 124.106 When do disadvantaged individuals control an applicant
or Participant?
* * * * *
(a) * * *
(3) One or more disadvantaged individuals who manage the applicant
or Participant generally must devote full-time to the business concern
during its normal hours of operations. The disadvantaged individual who
holds the highest officer position of the business concern may not
engage in outside employment that prevents the disadvantaged individual
from devoting the time and attention to the concern necessary to
control its management and daily business operations.
(4) Where a disadvantaged individual claiming to control a business
concern devotes fewer hours to the business than its normal hours of
operation, SBA will assume that the disadvantaged individual does not
control the business concern, unless the concern demonstrates that the
disadvantaged individual has ultimate managerial and supervisory
control over both the long-term decision making and day-to-day
management of the business.
(5) Any disadvantaged individual who seeks to engage in outside
employment after certification must notify SBA of the nature and
anticipated duration of the outside employment and demonstrate to SBA
that the outside employment will not prevent the disadvantaged
individual from controlling the business concern.
* * * * *
PART 127--WOMEN-OWNED SMALL BUSINESS FEDERAL CONTRACT PROGRAM
0
3. The authority citation for part 127 continues to read as follows:
Authority: 15 U.S.C. 632, 634(b)(6), 637(m), 644 and 657r.
0
4. Amend Sec. 127.102 by:
0
a. Adding the definition of ``Applicant'' in alphabetical order;
0
b. Revising the definitions of ``Interested party'' and ``System for
Award Management (SAM) (or any successor system)''; and
0
c. Removing the definition of ``WOSB Program Repository''.
The addition and revisions read as follows:
Sec. 127.102 What are the definitions of the terms used in this
part?
* * * * *
Applicant means a firm applying for certification in the WOSB
Certification Program.
* * * * *
Interested party means a concern certified as, or pending
certification as, a WOSB or EDWOSB that submits an offer for a specific
EDWOSB or WOSB requirement (including Multiple Award Contracts), any
concern that submitted an offer in a full and open competition and its
opportunity for award will be affected by a reserve of an award given
to a WOSB or EDWOSB, the contracting activity's contracting officer, or
SBA.
* * * * *
System for Award Management (SAM) (or any successor system) means
the primary Government repository for prospective Federal awardee and
Federal awardee information and the centralized Government system for
certain contracting, grants, and other assistance-related processes. It
includes--
(1) Data collected from prospective Federal Awardees required for
the conduct of business with the Government;
(2) Prospective contractor-submitted annual representations and
certifications in accordance with FAR subpart 4.12; and
(3) Identification of those parties excluded from receiving Federal
Contracts, certain subcontracts, and certain types of Federal financial
and non-financial assistance and benefits.
* * * * *
0
5. Amend Sec. 127.202 by revising paragraph (c) to read as follows:
Sec. 127.202 What are the requirements for control of an EDWOSB or
WOSB?
* * * * *
(c) Limitation on outside employment. (1) A woman or economically-
disadvantaged woman generally must devote full-time to the business
concern during its normal hours of operations. The woman or
economically-disadvantaged woman who holds the highest officer position
of the business concern may not engage in outside employment that
prevents her from devoting sufficient time and attention to the
business concern to control its management and daily operations.
(2) Where a woman or economically disadvantaged woman claiming to
control a business concern devotes fewer hours to the business than its
normal hours of operation, SBA will assume that she does not control
the business concern, unless the concern demonstrates that she has
ultimate managerial and supervisory control over both the long-term
decision making and day-to-day management and administration of the
business.
(3) Any qualifying woman or economically disadvantage woman who
seeks to engage in outside employment after certification must notify
SBA of the nature and anticipated duration of the outside employment
and demonstrate to SBA that the outside employment will not prevent her
from controlling the business concern.
* * * * *
0
6. Amend Sec. 127.300 by revising the section heading and paragraphs
(a)(2), (b)(3), and (c) to read as follows:
Sec. 127.300 How is a concern certified as an EDWOSB or WOSB?
(a) * * *
(2) A concern may submit evidence to SBA that it is a women-owned
and controlled small business that is an SBA-certified participant in
the Veteran Small Business Certification Program.
* * * * *
(b) * * *
(3) A concern may submit evidence to SBA that it is an economically
disadvantaged women-owned and controlled small business that is a
certified participant in the Veteran Small Business Certification
Program.
* * * * *
(c) If SBA determines that the concern is a qualified WOSB or
EDWOSB, it will issue a letter of certification and designate the
concern as a certified WOSB or EDWOSB on the Dynamic Small Business
Search (DSBS) system, SAM, or successor system.
0
7. Amend Sec. 127.303 by:
0
a. Redesignating paragraph (a)(1)(iii) as paragraph (a)(1)(iv);
0
b. Adding new paragraph (a)(1)(iii);
0
c. Removing paragraph (a)(2); and
0
d. Redesignating paragraph (a)(3) as paragraph (a)(2).
The addition reads as follows:
Sec. 127.303 What must a concern submit for certification?
(a) * * *
(1) * * *
(iii) A concern that is certified by SBA as a veteran-owned or
service-disabled veteran-owned small business for the Veteran Small
Business Certification Program and is owned and controlled by one or
more women may use documentation of its VOSB or SDVOSB certification or
most recent recertification in support of its application for WOSB
certification. If the concern is also seeking EDWOSB certification, the
concern must also submit documentation demonstrating
[[Page 42820]]
that it is owned and controlled by one or more women who are
economically disadvantaged in accordance with Sec. 127.203(b)(3).
* * * * *
0
8. Amend Sec. 127.304 by revising paragraph (a) to read as follows:
Sec. 127.304 How is an application for certification processed?
(a) The SBA's Director of Government Contracting (D/GC) or designee
is authorized to approve or decline applications for certification. SBA
must receive all required information and supporting documents before
it will begin processing a concern's application. SBA will not process
incomplete applications.
(1) SBA will advise each applicant after the receipt of an
application whether the application is complete and suitable for
evaluation and, if not, what additional information or clarification is
required to complete the application.
(2) SBA will make its determination within ninety (90) calendar
days after receipt of a complete package, whenever practicable.
* * * * *
0
9. Amend Sec. 127.305 by revising paragraph (a) to read as follows:
Sec. 127.305 May declined or decertified concerns seek
recertification at a later date?
(a) A concern that SBA or a third-party certifier has declined or
that SBA has decertified may seek certification after ninety (90) days
from the date of decline or decertification if it believes that it has
overcome all of the reasons for decline or decertification and is
currently eligible. However, a concern that has been declined three
times within 18 months of the date of the first final Agency decision
finding the concern ineligible cannot submit a new application for
admission to the program until 12 months from the date of the third
final Agency decision to decline.
* * * * *
0
10. Amend Sec. 127.356 by revising paragraph (c) to read as follows:
Sec. 127.356 How does a concern obtain certification from an
approved certifier?
* * * * *
(c) The concern must ensure that all documents necessary to
determine its eligibility for certification by an approved certifier
are uploaded in <a href="https://certify.sba.gov">https://certify.sba.gov</a> or any successor system.
0
11. Amend Sec. 127.504 by adding a sentence to the end of the
introductory text of paragraph (a) to read as follows:
Sec. 127.504 What requirements must an EDWOSB or WOSB meet to be
eligible for an EDWOSB or WOSB requirement?
(a) * * * An application is pending upon notification from SBA that
the application is deemed complete and has sufficient documentation for
full analysis.
* * * * *
0
12. Amend Sec. 127.604 by adding paragraph (f)(5) to read as follows:
Sec. 127.604 How will SBA process an EDWOSB or WOSB status protest?
* * * * *
(f) * * *
(5) Once a final determination has been made that a concern does
not meet the requirements of a WOSB or EDWOSB, the concern cannot self-
certify as a WOSB or EDWOSB, as applicable, for any WOSB or EDWOSB
contract. If a concern does so, it may be in violation of criminal
laws, including section 16(d) of the Small Business Act, 15 U.S.C.
645(d). If the concern has already certified itself as a WOSB or EDWOSB
on a pending procurement, the concern must immediately inform the
contracting officer for the procuring agency of its decertification.
(i) Not later than two days after the date on which a final
determination is made, such concern must update its WOSB/EDWOSB status
in the System for Award Management (or any successor system).
(ii) If a business concern fails to update its WOSB/EDWOSB status
in the System for Award Management (or any successor system) in
response to the final determination, SBA will make such update within
two business days of the concern's failure to do so.
(iii) A concern required to make an update in the System for Award
Management (or any successor system) shall notify a contracting officer
for each contract with respect to which such concern has an offer or
bid pending of the determination made, if the concern finds, in good
faith, that such determination affects the eligibility of the concern
to perform such contract.
Sec. 127.701 [Removed]
0
13. Remove Sec. 127.701.
PART 128--VETERAN SMALL BUSINESS CERTIFICATION PROGRAM
0
14. The authority citation for part 128 continues to read as follows:
Authority: 15 U.S.C. 632(q), 634(b)(6), 644, 645, 657f, 657f-1.
0
15. Amend Sec. 128.203 by revising paragraph (i) to read as follows:
Sec. 128.203 Who does SBA consider to control a VOSB or SDVOSB?
* * * * *
(i) Limitation on outside employment. (1) A qualifying veteran
generally must devote full-time to the business concern during its
normal hours of operations. The qualifying veteran who holds the
highest officer position of the business concern may not engage in
outside employment that prevents the qualifying veteran from devoting
the time and attention to the concern necessary to control its
management and daily business operations.
(2) Where a qualifying veteran claiming to control a business
concern devotes fewer hours to the business than its normal hours of
operation, SBA will assume that the qualifying veteran does not control
the business concern, unless the concern demonstrates that the
qualifying veteran has ultimate managerial and supervisory control over
both the long-term decision making and day-to-day management of the
business.
(3) Any qualifying veteran who seeks to engage in outside
employment after certification must notify SBA of the nature and
anticipated duration of the outside employment and demonstrate to SBA
that the outside employment will not prevent the qualifying veteran
from controlling the business concern.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2024-10518 Filed 5-15-24; 8:45 am]
BILLING CODE 8026-09-P
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