Proposed Rule2024-16011
Tribal Consultation for HUBZone Program Updates and Clarifications and Potential Reforms Under Executive Order 14112
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Published
July 22, 2024
Issuing agencies
Small Business Administration
Abstract
The U.S. Small Business Administration (SBA or Agency) announces that it is holding tribal consultation meetings in Albuquerque, New Mexico, Oklahoma City, Oklahoma, and Anchorage, AK, as well as a Listening Session in Honolulu, Hawaii, concerning forthcoming proposed revisions to the Historically Underutilized Business Zone (HUBZone) program regulations. The proposed rule would amend the 8(a) Business Development (BD) and size regulations to clarify certain policies. Additionally, SBA requests comments and input on how best to implement Executive Order (E.O.) 14112, which, among other things, calls on agencies to increase the accessibility, equity, flexibility, and utility of Federal funding and support programs for Tribal Nations. SBA is also seeking comments on prospective policy changes addressing joint venture participation in SBA's programs. Testimony presented at these tribal consultations will become part of the administrative record for SBA's consideration when the Agency deliberates on approaches to changes in the HUBZone and 8(a) BD program regulations.
Full Text
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<title>Federal Register, Volume 89 Issue 140 (Monday, July 22, 2024)</title>
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[Federal Register Volume 89, Number 140 (Monday, July 22, 2024)]
[Proposed Rules]
[Pages 59010-59012]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16011]
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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. 140 / Monday, July 22, 2024 /
Proposed Rules
[[Page 59010]]
SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
Tribal Consultation for HUBZone Program Updates and
Clarifications and Potential Reforms Under Executive Order 14112
AGENCY: U.S. Small Business Administration.
ACTION: Notification of tribal consultation meeting; request for
comments.
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SUMMARY: The U.S. Small Business Administration (SBA or Agency)
announces that it is holding tribal consultation meetings in
Albuquerque, New Mexico, Oklahoma City, Oklahoma, and Anchorage, AK, as
well as a Listening Session in Honolulu, Hawaii, concerning forthcoming
proposed revisions to the Historically Underutilized Business Zone
(HUBZone) program regulations. The proposed rule would amend the 8(a)
Business Development (BD) and size regulations to clarify certain
policies. Additionally, SBA requests comments and input on how best to
implement Executive Order (E.O.) 14112, which, among other things,
calls on agencies to increase the accessibility, equity, flexibility,
and utility of Federal funding and support programs for Tribal Nations.
SBA is also seeking comments on prospective policy changes addressing
joint venture participation in SBA's programs. Testimony presented at
these tribal consultations will become part of the administrative
record for SBA's consideration when the Agency deliberates on
approaches to changes in the HUBZone and 8(a) BD program regulations.
DATES: The meeting dates are as follows:
1. Monday, August 19, 2024, 9:00 a.m. to 12:30 p.m. (MDT),
Albuquerque, New Mexico. Pre-registration for this Tribal Consultation
meeting is requested by August 12, 2024.
2. Wednesday, August 21, 2024, 9:00 a.m. to 12:00 p.m. (CDT),
Oklahoma City, Oklahoma. Pre-registration for this Tribal Consultation
meeting is requested by August 14, 2024.
3. Tuesday, August 27, 2024, 9:00 a.m. to 12:30 p.m. (AKDT),
Anchorage, Alaska. Pre-registration for this Tribal Consultation
meeting is requested by August 20, 2024.
4. The Listening Session will be held on Tuesday, September 17,
2024, 8:30 a.m. to 12:00 p.m. (HST), Honolulu, Hawaii. Pre-registration
for this Listening Session is requested by September 10, 2024.
ADDRESSES:
Meeting Locations:
1. The Tribal Consultation meeting in Albuquerque, New Mexico will
be held at the Indian Pueblo Cultural Center, 2401 12th Street NW,
Albuquerque, New Mexico 87104.
2. The Tribal Consultation meeting in Oklahoma City, Oklahoma will
be held at the First Americans Museum, 659 First Americans Boulevard,
Oklahoma City, OK 73129.
3. The Tribal Consultation meeting in Anchorage, Alaska will be
held at the Z.J. Loussac Public Library, 3600 Denali Street, Anchorage,
AK 99503.
4. The Listening Session in Honolulu, Hawaii will be held at the
SBA Hawaii District Office, 500 Ala Moana Boulevard, Suite 1-306,
Honolulu, Hawaii 96813.
Pre-registration: Send pre-registration requests to attend and/or
testify to Chequita Carter of SBA's Office of Native American Affairs,
U.S. Small Business Administration, 409 3rd Street SW, Washington, DC
20416; <a href="/cdn-cgi/l/email-protection#f0b398958185998491deb39182849582b0839291de979f86"><span class="__cf_email__" data-cfemail="0c4f64697d7965786d224f6d7e78697e4c7f6e6d226b637a">[email protected]</span></a>; or Facsimile to (202) 481-2177.
Comments: You may submit comments by any of the following methods:
<bullet> Email: to Jackson S. Brossy, Assistant Administrator,
Office of Native American Affairs, U.S. Small Business Administration,
at <a href="/cdn-cgi/l/email-protection#2e5a5c474c4f424d41405d5b424f5a4741406e5d4c4f00494158"><span class="__cf_email__" data-cfemail="582c2a313a39343b37362b2d34392c313736182b3a39763f372e">[email protected]</span></a>.
<bullet> Mail (for paper, disk, or CD-ROM submissions): to Jackson
S. Brossy, Assistant Administrator, Office of Native American Affairs,
U.S. Small Business Administration, 409 3rd Street SW, Washington, DC
20416.
Instructions: All submissions received will become part of the
administrative record for any rulemaking resulting from these tribal
consultation meetings and listening session. As such, comments received
may be posted on <a href="http://www.regulations.gov">http://www.regulations.gov</a>. If you wish to submit
confidential business information (CBI) as defined in the User Notice
at <a href="http://www.regulations.gov">http://www.regulations.gov</a>, please submit the comments to Jackson S.
Brossy and highlight the information that you consider to be CBI and
explain why you believe this information should be held confidential.
SBA will make a final determination as to whether the comments will be
published.
FOR FURTHER INFORMATION CONTACT: Chequita Carter, Program Assistant for
SBA's Office of Native American Affairs, at <a href="/cdn-cgi/l/email-protection#77341f1206021e0316593416050312053704151659101801"><span class="__cf_email__" data-cfemail="cc8fa4a9bdb9a5b8ade28fadbeb8a9be8cbfaeade2aba3ba">[email protected]</span></a> or
(202) 205-6680 or by facsimile to (202) 481-2177. This phone number can
also be reached by individuals who are deaf or hard of hearing, or who
have speech disabilities, through the Federal Communications
Commission's TTY-Based Telecommunications Relay Service teletype
service at 711.
SUPPLEMENTARY INFORMATION:
I. Background
SBA is planning to issue a proposed rule concerning the HUBZone
program regulations under RIN 3245-AH68. The proposed rule is intended
to clarify and improve several regulatory provisions, including those
governing HUBZone contract eligibility. The proposed rule would also
make several changes to SBA's size and 8(a) BD program regulations. In
particular, the rule would consolidate and redesignate the separate
recertification requirements for SBA's size, 8(a) BD, HUBZone, Woman-
Owned Small Business, and Service-Disabled Veteran-Owned Small Business
programs to a new section to reduce confusion and to ensure consistent
application of the size and status recertification requirements. SBA
anticipates the proposed rule will be published prior to the tribal
consultation meetings and the Listening Session announced in this
document.
In addition to the above referenced regulatory proposals, SBA is
asking for input on how best to implement E.O. 14112, Reforming Federal
Funding and Support for Tribal Nations To Better Embrace Our Trust
Responsibilities and Promote the Next Era of Tribal Self-Determination,
which was signed by the President on December 6, 2023. This E.O.
directs agencies to identify and execute policy reforms designed to
promote accessible, equitable, and
[[Page 59011]]
flexible administration of Federal funding and support programs for
Tribal Nations to better live up to the Federal Government's trust
responsibilities and help address the needs of all Tribal Nations. SBA
has identified several potential opportunities for improvement,
including the current requirements for personal guarantees and a waiver
of sovereign immunity for 7(a) loans to tribally-owned business
concerns, as well as the match funding requirement applicable to grants
awarded by Native-serving entrepreneurship organizations, such as Small
Business Development Centers and Community Development Financial
Institutions. SBA is seeking comments on these and other potential
reforms to reduce burdens and improve the accessibility of SBA's
programs for Tribal stakeholders. Additionally, the Agency requests
input on a change SBA has already made to address the business and
economic development needs of Tribal Nations. Specifically, SBA's
Assistant Administrator for Native American Affairs (ONAA)--who
previously reported to the Associate Administrator for the Office of
Entrepreneurial Development--now reports directly to the SBA
Administrator. SBA would like to better understand whether Tribal
Nations wish to continue with this current organization and reporting
structure.
Lastly, SBA is requesting comments on the perception that mentor-
prot[eacute]g[eacute] joint ventures are winning an inordinate number
of orders issued under small business multiple award contracts and
seeks suggestions on how to incentivize a more equitable marketplace
for individual small businesses who compete against mentor-
prot[eacute]g[eacute] joint ventures for multiple award, small business
contracts. There is also a perception that small businesses often enter
joint ventures to seek multiple award contract awards because procuring
agency past performance and experience requirements make it difficult
for many small businesses to qualify for the awards individually. SBA
is considering whether to propose eliminating the exception to
affiliation between an SBA-approved mentor and its
prot[eacute]g[eacute] for multiple award contracts to address this
concern. Such a change would continue to allow joint ventures to seek
and be awarded single award small business contracts, but would make
joint ventures ineligible for multiple award contracts. If that would
occur, SBA would expect the past performance and experience required
for award of future multiple award contracts to be adjusted to allow
individual small businesses to more easily qualify for award.
Another potential approach would be to allow an exclusion from
affiliation for a joint venture between a prot[eacute]g[eacute] firm
and its mentor only for contracts or orders that do not exceed five
years. As SBA has previously stated, SBA believes that a joint venture
should not be an on-going entity, but something with limited scope and
limited duration. Thus, SBA has limited the duration that a joint
venture can submit offers for the award of contracts to two years from
the date of its first contract award. SBA is questioning whether a
joint venture performing a contract or order that exceeds five years is
truly a limited duration entity.
Specific to qualified HUBZone prot[eacute]g[eacute] firms
participating in the Mentor-Prot[eacute]g[eacute] Program, SBA is
considering steps to clarify the applicability of the HUBZone price
evaluation preference to HUBZone joint ventures formed under the
Mentor-Prot[eacute]g[eacute] Program. Under the HUBZone price
evaluation preference, where a procuring agency will award a contract
on an unrestricted basis (i.e., full and open competition), the agency
must deem the price offered by a certified HUBZone small business
concern (including a HUBZone joint venture that complies with the
requirements of Sec. 126.616) to be lower than the price offered by an
apparent successful large business offeror if the price offered by the
certified HUBZone small business concern is not more than 10% higher
than the price offered by the large business. SBA is requesting
comments and input on whether it is appropriate for a HUBZone mentor-
prot[eacute]g[eacute] joint venture to benefit from the HUBZone price
evaluation preference when the joint venture is already benefitting
from its large business mentor's lower cost structures and pricing. SBA
is considering whether to propose eliminating the HUBZone price
evaluation preference's applicability to all joint ventures formed
under the Mentor-Prot[eacute]g[eacute] Program or, alternatively, to
offers submitting by a HUBZone joint venture where the mentor exceeds
the applicable size standard corresponding to the NAICS code assigned
to the contract.
II. Tribal Consultation Meetings
The purpose of these tribal consultation meetings is to conform to
the requirements of Executive Order 13175, Consultation and
Coordination With Indian Tribal Governments (65 FR 67249), and SBA's
Tribal Consultation Policy (<a href="https://www.sba.gov/document/support-sba-tribal-consultation-policy">https://www.sba.gov/document/support-sba-tribal-consultation-policy</a>); to provide interested parties with an
opportunity to discuss their views on the issues; and for SBA to obtain
the views of SBA's stakeholders on approaches to the HUBZone and 8(a)
BD regulations. SBA considers tribal consultation meetings a valuable
component of its deliberations and believes that this tribal
consultation meeting will allow for constructive dialogue with the
Tribal community, Tribal Leaders, Tribal Elders, elected members of
Alaska Native Villages or their appointed representatives, and
principals of tribally-owned and ANC-owned firms participating in the
8(a) BD program.
The format of these tribal consultation meetings will consist of a
panel of SBA representatives who will preside over the session. The
oral and written testimony as well as any comments SBA receives will
become part of the administrative record for SBA's consideration.
Written testimony may be submitted in lieu of oral testimony. SBA will
analyze the testimony, both oral and written, along with any written
comments received. SBA officials may ask questions of a presenter to
clarify or further explain the testimony. The purpose of the tribal
consultation is to assist SBA with gathering information to guide SBA's
review process and to potentially develop new proposals. SBA requests
that the comments pertain to SBA's planned rulemaking concerning the
HUBZone and 8(a) BD programs, general issues as they pertain to the
HUBZone and 8(a) BD regulations, opportunities for reform under E.O.
14112, or the unique concerns of the Tribal communities. Presenters are
encouraged to provide a written copy of their testimony. SBA will
accept written material that the presenter wishes to provide that
further supplements his or her testimony. Electronic or digitized
copies are encouraged.
Each tribal consultation meeting will be held for one day. The
meeting in Albuquerque, New Mexico will begin at 9:00 a.m. and end at
12:30 p.m. (MDT); the meeting in Oklahoma City, Oklahoma will begin at
9:00 a.m. and end at 12:30 p.m. (CDT); the meeting in Anchorage, Alaska
will begin at 9:00 a.m. and end at 12:30 p.m. (AKDT); and the Listening
Session in Honolulu, Hawaii will begin at 8:30 a.m. and end at 12:00
p.m. (HST). All registered speakers will have an opportunity to provide
testimony. SBA may adjourn early if all those scheduled have delivered
their testimony.
III. Registration
SBA respectfully requests that any elected or appointed
representative of
[[Page 59012]]
the tribal communities or principal of a tribally-owned, ANC-owned, or
NHO-owned 8(a) firm that is interested in attending please pre-register
in advance and indicate whether you would like to testify at the
hearing. However, pre-registration is not required for attendance. SBA
requests that attendees register with SBA no later than: August 12,
2024, for the consultation meeting in Albuquerque; August 14, 2024, for
the consultation meeting in Oklahoma City; August 20, 2024, for the
consultation meeting in Anchorage; and September 10, 2024, for the
Listening Session in Honolulu. To register, please contact Chequita
Carter of SBA's Office of Native American Affairs in writing at
<a href="/cdn-cgi/l/email-protection#c88ba0adb9bda1bca9e68ba9babcadba88bbaaa9e6afa7be"><span class="__cf_email__" data-cfemail="4f0c272a3e3a263b2e610c2e3d3b2a3d0f3c2d2e61282039">[email protected]</span></a> or by facsimile to (202) 481-2177. If you are
interested in testifying, please include the following information
relating to the person testifying: Name, Organization affiliation,
Address, Telephone number, Email address and Fax number. SBA will
attempt to accommodate all interested parties that wish to present
testimony. Based on the number of registrants it may be necessary to
impose time limits to ensure that everyone who wishes to testify has
the opportunity to do so. SBA will confirm in writing the registration
of presenters and attendees.
IV. Information on Service for Individuals With Disabilities
For information on facilities or services for individuals with
disabilities or to request special assistance at the tribal
consultation meeting, contact Chequita Carter at the telephone number
or email address indicated under the FOR FURTHER INFORMATION CONTACT
section of this document.
Authority: 15 U.S.C. 634 and E.O. 13175, 65 FR 67249.
Jackson S. Brossy,
Assistant Administrator, Office of Native American Affairs.
[FR Doc. 2024-16011 Filed 7-18-24; 11:15 am]
BILLING CODE 8026-09-P
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