Proposed Rule2024-19859
Tribal Consultation for HUBZone Program Updates and Clarifications and Potential Reforms
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Published
September 6, 2024
Issuing agencies
Small Business Administration
Abstract
The U.S. Small Business Administration (SBA or Agency) announces that it is holding a Tribal consultation meeting in Washington, DC, 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 the Executive order entitled "Reforming Federal Funding and Support for Tribal Nations To Better Embrace Our Trust Responsibilities and Promote the Next Era of Tribal Self-Determination," 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 this Tribal consultation 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 173 (Friday, September 6, 2024)</title>
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[Federal Register Volume 89, Number 173 (Friday, September 6, 2024)]
[Proposed Rules]
[Pages 72763-72765]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19859]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
Tribal Consultation for HUBZone Program Updates and
Clarifications and Potential Reforms
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 a Tribal consultation meeting in
Washington, DC, 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 the Executive
order entitled ``Reforming Federal Funding and Support for Tribal
Nations To Better Embrace Our Trust Responsibilities and Promote the
Next Era of Tribal Self-Determination,'' 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
this Tribal consultation 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 is Monday, September 23, 2024, 2 p.m. to 5 p.m.
(Eastern Daylight Time (EDT). Pre-registration for this Tribal
consultation meeting is requested by September 16, 2024.
ADDRESSES:
Meeting Locations:
1. The in-person Tribal consultation meeting in Washington, DC will
be held at SBA Headquarters, 409 Third Street SW, Washington, DC 20416.
2. The virtual portion of the Tribal consultation meeting will be
hosted on Microsoft Teams. A subscription to Microsoft Teams is not
required to participate. SBA will provide further information,
including a direct invitation link to the meeting, upon registration.
Commenters and attendees may participate in-person or remotely at
this consultation meeting.
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#a4e7ccc1d5d1cdd0c58ae7c5d6d0c1d6e4d7c6c58ac3cbd2"><span class="__cf_email__" data-cfemail="e3a08b8692968a9782cda08291978691a3908182cd848c95">[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#0773756e65666b64686974726b7366736e68694774656629606871"><span class="__cf_email__" data-cfemail="9ce8eef5fefdf0fff3f2efe9f0e8fde8f5f3f2dceffefdb2fbf3ea">[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="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 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#dc9fb4b9ada9b5a8bdf29fbdaea8b9ae9cafbebdf2bbb3aa"><span class="__cf_email__" data-cfemail="b5f6ddd0c4c0dcc1d49bf6d4c7c1d0c7f5c6d7d49bd2dac3">[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 issued a proposed rule concerning the HUBZone program
regulations under RIN 3245-AH68. 89 FR 68274 (Aug. 23, 2024). 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)
Business Development (BD) program regulations. In particular, the
rulemaking 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 meeting announced in this document.
In addition to the above referenced regulatory proposals, SBA is
asking for input on how best to implement Executive Order (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 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
[[Page 72764]]
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 other prospective policy
changes addressing joint venture participation in SBA programs. Any
such policy changes would be addressed in a separate proposed
rulemaking action after considering comments and testimony from this
tribal consultation meeting. Specifically, SBA is seeking input 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 North American
Industry Classification System (NAICS) code assigned to the contract.
II. Tribal Consultation Meeting
The purpose of this Tribal consultation meeting is to conform to
the requirements of E.O. 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
Alaska Native Corporation (ANC)-owned firms participating in the 8(a)
BD program.
The format of this 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.
The hybrid meeting in Washington, DC will begin at 2 p.m. and end
at 5 p.m. (EDT). 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 the Tribal communities or principal of a tribally-
owned, ANC-owned, or Native Hawaiian Organization (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. Pre-
registration is not required for attendance at either the in-person or
virtual portion of the consultation meeting and the Microsoft Teams
invitation link for the virtual consultation meeting is a general link
that may be shared with others. However, attendees of the virtual
consultation meeting who would like to receive the link directly from
SBA must pre-register. SBA requests that attendees register with SBA no
later than: September 16, 2024. To register, please contact Chequita
Carter of SBA's Office of Native American Affairs in writing at
<a href="/cdn-cgi/l/email-protection#692a010c181c001d08472a081b1d0c1b291a0b08470e061f"><span class="__cf_email__" data-cfemail="22614a4753574b56430c614350564750625140430c454d54">[email protected]</span></a> or by facsimile to (202) 481-2177. If you are
interested in testifying, please include the
[[Page 72765]]
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. 2024-19859 Filed 9-5-24; 8:45 am]
BILLING CODE 8026-09-P
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