Proposed Rule2024-21362
Clarification to HUBZone Program Updates and Clarifications and Potential Reforms
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 19, 2024
Effective
August 23, 2024
Issuing agencies
Small Business Administration
Abstract
The U.S. Small Business Administration (SBA or Agency) publishes this document to clarify the scope of a proposed rule published on August 23, 2024. The proposed rule is intended to clarify and improve policies implemented as part of a comprehensive revision to the Historically Underutilized Business Zone (HUBZone) program regulations in 2019; to propose several changes to SBA's size and 8(a) Business Development (BD) regulations, and technical changes to the Women-Owned Small Business (WOSB) and Veteran Small Business Certification (VetCert) programs; and to move program-specific recertification requirements to a new section that would cover all size and status recertification requirements. The proposed rule does not address the exclusion from affiliation available to mentor- prot[eacute]g[eacute] joint ventures or the applicability of the HUBZone price evaluation preference to HUBZone joint ventures formed under the Mentor-Prot[eacute]g[eacute] Program. Those issues are outside the scope of the proposed rule.
Full Text
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<title>Federal Register, Volume 89 Issue 182 (Thursday, September 19, 2024)</title>
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[Federal Register Volume 89, Number 182 (Thursday, September 19, 2024)]
[Proposed Rules]
[Pages 76751-76752]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-21362]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
Clarification to HUBZone Program Updates and Clarifications and
Potential Reforms
AGENCY: U.S. Small Business Administration.
ACTION: Clarification to proposed rule.
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SUMMARY: The U.S. Small Business Administration (SBA or Agency)
publishes this document to clarify the scope of a proposed rule
published on August 23, 2024. The proposed rule is intended to clarify
and improve policies implemented as part of a comprehensive revision to
the Historically Underutilized Business Zone (HUBZone) program
regulations in 2019; to propose several changes to SBA's size and 8(a)
Business Development (BD) regulations, and technical changes to the
Women-Owned Small Business (WOSB) and Veteran Small Business
Certification (VetCert) programs; and to move program-specific
recertification requirements to a new section that would cover all size
and status recertification requirements. The proposed rule does not
address the exclusion from affiliation available to mentor-
prot[eacute]g[eacute] joint ventures or the applicability of the
HUBZone price evaluation preference to HUBZone joint ventures formed
under the Mentor-Prot[eacute]g[eacute] Program. Those issues are
outside the scope of the proposed rule.
DATES: Comments on the proposed rule published at 89 FR 68274 (Aug. 23,
2024) must be received on or before October 7, 2024.
ADDRESSES: You may submit comments, identified by Docket No. SBA-2024-
0007 or RIN 3245-AH68, 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 submissions): Laura Maas, HUBZone Program,
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 Laura Maas 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 or
not.
FOR FURTHER INFORMATION CONTACT: Laura Maas, Deputy Director, Office of
HUBZone, <a href="/cdn-cgi/l/email-protection#244c51465e4b4a41645746450a434b52"><span class="__cf_email__" data-cfemail="6a021f081005040f2a19080b440d051c">[email protected]</span></a>, (202) 205-7341.
SUPPLEMENTARY INFORMATION: 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.
[[Page 76752]]
Additionally, the proposed rule would make several clarifications and
changes to the Mentor-Prot[eacute]g[eacute] Program. First, it would
clarify that mentors must be organized as for-profit business concerns.
Second, the rule also proposed to establish consequences and options
following the acquisition of a firm that is currently participating as
a mentor in SBA's Mentor-Prot[eacute]g[eacute] Program. Third, the
proposed rule would revise the Mentor-Prot[eacute]g[eacute] Program
regulations to make clear that a business concern cannot be a
prot[eacute]g[eacute] for a total of more than 12 years. The proposed
rule has a 45-day comment period, with comments due on or before
October 7, 2024.
Pursuant to the Agency's Tribal Consultation Policy, SBA consults
with Tribes, Alaska Native Corporations (ANC), and other Native
communities prior to implementing regulatory or policy changes with a
direct and substantial effect on their participation in the HUBZone and
8(a) BD programs. SBA recognizes that regular communication and
collaboration between the SBA and its Tribal and ANC stakeholders are
vital to improving their program participation experience and
maximizing the benefits to Native American communities, even where SBA
is not actively considering program policy changes. SBA therefore makes
efforts to consult Native communities periodically to obtain input on
how the SBA could improve its programs. To these ends, SBA announced
that it was holding Tribal consultations concerning the proposed rule
and the following two matters. 89 FR 59010 (July 22, 2024).
First, the proposed rule explained that SBA was seeking 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 directed 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. The Agency requested comments on
several potential opportunities for reform as well as one change SBA
had already made to address the business and economic development needs
of Tribal Nations.
Second, SBA requested comments on prospective policy changes
addressing joint venture participation in SBA programs. Specifically,
SBA requested 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 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. SBA also sought
comments on the 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
explained it was 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. In the alternative, the Agency might consider proposing a rule
that would 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. Lastly, the proposed rule
stated SBA was considering steps to eliminate the applicability of the
HUBZone price evaluation preference to HUBZone joint ventures formed
under the Mentor-Prot[eacute]g[eacute] Program.
This document clarifies that the above-referenced possible
prospective policy change to eliminate or restrict the exclusion from
affiliation available to mentor-prot[eacute]g[eacute] joint ventures is
outside the scope of the proposed rule published on August 23, 2024.
Additionally, SBA is not addressing the applicability of the HUBZone
price evaluation preference to HUBZone joint ventures formed under the
Mentor-Prot[eacute]g[eacute] Program as part of this proposed rule. To
the extent SBA decides to propose amendments to its mentor-
prot[eacute]g[eacute] joint venture policies beyond those outlined in
the rulemaking published on August 23, 2024, the Agency would do so
through a separate proposed notice and comment rulemaking action in
which all interested SBA stakeholders may participate.
Jaqueline Robinson-Burnette,
Associate Administrator, Office of Government Contracting and Business
Development.
[FR Doc. 2024-21362 Filed 9-18-24; 8:45 am]
BILLING CODE 8026-09-P
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