Consolidation of Mentor-Protégé Programs and Other Government Contracting Amendments; Correction

Published date22 July 2021
Citation86 FR 38537
Record Number2021-15357
SectionRules and Regulations
CourtSmall Business Administration
Federal Register, Volume 86 Issue 138 (Thursday, July 22, 2021)
[Federal Register Volume 86, Number 138 (Thursday, July 22, 2021)]
                [Rules and Regulations]
                [Pages 38537-38538]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-15357]
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                SMALL BUSINESS ADMINISTRATION
                13 CFR Parts 121 and 124
                RIN 3245-AG94
                Consolidation of Mentor-Prot[eacute]g[eacute] Programs and Other
                Government Contracting Amendments; Correction
                AGENCY: U.S. Small Business Administration.
                ACTION: Correcting amendment.
                -----------------------------------------------------------------------
                SUMMARY: The U.S. Small Business Administration (SBA) is correcting a
                final rule that was published in the Federal Register on October 16,
                2020. The rule merged the 8(a) Business Development (BD) Mentor-
                Prot[eacute]g[eacute] Program and the All Small Mentor-
                Prot[eacute]g[eacute] Program to eliminate confusion and remove
                unnecessary duplication of functions within SBA. This document is
                making technical corrections to the final regulations.
                DATES: Effective July 22, 2021.
                FOR FURTHER INFORMATION CONTACT: Mark Hagedorn, U.S. Small Business
                Administration, Office of General Counsel, 409 Third Street SW,
                Washington, DC 20416; (202) 205-7625; [email protected].
                SUPPLEMENTARY INFORMATION: On October 16, 2020, SBA published a final
                rule revising the regulations pertaining to the 8(a) BD and size
                programs in order to further reduce unnecessary or excessive burdens on
                small businesses and to more clearly delineate SBA's intent in certain
                regulations (85 FR 66146). This is the fourth set of corrections. The
                first set of corrections was published in the Federal Register on
                November 16, 2020 (85 FR 72916).
                [[Page 38538]]
                The second set of corrections was published in the Federal Register on
                January 14, 2021 (86 FR 2957). The third set of corrections was
                published in the Federal Register on February 23, 2021 (86 FR 10732).
                This document augments those corrections.
                 In the final rule, SBA amended Sec. 121.404(a)(1) to revise and
                clarify when the size status of a business concern is determined for a
                multiple-award contract. In doing so, SBA inadvertently removed Sec.
                121.404(a)(1)(iv), which concerned when the size of a concern is
                determined for multiple-award contracts for which offerors are not
                required to submit price as part of the offer. SBA did not intend to
                delete that provision. This document adds back in Sec.
                121.404(a)(1)(iv) as it appeared in SBA's regulations prior to the
                final rule.
                 This rule also corrects a typographical error contained in the
                introductory text of Sec. 121.404(g) by removing the word ``until''
                from the second sentence.
                 The final rule also revised Sec. 121.404(g)(2) to add language
                relating to the effect a merger, sale or acquisition that occurs
                between a concern's offer for a particular procurement and the date of
                award for that procurement would have on the concern's continued
                eligibility to receive the award and a procuring agency's ability to
                continue to receive small business credit. The final rule inadvertently
                left out a corresponding change to Sec. 121.404(g)(4). This rule
                corrects that omission by adding the words ``or pending'' to Sec.
                121.404(g)(4) to make clear that the revisions to Sec. 121.404(g)(2)
                were intended to apply to orders issued under multiple award contracts
                (MACs) as well.
                 Finally, the final rule also made several revisions to Sec.
                124.509 regarding business activity targets applying to Participants in
                SBA's 8(a) Business Development program. One of the changes made by the
                final rule was to clarify that SBA will compare 8(a) and non-8(a)
                revenues in a Participant's program year, as opposed to its fiscal
                year. The final rule intended to change all references from fiscal year
                to program year. However, one reference to fiscal year was mistakenly
                left in Sec. 124.509(b)(3). This correction changes fiscal year to
                program year in Sec. 124.509(b)(3).
                List of Subjects
                13 CFR Part 121
                 Administrative practice and procedure, Government procurement,
                Government property, Grant programs--business, Individuals with
                disabilities, Loan programs--business, Small businesses.
                13 CFR Part 124
                 Administrative practice and procedure, Government procurement,
                Government property, Small businesses.
                 Accordingly, 13 CFR parts 121 and 124 are corrected by making the
                following correcting amendments:
                PART 121--SMALL BUSINESS SIZE REGULATIONS
                0
                1. The authority citation for part 121 continues to read as follows:
                 Authority: 15 U.S.C. 632, 634(b)(6), 636(a)(36), 662, and
                694a(9); Pub. L. 116-136, Section 1114.
                0
                2. Amend Sec. 121.404 by
                0
                a. Adding paragraph (a)(1)(iv);
                0
                b. Revising the second sentence of paragraph (g) introductory text; and
                0
                c. Revising the second sentence of paragraph (g)(4).
                 The addition and revisions read as follows:
                Sec. 121.404 When is the size status of a business concern
                determined?
                * * * * *
                 (a) * * *
                 (1) * * *
                 (iv) For an indefinite delivery, indefinite quantity (IDIQ),
                Multiple Award Contract, where concerns are not required to submit
                price as part of the offer for the IDIQ contract, size will be
                determined as of the date of initial offer, which may not include
                price.
                * * * * *
                 (g) * * * Similarly, a concern that represents itself as a small
                business and qualifies as small after a required recertification under
                paragraph (g)(1), (2), or (3) of this section is generally considered
                to be a small business throughout the life of that contract. * * *
                * * * * *
                 (4) * * * However, if the Multiple Award Contract was set-aside for
                small businesses, partially set-aside for small businesses, or reserved
                for small business, then in the case of a contract novation, or merger
                or acquisition where no novation is required, where the resulting
                contractor is now other than small, the agency cannot count any new or
                pending orders issued pursuant to the contract, from that point
                forward, towards its small business goals. * * *
                * * * * *
                PART 124--8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS
                STATUS DETERMINATIONS
                0
                3. 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 and
                Pub. L. 99-661, Pub. L. 100-656, sec. 1207, Pub. L. 101-37, Pub. L.
                101-574, section 8021, Pub. L. 108-87, Pub. L. 116-260, sec. 330,
                and 42 U.S.C. 9815.
                0
                4. Amend Sec. 124.509 by revising the first sentence of paragraph
                (b)(3) to read as follows:
                Sec. 124.509 What are non-8(a) business activity targets?
                * * * * *
                 (b) * * *
                 (3) * * * SBA will measure the Participant's compliance with the
                applicable non-8(a) business activity target at the end of each program
                year in the transitional stage by comparing the Participant's non-8(a)
                revenue to its total revenue during the program year just completed. *
                * *
                * * * * *
                Antonio Doss,
                Acting Associate Administrator, Office of Government Contracting and
                Business Development.
                [FR Doc. 2021-15357 Filed 7-21-21; 8:45 am]
                BILLING CODE 8026-03-P
                

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