National Defense Authorization Act of 2020, Definition of Surviving Spouse for Service-Disabled Veteran-Owned Small Businesses and Change to 8(a) Business Development Contracting Thresholds, 61670-61673 [2021-24348]
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Federal Register / Vol. 86, No. 213 / Monday, November 8, 2021 / Rules and Regulations
research, Marketing agreements,
Soybeans and soybean products,
Reporting and recordkeeping
requirements.
*
For reasons set forth in the preamble,
7 CFR part 1220 is amended as follows:
[FR Doc. 2021–24302 Filed 11–5–21; 8:45 am]
13 CFR Parts 124, 125, 126, and 127
RIN 3245–AH27
Authority: 7 U.S.C. 6301–6311 and 7
U.S.C. 7401.
National Defense Authorization Act of
2020, Definition of Surviving Spouse
for Service-Disabled Veteran-Owned
Small Businesses and Change to 8(a)
Business Development Contracting
Thresholds
2. In § 1220.201, revise paragraph (a)
to read as follows:
■
Membership of board.
(a) For the purpose of nominating and
appointing producers to the Board, the
United States shall be divided into 31
geographic units and the number of
Board members from each unit, subject
to paragraphs (d) and (e) of this section
shall be as follows:
TABLE 1 TO PARAGRAPH (a)
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Number of
members
4
4
4
4
4
4
4
4
4
3
3
3
3
3
3
3
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
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SMALL BUSINESS ADMINISTRATION
1. The authority citation for part 1220
continues to read as follows:
South Dakota ..................................
Ohio .................................................
North Dakota ...................................
Nebraska .........................................
Missouri ...........................................
Minnesota ........................................
Iowa .................................................
Indiana .............................................
Illinois ..............................................
Wisconsin ........................................
Tennessee .......................................
Mississippi .......................................
Michigan ..........................................
Kentucky ..........................................
Kansas ............................................
Arkansas .........................................
Virginia ............................................
Pennsylvania ...................................
North Carolina .................................
Maryland ..........................................
Louisiana .........................................
Alabama ..........................................
Texas ...............................................
South Carolina ................................
Oklahoma ........................................
New York .........................................
New Jersey .....................................
Georgia ............................................
Delaware .........................................
Unit:
Eastern Region (Connecticut,
Florida, Maine, Massachusetts,
New Hampshire, Rhode Island,
Vermont, West Virginia, District
of Columbia, and Puerto Rico)
Western Region (Alaska, Arizona,
California, Colorado, Hawaii,
Idaho, Montana, Nevada, New
Mexico, Oregon, Utah, Washington, and Wyoming) ..............
*
BILLING CODE P
■
State/unit
*
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
PART 1220—SOYBEAN PROMOTION,
RESEARCH, AND CONSUMER
INFORMATION
§ 1220.201
*
U.S. Small Business
Administration.
ACTION: Direct final rule.
AGENCY:
This rule makes technical
changes to regulations issued by the
U.S. Small Business Administration
(SBA) to conform those regulations to
recent statutory changes. First, the rule
incorporates a required change to SBA’s
ownership requirements for small
business concerns owned and
controlled by service-disabled veterans.
The rule adopts changes to the
treatment of certain surviving spouses
made by the National Defense
Authorization Act of 2020. In addition,
the rule incorporates changes to the
dollar thresholds for certain contracting
actions authorized for the 8(a) Business
Development (BD) program made by the
National Defense Authorization Act of
2020. Finally, the rule adjusts the
competitive threshold dollar levels
authorized for SBA’s contracting
programs to changes made to the
Federal Acquisition Regulation (FAR)
due to inflation.
DATES: This rule is effective on February
7, 2022, without further action, unless
significant adverse comment is received
by December 8, 2021. If significant
adverse comment is received, SBA will
publish a timely withdrawal of the rule
in the Federal Register.
ADDRESSES: You may submit comments,
identified by RIN 3245–AH27, by any of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• For mail, paper, disk, or CD–ROM
submissions: Donna Fudge, U.S. Small
Business Administration, Office of
Policy, Planning and Liaison, 409 Third
Street SW, 8th Floor, Washington, DC
20416.
SUMMARY:
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• Hand Delivery/Courier: Donna
Fudge, U.S. Small Business
Administration, Office of Policy,
Planning and Liaison, 409 Third Street
SW, 8th Floor, Washington, DC 20416.
SBA will post all comments on
www.regulations.gov. If you wish to
submit confidential business
information (CBI) as defined in the User
Notice at www.regulations.gov, please
submit the information to Donna Fudge,
U.S. Small Business Administration,
Office of Policy, Planning and Liaison,
409 Third Street SW, 8th Floor,
Washington, DC 20416, or send an email
to donna.fudge@sba.gov. Highlight the
information that you consider to be CBI
and explain why you believe SBA
should hold this information as
confidential. SBA will review the
information and make the final
determination on whether it will
publish the information.
FOR FURTHER INFORMATION CONTACT:
Donna Fudge, Procurement Analyst,
Office of Policy, Planning and Liaison,
U.S. Small Business Administration,
409 Third Street SW, Washington, DC
20416; donna.fudge@sba.gov.
SUPPLEMENTARY INFORMATION: On
December 20, 2019, the National
Defense Authorization Act for Fiscal
Year 2020 (NDAA 2020), Public Law
116–92, 133 Stat. 1198, was signed into
law. Section 876 of NDAA 2020
amended section 3 of the Small
Business Act, 15 U.S.C. 632. This
provision made changes to the treatment
of surviving spouses with regard to the
program’s ownership requirements. The
changes require that SBA update its
regulations to reflect two new time
periods. Specifically, the statute creates
a ten-year time period to remain eligible
in the case of a surviving spouse of a
veteran with a service-connected
disability rated as 100 percent disabling
or who dies as a result of a serviceconnected disability, and a three-year
time period in the case of a surviving
spouse of a veteran with a serviceconnected disability rated as less than
100 percent disabling who does not die
as a result of a service-connected
disability. This rule updates 13 CFR
125.12 to reflect these changes. SBA is
changing the language in
§ 125.12(i)(1)(ii) to match the new
statutory language. SBA is adding the
ten-year time frame in § 125.12(i)(2)(iii).
SBA is adding the three-year time frame
in § 125.12(i)(2)(iv).
In addition, section 823 of NDAA
2020 changed the threshold for which a
justification and approval is needed for
Department of Defense (DoD) covered
procurements. Section 811 of the NDAA
for Fiscal Year 2010, Public Law 111–
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Federal Register / Vol. 86, No. 213 / Monday, November 8, 2021 / Rules and Regulations
84, 123 Stat. 2190, 2405, required the
Federal Acquisition Regulations (FAR)
to be amended to include a new
requirement for a written justification of
sole-source 8(a) awards over $20
million. The FAR increased this
threshold to $22 million due to inflation
on July 2, 2015. 80 FR 38293, 38296.
While the section 811 requirement for a
justification and approval applied to all
civilian and defense agencies, section
823 of NDAA 2020 increased the
threshold to $100 million only for the
DoD. As such, this rule amends SBA’s
regulations to increase the justification
and approval requirement to $100
million only with respect to DoD 8(a)
contracts. In addition, DoD, the General
Services Administration (GSA), and the
National Aeronautics and Space
Administration (NASA) are charged
with amending the FAR to adjust
statutory acquisition-related thresholds
for inflation every five years. On
October 2, 2020, DoD, GSA, and NASA
published a final rule in the Federal
Register amending the FAR to
implement new inflationary
adjustments. 85 FR 62485. As part of
that final rule, the $22 million
justification and approval threshold
authorized by section 811 of NDAA
2010 was increased to $25 million.
Thus, in addition to increasing the
threshold to $100 million for DoDrelated 8(a) procurements, this rule also
increases the justification and approval
threshold from $22 million to $25
million for all other agencies. This rule
amends § 124.502(c)(17) and
§ 124.506(b)(5) to adjust the justification
and approval thresholds accordingly.
In addition to the justification and
approval and 8(a) sole source thresholds
identified above that were raised in
response to the inflationary adjustments
made to the FAR, that same FAR rule
also adjusted other SBA-related
contacting dollar thresholds for
inflation. 85 FR 62485. Section 864 of
the National Defense Authorization Act
of 2021, Public Law 116–283,
subsequently amended the Small
Business Act to set the 8(a), HUBZone,
and WOSB sole source thresholds for
manufacturing contracts to $7,000,000.
As such, this rule incorporates the FAR
changes into SBA’s regulations except
where section 864 retained a $7 million
sole source threshold amount for
manufacturing contracts. Specifically,
this rule adopts the inflationary
adjustments made to the sole source
thresholds in the FAR for the 8(a) BD
Program (by amending
§ 124.506(a)(2)(ii) of SBA’s regulations),
the Service-Disabled Veteran-Owned
Small Business Concern Program (by
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amending § 125.23(b)(1) of SBA’s
regulations), the Historically
Underutilized Business Zone Program
(by amending § 126.612(b)(1) and (2) of
SBA’s regulations), and the WomenOwned Small Business Program (by
amending § 127.503(c)(2) and
§ 127.503(d)(2) of SBA’s regulations).
SBA is also updating a threshold for its
Small Business Subcontracting Program,
which is contained in § 125.3(c).
SBA is also making corrections to
§ 126.200(f) and § 126.700(b)(1).
Currently both sections contain an
incorrect reference to § 126.5. The
correct cross reference should be to
§ 125.6, and this rule corrects the
typographical errors.
Compliance With Executive Orders
12866, 13563, 12988, 13132, 13175, the
Congressional Review Act (5 U.S.C.
801–808), the Paperwork Reduction Act
(44 U.S.C. Ch. 35), the Regulatory
Flexibility Act (5 U.S.C. 601–612), and
the Administrative Procedure Act
Executive Order 12866
The Office of Management and Budget
(OMB) has determined that this direct
final rule does not constitute a
significant regulatory action under
Executive Order 12866.
Executive Order 13563
Executive Order 13563 reaffirms the
principles of Executive Order 12866
while calling for improvements in the
nation’s regulatory system to promote
predictability, to reduce uncertainty,
and to use the best, most innovative,
and least burdensome tools for
achieving regulatory ends. The
executive order directs agencies to
consider regulatory approaches that
reduce burdens and maintain flexibility
and freedom of choice for the public
where these approaches are relevant,
feasible, and consistent with regulatory
objectives. Executive Order 13563 also
requires that regulations be based on the
open exchange of information and
perspectives among state and local
officials, affected stakeholders in the
private sector, and the public as a
whole. SBA has developed this rule in
a manner consistent with these
requirements. While developing this
rule, SBA responded to specific
inquiries from government officials and
the public regarding the implementation
of the statutory required changes.
Executive Order 12988
This action meets applicable
standards set forth in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil
Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce
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burden. The action does not have
retroactive or preemptive effect.
Executive Order 13132
A rule has implications for federalism
under Executive Order 13132,
Federalism, if it has a substantial direct
effect 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. This
direct final rule will not have
substantial direct effects on the States,
on the relationship between the
National Government and the States, or
the distribution of power and
responsibilities among the various
levels of government.
SBA has analyzed this direct final
rule and has determined that it is
consistent with the fundamental
federalism principles and preemption
requirements described in Executive
Order 13132.
Executive Order 13175
This rule does not have tribal
implications under Executive Order
13175, Consultation and Coordination
with Indian Tribal Governments,
because it would not have a substantial
direct effect on one or more Indian
tribes, on the relationship between the
Federal Government and Indian tribes,
or on the distribution of power and
responsibilities between the Federal
Government and Indian tribes.
Congressional Review Act, 5 U.S.C. 801–
808
OMB’s Office of Information and
Regulatory Affairs has determined that
this rule is not a major rule under
subtitle E of the Small Business
Regulatory Enforcement Fairness Act of
1996 (also known as the Congressional
Review Act), 5 U.S.C. 804(2).
Paperwork Reduction Act, 44 U.S.C. Ch.
35
SBA has determined that this direct
final rule does not impose additional
reporting or recordkeeping requirements
under the Paperwork Reduction Act, 44
U.S.C., chapter 35.
Regulatory Flexibility Act, 5 U.S.C. 601–
612
The Regulatory Flexibility Act (RFA),
5 U.S.C. 601, requires administrative
agencies to consider the effect of their
actions on small entities, small nonprofit enterprises, and small local
governments. Pursuant to the RFA,
when an agency issues a rulemaking,
the agency must prepare a regulatory
flexibility analysis, which describes the
impact of the rule on small entities.
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However, section 605 of the RFA allows
an agency to certify a rule, in lieu of
preparing an analysis, if the rulemaking
is not expected to have a significant
economic impact on a substantial
number of small entities. Within the
meaning of RFA, SBA certifies that this
direct final rule will not have a
significant economic impact on a
substantial number of small entities. It
does not add any new requirements to
SBA’s regulations, but merely adjusts
specified thresholds to conform to
statutory changes and changes made by
the FAR.
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Administrative Procedure Act—
Justification for Direct Final Rule
In general, SBA publishes a rule for
public comment before issuing a final
rule, in accordance with the
Administrative Procedure Act. 5 U.S.C.
553. The Administrative Procedure Act
provides an exception to this standard
rulemaking process, however, where an
agency finds good cause to adopt a rule
without prior public participation. 5
U.S.C. 553(b)(3)(B). The good cause
requirement is satisfied when prior
public participation is impracticable,
unnecessary, or contrary to the public
interest.
SBA is publishing this rule as a direct
final rule because public participation is
unnecessary. SBA views this as a noncontroversial administrative action
because it merely implements a change
required by the Small Business Act, as
amended by section 876 of NDAA 2020.
This rule will be effective on the date
shown in the DATES section unless SBA
receives significant adverse comment on
or before the deadline for comments.
Significant adverse comments are
comments that provide strong
justifications why the rule should not be
adopted or for changing the rule. SBA
does not expect to receive any
significant adverse comments because
the rule simply mirrors the statutory
language contained in section 876 of
NDAA 2020, with no extraneous
interpretation or other expanded text.
The remaining technical changes merely
conform SBA regulations with the
updated thresholds in the FAR.
If SBA receives significant adverse
comment, SBA will publish a notice in
the Federal Register withdrawing this
rule before the effective date. If SBA
receives no significant adverse
comments, the rule will be effective 90
days after publication without further
notice.
List of Subjects
13 CFR Part 124
Administrative practice and
procedure, Government procurement,
Government property, Small businesses.
13 CFR Part 125
Government contracts, Government
procurement, Reporting and
recordkeeping requirements, Small
businesses, Technical assistance.
13 CFR Part 126
Administrative practice and
procedure, Government procurement,
Penalties, Reporting and recordkeeping
requirements, Small businesses.
13 CFR Part 127
Government contracts, Reporting and
recordkeeping requirements, Small
businesses.
Accordingly, for the reasons stated in
the preamble, SBA amends 13 CFR parts
124, 125, 126, and 127 as follows:
PART 124—8(a) BUSINESS
DEVELOPMENT/SMALL
DISADVANTAGED BUSINESS STATUS
DETERMINATIONS
1. The authority citation for part 124
is revised 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.
2. Amend § 124.502 by revising
paragraph (c)(17) to read as follows:
■
§ 124.502 How does an agency offer a
procurement to SBA for award through the
8(a) BD program?
*
*
*
*
*
(c) * * *
(17) A statement that the necessary
justification and approval under the
Federal Acquisition Regulation has
occurred where a requirement whose
estimated contract value exceeds
$25,000,000, or $100,000,000 in the case
of Department of Defense contracts, is
offered to SBA as a sole source
requirement on behalf of a specific
Participant; and
*
*
*
*
*
■ 3. Amend § 124.506 in paragraph
(a)(2)(ii) by removing the figure
‘‘$4,000,000’’ and adding in its place the
figure ‘‘$4,500,000’’ and by revising
paragraph (b)(5) to read as follows:
§ 124.506 At what dollar threshold must an
8(a) procurement be competed among
eligible Participants?
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(b) * * *
(5) An agency may not award an 8(a)
sole source contract for an amount
exceeding $25,000,000, or $100,000,000
for an agency of the Department of
Defense, unless the contracting officer
justifies the use of a sole source contract
in writing and has obtained the
necessary approval under the Federal
Acquisition Regulation.
*
*
*
*
*
PART 125—GOVERNMENT
CONTRACTING PROGRAMS
4. The authority citation for part 125
is revised to read as follows:
■
Authority: 15 U.S.C. 632(p), (q), 634(b)(6),
637, 644, 657b, 657(f), and 657r.
§ 125.3
[Amended]
5. Amend § 125.3 in paragraphs (c)(1)
introductory text and (c)(1)(x) by
removing the figure ‘‘$700,000’’ and
adding in its place the figure
‘‘$750,000’’.
■ 6. Amend § 125.12 by revising
paragraphs (i)(1)(ii) and (i)(2)(iii) and
adding paragraph (i)(2)(iv) to read as
follows:
■
§ 125.12 Who does SBA consider to own
an SDVO SBC?
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*
*
*
*
(i) * * *
(1) * * *
(ii) Such veteran had a serviceconnected disability (as defined in
section 101(16) of title 38, United States
Code); and
*
*
*
*
*
(2) * * *
(iii) In the case of a surviving spouse
of a veteran with a service-connected
disability rated as 100 percent disabling
or who dies as a result of a serviceconnected disability, is 10 years after
the date of the death of the veteran; or
(iv) In the case of a surviving spouse
of a veteran with a service-connected
disability rated as less than 100 percent
disabling who does not die as a result
of a service-connected disability, is 3
years after the date of the death of the
veteran.
§ 125.23
[Amended]
7. Amend § 125.23 in paragraph (b)(1)
by removing the figure ‘‘$6,500,000’’
and adding in its place the figure
‘‘$7,000,000’’.
■
PART 126—HUBZONE PROGRAM
8. The authority citation for part 126
is revised to read as follows:
■
Authority: 15 U.S.C. 632(a), 632(j), 632(p),
644 and 657a; Pub. L. 111–240, 124 Stat.
2504.
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§ 126.200
[Amended]
9. Amend § 126.200 in paragraph (f)
by removing the reference ‘‘§§ 126.5’’
and adding in its place the reference
‘‘§§ 125.6’’.
■
§ 126.612
[Amended]
10. Amend § 126.612 in paragraph
(b)(2) by removing the figure
‘‘4,000,000’’ and adding in its place the
figure ‘‘$4,500,000’’.
■
§ 126.700
[Amended]
11. Amend § 126.700 in paragraph
(b)(1) by removing the reference
‘‘§ 126.5’’ and adding in its place the
reference ‘‘§ 125.6’’.
■
PART 127—WOMEN-OWNED SMALL
BUSINESS FEDERAL CONTRACT
PROGRAM
12. 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.
§ 127.503
[Amended]
13. Amend § 127.503 in paragraphs
(c)(2) and (d)(2) by removing the figures
‘‘$6,500,000’’ and ‘‘$4,000,000’’ and
adding in their place the figures
‘‘$7,000,000’’ and ‘‘$4,500,000’’,
respectively.
■
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2021–24348 Filed 11–5–21; 8:45 am]
BILLING CODE 8026–03–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2021–0950; Project
Identifier MCAI–2021–01075–T; Amendment
39–21803; AD 2021–23–05]
RIN 2120–AA64
Airworthiness Directives; Airbus SAS
Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; request for
comments.
AGENCY:
The FAA is superseding
Airworthiness Directive (AD) 2021–18–
08, which applied to all Airbus SAS
Model A319–171N airplanes; Model
A320–271N, –272N, and –273N
airplanes; and Model A321–271N,
–272N, –271NX, and –272NX airplanes.
AD 2021–18–08 required repetitive
inspections of the pylon/engine
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SUMMARY:
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interface rods for damage, and
applicable corrective actions, as
specified in European Union Aviation
Safety Agency (EASA) AD 2021–0177.
AD 2021–18–08 also provided for
limited installation of affected parts
under certain conditions. Since the FAA
issued AD 2021–18–08, operators
reported that the requirements of EASA
AD 2021–0177 were unclear. This AD
retains the requirements of AD 2021–
18–08, with clarified instructions, as
specified in an EASA AD, which is
incorporated by reference. The FAA is
issuing this AD to address the unsafe
condition on these products.
DATES: This AD is effective November
23, 2021.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of November 23, 2021.
The FAA must receive comments on
this AD by December 23, 2021.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
For material incorporated by reference
(IBR) in this AD, contact EASA, KonradAdenauer-Ufer 3, 50668 Cologne,
Germany; telephone +49 221 8999 000;
email ADs@easa.europa.eu; internet
www.easa.europa.eu. You may find this
IBR material on the EASA website at
https://ad.easa.europa.eu. You may
view this material at the FAA,
Airworthiness Products Section,
Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For
information on the availability of this
material at the FAA, call 206–231–3195.
It is also available in the AD docket at
https://www.regulations.gov by
searching for and locating Docket No.
FAA–2021–0950.
Examining the AD Docket
You may examine the AD docket at
https://www.regulations.gov by
searching for and locating Docket No.
FAA–2021–0950; or in person at Docket
Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
holidays. The AD docket contains this
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61673
AD, the mandatory continuing
airworthiness information (MCAI), any
comments received, and other
information. The street address for
Docket Operations is listed above.
FOR FURTHER INFORMATION CONTACT:
Sanjay Ralhan, Aerospace Engineer,
Large Aircraft Section, FAA,
International Validation Branch, 2200
South 216th St., Des Moines, WA 98198;
telephone and fax 206–231–3223; email
Sanjay.Ralhan@faa.gov.
SUPPLEMENTARY INFORMATION:
Comments Invited
The FAA invites you to send any
written data, views, or arguments about
this final rule. Send your comments to
an address listed under ADDRESSES.
Include ‘‘Docket No. FAA–2021–0950;
Project Identifier MCA–2021–01075–T’’
at the beginning of your comments. The
most helpful comments reference a
specific portion of the final rule, explain
the reason for any recommended
change, and include supporting data.
The FAA will consider all comments
received by the closing date and may
amend this final rule because of those
comments.
Except for Confidential Business
Information (CBI) as described in the
following paragraph, and other
information as described in 14 CFR
11.35, the FAA will post all comments
received, without change, to https://
www.regulations.gov, including any
personal information you provide. The
agency will also post a report
summarizing each substantive verbal
contact received about this final rule.
Confidential Business Information
CBI is commercial or financial
information that is both customarily and
actually treated as private by its owner.
Under the Freedom of Information Act
(FOIA) (5 U.S.C. 552), CBI is exempt
from public disclosure. If your
comments responsive to this AD contain
commercial or financial information
that is customarily treated as private,
that you actually treat as private, and
that is relevant or responsive to this AD,
it is important that you clearly designate
the submitted comments as CBI. Please
mark each page of your submission
containing CBI as ‘‘PROPIN.’’ The FAA
will treat such marked submissions as
confidential under the FOIA, and they
will not be placed in the public docket
of this AD. Submissions containing CBI
should be sent to Sanjay Ralhan,
Aerospace Engineer, Large Aircraft
Section, FAA, International Validation
Branch, 2200 South 216th St., Des
Moines, WA 98198; telephone and fax
E:\FR\FM\08NOR1.SGM
08NOR1
]]>Agencies
[Federal Register Volume 86, Number 213 (Monday, November 8, 2021)]
[Rules and Regulations]
[Pages 61670-61673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24348]
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SMALL BUSINESS ADMINISTRATION
13 CFR Parts 124, 125, 126, and 127
RIN 3245-AH27
National Defense Authorization Act of 2020, Definition of
Surviving Spouse for Service-Disabled Veteran-Owned Small Businesses
and Change to 8(a) Business Development Contracting Thresholds
AGENCY: U.S. Small Business Administration.
ACTION: Direct final rule.
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SUMMARY: This rule makes technical changes to regulations issued by the
U.S. Small Business Administration (SBA) to conform those regulations
to recent statutory changes. First, the rule incorporates a required
change to SBA's ownership requirements for small business concerns
owned and controlled by service-disabled veterans. The rule adopts
changes to the treatment of certain surviving spouses made by the
National Defense Authorization Act of 2020. In addition, the rule
incorporates changes to the dollar thresholds for certain contracting
actions authorized for the 8(a) Business Development (BD) program made
by the National Defense Authorization Act of 2020. Finally, the rule
adjusts the competitive threshold dollar levels authorized for SBA's
contracting programs to changes made to the Federal Acquisition
Regulation (FAR) due to inflation.
DATES: This rule is effective on February 7, 2022, without further
action, unless significant adverse comment is received by December 8,
2021. If significant adverse comment is received, SBA will publish a
timely withdrawal of the rule in the Federal Register.
ADDRESSES: You may submit comments, identified by RIN 3245-AH27, by any
of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
For mail, paper, disk, or CD-ROM submissions: Donna Fudge,
U.S. Small Business Administration, Office of Policy, Planning and
Liaison, 409 Third Street SW, 8th Floor, Washington, DC 20416.
Hand Delivery/Courier: Donna Fudge, U.S. Small Business
Administration, Office of Policy, Planning and Liaison, 409 Third
Street SW, 8th Floor, Washington, DC 20416.
SBA will post all comments on www.regulations.gov. If you wish to
submit confidential business information (CBI) as defined in the User
Notice at www.regulations.gov, please submit the information to Donna
Fudge, U.S. Small Business Administration, Office of Policy, Planning
and Liaison, 409 Third Street SW, 8th Floor, Washington, DC 20416, or
send an email to [email protected]. Highlight the information that
you consider to be CBI and explain why you believe SBA should hold this
information as confidential. SBA will review the information and make
the final determination on whether it will publish the information.
FOR FURTHER INFORMATION CONTACT: Donna Fudge, Procurement Analyst,
Office of Policy, Planning and Liaison, U.S. Small Business
Administration, 409 Third Street SW, Washington, DC 20416;
[email protected].
SUPPLEMENTARY INFORMATION: On December 20, 2019, the National Defense
Authorization Act for Fiscal Year 2020 (NDAA 2020), Public Law 116-92,
133 Stat. 1198, was signed into law. Section 876 of NDAA 2020 amended
section 3 of the Small Business Act, 15 U.S.C. 632. This provision made
changes to the treatment of surviving spouses with regard to the
program's ownership requirements. The changes require that SBA update
its regulations to reflect two new time periods. Specifically, the
statute creates a ten-year time period to remain eligible in the case
of a surviving spouse of a veteran with a service-connected disability
rated as 100 percent disabling or who dies as a result of a service-
connected disability, and a three-year time period in the case of a
surviving spouse of a veteran with a service-connected disability rated
as less than 100 percent disabling who does not die as a result of a
service-connected disability. This rule updates 13 CFR 125.12 to
reflect these changes. SBA is changing the language in Sec.
125.12(i)(1)(ii) to match the new statutory language. SBA is adding the
ten-year time frame in Sec. 125.12(i)(2)(iii). SBA is adding the
three-year time frame in Sec. 125.12(i)(2)(iv).
In addition, section 823 of NDAA 2020 changed the threshold for
which a justification and approval is needed for Department of Defense
(DoD) covered procurements. Section 811 of the NDAA for Fiscal Year
2010, Public Law 111-
[[Page 61671]]
84, 123 Stat. 2190, 2405, required the Federal Acquisition Regulations
(FAR) to be amended to include a new requirement for a written
justification of sole-source 8(a) awards over $20 million. The FAR
increased this threshold to $22 million due to inflation on July 2,
2015. 80 FR 38293, 38296. While the section 811 requirement for a
justification and approval applied to all civilian and defense
agencies, section 823 of NDAA 2020 increased the threshold to $100
million only for the DoD. As such, this rule amends SBA's regulations
to increase the justification and approval requirement to $100 million
only with respect to DoD 8(a) contracts. In addition, DoD, the General
Services Administration (GSA), and the National Aeronautics and Space
Administration (NASA) are charged with amending the FAR to adjust
statutory acquisition-related thresholds for inflation every five
years. On October 2, 2020, DoD, GSA, and NASA published a final rule in
the Federal Register amending the FAR to implement new inflationary
adjustments. 85 FR 62485. As part of that final rule, the $22 million
justification and approval threshold authorized by section 811 of NDAA
2010 was increased to $25 million. Thus, in addition to increasing the
threshold to $100 million for DoD-related 8(a) procurements, this rule
also increases the justification and approval threshold from $22
million to $25 million for all other agencies. This rule amends Sec.
124.502(c)(17) and Sec. 124.506(b)(5) to adjust the justification and
approval thresholds accordingly.
In addition to the justification and approval and 8(a) sole source
thresholds identified above that were raised in response to the
inflationary adjustments made to the FAR, that same FAR rule also
adjusted other SBA-related contacting dollar thresholds for inflation.
85 FR 62485. Section 864 of the National Defense Authorization Act of
2021, Public Law 116-283, subsequently amended the Small Business Act
to set the 8(a), HUBZone, and WOSB sole source thresholds for
manufacturing contracts to $7,000,000. As such, this rule incorporates
the FAR changes into SBA's regulations except where section 864
retained a $7 million sole source threshold amount for manufacturing
contracts. Specifically, this rule adopts the inflationary adjustments
made to the sole source thresholds in the FAR for the 8(a) BD Program
(by amending Sec. 124.506(a)(2)(ii) of SBA's regulations), the
Service-Disabled Veteran-Owned Small Business Concern Program (by
amending Sec. 125.23(b)(1) of SBA's regulations), the Historically
Underutilized Business Zone Program (by amending Sec. 126.612(b)(1)
and (2) of SBA's regulations), and the Women-Owned Small Business
Program (by amending Sec. 127.503(c)(2) and Sec. 127.503(d)(2) of
SBA's regulations). SBA is also updating a threshold for its Small
Business Subcontracting Program, which is contained in Sec. 125.3(c).
SBA is also making corrections to Sec. 126.200(f) and Sec.
126.700(b)(1). Currently both sections contain an incorrect reference
to Sec. 126.5. The correct cross reference should be to Sec. 125.6,
and this rule corrects the typographical errors.
Compliance With Executive Orders 12866, 13563, 12988, 13132, 13175, the
Congressional Review Act (5 U.S.C. 801-808), the Paperwork Reduction
Act (44 U.S.C. Ch. 35), the Regulatory Flexibility Act (5 U.S.C. 601-
612), and the Administrative Procedure Act
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
direct final rule does not constitute a significant regulatory action
under Executive Order 12866.
Executive Order 13563
Executive Order 13563 reaffirms the principles of Executive Order
12866 while calling for improvements in the nation's regulatory system
to promote predictability, to reduce uncertainty, and to use the best,
most innovative, and least burdensome tools for achieving regulatory
ends. The executive order directs agencies to consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public where these approaches are relevant, feasible,
and consistent with regulatory objectives. Executive Order 13563 also
requires that regulations be based on the open exchange of information
and perspectives among state and local officials, affected stakeholders
in the private sector, and the public as a whole. SBA has developed
this rule in a manner consistent with these requirements. While
developing this rule, SBA responded to specific inquiries from
government officials and the public regarding the implementation of the
statutory required changes.
Executive Order 12988
This action meets applicable standards set forth in sections 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
A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect 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. This direct final rule will not have substantial direct
effects on the States, on the relationship between the National
Government and the States, or the distribution of power and
responsibilities among the various levels of government.
SBA has analyzed this direct final rule and has determined that it
is consistent with the fundamental federalism principles and preemption
requirements described in Executive Order 13132.
Executive Order 13175
This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it would not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
Congressional Review Act, 5 U.S.C. 801-808
OMB's Office of Information and Regulatory Affairs has determined
that this rule is not a major rule under subtitle E of the Small
Business Regulatory Enforcement Fairness Act of 1996 (also known as the
Congressional Review Act), 5 U.S.C. 804(2).
Paperwork Reduction Act, 44 U.S.C. Ch. 35
SBA has determined that this direct final rule does not impose
additional reporting or recordkeeping requirements under the Paperwork
Reduction Act, 44 U.S.C., chapter 35.
Regulatory Flexibility Act, 5 U.S.C. 601-612
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, requires
administrative agencies to consider the effect of their actions on
small entities, small non-profit enterprises, and small local
governments. Pursuant to the RFA, when an agency issues a rulemaking,
the agency must prepare a regulatory flexibility analysis, which
describes the impact of the rule on small entities.
[[Page 61672]]
However, section 605 of the RFA allows an agency to certify a rule, in
lieu of preparing an analysis, if the rulemaking is not expected to
have a significant economic impact on a substantial number of small
entities. Within the meaning of RFA, SBA certifies that this direct
final rule will not have a significant economic impact on a substantial
number of small entities. It does not add any new requirements to SBA's
regulations, but merely adjusts specified thresholds to conform to
statutory changes and changes made by the FAR.
Administrative Procedure Act--Justification for Direct Final Rule
In general, SBA publishes a rule for public comment before issuing
a final rule, in accordance with the Administrative Procedure Act. 5
U.S.C. 553. The Administrative Procedure Act provides an exception to
this standard rulemaking process, however, where an agency finds good
cause to adopt a rule without prior public participation. 5 U.S.C.
553(b)(3)(B). The good cause requirement is satisfied when prior public
participation is impracticable, unnecessary, or contrary to the public
interest.
SBA is publishing this rule as a direct final rule because public
participation is unnecessary. SBA views this as a non-controversial
administrative action because it merely implements a change required by
the Small Business Act, as amended by section 876 of NDAA 2020. This
rule will be effective on the date shown in the DATES section unless
SBA receives significant adverse comment on or before the deadline for
comments. Significant adverse comments are comments that provide strong
justifications why the rule should not be adopted or for changing the
rule. SBA does not expect to receive any significant adverse comments
because the rule simply mirrors the statutory language contained in
section 876 of NDAA 2020, with no extraneous interpretation or other
expanded text. The remaining technical changes merely conform SBA
regulations with the updated thresholds in the FAR.
If SBA receives significant adverse comment, SBA will publish a
notice in the Federal Register withdrawing this rule before the
effective date. If SBA receives no significant adverse comments, the
rule will be effective 90 days after publication without further
notice.
List of Subjects
13 CFR Part 124
Administrative practice and procedure, Government procurement,
Government property, Small businesses.
13 CFR Part 125
Government contracts, Government procurement, Reporting and
recordkeeping requirements, Small businesses, Technical assistance.
13 CFR Part 126
Administrative practice and procedure, Government procurement,
Penalties, Reporting and recordkeeping requirements, Small businesses.
13 CFR Part 127
Government contracts, Reporting and recordkeeping requirements,
Small businesses.
Accordingly, for the reasons stated in the preamble, SBA amends 13
CFR parts 124, 125, 126, and 127 as follows:
PART 124--8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS
STATUS DETERMINATIONS
0
1. The authority citation for part 124 is revised 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.
0
2. Amend Sec. 124.502 by revising paragraph (c)(17) to read as
follows:
Sec. 124.502 How does an agency offer a procurement to SBA for award
through the 8(a) BD program?
* * * * *
(c) * * *
(17) A statement that the necessary justification and approval
under the Federal Acquisition Regulation has occurred where a
requirement whose estimated contract value exceeds $25,000,000, or
$100,000,000 in the case of Department of Defense contracts, is offered
to SBA as a sole source requirement on behalf of a specific
Participant; and
* * * * *
0
3. Amend Sec. 124.506 in paragraph (a)(2)(ii) by removing the figure
``$4,000,000'' and adding in its place the figure ``$4,500,000'' and by
revising paragraph (b)(5) to read as follows:
Sec. 124.506 At what dollar threshold must an 8(a) procurement be
competed among eligible Participants?
* * * * *
(b) * * *
(5) An agency may not award an 8(a) sole source contract for an
amount exceeding $25,000,000, or $100,000,000 for an agency of the
Department of Defense, unless the contracting officer justifies the use
of a sole source contract in writing and has obtained the necessary
approval under the Federal Acquisition Regulation.
* * * * *
PART 125--GOVERNMENT CONTRACTING PROGRAMS
0
4. The authority citation for part 125 is revised to read as follows:
Authority: 15 U.S.C. 632(p), (q), 634(b)(6), 637, 644, 657b,
657(f), and 657r.
Sec. 125.3 [Amended]
0
5. Amend Sec. 125.3 in paragraphs (c)(1) introductory text and
(c)(1)(x) by removing the figure ``$700,000'' and adding in its place
the figure ``$750,000''.
0
6. Amend Sec. 125.12 by revising paragraphs (i)(1)(ii) and (i)(2)(iii)
and adding paragraph (i)(2)(iv) to read as follows:
Sec. 125.12 Who does SBA consider to own an SDVO SBC?
* * * * *
(i) * * *
(1) * * *
(ii) Such veteran had a service-connected disability (as defined in
section 101(16) of title 38, United States Code); and
* * * * *
(2) * * *
(iii) In the case of a surviving spouse of a veteran with a
service-connected disability rated as 100 percent disabling or who dies
as a result of a service-connected disability, is 10 years after the
date of the death of the veteran; or
(iv) In the case of a surviving spouse of a veteran with a service-
connected disability rated as less than 100 percent disabling who does
not die as a result of a service-connected disability, is 3 years after
the date of the death of the veteran.
Sec. 125.23 [Amended]
0
7. Amend Sec. 125.23 in paragraph (b)(1) by removing the figure
``$6,500,000'' and adding in its place the figure ``$7,000,000''.
PART 126--HUBZONE PROGRAM
0
8. The authority citation for part 126 is revised to read as follows:
Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a; Pub.
L. 111-240, 124 Stat. 2504.
[[Page 61673]]
Sec. 126.200 [Amended]
0
9. Amend Sec. 126.200 in paragraph (f) by removing the reference
``Sec. Sec. 126.5'' and adding in its place the reference ``Sec. Sec.
125.6''.
Sec. 126.612 [Amended]
0
10. Amend Sec. 126.612 in paragraph (b)(2) by removing the figure
``4,000,000'' and adding in its place the figure ``$4,500,000''.
Sec. 126.700 [Amended]
0
11. Amend Sec. 126.700 in paragraph (b)(1) by removing the reference
``Sec. 126.5'' and adding in its place the reference ``Sec. 125.6''.
PART 127--WOMEN-OWNED SMALL BUSINESS FEDERAL CONTRACT PROGRAM
0
12. 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.
Sec. 127.503 [Amended]
0
13. Amend Sec. 127.503 in paragraphs (c)(2) and (d)(2) by removing the
figures ``$6,500,000'' and ``$4,000,000'' and adding in their place the
figures ``$7,000,000'' and ``$4,500,000'', respectively.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2021-24348 Filed 11-5-21; 8:45 am]
BILLING CODE 8026-03-P
