Federal Acquisition Regulation: Update of Historically Underutilized Business Zone Program, 58232-58237 [2022-20342]

Agencies

• DEPARTMENT OF DEFENSE
• General Services Administration
• National Aeronautics and Space Administration

[Federal Register Volume 87, Number 184 (Friday, September 23, 2022)]
[Rules and Regulations]
[Pages 58232-58237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-20342]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 5, 6, 13, 19, and 52

[FAC 2022-08; FAR Case 2019-007; Item III; Docket No. FAR-2019-0007, 
Sequence No. 1]
RIN 9000-AN90


Federal Acquisition Regulation: Update of Historically 
Underutilized Business Zone Program

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement changes to the Small 
Business Administration's regulations for the Historically 
Underutilized Business Zone Program to reflect current policies, 
eliminate ambiguities, and reduce burdens on small businesses and 
procuring agencies.

DATES:  Effective October 28, 2022.

FOR FURTHER INFORMATION CONTACT: Ms. Malissa Jones, Procurement 
Analyst, at 703-605-2815 or by email at [email protected] for 
clarification of content. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat Division at 
202-501-4755 or [email protected]. Please cite FAC 2022-08, FAR Case 
2019-007.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 86 FR 31468 on June 14, 2021, to implement regulatory 
changes made by the Small Business Administration (SBA) to the 
Historically Underutilized Business Zone (HUBZone) Program. Following a 
review of its HUBZone program regulations, SBA issued a final rule on 
November 26, 2019, at 84 FR 65222, to update its regulations to reflect 
current policies, eliminate ambiguities, and reduce burdens on small 
businesses and procuring agencies. For details see the proposed rule 
and Section IV below.
    Two respondents submitted public comments in response to the 
proposed rule.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the public comments in the 
development of the final rule; however, no changes were made as a 
result of the public comments received. A discussion

[[Page 58233]]

of the comments received is provided as follows:

A. Summary of Significant Changes From The Proposed Rule

    There are no significant changes from the proposed rule.

B. Analysis of Public Comments

1. Support for the Rule
    Comment: One respondent expressed support for the rule.
    Response: The Councils acknowledge the respondent's support for the 
rule.
2. Clarifications
    Comment: One respondent questioned the need for a checkbox for 
HUBZone ``self-certification'' in the representations at FAR 52.212-
3(c)(10)(i) and 52.219-1(c)(8)(i) if a firm's HUBZone status is 
determined by the Small Business Administration (SBA).
    Response: This rule implements SBA's final rule published November 
26, 2019, at 84 FR 65222, which modified the HUBZone certification 
process to reduce the burden on HUBZone small business concerns. As a 
result, HUBZone entities are certified by SBA annually, which will 
allow entities to remain eligible for future HUBZone contracts for the 
entire year, rather than having to represent its status with each 
offer. However, the checkbox in the representations is still necessary, 
as a HUBZone entity must represent whether it is or is not a HUBZone 
small business concern certified by SBA in the Dynamic Small Business 
Search (DSBS) and represent that it will attempt to maintain an 
employment rate of HUBZone residents of 35 percent of its employees 
during performance of a HUBZone contract in accordance with 13 CFR 
126.200(e)(1).
3. Outside the Scope of the Rule
    Comment: One respondent recommended increasing the number of 
HUBZone small business set-asides.
    Response: This is outside the scope of this rule.

C. Other Changes

    This rule makes minor editorial changes from the proposed rule in 
FAR parts 2 and 19, in the provisions at FAR 52.212-3, Offeror 
Representations and Certifications--Commercial Products and Commercial 
Services, and 52.219-1, Small Business Program Representations, and in 
the clauses at 52.219-8, Utilization of Small Business Concerns, and 
52.219-9, Small Business Subcontracting Plan.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Products, Including Commercially 
Available Off-the-Shelf (COTS) Items, or for Commercial Services

    This rule amends the provision and clauses at FAR 52.212-3, 52.212-
5, 52.213-4, 52.219-1, 52.219-3, 52.219-4, 52.219-8, 52.219-9, and 
52.244-6. The provisions and clauses associated with implementation of 
the HUBZone program continue to apply to acquisitions for commercial 
products, including COTS items, or for commercial services. As 
explained below, this rule also applies all HUBZone program provisions 
and clauses to acquisitions at or below the SAT.

A. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold

    41 U.S.C. 1905 governs the applicability of laws to acquisitions at 
or below the SAT. Section 1905 generally limits the applicability of 
new laws when agencies are making acquisitions at or below the SAT, but 
provides that such acquisitions will not be exempt from a provision of 
law under certain circumstances, including when the Federal Acquisition 
Regulatory Council (FAR Council) makes a written determination and 
finding that it would not be in the best interest of the Federal 
Government to exempt contracts and subcontracts in amounts not greater 
than the SAT from the provision of law. The FAR Council has made a 
determination to apply this statute to acquisitions at or below the 
SAT.

B. Determination

    The HUBZone Act of 1997, including 15 U.S.C. 657a, tasks SBA with 
administering a program to assist participating small businesses 
located in areas with low income levels, high poverty and high 
unemployment rates, Indian reservations, closed military bases, or 
disaster areas with contracting opportunities in the form of set-
asides, sole-source awards, and price-evaluation preferences. Its 
primary objectives are job creation and increased capital investment in 
distressed communities.
    The law is silent on the applicability of these requirements to 
acquisitions at or below the SAT and does not independently provide for 
criminal or civil penalties; nor does it include terms making express 
reference to 41 U.S.C. 1905 and its application to acquisitions at or 
below the SAT. Therefore, it does not apply to acquisitions at or below 
the SAT unless the FAR Council makes a written determination as 
provided at 41 U.S.C. 1905.
    The FAR Council implemented the SBA's HUBZone program, which 
implemented the HUBZone Act, through an interim rule published on 
December 18, 1998 and effective on January 4, 1999 (63 FR 70265). A 
final rule was published on September 24, 1999 (64 FR 51830). The FAR 
rule added the HUBZone Act to the list of laws inapplicable to 
contracts and subcontracts at or below the SAT at FAR 13.005. This 
final rule removes the HUBZone Act from the list of laws inapplicable 
to contracts and subcontracts at or below the SAT at FAR 13.005 and 
makes other conforming changes.
    Applying the rule to acquisitions at or below the SAT furthers the 
longstanding policy expressed in FAR 19.201 of promoting ``maximum 
practicable opportunities'' to HUBZone contractors in Government 
contracting and the Administration's express commitment, reflected in 
E.O. 13985, Advancing Racial Equity and Support for Underserved 
Communities Through the Federal Government, to advance equity for 
underserved communities. According to the Federal Procurement Data 
System, an average of 108,233 contracts per year resulted from FAR part 
19 set-asides and sole-source awards at or below the SAT during fiscal 
years 2019 through 2021. Failure to apply the HUBZone Act to the 
significant number of acquisitions that are conducted each year at or 
below the SAT would prevent agencies from using the authorities of this 
program to maximize opportunities for HUBZone small businesses in the 
Federal marketplace. The Federal Government has a policy of promoting 
HUBZone participation in Government contracting. The Small Business Act 
(Section 15(g)(1), 15 U.S.C. 644(g)(1)) includes a 3% annual HUBZone 
contracting goal for all prime contracts and subcontract awards each 
fiscal year. Historically, the Federal Government has not achieved the 
HUBZone goal. Application of the HUBZone Act to procurements at or 
below the SAT will aid Federal agencies in achieving the HUBZone 
contracting goal.
    For these reasons, it is in the best interest of the Federal 
Government to apply the requirements of the rule to acquisitions at or 
below the SAT.

IV. Expected Impact of the Rule

    This final rule will impact the operations of the Government and 
HUBZone entities as described in this section. This rule specifies that 
SBA

[[Page 58234]]

now certifies firms as HUBZone small business concerns in DSBS. As a 
result, HUBZone entities are certified by SBA annually, which will 
allow HUBZone entities to remain eligible for HUBZone contracts for the 
entire year rather than being required to represent their status for 
each offer. HUBZone small business certification data contained in DSBS 
is also available in the System for Award Management (SAM); therefore, 
contracting officers may use DSBS or SAM to identify certified HUBZone 
small business concerns.
    Contracting officers may award HUBZone set-aside and sole-source 
contracts at or below the simplified acquisition threshold. This change 
will increase the benefits from HUBZone set-aside and sole-source 
contracts and increase HUBZone small businesses' opportunities in the 
Federal marketplace.
    Additionally, minor changes are made to the processing of HUBZone 
status protests.
    This final rule is not expected to result in any costs to 
contractors or offerors.

V. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993.

VI. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD, GSA, and NASA will 
send the rule and the ``Submission of Federal Rules Under the 
Congressional Review Act'' form to each House of the Congress and to 
the Comptroller General of the United States. A major rule cannot take 
effect until 60 days after it is published in the Federal Register. 
This rule is not a major rule under 5 U.S.C. 804.

VII. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601-612. The FRFA is summarized as follows:

    DoD, GSA, and NASA are issuing a final rule amending the Federal 
Acquisition Regulation (FAR) to implement revisions the Small 
Business Administration (SBA) made in its regulations for the 
Historically Underutilized Business Zone (HUBZone) Program. 
Following a review of its HUBZone program regulations, SBA issued a 
final rule on November 26, 2019, at 84 FR 65222, to update its 
regulations to reflect current policies, eliminate ambiguities, and 
reduce burdens on small businesses and procuring agencies. This 
final FAR rule updates terminology and processes to correspond with 
SBA's changes, such as updating the definition of HUBZone small 
business concern and procedures for filing and processing HUBZone 
protests. This rule also removes the restriction against applying 
the HUBZone Act of 1997 (15 U.S.C. 657a) to contracts and 
subcontracts at or below the simplified acquisition threshold (SAT).
    There were no significant issues raised by the public comments 
in response to the initial regulatory flexibility analysis.
    This rule may have a positive economic impact on small entities 
that qualify for the HUBZone program and that are interested in 
participating in Federal procurement. By reducing the burden on 
firms interested in becoming HUBZone small business concerns, more 
firms may participate in and benefit from the program. SBA's Dynamic 
Small Business Search database includes 6,417 small business 
concerns with active HUBZone certifications. In fiscal years 2019, 
2020, and 2021, the Federal Government made approximately 177,166 
awards to SBA certified HUBZone small business concerns. 
Approximately 9,104 of these were awarded to 2,416 unique entities 
through a HUBZone set-aside under the HUBZone program; 584 were 
awarded to 408 unique entities on a sole-source basis under the 
HUBZone program; and 54 were awarded to 47 unique entities using the 
HUBZone price evaluation preference. Approximately 58,750 were 
awarded to HUBZone small businesses in open competition with other 
firms. According to the Federal Procurement Data System, an average 
of 108,233 contracts per year resulted from FAR part 19 set-asides 
and sole-source awards at or below the SAT during fiscal years 2019, 
2020, and 2021. Contracting officers will now be able to award 
HUBZone set-aside and sole-source contracts at or below the 
simplified acquisition threshold. Application of the HUBZone Act of 
1997, 15 U.S.C. 657a, to acquisitions at or below the SAT will 
increase the benefits from HUBZone set-aside and sole-source 
contracts and increase HUBZone small businesses' opportunities in 
the Federal marketplace.
    This final rule does not include any new reporting, 
recordkeeping, or other compliance requirements for small entities.
    There are no known significant alternative approaches to the 
final rule.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat Division. The Regulatory Secretariat Division 
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of 
the Small Business Administration.

VIII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501-3521) applies to the 
information collection described in this rule; however, these changes 
to the FAR do not impose additional information collection requirements 
to the paperwork burden previously approved under OMB Control Numbers 
9000-0136, Commercial Acquisitions and 9000-0007, Subcontracting Plans.

List of Subjects in 48 CFR Parts 2, 5, 6, 13, 19, and 52

    Government procurement.

William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 5, 6, 13, 19, 
and 52 as set forth below:

0
1. The authority citation for 48 CFR parts 2, 5, 6, 13, 19, and 52 
continues to read as follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 2.101 in paragraph (b)(2) by--
0
a. In the definition ``HUBZone'' removing the phrase ``or redesignated 
areas,'' and adding the phrase ``redesignated areas, governor-
designated covered areas, or qualified disaster areas,'' in its place;
0
b. In the definition ``HUBZone contract'' removing from paragraph (1) 
the phrase ``sole source'' and adding the phrase ``sole-source'' in its 
place; and
0
c. Revising the definition ``HUBZone small business concern''.
    The revision reads as follows:


2.101   Definitions.

* * * * *
    (b) * * *
    (2) * * *
    HUBZone small business concern means a small business concern that 
meets the requirements described in 13 CFR 126.200, is certified by the 
Small Business Administration (SBA) and designated by SBA as a HUBZone 
small business concern in the Dynamic Small Business Search (DSBS) (13 
CFR 126.103). SBA's designation also appears in SAM.
* * * * *

[[Page 58235]]

PART 5--PUBLICIZING CONTRACT ACTIONS


5.206   [Amended]

0
3. Amend section 5.206 in paragraph (a) introductory text, by removing 
the word ``qualified''.

PART 6--COMPETITION REQUIREMENTS

0
4. Amend section 6.205 by revising paragraph (a) and removing from 
paragraph (b) the word ``qualified''.
    The revision reads as follows:


6.205   Set-asides for HUBZone small business concerns.

    (a) To fulfill the statutory requirements relating to the HUBZone 
Act of 1997 (15 U.S.C. 631 note), contracting officers may set aside 
solicitations to allow only HUBZone small business concerns to compete 
(see 19.1305).
* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.003   [Amended]

0
5. Amend section 13.003 in paragraph (b)(2)(ii) by removing the phrase 
``and 19.1306(a)(4)''.


13.005   [Amended]

0
6. Amend section 13.005 by removing paragraph (a)(5), and redesignating 
paragraphs (a)(6) through (8) as paragraphs (a)(5) through (7), 
respectively.

PART 19--SMALL BUSINESS PROGRAMS


19.301-1   [Amended]

0
7. Amend section 19.301-1 in paragraph (d) by removing the phrase 
``concern both at the time of initial offer and at the time of contract 
award'' and adding the phrase ``concern at the time of initial offer'' 
in its place.

0
8. Amend section 19.306 by--
0
a. Revising paragraph (b);
0
b. In paragraph (c) removing the phrase ``HUBZone qualifying'' and 
adding the phrase ``HUBZone eligibility'' in its place;
0
c. Revising paragraph (d);
0
d. In paragraph (e)--
0
i. Revising the heading;
0
ii. Removing from paragraph (e)(1) introductory text the word 
``protest'' and adding the words ``written protest'' in its place;
0
e. Revising paragraphs (f) and (h)(1)(ii);
0
f. Removing paragraph (h)(3);
0
g. In paragraph (i)--
0
i. Removing from the introductory text ``The HUBZone Program Director'' 
and ``(AA/GCBD)'' and adding ``SBA'' and ``(AA/GC&BD)'' in their 
places, respectively;
0
ii. Revising the second sentence of paragraph (i)(1);
0
iii. Removing from paragraph (i)(2) ``AA/GCBD'' and adding ``AA/GC&BD'' 
in its place;
0
iv. Revising paragraph (i)(3);
0
v. Removing from paragraph (i)(4) ``(h)(1)(ii) or (h)(3)'' and in two 
places removing ``(AA/GCBD)'' and adding ``(h)(1)(ii)(B)'', and ``(AA/
GC&BD)'' in their places, respectively; and
0
vi. Revising paragraph (i)(5).
0
h. In paragraph (l)--
0
i. Adding to the end of paragraph (l)(1)(i) the word ``and'';
0
ii. Removing paragraph (l)(1)(ii) and redesignating paragraph 
(l)(1)(iii) as paragraph (l)(1)(ii); and
0
iii. Removing from paragraph (l)(2) ``Director/HUB's decision'' and 
adding ``HUBZone Program Director's determination'' in its place; and
0
i. Removing from paragraph (m) ``AA/GCBD'' and adding ``AA/GC&BD'' in 
its place and removing ``AA/GCBD's'' and adding ``AA/GC&BD's'' in its 
place.
    The revisions read as follows:


19.306  Protesting a firm's status as a HUBZone small business concern.

* * * * *
    (b)(1) For sole-source procurements, SBA or the contracting officer 
may protest the prospective contractor's certified HUBZone status; for 
all other procurements, SBA, the contracting officer, or any other 
interested party may protest the apparent successful offeror's 
certified HUBZone status (see 13 CFR 126.800).
    (2) The Director of SBA's Office of the HUBZone Program will 
determine whether the concern has certified HUBZone status. If SBA 
upholds the protest, SBA will remove the concern's HUBZone status in 
the Dynamic Small Business Search (DSBS). SBA's protest regulations are 
found in subpart H ``Protests'' at 13 CFR 126.800 through 126.805.
* * * * *
    (d)(1) All protests must be in writing and must state all specific 
grounds for the protest (i.e., why the protested concern did not meet 
the eligibility requirements at 13 CFR 126.200 at the time of the 
concern's application to SBA for certification as a HUBZone small 
business concern or at the time SBA certified or last recertified the 
concern as a HUBZone small business concern). Assertions that a 
protested concern is not a HUBZone small business concern, without 
setting forth specific facts or allegations, will not be considered by 
SBA (see 13 CFR 126.801(b)).
    (2) Protests filed against a HUBZone joint venture must state one 
or, if applicable, both of the following:
    (i) Why the HUBZone small business party to the joint venture did 
not meet the eligibility requirements at 13 CFR 126.200 at the time of 
its application to SBA for certification or at the time SBA certified 
or last recertified the concern as a HUBZone small business concern.
    (ii) Why the joint venture did not meet the requirements at 13 CFR 
126.616 at the time of submission of its offer for a HUBZone contract.
    (e) Submission of a protest. * * *
* * * * *
    (f) The contracting officer shall forward all protests with a 
referral letter to the Director of SBA's Office of the HUBZone Program, 
by email to [email protected]. The referral letter shall include the 
following--
    (1) The solicitation number;
    (2) The contracting officer's name and contact information;
    (3) The type of HUBZone contract (i.e., sole-source, set-aside, 
full and open competition with a HUBZone price evaluation preference, 
or reserve for HUBZone small business concerns under a multiple-award 
contract);
    (4) For a procurement conducted using full and open competition 
with a HUBZone price evaluation preference, whether the protester's 
opportunity for award was affected by the preference;
    (5) For a HUBZone set-aside, whether the protester submitted an 
offer;
    (6) Whether the protested concern was the apparent successful 
offeror;
    (7) Whether the procurement was conducted using sealed bid or 
negotiated procedures;
    (8) The bid opening date, if applicable;
    (9) The date the protester was notified of the apparent successful 
offeror;
    (10) The date the contracting officer received the protest;
    (11) The date the protested concern submitted its initial offer or 
quote to the contracting officer; and
    (12) Whether a contract has been awarded, and if so, the date of 
award and contract number.
* * * * *
    (h) * * *
    (1) * * *
    (ii) Award the contract if--
    (A) SBA does not issue its decision within 15 business days after 
receipt of the protest; and
    (B) The contracting officer determines in writing that there is an 
immediate need to award the contract and that

[[Page 58236]]

waiting for SBA's determination will be disadvantageous to the 
Government.
* * * * *
    (i) * * *
    (1) * * *. If the AA/GC&BD subsequently overturns the initial 
determination or dismissal, the contracting officer may apply the AA/
GC&BD decision to the procurement in question.
* * * * *
    (3) If the contracting officer has made a written determination in 
accordance with (h)(1)(ii)(B) of this section, awarded the contract, 
and the Director of SBA's Office of the HUBZone Program's ruling 
sustaining the protest is received after award--
    (i) The contracting officer shall either--
    (A) Terminate the contract; or
    (B)(1) Make a written determination that termination is not in the 
best interests of the Government; and
    (2) Not exercise any options or award further task or delivery 
orders under the contract.
    (ii) SBA will remove the concern's designation as a certified 
HUBZone small business concern in the Dynamic Small Business Search 
(DSBS). The concern is not permitted to submit an offer as a HUBZone 
small business concern until SBA issues a decision that the 
ineligibility is resolved; and
    (iii) After SBA updates the concern's designation as a HUBZone 
small business in DSBS, the contracting officer shall update the 
Federal Procurement Data System (FPDS) to reflect the final decision of 
the HUBZone Program Director if no appeal is filed.
* * * * *
    (5) If the AA/GC&BD affirms the decision of the HUBZone Program 
Director, finding the protested concern is ineligible, and contract 
award has occurred--
    (i) The contracting officer shall either--
    (A) Terminate the contract; or
    (B)(1) Make a written determination that termination is not in the 
best interests of the Government; and
    (2) Not exercise any options or award further task or delivery 
orders under the contract;
    (ii) SBA will remove the concern's designation as a certified 
HUBZone small business concern in DSBS. The concern is not permitted to 
submit an offer as a HUBZone small business concern until SBA issues a 
decision that the ineligibility is resolved or the AA/GC&BD finds the 
concern is eligible on appeal; and
    (iii) After SBA updates the concern's designation as a HUBZone 
small business in DSBS, the contracting officer shall update FPDS to 
reflect the AA/GC&BD decision.
* * * * *


19.1302  [Removed and Reserved]

0
9. Remove and reserve section 19.1302.

0
10. Amend section 19.1303 by revising paragraphs (b) and (d) to read as 
follows:


19.1303  Status as a HUBZone small business concern.

* * * * *
    (b) If SBA determines that a concern is a HUBZone small business, 
it will designate the concern as a HUBZone small business in the 
Dynamic Small Business Search (DSBS) at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm. SBA's designation also appears in SAM. Only firms 
designated in DSBS and SAM as HUBZone small business concerns are 
eligible for HUBZone preferences. HUBZone preferences are not 
contingent on the place of performance.
* * * * *
    (d) To be eligible for a HUBZone contract under this section, a 
HUBZone small business concern must be a HUBZone small business concern 
at the time of its initial offer.


19.1304  [Amended]

0
11. Amend section 19.1304 by--
0
a. Adding to the end of paragraph (d) the word ``or'';
0
b. Removing paragraph (e); and
0
c. Redesignating paragraph (f) as paragraph (e).


19.1305  [Amended]

0
12. Amend section 19.1305 by--
0
a. Removing from paragraph (a)(3) the phrase ``sole source'' and adding 
the phrase ``sole-source'' in its place;
0
b. Removing from paragraph (c) the word ``qualified'';
0
c. In paragraph (d)--
0
i. Removing from the introductory text the phrase ``, except for 
acquisitions not exceeding the simplified acquisition threshold,''; and
0
ii. Removing from paragraph (d)(2) the word ``acquisition'' and adding 
the phrase ``acquisition until the head of the contracting activity 
issues a written decision on the appeal,'' in its place.

0
13. Amend section 19.1306 by--
0
a. Revising the section heading;
0
b. In paragraph (a)--
0
i. Removing from the introductory text the phrase ``sole source'' and 
adding the phrase ``sole-source'' in its place;
0
ii. Removing paragraph (a)(4);
0
iii. Redesignating paragraphs (a)(5) and (6) as paragraphs (a)(4) and 
(5); and
0
c. Removing from paragraph (b) the phrase ``sole source award'' and 
adding the phrase ``sole-source award (see 13 CFR 126.610)'' in its 
place.
    The revision reads as follows:


19.1306  HUBZone sole-source awards.

* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
14. Amend section 52.212-3 by revising the date of the provision and 
paragraph (c)(10)(i) to read as follows:


52.212-3  Offeror Representations and Certifications--Commercial 
Products and Services.

* * * * *

Offeror Representations and Certifications--Commercial Products and 
Services (Oct 2022)

* * * * *
    (c) * * *
    (10) * * *
    (i) It [square] is, [square] is not a HUBZone small business 
concern listed, on the date of this representation, as having been 
certified by SBA as a HUBZone small business concern in the Dynamic 
Small Business Search and SAM, and will attempt to maintain an 
employment rate of HUBZone residents of 35 percent of its employees 
during performance of a HUBZone contract (see 13 CFR 126.200(e)(1)); 
and
* * * * *

0
15. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(11) the date ``(SEP 2021)'' and adding 
the date ``(OCT 2022)'' in its place;
0
c. Removing from paragraph (b)(12) the date ``(SEP 2021)'' and adding 
the date ``(OCT 2022)'' in its place;
0
d. Removing from paragraph (b)(16) the date ``(OCT 2018)'' and adding 
the date ``(OCT 2022)'' in its place;
0
e. Removing from paragraph (b)(17)(i) the date ``(NOV 2021)'' and 
adding the date ``(OCT 2022)'' in its place;
0
f. In paragraph (e)(1)--
0
i. Removing from the introductory text the phrase ``(e)(1) of this 
paragraph'' and adding the phrase ``(e)(1),'' in its place; and
0
ii. Removing from paragraph (e)(1)(v) the date ``(OCT 2018)'' and 
adding the date ``(OCT 2022)'' in its place;
0
g. In Alternate II--
0
i. Revising the date; and
0
ii. In paragraph (e)(1)(ii)(E) removing the date ``(OCT 2018)'' and 
adding the date ``(OCT 2022)'' in its place.
    The revisions read as follows:


52.212-5   Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Products and Commercial Services.

* * * * *

[[Page 58237]]

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Products and Commercial Services (OCT 
2022)

* * * * *
Alternate II (OCT 2022). * * *
* * * * *

0
16. Amend section 52.213-4 by revising the date of the clause and 
removing from paragraph (a)(2)(viii) the date ``(JAN 2022)'' and adding 
the date ``(OCT 2022)'' in its place.
    The revision reads as follows:


52.213-4   Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Products and Commercial Services).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Products and Commercial Services) (Oct 2022)

* * * * *

0
17. Amend section 52.219-1 by revising the date of the provision and 
paragraph (c)(8)(i) to read as follows:


52.219-1   Small Business Program Representations.

* * * * *

Small Business Program Representations (Oct 2022)

* * * * *
    (c) * * *
    (8) * * *
    (i) It [ballot] is, [ballot] is not a HUBZone small business 
concern listed, on the date of this representation, as having been 
certified by SBA as a HUBZone small business concern in the Dynamic 
Small Business Search and SAM, and will attempt to maintain an 
employment rate of HUBZone residents of 35 percent of its employees 
during performance of a HUBZone contract (see 13 CFR 126.200(e)(1)); 
and
* * * * *

0
18. Amend section 52.219-3 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (d) and (e); and
0
c. Removing paragraph (f).
    The revisions read as follows:


52.219-3   Notice of HUBZone Set-Aside or Sole-Source Award.

* * * * *

Notice of HUBZone Set-Aside or Sole-Source Award (Oct 2022)

* * * * *
    (d) Joint venture. A joint venture may be considered a HUBZone 
concern if--
    (1) At least one party to the joint venture is a HUBZone small 
business concern and complies with 13 CFR 126.616(c); and
    (2) Each party to the joint venture qualifies as small under the 
size standard for the solicitation, or the prot[eacute]g[eacute] is 
small under the size standard for the solicitation in a joint 
venture comprised of a mentor and prot[eacute]g[eacute] with an 
approved mentor-prot[eacute]g[eacute] agreement under the SBA 
mentor-prot[eacute]g[eacute] program.
    (e) A HUBZone joint venture agrees that, in the performance of 
the contract, at least 40 percent of the aggregate work performed by 
the joint venture shall be completed by the HUBZone small business 
parties to the joint venture. Work performed by the HUBZone small 
business party or parties to the joint venture must be more than 
administrative functions.
* * * * *

0
19. Amend section 52.219-4 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (c); and
0
c. Removing paragraph (d).
    The revisions read as follows:


52.219-4   Notice of Price Evaluation Preference for HUBZone Small 
Business Concerns.

* * * * *

Notice of Price Evaluation Preference for HUBZone Small Business 
Concerns (OCT 2022)

* * * * *
    (c) Joint venture. A HUBZone joint venture agrees that, in the 
performance of the contract, at least 40 percent of the aggregate 
work performed by the joint venture shall be completed by the 
HUBZone small business parties to the joint venture. Work performed 
by the HUBZone small business parties to the joint venture must be 
more than administrative functions.

0
20. Amend section 52.219-8 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), revising the definition ``HUBZone small business 
concern''; and
0
c. Revising paragraph (e)(5).
    The revisions read as follows:


52.219-8   Utilization of Small Business Concerns.

* * * * *

Utilization of Small Business Concerns (OCT 2022)

    (a) * * *
    HUBZone small business concern means a small business concern 
that meets the requirements described in 13 CFR 126.200, certified 
by the Small Business Administration (SBA) and designated by SBA as 
a HUBZone small business concern in the Dynamic Small Business 
Search (DSBS) and SAM.
* * * * *
    (e) * * *
    (5) The Contractor shall confirm that a subcontractor 
representing itself as a HUBZone small business concern is certified 
by SBA as a HUBZone small business concern by accessing SAM or by 
accessing DSBS at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm. 
If the subcontractor is a joint venture, the Contractor shall 
confirm that at least one party to the joint venture is certified by 
SBA as a HUBZone small business concern. The Contractor may confirm 
the representation by accessing SAM.
* * * * *

0
21. Amend section 52.219-9 by revising the date of the clause and 
paragraph (e)(4) to read as follows:


52.219-9   Small Business Subcontracting Plan.

* * * * *

Small Business Subcontracting Plan (OCT 2022)

* * * * *
    (e) * * *
    (4) Confirm that a subcontractor representing itself as a 
HUBZone small business concern is certified by SBA as a HUBZone 
small business concern by accessing SAM or by accessing the Dynamic 
Small Business Search (DSBS) at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm.
* * * * *

0
22. Amend section 52.244-6 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c)(1)(vii) the date ``(Oct 2018)'' and 
adding the date ``(OCT 2022)'' in its place.
    The revision reads as follows:


52.244-6   Subcontracts for Commercial Products and Commercial 
Services.

* * * * *

Subcontracts for Commercial Products and Commercial Services (OCT 2022)

* * * * *
[FR Doc. 2022-20342 Filed 9-22-22; 8:45 am]
BILLING CODE 6820-EP-P