HUBZone Appeal Process, 76585-76589 [2022-26873]

Download as PDF 76585 Proposed Rules Federal Register Vol. 87, No. 240 Thursday, December 15, 2022 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. SMALL BUSINESS ADMINISTRATION 13 CFR Parts 126 and 134 RIN 3245–AH88 HUBZone Appeal Process The U.S. Small Business Administration (SBA) proposes to amend the rules of practice of its Office of Hearings and Appeals (OHA) and the Historically Underutilized Business Zone (HUBZone) Program. Specifically, SBA proposes to implement procedures authorizing appeals to OHA from protest determinations regarding the status of a concern as a certified HUBZone small business concern. These amendments are issued in accordance with provisions of the National Defense Authorization Act for Fiscal Year 2022. DATES: Comments will be accepted until January 17, 2023. ADDRESSES: You may submit comments, identified by RIN 3245–AH88, by any of the following methods: • Federal eRulemaking Portal: https://www.regulations.gov and follow the instructions for submitting comments. • Mail (for paper, disk, or CD–ROM 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 https:// www.regulations.gov. If you wish to submit confidential business information (CBI) as defined in the User Notice at https://www.regulations.gov, please submit the comments to laura.maas@sba.gov and highlight the information that you consider to be CBI and explain why you believe this information should be held confidential. lotter on DSK11XQN23PROD with PROPOSALS1 VerDate Sep<11>2014 16:18 Dec 14, 2022 Jkt 259001 FOR FURTHER INFORMATION CONTACT: Laura Maas, HUBZone Program, 202– 205–7341, laura.maas@sba.gov. This phone number may also be reached by individuals who are deaf or hard of hearing, or who have speech disabilities, through the Federal Communications Commission’s TTYBased Telecommunications Relay Service teletype service at 711. SUPPLEMENTARY INFORMATION: U.S. Small Business Administration. ACTION: Proposed rule. AGENCY: SUMMARY: SBA will make a final determination as to whether the comments will be published or not. Section 864 of the National Defense Authorization Act for Fiscal Year 2022 (NDAA 2022) authorizes SBA’s Office of Hearings and Appeals (OHA) to decide all appeals from HUBZone status protest determinations, which are currently decided by the Associate Administrator of Government Contracting and Business Development. Section 864 requires SBA to publish a rule implementing this authority by December 27, 2022. To implement this statutory requirement, this proposed rule would revise the HUBZone regulations at 13 CFR 126.805 to specify that HUBZone appeals are processed by OHA in accordance with the procedures in part 134. This proposed rule would amend the regulations pertaining to OHA’s jurisdiction at subparts A and B of 13 CFR part 134 to include appeals from HUBZone status protest determinations. Finally, the proposed rule would create a new subpart M in 13 CFR part 134 to set out the rules of practice for appeals from HUBZone status protest determinations. Section-By-Section Analysis A. Section 126.103 SBA proposes to amend the HUBZone regulations at § 126.103 by deleting the definition for ‘‘AA/GC&BD.’’ The only references to this role in the HUBZone regulations are in relation to HUBZone status protest appeals, and the AA/ GCBD will no longer have this responsibility. B. Sections 126.309, 126.803 SBA proposes to amend the HUBZone regulations at §§ 126.309 and 126.803 to change the references to appeal decisions made by the AA/GCBD to appeal decisions made by OHA. PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 C. Section 126.805 SBA proposes to revise § 126.805, which addresses the procedures for appeals of HUBZone status protest determinations, to provide that such appeals may be filed in accordance with part 134 of title 13 of the Code of Federal Regulations. D. 13 CFR Part 134 Subparts A and B SBA proposes to amend § 134.102, the rules for establishing OHA jurisdiction, to add appeals from HUBZone status protest determinations, as a new type of proceeding over which OHA would have jurisdiction. New § 134.102(x) would allow OHA to hear appeals from HUBZone determinations. SBA also proposes to amend § 134.201(b) by adding a new paragraph (10) to include appeals from HUBZone status protest determinations. As a result of this new paragraph, existing § 134.201(b)(10) would be redesignated as § 134.201(b)(11). E. 13 CFR Part 134 Subpart M The rule proposes a new subpart M to cover the procedures for filing appeals of HUBZone status protest determinations. Proposed § 134.1301 would provide that appeals under this new subpart would include any of the grounds for a HUBZone status protest specified in § 126.801 of the HUBZone regulations. Paragraph (b) would state that the provisions of subparts A and B of part 134 also apply to appeals of HUBZone status protest determinations. Paragraph (c) would state that appeals from HUBZone status protest determinations are separate from size determinations. Proposed § 134.1302 would establish standing to file an appeal from a HUBZone status protest determination. Proposed § 134.1303 would establish timeliness for filing an appeal from a HUBZone status protest determination. SBA proposes that such appeals must be filed within ten (10) business days after the appellant receives the protest determination. Proposed § 134.1304 would provide that if a timely appeal of a HUBZone status protest determination is filed after contract award, the contracting officer must consider whether performance can be suspended until an appellate decision is rendered. This section would also provide that where an appeal is filed before contract award, E:\FR\FM\15DEP1.SGM 15DEP1 lotter on DSK11XQN23PROD with PROPOSALS1 76586 Federal Register / Vol. 87, No. 240 / Thursday, December 15, 2022 / Proposed Rules the contracting officer must withhold award until the appellate decision is rendered, unless the contracting officer has determined that award and performance of the contract is in the best interests of the government. Proposed § 134.1305(a) would provide that an appeal petition must include the following: a copy of the protest determination; the date the appellant received the protest determination; a statement that the petitioner is appealing a HUBZone status protest determination issued by the D/HUB; a full and specific statement as to why the HUBZone status protest determination is alleged to be based on a clear error of fact or law, together with argument supporting such allegation; the solicitation number, the contract number (if applicable), and the name, address, and telephone number of the contracting officer; and the name, address, telephone number, facsimile number, and signature of the appellant or its attorney. Paragraph (b) would require that the appellant serve copies of the appeal upon the D/HUB, the contracting officer, protested concern or the protester, and SBA’s Associate General Counsel for Procurement Law. Paragraph (c) would require all appeal petitions to include a certificate of service. Paragraph (d) would authorize OHA to dismiss appeal petitions that do not meet all the requirements of § 134.1305. Proposed § 134.1306 would apply the provisions in § 134.204, regarding the service and filing requirements of all pleadings and submissions. Proposed § 134.1307 would require the D/HUB to send OHA the entire case file relating to the protest decision upon receipt of the appeal petition. Proposed § 134.1308 would provide that the standard of review for an appeal of a HUBZone status protest determination is whether the D/HUB’s determination was based on clear error of fact or law, and that the appellant bears the burden of proof by a preponderance of the evidence. Proposed § 134.1309 would provide that an appeal from a HUBZone status protest determination will be dismissed if the appeal is untimely under § 134.1303, or if the matter has been decided or is the subject of adjudication before a court of competent jurisdiction over such matters. Proposed § 134.1310 would permit responses to the appeal to be filed within fifteen business days after service of the appeal petition. Proposed § 134.1311 would not allow for discovery or oral hearings in appeals from HUBZone status protest determinations. VerDate Sep<11>2014 16:18 Dec 14, 2022 Jkt 259001 Proposed § 134.1312 would prohibit new evidence in appeals from HUBZone status protest determinations. Proposed § 134.1313 would provide that the record for a HUBZone status protest appeal will close when the time to file a response to an appeal petition expires. Proposed § 134.1314 would provide that OHA will decide an appeal within 45 calendar days after the close of record. Proposed § 134.1315 would provide that OHA’s decision is the final agency decision and would provide that the effects of the decision on the procurement at issue are explained in 13 CFR 126.803(e). Proposed § 134.1316 would provide that OHA may reconsider an appeal decision within twenty (20) calendar days after the decision is issued, or OHA may remand a proceeding to the D/HUB for a new HUBZone status protest determination. Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. The action does not have retroactive or preemptive effect. Compliance With Executive Orders 12866, 12988, 13132, and the Paperwork Reduction Act (44 U.S.C. Ch. 35), the Regulatory Flexibility Act (5 U.S.C. 601–612), the Congressional Review Act (5 U.S.C. 801–808) Regulatory Flexibility Act The Regulatory Flexibility Act of 1980, as amended (RFA), 5 U.S.C. 601– 612, requires Federal agencies to prepare an initial regulatory flexibility analysis (IRFA) to consider the potential impact of the regulations on small entities. Small entities include small businesses, small not-for-profit organizations, and small governmental jurisdictions. Section 605 of the RFA allows an agency to certify a rule, in lieu of preparing an IRFA, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities. This proposed rule would revise the regulations governing cases before SBA’s Office of Hearings and Appeals (OHA), SBA’s administrative tribunal. These regulations are procedural by nature. Specifically, the proposed rule would establish rules of practice for the SBA’s OHA to hear appeals from HUBZone status protest determinations. While SBA does not anticipate that this proposed rule would have a significant economic impact on any small business, we do welcome comments from any small business setting out how and to what degree this proposed rule would affect it economically. Therefore, the Administrator of SBA certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities. Executive Order 12866 The Office of Management and Budget has determined that this rule is not a ‘‘significant regulatory action’’ under Executive Order No. 12866. This proposed rule would amend the rules of practice for the SBA’s OHA to implement procedures for appeals from HUBZone status protest determinations. As such, the rule has no effect on the amount or dollar value of any Federal contract requirements or of any financial assistance provided through SBA. Therefore, the rule is not likely to have an annual economic effect of $100 million or more, result in a major increase in costs or prices, or have a significant adverse effect on competition or the United States economy. In addition, this rule does not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency, materially alter the budgetary impact of entitlements, grants, user fees, loan programs or the rights and obligations of such recipients, nor raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in the Executive Order. Executive Order 12988 This action meets applicable standards set forth in section 3(a) and 3(b)(2) of Executive Order 12988, Civil PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 Executive Order 13132 This rule does not have Federalism implications as defined in Executive Order 13132. It will not have substantial direct effects 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, as specified in the Executive Order. As such, it does not warrant the preparation of a Federalism Assessment. Paperwork Reduction Act The SBA has determined that this rule does not impose additional reporting or recordkeeping requirements under the Paperwork Reduction Act, 44 U.S.C. Chapter 35. Congressional Review Act, 5 U.S.C. Ch. 8 Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, also known as the Congressional E:\FR\FM\15DEP1.SGM 15DEP1 Federal Register / Vol. 87, No. 240 / Thursday, December 15, 2022 / Proposed Rules Review Act or CRA, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. SBA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States. A major rule under the CRA cannot take effect until 60 days after it is published in the Federal Register. The Office of Information and Regulatory Affairs has determined that this rule is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). Therefore, this rule is not subject to the 60-day restriction. List of Subjects 13 CFR Part 126 Administrative practice and procedure, Government procurement, Penalties, Reporting and recordkeeping requirements, Small businesses. 13 CFR Part 134 Administrative practice and procedure, Claims, Equal access to justice, Lawyers, Organization and function (Government agencies). For the reasons set forth in the preamble, SBA proposes to amend parts 126 and 134 of title 13 of the Code of Federal Regulations as follows: 1. The authority citation for part 126 is revised to read as follows: ■ [Amended] 2. Amend § 126.103 by removing the definition of ‘‘AA/GC&BD’’. ■ [Amended] 3. Amend § 126.309 by removing ‘‘(the D/HUB’s decision if no appeal is filed or the decision of the AA/GCBD)’’ and adding in its place ‘‘(i.e., the D/HUB’s decision if the protest determination is not appealed, or OHA’s decision if the protest determination is appealed)’’. ■ 4. Amend § 126.803 by: ■ a. In paragraph (e), revising the introductory text; ■ b. In paragraph (e)(1)(ii)(B), removing ‘‘the AA/GCBD’’ and adding in its place ‘‘OHA’’; ■ c. In paragraph (e)(1)(iii), removing ‘‘(i.e., the D/HUB’s decision if no appeal is filed, or the decision of the AA/GCBD if the protest is appealed)’’ and adding in its place ‘‘(i.e., the D/HUB’s decision if the protest determination is not lotter on DSK11XQN23PROD with PROPOSALS1 ■ VerDate Sep<11>2014 16:18 Dec 14, 2022 Jkt 259001 * * * * * (e) * * * The determination is effective immediately and is final, unless overturned on appeal by SBA’s Office of Hearings and Appeals (OHA) pursuant to part 134 of this chapter. * * * * * ■ 5. Revise § 126.805 to read as follows: § 126.805 What are the procedures for appeals of HUBZone status protest determinations? The protested concern, the protester, or the contracting officer may file an appeal of a HUBZone status protest determination with SBA’s Office of Hearings and Appeals (OHA) in accordance with part 134 of this chapter. 6. The authority citation for part 134 is revised to read as follows: ■ Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a. § 126.309 § 126.803 How will SBA process a HUBZone status protest and what are the possible outcomes? PART 134—RULES OF PROCEDURE GOVERNING CASES BEFORE THE OFFICE OF HEARINGS AND APPEALS PART 126—HUBZONE PROGRAM § 126.103 appealed, or OHA’s decision if the protest determination is appealed)’’; ■ d. In paragraph (e)(2)(ii), removing ‘‘the AA/GCBD’’ and adding in its place ‘‘OHA’’; and ■ e. In paragraph (e)(3), removing ‘‘(the D/HUB’s decision if no appeal is filed, or the decision of the AA/GCBD if the protest is appealed)’’ and adding in its place ‘‘(i.e., the D/HUB’s decision if the protest determination is not appealed, or OHA’s decision if the protest determination is appealed)’’. The revision reads as follows: Authority: 5 U.S.C. 504; 15 U.S.C. 632, 634(b)(6), 634(i), 637(a), 648(l), 656(i), 657a, 657t and 687(c); E.O. 12549, 51 FR 6370, 3 CFR, 1986 Comp., p. 189. Subpart J issued under 15 U.S.C. 657f. Subpart K issued under 15 U.S.C. 657f. Subpart L issued under 15 U.S.C. 636(a)(36); 636(a)(37); 636m. Subpart M issued under 15 U.S.C. 657a; Sec. 864, Pub. L. 117–81, 135 Stat. 1852 (15 U.S.C. 634 note). 7. Amend § 134.102 by: a. Removing the word ‘‘and’’ at the end of paragraph (v); ■ b. Removing the period at the end of paragraph (w) and adding ‘‘; and’’ in its place; and ■ c. Adding paragraph (x). The addition reads as follows: ■ ■ § 134.102 Jurisdiction of OHA. * * * * * (x) Appeals from HUBZone status protest determinations under part 126 of this chapter. ■ 8. Amend § 134.201 by: PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 76587 a. Removing the word ‘‘and’’ at the end of paragraph (b)(9); ■ b. Redesignating paragraph (b)(10) as paragraph (b)(11); and ■ c. Adding a new paragraph (b)(10). The addition reads as follows: ■ § 134.201 subpart. Scope of the rules in this * * * * * (b) * * * (10) For appeals of protest determinations regarding the status of a concern as a certified HUBZone small business concern, in subpart M of this part; and * * * * * ■ 8. Add subpart M to read as follows: Subpart M—Rules of Practice for Appeals of Protest Determinations Regarding the Status of a Concern as a Certified HUBZone Small Business Concern Sec. 134.1301 What is the scope of the rules in this subpart? 134.1302 Who may appeal a HUBZone status protest determination? 134.1303 What time limits apply to filing an appeal from a HUBZone status protest determination? 134.1304 What are the effects of the filing of an appeal on the procurement at issue? 134.1305 What are the requirements for an appeal petition? 134.1306 What are the service and filing requirements? 134.1307 What are the requirements for transmitting the protest file? 134.1308 What is the standard of review? 134.1309 When will a Judge dismiss an appeal? 134.1310 Who can file a response to an appeal petition and when must such a response be filed? 134.1311 Will the Judge permit discovery and oral hearings? 134.1312 What are the limitations on the introduction of new evidence? 134.1313 When is the record closed? 134.1314 When must the Judge issue his or her decision? 134.1315 What are the effects of the Judge’s decision on the procurement at issue? 134.1316 Can a Judge reconsider an appeal decision? § 134.1301 What is the scope of the rules in this subpart? (a) The rules of practice in this subpart apply to all appeals to OHA from formal protest determinations made by the Director of SBA’s Office of HUBZone (D/HUB) in connection with a HUBZone status protest. Appeals under this subpart include any of the grounds for a HUBZone status protest specified in § 126.801 of this chapter, as well as appeals from determinations by the D/HUB that the protest was E:\FR\FM\15DEP1.SGM 15DEP1 76588 Federal Register / Vol. 87, No. 240 / Thursday, December 15, 2022 / Proposed Rules premature, untimely, nonspecific, or not based upon protestable allegations. (b) Except where inconsistent with this subpart, the provisions of subparts A and B of this part apply to appeals listed in paragraph (a) of this section. (c) Appeals relating to formal size determinations and NAICS Code designations are governed by subpart C of this part. § 134.1302 Who may appeal a HUBZone status protest determination? Appeals from HUBZone status protest determinations may be filed with OHA by the protested concern, the protester, or the contracting officer responsible for the procurement affected by the protest determination. § 134.1303 What time limits apply to filing an appeal from a HUBZone status protest determination? Appeals from a HUBZone status protest determination must be commenced by filing and serving an appeal petition within ten (10) business days after the appellant receives the HUBZone status protest determination (see § 134.204 for filing and service requirements). OHA shall dismiss any untimely appeal. § 134.1304 What are the effects of the filing of an appeal on the procurement at issue? (a) If a timely appeal is filed after contract award, the contracting officer must consider whether performance can be suspended until an appellate decision is rendered. (b) If a timely appeal is filed before contract award, the contracting officer must withhold award until the appellate decision is rendered, unless the contracting officer has determined that award and performance of the contract is in the best interests of the government. lotter on DSK11XQN23PROD with PROPOSALS1 § 134.1305 What are the requirements for an appeal petition? (a) Format. An appeal from a HUBZone status protest determination must be in writing. There is no required format for an appeal petition. However, it must include the following information: (1) A copy of the protest determination; (2) The date the appellant received the protest determination; (3) A statement that the petitioner is appealing a HUBZone status protest determination issued by the D/HUB; (4) A full and specific statement as to why the HUBZone status protest determination is alleged to be based on a clear error of fact or law, together with argument supporting such allegation; VerDate Sep<11>2014 16:18 Dec 14, 2022 Jkt 259001 (5) The solicitation number, the contract number (if applicable), and the name, address, and telephone number of the contracting officer; and (6) The name, address, telephone number, facsimile number, and signature of the appellant or its attorney. (b) Service of appeal. The appellant must serve copies of the entire appeal petition upon each of the following: (1) The D/HUB at hzappeals@sba.gov; (2) The contracting officer responsible for the procurement affected by a HUBZone determination; (3) The protested concern (the business concern whose HUBZone status is at issue) or the protester; and (4) SBA’s Office of General Counsel, Associate General Counsel for Procurement Law at OPLservice@ sba.gov. (c) Certificate of Service. The appellant must attach to the appeal petition a signed certificate of service meeting the requirements of § 134.204(d). (d) Dismissal. An appeal petition that does not meet all the requirements of this section may be dismissed by the Judge at his/her own initiative or upon motion of a respondent. § 134.1306 What are the service and filing requirements? The provisions of § 134.204 apply to the service and filing of all pleadings and other submissions permitted under this subpart, unless otherwise indicated in this subpart. § 134.1307 What are the requirements for transmitting the protest file? Upon receipt of an appeal petition, the D/HUB will send to OHA a copy of the protest file relating to that determination. The D/HUB will certify and authenticate that the protest file, to the best of his or her knowledge, is a true and correct copy of the protest file. § 134.1308 What is the standard of review? The standard of review for an appeal of a HUBZone status protest determination is whether the D/HUB’s determination was based on clear error of fact or law. The appellant has the burden of proof, by a preponderance of the evidence. § 134.1309 appeal? When will a Judge dismiss an The presiding Judge must dismiss the appeal if: (a) The appeal is untimely filed under § 134.1303; (b) The appeal does not, on its face, allege facts that if proven to be true, warrant reversal or modification of the determination; or (c) The matter has been decided or is the subject of adjudication before a PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 court of competent jurisdiction over such matters; however, once an appeal has been filed, initiation of litigation of the matter in a court of competent jurisdiction will not preclude the Judge from rendering a final decision on the matter. § 134.1310 Who can file a response to an appeal petition and when must such a response be filed? (a) Who may respond. Although not required, any person served with an appeal petition may file and serve a response supporting or opposing the appeal if he or she wishes to do so. The response should present arguments related to the issues presented on appeal. (b) Time limits. If a person decides to file a response, the response must be filed within fifteen (15) business days after service of the appeal petition. (c) Service. The respondent must serve its response upon the appellant and upon each of the persons identified in the certificate of service attached to the appeal petition pursuant to § 134.1305. (d) Reply to a response. No reply to a response will be permitted unless the Judge directs otherwise. § 134.1311 Will the Judge permit discovery and oral hearings? Discovery will not be permitted, and oral hearings will not be held. § 134.1312 What are the limitations on the introduction of new evidence? The Judge may not admit evidence beyond the written protest file nor permit any form of discovery. All appeals under this subpart will be decided solely on a review of the evidence in the written protest file, arguments made in the appeal petition, and response(s) filed thereto. § 134.1313 When is the record closed? The record will close when the time to file a response to an appeal petition expires pursuant to § 134.1310. § 134.1314 When must the Judge issue his or her decision? The Judge shall issue a decision, insofar as practicable, within forty-five (45) calendar days after close of the record. § 134.1315 What are the effects of the Judge’s decision on the procurement at issue? The Judge’s decision is the final agency decision and becomes effective upon issuance. For the effects of the decision on the procurement at issue, see § 126.803(e) of this chapter. E:\FR\FM\15DEP1.SGM 15DEP1 Federal Register / Vol. 87, No. 240 / Thursday, December 15, 2022 / Proposed Rules § 134.1316 Can a Judge reconsider an appeal decision? (a) Any party who has appeared in the proceeding, or SBA, may request reconsideration of the OHA appeal decision by filing with the Judge and serving a petition for reconsideration on all the parties to the appeal within twenty (20) calendar days after service of the written decision. The request for reconsideration must clearly show an error of fact or law material to the decision. The Judge may also reconsider a decision on his or her own initiative, within twenty (20) calendar days after issuance of the written decision. (b) The Judge may remand a proceeding to the D/HUB for a new HUBZone status protest determination if the D/HUB fails to address issues of decisional significance sufficiently, does not address all the relevant evidence, or does not identify specifically the evidence upon which it relied. Once remanded, OHA no longer has jurisdiction over the matter, unless a new appeal is filed as a result of the new HUBZone status protest determination. Isabella Casillas Guzman, Administrator. [FR Doc. 2022–26873 Filed 12–14–22; 8:45 am] BILLING CODE 8026–09–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2022–1582; Project Identifier MCAI–2022–01232–T] RIN 2120–AA64 Airworthiness Directives; Airbus SAS Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). AGENCY: The FAA proposes to adopt a new airworthiness directive (AD) for certain Airbus SAS Model A350–941 and –1041 airplanes. This proposed AD was prompted by an in-service inspection that found overhead storage compartment (OHSC) crash rods that were disconnected. This proposed AD would require a one-time detailed inspection of the OHSC crash rods and, depending on findings, corrective actions, as specified in a European Union Aviation Safety Agency (EASA) AD, which is proposed for incorporation by reference (IBR). The FAA is proposing this AD to address the unsafe condition on these products. lotter on DSK11XQN23PROD with PROPOSALS1 SUMMARY: VerDate Sep<11>2014 16:18 Dec 14, 2022 Jkt 259001 The FAA must receive comments on this proposed AD by January 30, 2023. DATES: 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 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. AD Docket: You may examine the AD docket at regulations.gov under Docket No. FAA–2022–1582; 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 NPRM, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The street address for Docket Operations is listed above. Material Incorporated by Reference: • For EASA material that is proposed for IBR in this NPRM, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221 8999 000; email ADs@easa.europa.eu; website easa.europa.eu. You may find this material on the EASA website at ad.easa.europa.eu. It is also available at regulations.gov under Docket No. FAA– 2022–1582. • For Airbus service information identified in this NPRM, contact Airbus SAS, Airworthiness Office—EAL, RondPoint Emile Dewoitine No: 2, 31700 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 45 80; email continued-airworthiness.a350@ airbus.com; website airbus.com. • You may view this service information 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. FOR FURTHER INFORMATION CONTACT: Dat Le, Aerospace Engineer, Large Aircraft Section, FAA, International Validation Branch, 2200 South 216th St., Des Moines, WA 98198; telephone 516–228– 7317; email Dat.V.Le@faa.gov. SUPPLEMENTARY INFORMATION: ADDRESSES: Comments Invited The FAA invites you to send any written relevant data, views, or PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 76589 arguments about this proposal. Send your comments to an address listed under ADDRESSES. Include ‘‘Docket No. FAA–2022–1582; Project Identifier MCAI–2022–01232–T’’ at the beginning of your comments. The most helpful comments reference a specific portion of the proposal, 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 proposal 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 regulations.gov, including any personal information you provide. The agency will also post a report summarizing each substantive verbal contact received about this NPRM. 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 NPRM 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 NPRM, 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 NPRM. Submissions containing CBI should be sent to Dat Le, Aerospace Engineer, Large Aircraft Section, FAA, International Validation Branch, 2200 South 216th St., Des Moines, WA 98198; telephone 516–228–7317; email Dat.V.Le@faa.gov. Any commentary that the FAA receives which is not specifically designated as CBI will be placed in the public docket for this rulemaking. Background EASA, which is the Technical Agent for the Member States of the European Union, has issued EASA AD 2022–0186, dated September 13, 2022 (EASA AD 2022–0186) (also referred to as the MCAI), to correct an unsafe condition for certain Airbus SAS Model A350–941 and –1041 airplanes. The MCAI states that an in-service inspection found OHSC crash rods that were disconnected. The investigation E:\FR\FM\15DEP1.SGM 15DEP1

Agencies

[Federal Register Volume 87, Number 240 (Thursday, December 15, 2022)]
[Proposed Rules]
[Pages 76585-76589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26873]


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Proposed Rules
                                                Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 87, No. 240 / Thursday, December 15, 2022 / 
Proposed Rules

[[Page 76585]]



SMALL BUSINESS ADMINISTRATION

13 CFR Parts 126 and 134

RIN 3245-AH88


HUBZone Appeal Process

AGENCY: U.S. Small Business Administration.

ACTION: Proposed rule.

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SUMMARY: The U.S. Small Business Administration (SBA) proposes to amend 
the rules of practice of its Office of Hearings and Appeals (OHA) and 
the Historically Underutilized Business Zone (HUBZone) Program. 
Specifically, SBA proposes to implement procedures authorizing appeals 
to OHA from protest determinations regarding the status of a concern as 
a certified HUBZone small business concern. These amendments are issued 
in accordance with provisions of the National Defense Authorization Act 
for Fiscal Year 2022.

DATES: Comments will be accepted until January 17, 2023.

ADDRESSES: You may submit comments, identified by RIN 3245-AH88, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov 
and follow the instructions for submitting comments.
     Mail (for paper, disk, or CD-ROM 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 https://www.regulations.gov. If you wish to submit confidential business 
information (CBI) as defined in the User Notice at https://www.regulations.gov, please submit the comments to [email protected] 
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, HUBZone Program, 202-205-
7341, [email protected]. This phone number may also be reached by 
individuals who are deaf or hard of hearing, or who have speech 
disabilities, through the Federal Communications Commission's TTY-Based 
Telecommunications Relay Service teletype service at 711.

SUPPLEMENTARY INFORMATION: 
    Section 864 of the National Defense Authorization Act for Fiscal 
Year 2022 (NDAA 2022) authorizes SBA's Office of Hearings and Appeals 
(OHA) to decide all appeals from HUBZone status protest determinations, 
which are currently decided by the Associate Administrator of 
Government Contracting and Business Development. Section 864 requires 
SBA to publish a rule implementing this authority by December 27, 2022. 
To implement this statutory requirement, this proposed rule would 
revise the HUBZone regulations at 13 CFR 126.805 to specify that 
HUBZone appeals are processed by OHA in accordance with the procedures 
in part 134. This proposed rule would amend the regulations pertaining 
to OHA's jurisdiction at subparts A and B of 13 CFR part 134 to include 
appeals from HUBZone status protest determinations. Finally, the 
proposed rule would create a new subpart M in 13 CFR part 134 to set 
out the rules of practice for appeals from HUBZone status protest 
determinations.

Section-By-Section Analysis

A. Section 126.103

    SBA proposes to amend the HUBZone regulations at Sec.  126.103 by 
deleting the definition for ``AA/GC&BD.'' The only references to this 
role in the HUBZone regulations are in relation to HUBZone status 
protest appeals, and the AA/GCBD will no longer have this 
responsibility.

B. Sections 126.309, 126.803

    SBA proposes to amend the HUBZone regulations at Sec. Sec.  126.309 
and 126.803 to change the references to appeal decisions made by the 
AA/GCBD to appeal decisions made by OHA.

C. Section 126.805

    SBA proposes to revise Sec.  126.805, which addresses the 
procedures for appeals of HUBZone status protest determinations, to 
provide that such appeals may be filed in accordance with part 134 of 
title 13 of the Code of Federal Regulations.

D. 13 CFR Part 134 Subparts A and B

    SBA proposes to amend Sec.  134.102, the rules for establishing OHA 
jurisdiction, to add appeals from HUBZone status protest 
determinations, as a new type of proceeding over which OHA would have 
jurisdiction. New Sec.  134.102(x) would allow OHA to hear appeals from 
HUBZone determinations.
    SBA also proposes to amend Sec.  134.201(b) by adding a new 
paragraph (10) to include appeals from HUBZone status protest 
determinations. As a result of this new paragraph, existing Sec.  
134.201(b)(10) would be redesignated as Sec.  134.201(b)(11).

E. 13 CFR Part 134 Subpart M

    The rule proposes a new subpart M to cover the procedures for 
filing appeals of HUBZone status protest determinations.
    Proposed Sec.  134.1301 would provide that appeals under this new 
subpart would include any of the grounds for a HUBZone status protest 
specified in Sec.  126.801 of the HUBZone regulations. Paragraph (b) 
would state that the provisions of subparts A and B of part 134 also 
apply to appeals of HUBZone status protest determinations. Paragraph 
(c) would state that appeals from HUBZone status protest determinations 
are separate from size determinations.
    Proposed Sec.  134.1302 would establish standing to file an appeal 
from a HUBZone status protest determination.
    Proposed Sec.  134.1303 would establish timeliness for filing an 
appeal from a HUBZone status protest determination. SBA proposes that 
such appeals must be filed within ten (10) business days after the 
appellant receives the protest determination.
    Proposed Sec.  134.1304 would provide that if a timely appeal of a 
HUBZone status protest determination is filed after contract award, the 
contracting officer must consider whether performance can be suspended 
until an appellate decision is rendered. This section would also 
provide that where an appeal is filed before contract award,

[[Page 76586]]

the contracting officer must withhold award until the appellate 
decision is rendered, unless the contracting officer has determined 
that award and performance of the contract is in the best interests of 
the government.
    Proposed Sec.  134.1305(a) would provide that an appeal petition 
must include the following: a copy of the protest determination; the 
date the appellant received the protest determination; a statement that 
the petitioner is appealing a HUBZone status protest determination 
issued by the D/HUB; a full and specific statement as to why the 
HUBZone status protest determination is alleged to be based on a clear 
error of fact or law, together with argument supporting such 
allegation; the solicitation number, the contract number (if 
applicable), and the name, address, and telephone number of the 
contracting officer; and the name, address, telephone number, facsimile 
number, and signature of the appellant or its attorney. Paragraph (b) 
would require that the appellant serve copies of the appeal upon the D/
HUB, the contracting officer, protested concern or the protester, and 
SBA's Associate General Counsel for Procurement Law. Paragraph (c) 
would require all appeal petitions to include a certificate of service. 
Paragraph (d) would authorize OHA to dismiss appeal petitions that do 
not meet all the requirements of Sec.  134.1305.
    Proposed Sec.  134.1306 would apply the provisions in Sec.  
134.204, regarding the service and filing requirements of all pleadings 
and submissions.
    Proposed Sec.  134.1307 would require the D/HUB to send OHA the 
entire case file relating to the protest decision upon receipt of the 
appeal petition.
    Proposed Sec.  134.1308 would provide that the standard of review 
for an appeal of a HUBZone status protest determination is whether the 
D/HUB's determination was based on clear error of fact or law, and that 
the appellant bears the burden of proof by a preponderance of the 
evidence.
    Proposed Sec.  134.1309 would provide that an appeal from a HUBZone 
status protest determination will be dismissed if the appeal is 
untimely under Sec.  134.1303, or if the matter has been decided or is 
the subject of adjudication before a court of competent jurisdiction 
over such matters.
    Proposed Sec.  134.1310 would permit responses to the appeal to be 
filed within fifteen business days after service of the appeal 
petition.
    Proposed Sec.  134.1311 would not allow for discovery or oral 
hearings in appeals from HUBZone status protest determinations.
    Proposed Sec.  134.1312 would prohibit new evidence in appeals from 
HUBZone status protest determinations.
    Proposed Sec.  134.1313 would provide that the record for a HUBZone 
status protest appeal will close when the time to file a response to an 
appeal petition expires.
    Proposed Sec.  134.1314 would provide that OHA will decide an 
appeal within 45 calendar days after the close of record.
    Proposed Sec.  134.1315 would provide that OHA's decision is the 
final agency decision and would provide that the effects of the 
decision on the procurement at issue are explained in 13 CFR 
126.803(e).
    Proposed Sec.  134.1316 would provide that OHA may reconsider an 
appeal decision within twenty (20) calendar days after the decision is 
issued, or OHA may remand a proceeding to the D/HUB for a new HUBZone 
status protest determination.

Compliance With Executive Orders 12866, 12988, 13132, and the Paperwork 
Reduction Act (44 U.S.C. Ch. 35), the Regulatory Flexibility Act (5 
U.S.C. 601-612), the Congressional Review Act (5 U.S.C. 801-808)

Executive Order 12866

    The Office of Management and Budget has determined that this rule 
is not a ``significant regulatory action'' under Executive Order No. 
12866. This proposed rule would amend the rules of practice for the 
SBA's OHA to implement procedures for appeals from HUBZone status 
protest determinations. As such, the rule has no effect on the amount 
or dollar value of any Federal contract requirements or of any 
financial assistance provided through SBA. Therefore, the rule is not 
likely to have an annual economic effect of $100 million or more, 
result in a major increase in costs or prices, or have a significant 
adverse effect on competition or the United States economy. In 
addition, this rule does not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency, 
materially alter the budgetary impact of entitlements, grants, user 
fees, loan programs or the rights and obligations of such recipients, 
nor raise novel legal or policy issues arising out of legal mandates, 
the President's priorities, or the principles set forth in the 
Executive Order.

Executive Order 12988

    This action meets applicable standards set forth in section 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

    This rule does not have Federalism implications as defined in 
Executive Order 13132. It will not have substantial direct effects 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, as specified in the Executive Order. As 
such, it does not warrant the preparation of a Federalism Assessment.

Paperwork Reduction Act

    The SBA has determined that this rule does not impose additional 
reporting or recordkeeping requirements under the Paperwork Reduction 
Act, 44 U.S.C. Chapter 35.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, as amended (RFA), 5 U.S.C. 
601-612, requires Federal agencies to prepare an initial regulatory 
flexibility analysis (IRFA) to consider the potential impact of the 
regulations on small entities. Small entities include small businesses, 
small not-for-profit organizations, and small governmental 
jurisdictions. Section 605 of the RFA allows an agency to certify a 
rule, in lieu of preparing an IRFA, if the rulemaking is not expected 
to have a significant economic impact on a substantial number of small 
entities.
    This proposed rule would revise the regulations governing cases 
before SBA's Office of Hearings and Appeals (OHA), SBA's administrative 
tribunal. These regulations are procedural by nature. Specifically, the 
proposed rule would establish rules of practice for the SBA's OHA to 
hear appeals from HUBZone status protest determinations. While SBA does 
not anticipate that this proposed rule would have a significant 
economic impact on any small business, we do welcome comments from any 
small business setting out how and to what degree this proposed rule 
would affect it economically. Therefore, the Administrator of SBA 
certifies under 5 U.S.C. 605(b) that this proposed rule would not have 
a significant economic impact on a substantial number of small 
entities.

Congressional Review Act, 5 U.S.C. Ch. 8

    Subtitle E of the Small Business Regulatory Enforcement Fairness 
Act of 1996, also known as the Congressional

[[Page 76587]]

Review Act or CRA, generally provides that before a rule may take 
effect, the agency promulgating the rule must submit a rule report, 
which includes a copy of the rule, to each House of the Congress and to 
the Comptroller General of the United States. SBA will submit a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives, and the Comptroller General of the 
United States. A major rule under the CRA cannot take effect until 60 
days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a ``major rule'' as defined by 5 U.S.C. 804(2). Therefore, this rule is 
not subject to the 60-day restriction.

List of Subjects

13 CFR Part 126

    Administrative practice and procedure, Government procurement, 
Penalties, Reporting and recordkeeping requirements, Small businesses.

13 CFR Part 134

    Administrative practice and procedure, Claims, Equal access to 
justice, Lawyers, Organization and function (Government agencies).

    For the reasons set forth in the preamble, SBA proposes to amend 
parts 126 and 134 of title 13 of the Code of Federal Regulations as 
follows:

PART 126--HUBZONE PROGRAM

0
 1. 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.


Sec.  126.103  [Amended]

0
2. Amend Sec.  126.103 by removing the definition of ``AA/GC&BD''.


Sec.  126.309  [Amended]

0
3. Amend Sec.  126.309 by removing ``(the D/HUB's decision if no appeal 
is filed or the decision of the AA/GCBD)'' and adding in its place 
``(i.e., the D/HUB's decision if the protest determination is not 
appealed, or OHA's decision if the protest determination is 
appealed)''.
0
4. Amend Sec.  126.803 by:
0
a. In paragraph (e), revising the introductory text;
0
b. In paragraph (e)(1)(ii)(B), removing ``the AA/GCBD'' and adding in 
its place ``OHA'';
0
c. In paragraph (e)(1)(iii), removing ``(i.e., the D/HUB's decision if 
no appeal is filed, or the decision of the AA/GCBD if the protest is 
appealed)'' and adding in its place ``(i.e., the D/HUB's decision if 
the protest determination is not appealed, or OHA's decision if the 
protest determination is appealed)'';
0
d. In paragraph (e)(2)(ii), removing ``the AA/GCBD'' and adding in its 
place ``OHA''; and
0
e. In paragraph (e)(3), removing ``(the D/HUB's decision if no appeal 
is filed, or the decision of the AA/GCBD if the protest is appealed)'' 
and adding in its place ``(i.e., the D/HUB's decision if the protest 
determination is not appealed, or OHA's decision if the protest 
determination is appealed)''.
    The revision reads as follows:


Sec.  126.803  How will SBA process a HUBZone status protest and what 
are the possible outcomes?

* * * * *
    (e) * * * The determination is effective immediately and is final, 
unless overturned on appeal by SBA's Office of Hearings and Appeals 
(OHA) pursuant to part 134 of this chapter.
* * * * *
0
5. Revise Sec.  126.805 to read as follows:


Sec.  126.805  What are the procedures for appeals of HUBZone status 
protest determinations?

    The protested concern, the protester, or the contracting officer 
may file an appeal of a HUBZone status protest determination with SBA's 
Office of Hearings and Appeals (OHA) in accordance with part 134 of 
this chapter.

PART 134--RULES OF PROCEDURE GOVERNING CASES BEFORE THE OFFICE OF 
HEARINGS AND APPEALS

0
6. The authority citation for part 134 is revised to read as follows:

    Authority:  5 U.S.C. 504; 15 U.S.C. 632, 634(b)(6), 634(i), 
637(a), 648(l), 656(i), 657a, 657t and 687(c); E.O. 12549, 51 FR 
6370, 3 CFR, 1986 Comp., p. 189.

Subpart J issued under 15 U.S.C. 657f.
Subpart K issued under 15 U.S.C. 657f.
Subpart L issued under 15 U.S.C. 636(a)(36); 636(a)(37); 636m.
Subpart M issued under 15 U.S.C. 657a; Sec. 864, Pub. L. 117-81, 135 
Stat. 1852 (15 U.S.C. 634 note).

0
7. Amend Sec.  134.102 by:
0
a. Removing the word ``and'' at the end of paragraph (v);
0
b. Removing the period at the end of paragraph (w) and adding ``; and'' 
in its place; and
0
c. Adding paragraph (x).
    The addition reads as follows:


Sec.  134.102  Jurisdiction of OHA.

* * * * *
    (x) Appeals from HUBZone status protest determinations under part 
126 of this chapter.
0
8. Amend Sec.  134.201 by:
0
a. Removing the word ``and'' at the end of paragraph (b)(9);
0
b. Redesignating paragraph (b)(10) as paragraph (b)(11); and
0
c. Adding a new paragraph (b)(10).
    The addition reads as follows:


Sec.  134.201  Scope of the rules in this subpart.

* * * * *
    (b) * * *
    (10) For appeals of protest determinations regarding the status of 
a concern as a certified HUBZone small business concern, in subpart M 
of this part; and
* * * * *
0
8. Add subpart M to read as follows:

Subpart M--Rules of Practice for Appeals of Protest Determinations 
Regarding the Status of a Concern as a Certified HUBZone Small 
Business Concern

Sec.
134.1301 What is the scope of the rules in this subpart?
134.1302 Who may appeal a HUBZone status protest determination?
134.1303 What time limits apply to filing an appeal from a HUBZone 
status protest determination?
134.1304 What are the effects of the filing of an appeal on the 
procurement at issue?
134.1305 What are the requirements for an appeal petition?
134.1306 What are the service and filing requirements?
134.1307 What are the requirements for transmitting the protest 
file?
134.1308 What is the standard of review?
134.1309 When will a Judge dismiss an appeal?
134.1310 Who can file a response to an appeal petition and when must 
such a response be filed?
134.1311 Will the Judge permit discovery and oral hearings?
134.1312 What are the limitations on the introduction of new 
evidence?
134.1313 When is the record closed?
134.1314 When must the Judge issue his or her decision?
134.1315 What are the effects of the Judge's decision on the 
procurement at issue?
134.1316 Can a Judge reconsider an appeal decision?


Sec.  134.1301  What is the scope of the rules in this subpart?

    (a) The rules of practice in this subpart apply to all appeals to 
OHA from formal protest determinations made by the Director of SBA's 
Office of HUBZone (D/HUB) in connection with a HUBZone status protest. 
Appeals under this subpart include any of the grounds for a HUBZone 
status protest specified in Sec.  126.801 of this chapter, as well as 
appeals from determinations by the D/HUB that the protest was

[[Page 76588]]

premature, untimely, nonspecific, or not based upon protestable 
allegations.
    (b) Except where inconsistent with this subpart, the provisions of 
subparts A and B of this part apply to appeals listed in paragraph (a) 
of this section.
    (c) Appeals relating to formal size determinations and NAICS Code 
designations are governed by subpart C of this part.


Sec.  134.1302  Who may appeal a HUBZone status protest determination?

    Appeals from HUBZone status protest determinations may be filed 
with OHA by the protested concern, the protester, or the contracting 
officer responsible for the procurement affected by the protest 
determination.


Sec.  134.1303  What time limits apply to filing an appeal from a 
HUBZone status protest determination?

    Appeals from a HUBZone status protest determination must be 
commenced by filing and serving an appeal petition within ten (10) 
business days after the appellant receives the HUBZone status protest 
determination (see Sec.  134.204 for filing and service requirements). 
OHA shall dismiss any untimely appeal.


Sec.  134.1304  What are the effects of the filing of an appeal on the 
procurement at issue?

    (a) If a timely appeal is filed after contract award, the 
contracting officer must consider whether performance can be suspended 
until an appellate decision is rendered.
    (b) If a timely appeal is filed before contract award, the 
contracting officer must withhold award until the appellate decision is 
rendered, unless the contracting officer has determined that award and 
performance of the contract is in the best interests of the government.


Sec.  134.1305  What are the requirements for an appeal petition?

    (a) Format. An appeal from a HUBZone status protest determination 
must be in writing. There is no required format for an appeal petition. 
However, it must include the following information:
    (1) A copy of the protest determination;
    (2) The date the appellant received the protest determination;
    (3) A statement that the petitioner is appealing a HUBZone status 
protest determination issued by the D/HUB;
    (4) A full and specific statement as to why the HUBZone status 
protest determination is alleged to be based on a clear error of fact 
or law, together with argument supporting such allegation;
    (5) The solicitation number, the contract number (if applicable), 
and the name, address, and telephone number of the contracting officer; 
and
    (6) The name, address, telephone number, facsimile number, and 
signature of the appellant or its attorney.
    (b) Service of appeal. The appellant must serve copies of the 
entire appeal petition upon each of the following:
    (1) The D/HUB at [email protected];
    (2) The contracting officer responsible for the procurement 
affected by a HUBZone determination;
    (3) The protested concern (the business concern whose HUBZone 
status is at issue) or the protester; and
    (4) SBA's Office of General Counsel, Associate General Counsel for 
Procurement Law at [email protected].
    (c) Certificate of Service. The appellant must attach to the appeal 
petition a signed certificate of service meeting the requirements of 
Sec.  134.204(d).
    (d) Dismissal. An appeal petition that does not meet all the 
requirements of this section may be dismissed by the Judge at his/her 
own initiative or upon motion of a respondent.


Sec.  134.1306  What are the service and filing requirements?

    The provisions of Sec.  134.204 apply to the service and filing of 
all pleadings and other submissions permitted under this subpart, 
unless otherwise indicated in this subpart.


Sec.  134.1307  What are the requirements for transmitting the protest 
file?

    Upon receipt of an appeal petition, the D/HUB will send to OHA a 
copy of the protest file relating to that determination. The D/HUB will 
certify and authenticate that the protest file, to the best of his or 
her knowledge, is a true and correct copy of the protest file.


Sec.  134.1308  What is the standard of review?

    The standard of review for an appeal of a HUBZone status protest 
determination is whether the D/HUB's determination was based on clear 
error of fact or law. The appellant has the burden of proof, by a 
preponderance of the evidence.


Sec.  134.1309  When will a Judge dismiss an appeal?

    The presiding Judge must dismiss the appeal if:
    (a) The appeal is untimely filed under Sec.  134.1303;
    (b) The appeal does not, on its face, allege facts that if proven 
to be true, warrant reversal or modification of the determination; or
    (c) The matter has been decided or is the subject of adjudication 
before a court of competent jurisdiction over such matters; however, 
once an appeal has been filed, initiation of litigation of the matter 
in a court of competent jurisdiction will not preclude the Judge from 
rendering a final decision on the matter.


Sec.  134.1310  Who can file a response to an appeal petition and when 
must such a response be filed?

    (a) Who may respond. Although not required, any person served with 
an appeal petition may file and serve a response supporting or opposing 
the appeal if he or she wishes to do so. The response should present 
arguments related to the issues presented on appeal.
    (b) Time limits. If a person decides to file a response, the 
response must be filed within fifteen (15) business days after service 
of the appeal petition.
    (c) Service. The respondent must serve its response upon the 
appellant and upon each of the persons identified in the certificate of 
service attached to the appeal petition pursuant to Sec.  134.1305.
    (d) Reply to a response. No reply to a response will be permitted 
unless the Judge directs otherwise.


Sec.  134.1311  Will the Judge permit discovery and oral hearings?

    Discovery will not be permitted, and oral hearings will not be 
held.


Sec.  134.1312  What are the limitations on the introduction of new 
evidence?

    The Judge may not admit evidence beyond the written protest file 
nor permit any form of discovery. All appeals under this subpart will 
be decided solely on a review of the evidence in the written protest 
file, arguments made in the appeal petition, and response(s) filed 
thereto.


Sec.  134.1313  When is the record closed?

    The record will close when the time to file a response to an appeal 
petition expires pursuant to Sec.  134.1310.


Sec.  134.1314  When must the Judge issue his or her decision?

    The Judge shall issue a decision, insofar as practicable, within 
forty-five (45) calendar days after close of the record.


Sec.  134.1315  What are the effects of the Judge's decision on the 
procurement at issue?

    The Judge's decision is the final agency decision and becomes 
effective upon issuance. For the effects of the decision on the 
procurement at issue, see Sec.  126.803(e) of this chapter.

[[Page 76589]]

Sec.  134.1316  Can a Judge reconsider an appeal decision?

    (a) Any party who has appeared in the proceeding, or SBA, may 
request reconsideration of the OHA appeal decision by filing with the 
Judge and serving a petition for reconsideration on all the parties to 
the appeal within twenty (20) calendar days after service of the 
written decision. The request for reconsideration must clearly show an 
error of fact or law material to the decision. The Judge may also 
reconsider a decision on his or her own initiative, within twenty (20) 
calendar days after issuance of the written decision.
    (b) The Judge may remand a proceeding to the D/HUB for a new 
HUBZone status protest determination if the D/HUB fails to address 
issues of decisional significance sufficiently, does not address all 
the relevant evidence, or does not identify specifically the evidence 
upon which it relied. Once remanded, OHA no longer has jurisdiction 
over the matter, unless a new appeal is filed as a result of the new 
HUBZone status protest determination.

Isabella Casillas Guzman,
Administrator.
[FR Doc. 2022-26873 Filed 12-14-22; 8:45 am]
BILLING CODE 8026-09-P


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