Federal Acquisition Regulation: HUBZone Program, 48544-48549 [2024-12570]
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business in the System for Award
Management (SAM) if—
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■ 9. Amend section 52.219–9 by—
■ a. Revising the date of the clause;
■ b. Revising paragraphs (c)(2)(i),
(c)(2)(ii) introductory text, and (d)(1)
introductory text;
■ c. In Alternate IV:
■ i. Revising the date of the Alternate;
and
■ ii. Revising paragraphs (c)(2)(i),
(c)(2)(ii) introductory text, (d)(1)
introductory text, and (d)(15).
The revisions read as follows:
52.219–9
Plan.
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Small Business Subcontracting
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Small Business Subcontracting Plan
(DATE)
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(c) * * *
(2)(i) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s written
representations of its size and
socioeconomic status as a small
business, small disadvantaged business,
veteran-owned small business, servicedisabled veteran-owned small business,
or a women-owned small business if the
subcontractor represents that the size
and socioeconomic status
representations with its offer are
current, accurate, and complete as of the
date of the offer for the subcontract.
(ii) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s representations
of its size and socioeconomic status as
a small business, small disadvantaged
business, veteran-owned small business,
service-disabled veteran-owned small
business, or a women-owned small
business in the System for Award
Management (SAM) if—
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(d) * * *
(1) Separate goals, expressed in terms
of total dollars subcontracted, and as a
percentage of total planned
subcontracting dollars, for the use of
small business, veteran-owned small
business, service-disabled veteranowned small business, HUBZone small
business, small disadvantaged business,
and women-owned small business
concerns as subcontractors. For
individual subcontracting plans, and if
required by the Contracting Officer,
goals shall also be expressed in terms of
percentage of total contract dollars, in
addition to the goals expressed as a
percentage of total subcontract dollars.
The Offeror shall include all
subcontracts that contribute to contract
performance, and may include a
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proportionate share of products and
services that are normally allocated as
indirect costs. In accordance with 15
U.S.C. 657r(a), an Offeror that is a
mentor with an SBA-approved mentorprotégé agreement (see 13 CFR 125.9)
that provides a subcontract to its protégé
may apply the costs incurred for
training it provides to its protégé toward
its subcontracting plan goals, provided
that protégé is a covered territory
business or that protégé has its principal
office located in the Commonwealth of
Puerto Rico. In accordance with 43
U.S.C. 1626—
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(15) Assurances that the Contractor
will pay its small business
subcontractors on time and in
accordance with the terms and
conditions of the underlying
subcontract, and notify the contracting
officer when the prime contractor makes
either a reduced or an untimely
payment to a small business
subcontractor (see 52.242–5).
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Alternate IV (DATE). * * *
(c) * * *
(2)(i) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s written
representations of its size and
socioeconomic status as a small
business, small disadvantaged business,
veteran-owned small business, servicedisabled veteran-owned small business,
or a women-owned small business if the
subcontractor represents that the size
and socioeconomic status
representations with its offer are
current, accurate, and complete as of the
date of the offer for the subcontract.
(ii) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s representations
of its size and socioeconomic status as
a small business, small disadvantaged
business, veteran-owned small business,
service-disabled veteran-owned small
business, or a women-owned small
business in the System for Award
Management (SAM) if—
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(d) * * *
(1) Separate goals, expressed in terms
of total dollars subcontracted and as a
percentage of total planned
subcontracting dollars, for the use of
small business, veteran-owned small
business, service-disabled veteranowned small business, HUBZone small
business, small disadvantaged business,
and women-owned small business
concerns as subcontractors. For
individual subcontracting plans, and if
required by the Contracting Officer,
goals shall also be expressed in terms of
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percentage of total contract dollars, in
addition to the goals expressed as a
percentage of total subcontract dollars.
The Contractor shall include all
subcontracts that contribute to contract
performance, and may include a
proportionate share of products and
services that are normally allocated as
indirect costs. In accordance with 15
U.S.C. 657r(a), a Contractor that is a
mentor with an SBA-approved mentorprotégé agreement (see 13 CFR 125.9)
that provides a subcontract to its protégé
may apply the costs incurred for
training it provides to its protégé toward
its subcontracting plan goals, provided
that protégé is a covered territory
business or that protégé has its principal
office located in the Commonwealth of
Puerto Rico. In accordance with 43
U.S.C. 1626—
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■ 10. Amend section 52.244–6 by—
■ a. Revising the date of the clause; and
■ b. Removing from paragraph (c)(1)(x)
‘‘(FEB 2024)’’ and adding ‘‘(DATE)’’ in
its place.
The revision reads as follows:
52.244–6 Subcontracts for Commercial
Products and Commercial Services.
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Subcontracts for Commercial Products
and Commercial Services (DATE)
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[FR Doc. 2024–12501 Filed 6–6–24; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 19 and 52
[FAR Case 2023–013; Docket No. FAR–
2023–0013; Sequence No. 1]
RIN 9000–AO36
Federal Acquisition Regulation:
HUBZone Program
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA.
ACTION: Proposed rule.
AGENCY:
DoD, GSA, and NASA are
proposing to amend the Federal
Acquisition Regulation (FAR) to
implement a final rule published by the
Small Business Administration (SBA) to
implement a section of the National
SUMMARY:
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Defense Authorization Act for Fiscal
Year 2022.
DATES: Interested parties should submit
written comments to the Regulatory
Secretariat Division at the address
shown below on or before August 6,
2024 to be considered in the formation
of the final rule.
ADDRESSES: Submit comments in
response to FAR Case 2023–013 to the
Federal eRulemaking portal at https://
www.regulations.gov by searching for
‘‘FAR Case 2023–013’’. Select the link
‘‘Comment Now’’ that corresponds with
‘‘FAR Case 2023–013’’. Follow the
instructions provided on the ‘‘Comment
Now’’ screen. Please include your name,
company name (if any), and ‘‘FAR Case
2023–013’’ on your attached document.
If your comment cannot be submitted
using https://www.regulations.gov, call
or email the point of contact in the FOR
FURTHER INFORMATION CONTACT section of
this document for alternate instructions.
Instructions: Please submit comments
only and cite ‘‘FAR Case 2023–013’’ in
all correspondence related to this case.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided. Public comments
may be submitted as an individual, as
an organization, or anonymously (see
frequently asked questions at https://
www.regulations.gov/faq). To confirm
receipt of your comment(s), please
check https://www.regulations.gov,
approximately two to three days after
submission to verify posting.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact Ms.
Carrie Moore, Procurement Analyst, at
571–300–5917, or by email at
carrie.moore@gsa.gov. For information
pertaining to status, publication
schedules, or alternate instructions for
submitting comments if https://
www.regulations.gov cannot be used,
contact the Regulatory Secretariat
Division at 202–501–4755 or
GSARegSec@gsa.gov. Please cite FAR
Case 2023–013.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are proposing
to amend the FAR to implement
regulatory changes made by the SBA in
its final rule published on April 10,
2023 (88 FR 21086) to implement
section 864 of the National Defense
Authorization Act (NDAA) for Fiscal
Year (FY) 2022 (Pub. L. 117–81). Section
864 authorizes the SBA Office of
Hearings and Appeals (OHA) to decide
all appeals from formal status protest
determinations in connection with the
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status of a Historically Underutilized
Business Zone (HUBZone) concern.
Prior to section 864 and SBA’s final
rule, appeals of HUBZone status
determinations were decided by the
SBA’s Associate Administrator, Office
of Government Contracting and
Business Development (AA/GC&BD).
This rulemaking proposes to
implement SBA’s final rule, dated April
10, 2023, to specify in the FAR that
OHA is responsible for deciding all
appeals of status protest determinations
for a HUBZone concern, identify the
information that must be included in an
appeal of a HUBZone status protest
determination, and remove the
requirement for a HUBZone concern to
represent its status in the System for
Award Management (SAM), as it is no
longer necessary since HUBZone
concerns are certified by the SBA.
II. Discussion and Analysis
The proposed changes to the FAR and
the rationale are summarized as follows:
—Update FAR 19.306 with the title of
the office that decides HUBZone
protests, and the procedures for
appealing a HUBZone status protest
decision to align with SBA’s
regulations at 13 CFR 126.800 through
126.805 and 13 CFR 134.1301 through
134.1316; and
—Modify FAR provisions 52.212–3,
Offeror Representations and
Certifications—Commercial Products
and Commercial Services, and
52.219–1, Small Business Program
Representations, and FAR clause
52.219–28, Post Award Small
Business Program Representation, to
remove the existing HUBZone small
business concern representation,
since HUBZone small business
concerns must be certified by the SBA
in order to be eligible for HUBZone
sole-source awards and awards set
aside for HUBZone concerns. The
representation is currently in these
provisions and clauses as a
mechanism for a HUBZone concern to
indicate that it will attempt to
maintain an employment rate of
HUBZone residents of 35 percent of
its employees during performance of
a HUBZone contract. This rulemaking
proposes to add this statement to FAR
clause 52.219–3, Notice of HUBZone
Set-Aside or Sole-Source Award, to
include the requirement for HUBZone
concerns to attempt to maintain the
required employment rate of
HUBZone employees during
performance of the contract as a term
and condition of the contract.
HUBZone joint ventures will continue
to be required to represent their status
as the SBA does not certify HUBZone
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joint ventures. The definition of
HUBZone small business concern in
FAR clause 52.219–3 is also updated
to conform with the definition of that
same term at FAR 2.101.
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 rulemaking proposes to amend
the following provisions and clauses at
FAR: 52.212–3, Offeror Representations
and Certifications—Commercial
Products and Commercial Services;
52.212–5, Contract Terms and
Conditions Required To Implement
Statutes or Executive Orders—
Commercial Products and Commercial
Services; 52.219–1, Small Business
Program Representations; 52.219–3,
Notice of HUBZone Set-Aside or SoleSource Award, and 52.219–28, PostAward Small Business Program
Rerepresentation. However, this
rulemaking does not change the
applicability of these provisions and
clauses, which continue to apply to
contracts valued at or below the SAT,
and contracts for commercial products,
including COTS items, or commercial
services.
This rulemaking proposes to apply
section 864 of the National Defense
Authorization Act for Fiscal Year 2022
(Pub. L. 117–81) to acquisitions at or
below the SAT and to acquisitions for
commercial products, including COTS
items, and commercial services, as OHA
has the authority, and is the only entity,
to decide all HUBZone status protest
appeals. As a result, the section must be
applied to acquisitions of these types to
ensure that all concerns that can appeal
a HUBZone status protest decision,
regardless of the subject contract’s
dollar value or commerciality, have a
process for doing so.
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
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the provision of law. The FAR Council
intends to make a determination to
apply this statute to acquisitions at or
below the SAT.
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B. Applicability to Contracts for the
Acquisition of Commercial Products
and Commercial Services, Including
Commercially Available Off-the-Shelf
(COTS) Items
41 U.S.C. 1906 governs the
applicability of laws to contracts for the
acquisition of commercial products and
commercial services and is intended to
limit the applicability of laws to
contracts for the acquisition of
commercial products and commercial
services. Section 1906 provides that if
the FAR Council makes a written
determination that it is not in the best
interest of the Federal Government to
exempt commercial products and
commercial services contracts, the
provision of law will apply to contracts
for the acquisition of commercial
products and commercial services.
41 U.S.C. 1907 states that acquisitions
of COTS items will be exempt from
certain provisions of law unless the
Administrator for Federal Procurement
Policy makes a written determination
and finds that it would not be in the best
interest of the Federal Government to
exempt contracts for the procurement of
COTS items.
The FAR Council intends to make a
determination to apply this statute to
acquisitions for commercial products
and commercial services. The
Administrator for Federal Procurement
Policy intends to make a determination
to apply this statute to acquisitions for
COTS items.
IV. Expected Impact of the Rule
This proposed rule is expected to
impact Government and contractor
operations.
As a result of this proposed rule,
interested parties seeking to appeal a
HUBZone status protest decision will be
required to send the appeal to OHA in
lieu of the Associate Administrator,
Office of Government Contracting and
Business Development. This change in
decision authority does not add any
burden to or create any savings for the
Government or contractors. However,
contracting officers, contractors,
offerors, and the SBA may save some
time in submitting and/or processing
these appeal requests due to the clear
specification of information that OHA
requires in a request for appeal of a
HUBZone status protest decision.
Contracting officers can reference the
information in the FAR text to submit
an appeal or advise a protester or
protested concern what information
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should be included in the appeal
request.
In addition, HUBZone small business
concerns will no longer be required to
represent their status in SAM since
HUBZone concerns are required to be
certified by the SBA. This
representation was maintained to
provide a mechanism for a HUBZone
concern to represent that it will comply
with the employment requirements at
13 CFR 126.200(e)(1); however, an
alternative approach was identified,
which precludes the need for a
representation and reduces the burden
on HUBZone concerns. Specifically, in
lieu of a representation, HUBZone
concerns will be able to agree to attempt
to meet the employment requirements at
13 CFR 126.200(e)(1) by submission of
an offer and execution of a contract.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 (as amended by E.O. 14094)
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. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect
this proposed rule, if finalized, to have
a significant economic impact on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601–612,
because this proposed rule merely
changes the office that decides
HUBZone status protest appeals,
specifies the information OHA requires
in a request to appeal a HUBZone status
protest determination, removes the
requirement for a HUBZone concern to
represent its status in SAM, and it does
not impose any additional compliance
burden on applicable small business
entities. However, an Initial Regulatory
Flexibility Analysis (IRFA) has been
performed and is summarized as
follows:
DoD, GSA, and NASA are proposing to
amend the Federal Acquisition Regulation
(FAR) to implement regulatory changes made
by the Small Business Administration (SBA)
in its final rule published on April 10, 2023,
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at 88 FR 21086, to implement section 864 of
the National Defense Authorization Act for
Fiscal Year 2022 (Pub. L. 117–81). This rule
also proposes to remove the representation
for HUBZone small business concerns, as it
is unnecessary since HUBZone concerns
must be certified by SBA.
The objective of this rule is to revise the
procedures for appealing decisions of
HUBZone status protest determinations to
align with SBA’s regulations. This rule also
removes the representation for HUBZone
small business concerns as it is unnecessary
since HUBZone concerns are required to be
certified by SBA. Promulgation of the FAR is
authorized by 40 U.S.C. 121(c); 10 U.S.C.
chapter 4 and 10 U.S.C. chapter 137 legacy
provisions (see 10 U.S.C. 3016); and 51
U.S.C. 20113. The legal basis for this rule is
as stated in the preceding paragraph.
This proposed rule will impact HUBZone
small business concerns as they will no
longer be required to represent their status in
the System for Award Management (SAM).
As indicated in SBA’s final rule, the change
to the HUBZone protest appeals process is
procedural in nature and will not impact
small entities.
According to the Dynamic Small Business
Search, there are 4,465 HUBZone small
business concerns certified by SBA;
therefore, there are 4,465 HUBZone small
business concerns that are currently required
to represent their status in SAM. However,
the number of concerns that will submit
applications to the SBA for HUBZone
certification is unknown; therefore, the
number of small business entities impacted
by this rule may be greater than or less than
the 4,465 HUBZone concerns currently
certified by SBA.
The proposed rule does not impose any
new reporting, recordkeeping, or other
compliance requirements for small entities.
The proposed rule does not duplicate,
overlap, or conflict with any other Federal
rules.
There are no known significant alternative
approaches to the proposed rule that would
accomplish the stated objectives of the
applicable statute and that would minimize
any significant economic impact of the
proposed rule on small entities as the
economic impact is not anticipated to be
significant.
The Regulatory Secretariat Division
has submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. A copy of the
IRFA may be obtained from the
Regulatory Secretariat Division. DoD,
GSA, and NASA invite comments from
small business concerns and other
interested parties on the expected
impact of this proposed rule on small
entities.
DoD, GSA, and NASA will also
consider comments from small entities
concerning the existing regulations in
subparts affected by the proposed rule
in accordance with 5 U.S.C. 610.
Interested parties must submit such
comments separately and should cite 5
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U.S.C. 610 (FAR Case 2023–013), in
correspondence.
VII. Paperwork Reduction Act
This proposed rule does not contain
any new information collection
requirements that require the approval
of the Office of Management and Budget
under the Paperwork Reduction Act (44
U.S.C. 3501–3521). This proposed rule
does remove one HUBZone
representation from FAR provisions
52.212–3, Offeror Representations and
Certifications—Commercial Products,
and Commercial Services; and 52.219–
1, Small Business Program
Representations; and FAR clause
52.219–28, Post-Award Small Business
Program Rerepresentation, which are
covered under two existing information
collections approved by OMB.
OMB Control number 9000–0189,
Certain Federal Acquisition Regulation
Part 4 Requirements, addresses the
burden for FAR provision 52.212–3 and
FAR provision 52.204–7, System for
Award Management, both of which
require offerors on Federal contracts to
register in SAM. The representations in
FAR provision 52.219–1 are
implemented in SAM and either FAR
provision 52.204–7 or 52.212–3 is
included in all solicitations. Therefore,
by registering in SAM, as required by
either FAR provision 52.204–7 or
52.212–3, an offeror will make the
representations included in FAR
provision 52.219–1. As a part of SAM
registration, offerors complete
approximately 35 representations and
certifications, including the HUBZone
representation to be removed. The
burden for FAR provisions 52.204–7
and 52.212–3 is based on an estimate of
the time it would take a new offeror to
fill in all of the information needed to
register in SAM, or an average of 3
hours in total.
OMB Control number 9000–0163,
Small Business Size Rerepresentation,
addresses the burden for FAR clause
52.219–28, which requires contractors
to rerepresent their size and
socioeconomic status in the SAM at
certain times. The clause contains eight
representations that must be updated in
SAM, including the HUBZone
representation to be removed. The
burden for this clause is based on an
estimate of the time it will take a
contractor to log into SAM, verify or
update their responses to these 8
representations, and email the
contracting officer when complete, or an
average of 30 minutes in total.
Verifying or updating the HUBZone
representation takes only minutes and
accounts for a very small portion of the
overall burden of the affected provisions
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and clause. It is reasonable to assume
that, even after removing the HUBZone
representation, the average estimated
burden per SAM registration or
rerepresentation is still accurate. For
these reasons, OMB Control numbers
9000–0163 and 9000–0189 were not
revised to account for the removal of the
HUBZone representation.
List of Subjects in 48 CFR Parts 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
propose amending 48 CFR parts 19 and
52 as set forth below:
■ 1. The authority citation for 48 CFR
parts 19 and 52 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 4 and 10 U.S.C. chapter 137 legacy
provisions (see 10 U.S.C. 3016); and 51
U.S.C. 20113.
PART 19—SMALL BUSINESS
PROGRAMS
2. Amend section 19.306 by—
a. Adding a heading to paragraph (b);
b. Revising paragraph (b)(2);
c. Adding a heading to paragraphs (c),
(d), (f) and (g);
■ d. Revising paragraph (i) introductory
text, (i)(1), (i)(2),(i)(3) introductory text,
(i)(3)(iii), and (i)(4);
■ e. Redesignate paragraphs (i)(5) and
(i)(6) as paragraphs (i)(6) and (i)(7);
■ f. Adding a new paragraph (i)(5);
■ g. Revising newly redesignated
paragraphs (i)(6) introductory text,
(i)(6)(ii), and (iii); and
■ h. Revising paragraphs (j), (k), (l), and
(m).
The revisions and additions read as
follows:
■
■
■
■
19.306 Protesting a firm’s status as a
HUBZone small business concern.
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(b) General. * * *
(2) The Director of SBA’s Office of
HUBZone (D/HUB) 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 and at subpart M ‘‘Rules of
Practice for Appeals of Protest
Determinations Regarding the Status of
a Concern as a Certified HUBZone Small
Business Concern’’ at 13 CFR 134.1301
through 134.1316.
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(c) Size status protests. * * *
(d) Protest format. * * *
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(f) Transmittal. * * *
(g) Notice. * * *
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(i) After SBA decision. The SBA will
notify the contracting officer, the
protester, and the protested concern of
its determination. The determination is
effective immediately and is final unless
overturned on appeal by SBA’s Office of
Hearings and Appeals (OHA) pursuant
to 13 CFR 134.1301 through 13 CFR
134.1316.
(1) If the contracting officer has
withheld contract award and the D/HUB
has determined that the protested
concern is an eligible HUBZone or
dismissed all protests against the
protested concern, the contracting
officer may award the contract to the
protested concern. If OHA subsequently
overturns the initial determination or
dismissal, the contracting officer may
apply the OHA decision to the
procurement in question.
(2) If the contracting officer has
withheld contract award and the (D/
HUB) has sustained the protest and
determined that the protested concern is
ineligible, and a timely OHA appeal has
not been filed, then the contracting
officer shall not award the contract to
the protested concern.
(3) If the contracting officer has made
a written determination in accordance
with paragraph (h)(1)(ii)(B) of this
section, awarded the contract, and the
D/HUB ruling sustaining the protest is
received after award, and a timely OHA
appeal has not been filed, then—
*
*
*
*
*
(iii) After SBA removes the concern’s
designation as a certified HUBZone
small business concern in DSBS, the
contracting officer shall update the
Federal Procurement Data System
(FPDS) to reflect the final decision of
the D/HUB.
(4) If the contracting officer has made
a written determination in accordance
with paragraph (h)(1)(ii)(B) of this
section, awarded the contract, the D/
HUB has sustained the protest and
determined that the concern is not a
HUBZone small business, and a timely
OHA appeal has been filed, then the
contracting officer shall consider
whether performance can be suspended
until an OHA decision is rendered.
(5) If the contracting officer has
withheld contract award, the D/HUB
has sustained the protest and
determined that the protested concern is
ineligible, and a timely OHA appeal has
been filed, the contracting officer shall
either—
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(i) Withhold award until an OHA
decision is rendered; or
(ii) Award the contract, if the
contracting officer determines in writing
that there is an immediate need to
award the contract and that waiting for
the OHA decision will be
disadvantageous to the Government.
(6) If OHA affirms the decision of the
D/HUB, finding the protested concern is
ineligible, and contract award has
occurred—
*
*
*
*
*
(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 OHA
finds the concern is eligible on appeal;
and
(iii) After SBA removes the concern’s
designation as a certified HUBZone
small business concern in DSBS, the
contracting officer shall update FPDS to
reflect the OHA decision.
*
*
*
*
*
(j) Appeals of HUBZone status
determinations. The protested
HUBZone small business concern, the
protester, or the contracting officer may
file appeals of protest determinations
with OHA. OHA must receive the
appeal no later than 10 business days
after the date of receipt of the protest
determination. OHA will dismiss any
untimely appeal.
(k) The appeal must be in writing. The
appeal 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 that
addresses why the HUBZone status
protest determination is alleged to be
based on a clear error of fact or law,
together with information supporting
such allegation;
(5) The solicitation number, the
contract number (if applicable), and the
name, address, and telephone number of
the contracting officer;
(6) The name, address, telephone
number, facsimile number (if
applicable), and signature of the
appellant or the appellant’s attorney;
and
(7) A signed certificate of service
attached to the appeal in accordance
with 13 CFR 134.204.
(l) Notice. (1) The party appealing the
decision must provide notice of the
appeal to—
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16:36 Jun 06, 2024
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(i) The contracting officer;
(ii) The protested HUBZone small
business concern or the original
protester, as appropriate;
(iii) The D/HUB at hzappeals@
sba.gov; and
(iv) The SBA Office of General
Counsel, Associate General Counsel for
Procurement Law at OPLservice@
sba.gov.
(2) OHA will dismiss an appeal that
does not meet all the requirements of
this section. OHA will not consider new
evidence in appeals from HUBZone
status protest determinations.
(m) Decision. OHA will issue a
decision in accordance with the
timelines specified at 13 CFR 134.1310
through 134.1314. OHA will provide a
copy of the decision to the contracting
officer, the protester, and the protested
HUBZone small business concern. The
SBA decision, if received before award,
will apply to the pending acquisition.
The OHA decision is the final decision.
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
3. Amend section 52.212–3 by
revising the date of the provision and
paragraph (c)(11) to read as follows:
■
52.212–3 Offeror Representations and
Certifications—Commercial Products and
Commercial Services.
*
*
*
*
*
Offeror Representations and
Certifications—Commercial Products
and Commercial Services (DATE)
(c) * * *
(11) HUBZone small business
concern. [Complete only if the offeror
represented itself as a small business
concern in paragraph (c)(1) of this
provision.] The offeror represents, as
part of its offer, that it b is, b is not a
HUBZone joint venture that complies
with the requirements of 13 CFR
126.616(a) through (c). [The offeror shall
enter the name and unique entity
identifier of each party to the joint
venture: lll.]
*
*
*
*
*
■ 4. Amend section 52.212–5 by
revising the date of the clause and
paragraphs (b)(15) and (b)(26) to read as
follows:
52.212–5 Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Products
and Commercial Services.
*
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*
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*
Fmt 4702
*
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Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial
Products and Commercial Services
(DATE)
*
*
*
*
*
(b) * * *
l (15) 52.219–3, Notice of HUBZone
Set-Aside or Sole-Source Award (DATE)
(15 U.S.C. 657a).
*
*
*
*
*
l (26) (i) 52.219–28, Post-Award
Small Business Program
Rerepresentation (DATE) (15 U.S.C.
632(a)(2)).
*
*
*
*
*
■ 5. Amend section 52.219–1 by
revising the date of the provision and
paragraph (c)(9) to read as follows:
52.219–1 Small Business Program
Representations.
*
*
*
*
*
Small Business Program
Representations (DATE)
*
*
*
*
*
(c) * * *
(9) HUBZone small business concern.
[Complete only if the offeror represented
itself as a small business concern in
paragraph (c)(1) of this provision.] The
offeror represents, as part of its offer,
that it b is, b is not a HUBZone joint
venture that complies with the
requirements of 13 CFR 126.616(a)
through (c). [The offeror shall enter the
name and unique entity identifier of
each party to the joint venture: ll.]
*
*
*
*
*
■ 6. Amend section 52.219–3 by—
■ a. Revising the date of the clause and
paragraph (a); and
■ b. Adding a new paragraph (f).
The revision and addition read as
follows:
52.219–3 Notice of HUBZone Set-Aside or
Sole-Source Award.
*
*
*
*
*
Notice of HUBZone Set-Aside or SoleSource Award (DATE)
(a) Definition. ‘‘HUBZone small
business concern,’’ as used in this
clause, 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 the SBA as a
HUBZone small business concern in the
Dynamic Small Business Search (DSBS)
(13 CFR 126.103). The SBA designation
also appears in the System for Award
Management.
*
*
*
*
*
(f) The Contractor agrees that it will
attempt to maintain an employment rate
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of HUBZone residents of 35 percent of
its employees during performance of a
HUBZone contract pursuant to 13 CFR
126.200(e)(1).
■ 7. Amend section 52.219–28 by
revising the date of the clause and
paragraph (h)(9) to read as follows:
52.219–28 Post-Award Small Business
Program Rerepresentation.
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*
*
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*
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Post-Award Small Business Program
Rerepresentation (DATE)
*
*
*
*
*
(h) * * *
(9) [Complete only if the Contractor
represented itself as a small business
concern in paragraph (h)(1) of this
clause.] The Contractor represents that
it b is, b is not a HUBZone joint
venture that complies with the
requirements of 13 CFR part 126. [The
PO 00000
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Sfmt 9990
48549
Contractor shall enter the names of each
of the HUBZone small business
concerns participating in the HUBZone
joint venture: lll.]
[Contractor to sign and date and
insert authorized signer’s name and
title.]
*
*
*
*
*
[FR Doc. 2024–12570 Filed 6–6–24; 8:45 am]
BILLING CODE 6820–EP–P
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Agencies
[Federal Register Volume 89, Number 111 (Friday, June 7, 2024)]
[Proposed Rules]
[Pages 48544-48549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12570]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 19 and 52
[FAR Case 2023-013; Docket No. FAR-2023-0013; Sequence No. 1]
RIN 9000-AO36
Federal Acquisition Regulation: HUBZone Program
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal
Acquisition Regulation (FAR) to implement a final rule published by the
Small Business Administration (SBA) to implement a section of the
National
[[Page 48545]]
Defense Authorization Act for Fiscal Year 2022.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat Division at the address shown below on or before
August 6, 2024 to be considered in the formation of the final rule.
ADDRESSES: Submit comments in response to FAR Case 2023-013 to the
Federal eRulemaking portal at https://www.regulations.gov by searching
for ``FAR Case 2023-013''. Select the link ``Comment Now'' that
corresponds with ``FAR Case 2023-013''. Follow the instructions
provided on the ``Comment Now'' screen. Please include your name,
company name (if any), and ``FAR Case 2023-013'' on your attached
document. If your comment cannot be submitted using https://www.regulations.gov, call or email the point of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
Instructions: Please submit comments only and cite ``FAR Case 2023-
013'' in all correspondence related to this case. Comments received
generally will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided. Public comments may be submitted as an individual, as an
organization, or anonymously (see frequently asked questions at https://www.regulations.gov/faq). To confirm receipt of your comment(s),
please check https://www.regulations.gov, approximately two to three
days after submission to verify posting.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Carrie Moore, Procurement Analyst, at 571-300-5917, or by email at
[email protected]. For information pertaining to status, publication
schedules, or alternate instructions for submitting comments if https://www.regulations.gov cannot be used, contact the Regulatory Secretariat
Division at 202-501-4755 or [email protected]. Please cite FAR Case
2023-013.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are proposing to amend the FAR to implement
regulatory changes made by the SBA in its final rule published on April
10, 2023 (88 FR 21086) to implement section 864 of the National Defense
Authorization Act (NDAA) for Fiscal Year (FY) 2022 (Pub. L. 117-81).
Section 864 authorizes the SBA Office of Hearings and Appeals (OHA) to
decide all appeals from formal status protest determinations in
connection with the status of a Historically Underutilized Business
Zone (HUBZone) concern. Prior to section 864 and SBA's final rule,
appeals of HUBZone status determinations were decided by the SBA's
Associate Administrator, Office of Government Contracting and Business
Development (AA/GC&BD).
This rulemaking proposes to implement SBA's final rule, dated April
10, 2023, to specify in the FAR that OHA is responsible for deciding
all appeals of status protest determinations for a HUBZone concern,
identify the information that must be included in an appeal of a
HUBZone status protest determination, and remove the requirement for a
HUBZone concern to represent its status in the System for Award
Management (SAM), as it is no longer necessary since HUBZone concerns
are certified by the SBA.
II. Discussion and Analysis
The proposed changes to the FAR and the rationale are summarized as
follows:
--Update FAR 19.306 with the title of the office that decides HUBZone
protests, and the procedures for appealing a HUBZone status protest
decision to align with SBA's regulations at 13 CFR 126.800 through
126.805 and 13 CFR 134.1301 through 134.1316; and
--Modify FAR provisions 52.212-3, Offeror Representations and
Certifications--Commercial Products and Commercial Services, and
52.219-1, Small Business Program Representations, and FAR clause
52.219-28, Post Award Small Business Program Representation, to remove
the existing HUBZone small business concern representation, since
HUBZone small business concerns must be certified by the SBA in order
to be eligible for HUBZone sole-source awards and awards set aside for
HUBZone concerns. The representation is currently in these provisions
and clauses as a mechanism for a HUBZone concern to indicate that it
will attempt to maintain an employment rate of HUBZone residents of 35
percent of its employees during performance of a HUBZone contract. This
rulemaking proposes to add this statement to FAR clause 52.219-3,
Notice of HUBZone Set-Aside or Sole-Source Award, to include the
requirement for HUBZone concerns to attempt to maintain the required
employment rate of HUBZone employees during performance of the contract
as a term and condition of the contract. HUBZone joint ventures will
continue to be required to represent their status as the SBA does not
certify HUBZone joint ventures. The definition of HUBZone small
business concern in FAR clause 52.219-3 is also updated to conform with
the definition of that same term at FAR 2.101.
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 rulemaking proposes to amend the following provisions and
clauses at FAR: 52.212-3, Offeror Representations and Certifications--
Commercial Products and Commercial Services; 52.212-5, Contract Terms
and Conditions Required To Implement Statutes or Executive Orders--
Commercial Products and Commercial Services; 52.219-1, Small Business
Program Representations; 52.219-3, Notice of HUBZone Set-Aside or Sole-
Source Award, and 52.219-28, Post-Award Small Business Program
Rerepresentation. However, this rulemaking does not change the
applicability of these provisions and clauses, which continue to apply
to contracts valued at or below the SAT, and contracts for commercial
products, including COTS items, or commercial services.
This rulemaking proposes to apply section 864 of the National
Defense Authorization Act for Fiscal Year 2022 (Pub. L. 117-81) to
acquisitions at or below the SAT and to acquisitions for commercial
products, including COTS items, and commercial services, as OHA has the
authority, and is the only entity, to decide all HUBZone status protest
appeals. As a result, the section must be applied to acquisitions of
these types to ensure that all concerns that can appeal a HUBZone
status protest decision, regardless of the subject contract's dollar
value or commerciality, have a process for doing so.
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
[[Page 48546]]
the provision of law. The FAR Council intends to make a determination
to apply this statute to acquisitions at or below the SAT.
B. Applicability to Contracts for the Acquisition of Commercial
Products and Commercial Services, Including Commercially Available Off-
the-Shelf (COTS) Items
41 U.S.C. 1906 governs the applicability of laws to contracts for
the acquisition of commercial products and commercial services and is
intended to limit the applicability of laws to contracts for the
acquisition of commercial products and commercial services. Section
1906 provides that if the FAR Council makes a written determination
that it is not in the best interest of the Federal Government to exempt
commercial products and commercial services contracts, the provision of
law will apply to contracts for the acquisition of commercial products
and commercial services.
41 U.S.C. 1907 states that acquisitions of COTS items will be
exempt from certain provisions of law unless the Administrator for
Federal Procurement Policy makes a written determination and finds that
it would not be in the best interest of the Federal Government to
exempt contracts for the procurement of COTS items.
The FAR Council intends to make a determination to apply this
statute to acquisitions for commercial products and commercial
services. The Administrator for Federal Procurement Policy intends to
make a determination to apply this statute to acquisitions for COTS
items.
IV. Expected Impact of the Rule
This proposed rule is expected to impact Government and contractor
operations.
As a result of this proposed rule, interested parties seeking to
appeal a HUBZone status protest decision will be required to send the
appeal to OHA in lieu of the Associate Administrator, Office of
Government Contracting and Business Development. This change in
decision authority does not add any burden to or create any savings for
the Government or contractors. However, contracting officers,
contractors, offerors, and the SBA may save some time in submitting
and/or processing these appeal requests due to the clear specification
of information that OHA requires in a request for appeal of a HUBZone
status protest decision. Contracting officers can reference the
information in the FAR text to submit an appeal or advise a protester
or protested concern what information should be included in the appeal
request.
In addition, HUBZone small business concerns will no longer be
required to represent their status in SAM since HUBZone concerns are
required to be certified by the SBA. This representation was maintained
to provide a mechanism for a HUBZone concern to represent that it will
comply with the employment requirements at 13 CFR 126.200(e)(1);
however, an alternative approach was identified, which precludes the
need for a representation and reduces the burden on HUBZone concerns.
Specifically, in lieu of a representation, HUBZone concerns will be
able to agree to attempt to meet the employment requirements at 13 CFR
126.200(e)(1) by submission of an offer and execution of a contract.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 (as amended by E.O. 14094)
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. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect this proposed rule, if finalized,
to have a significant economic impact on a substantial number of small
entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C.
601-612, because this proposed rule merely changes the office that
decides HUBZone status protest appeals, specifies the information OHA
requires in a request to appeal a HUBZone status protest determination,
removes the requirement for a HUBZone concern to represent its status
in SAM, and it does not impose any additional compliance burden on
applicable small business entities. However, an Initial Regulatory
Flexibility Analysis (IRFA) has been performed and is summarized as
follows:
DoD, GSA, and NASA are proposing to amend the Federal
Acquisition Regulation (FAR) to implement regulatory changes made by
the Small Business Administration (SBA) in its final rule published
on April 10, 2023, at 88 FR 21086, to implement section 864 of the
National Defense Authorization Act for Fiscal Year 2022 (Pub. L.
117-81). This rule also proposes to remove the representation for
HUBZone small business concerns, as it is unnecessary since HUBZone
concerns must be certified by SBA.
The objective of this rule is to revise the procedures for
appealing decisions of HUBZone status protest determinations to
align with SBA's regulations. This rule also removes the
representation for HUBZone small business concerns as it is
unnecessary since HUBZone concerns are required to be certified by
SBA. Promulgation of the FAR is authorized by 40 U.S.C. 121(c); 10
U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10
U.S.C. 3016); and 51 U.S.C. 20113. The legal basis for this rule is
as stated in the preceding paragraph.
This proposed rule will impact HUBZone small business concerns
as they will no longer be required to represent their status in the
System for Award Management (SAM). As indicated in SBA's final rule,
the change to the HUBZone protest appeals process is procedural in
nature and will not impact small entities.
According to the Dynamic Small Business Search, there are 4,465
HUBZone small business concerns certified by SBA; therefore, there
are 4,465 HUBZone small business concerns that are currently
required to represent their status in SAM. However, the number of
concerns that will submit applications to the SBA for HUBZone
certification is unknown; therefore, the number of small business
entities impacted by this rule may be greater than or less than the
4,465 HUBZone concerns currently certified by SBA.
The proposed rule does not impose any new reporting,
recordkeeping, or other compliance requirements for small entities.
The proposed rule does not duplicate, overlap, or conflict with
any other Federal rules.
There are no known significant alternative approaches to the
proposed rule that would accomplish the stated objectives of the
applicable statute and that would minimize any significant economic
impact of the proposed rule on small entities as the economic impact
is not anticipated to be significant.
The Regulatory Secretariat Division has submitted a copy of the
IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. DoD, GSA, and NASA invite comments from small
business concerns and other interested parties on the expected impact
of this proposed rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by the
proposed rule in accordance with 5 U.S.C. 610. Interested parties must
submit such comments separately and should cite 5
[[Page 48547]]
U.S.C. 610 (FAR Case 2023-013), in correspondence.
VII. Paperwork Reduction Act
This proposed rule does not contain any new information collection
requirements that require the approval of the Office of Management and
Budget under the Paperwork Reduction Act (44 U.S.C. 3501-3521). This
proposed rule does remove one HUBZone representation from FAR
provisions 52.212-3, Offeror Representations and Certifications--
Commercial Products, and Commercial Services; and 52.219-1, Small
Business Program Representations; and FAR clause 52.219-28, Post-Award
Small Business Program Rerepresentation, which are covered under two
existing information collections approved by OMB.
OMB Control number 9000-0189, Certain Federal Acquisition
Regulation Part 4 Requirements, addresses the burden for FAR provision
52.212-3 and FAR provision 52.204-7, System for Award Management, both
of which require offerors on Federal contracts to register in SAM. The
representations in FAR provision 52.219-1 are implemented in SAM and
either FAR provision 52.204-7 or 52.212-3 is included in all
solicitations. Therefore, by registering in SAM, as required by either
FAR provision 52.204-7 or 52.212-3, an offeror will make the
representations included in FAR provision 52.219-1. As a part of SAM
registration, offerors complete approximately 35 representations and
certifications, including the HUBZone representation to be removed. The
burden for FAR provisions 52.204-7 and 52.212-3 is based on an estimate
of the time it would take a new offeror to fill in all of the
information needed to register in SAM, or an average of 3 hours in
total.
OMB Control number 9000-0163, Small Business Size Rerepresentation,
addresses the burden for FAR clause 52.219-28, which requires
contractors to rerepresent their size and socioeconomic status in the
SAM at certain times. The clause contains eight representations that
must be updated in SAM, including the HUBZone representation to be
removed. The burden for this clause is based on an estimate of the time
it will take a contractor to log into SAM, verify or update their
responses to these 8 representations, and email the contracting officer
when complete, or an average of 30 minutes in total.
Verifying or updating the HUBZone representation takes only minutes
and accounts for a very small portion of the overall burden of the
affected provisions and clause. It is reasonable to assume that, even
after removing the HUBZone representation, the average estimated burden
per SAM registration or rerepresentation is still accurate. For these
reasons, OMB Control numbers 9000-0163 and 9000-0189 were not revised
to account for the removal of the HUBZone representation.
List of Subjects in 48 CFR Parts 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 propose amending 48 CFR parts 19 and
52 as set forth below:
0
1. The authority citation for 48 CFR parts 19 and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C.
chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C.
20113.
PART 19--SMALL BUSINESS PROGRAMS
0
2. Amend section 19.306 by--
0
a. Adding a heading to paragraph (b);
0
b. Revising paragraph (b)(2);
0
c. Adding a heading to paragraphs (c), (d), (f) and (g);
0
d. Revising paragraph (i) introductory text, (i)(1), (i)(2),(i)(3)
introductory text, (i)(3)(iii), and (i)(4);
0
e. Redesignate paragraphs (i)(5) and (i)(6) as paragraphs (i)(6) and
(i)(7);
0
f. Adding a new paragraph (i)(5);
0
g. Revising newly redesignated paragraphs (i)(6) introductory text,
(i)(6)(ii), and (iii); and
0
h. Revising paragraphs (j), (k), (l), and (m).
The revisions and additions read as follows:
19.306 Protesting a firm's status as a HUBZone small business concern.
* * * * *
(b) General. * * *
(2) The Director of SBA's Office of HUBZone (D/HUB) 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 and at subpart
M ``Rules of Practice for Appeals of Protest Determinations Regarding
the Status of a Concern as a Certified HUBZone Small Business Concern''
at 13 CFR 134.1301 through 134.1316.
(c) Size status protests. * * *
(d) Protest format. * * *
* * * * *
(f) Transmittal. * * *
(g) Notice. * * *
* * * * *
(i) After SBA decision. The SBA will notify the contracting
officer, the protester, and the protested concern of its determination.
The determination is effective immediately and is final unless
overturned on appeal by SBA's Office of Hearings and Appeals (OHA)
pursuant to 13 CFR 134.1301 through 13 CFR 134.1316.
(1) If the contracting officer has withheld contract award and the
D/HUB has determined that the protested concern is an eligible HUBZone
or dismissed all protests against the protested concern, the
contracting officer may award the contract to the protested concern. If
OHA subsequently overturns the initial determination or dismissal, the
contracting officer may apply the OHA decision to the procurement in
question.
(2) If the contracting officer has withheld contract award and the
(D/HUB) has sustained the protest and determined that the protested
concern is ineligible, and a timely OHA appeal has not been filed, then
the contracting officer shall not award the contract to the protested
concern.
(3) If the contracting officer has made a written determination in
accordance with paragraph (h)(1)(ii)(B) of this section, awarded the
contract, and the D/HUB ruling sustaining the protest is received after
award, and a timely OHA appeal has not been filed, then--
* * * * *
(iii) After SBA removes the concern's designation as a certified
HUBZone small business concern in DSBS, the contracting officer shall
update the Federal Procurement Data System (FPDS) to reflect the final
decision of the D/HUB.
(4) If the contracting officer has made a written determination in
accordance with paragraph (h)(1)(ii)(B) of this section, awarded the
contract, the D/HUB has sustained the protest and determined that the
concern is not a HUBZone small business, and a timely OHA appeal has
been filed, then the contracting officer shall consider whether
performance can be suspended until an OHA decision is rendered.
(5) If the contracting officer has withheld contract award, the D/
HUB has sustained the protest and determined that the protested concern
is ineligible, and a timely OHA appeal has been filed, the contracting
officer shall either--
[[Page 48548]]
(i) Withhold award until an OHA decision is rendered; or
(ii) Award the contract, if the contracting officer determines in
writing that there is an immediate need to award the contract and that
waiting for the OHA decision will be disadvantageous to the Government.
(6) If OHA affirms the decision of the D/HUB, finding the protested
concern is ineligible, and contract award has occurred--
* * * * *
(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 OHA finds the concern is
eligible on appeal; and
(iii) After SBA removes the concern's designation as a certified
HUBZone small business concern in DSBS, the contracting officer shall
update FPDS to reflect the OHA decision.
* * * * *
(j) Appeals of HUBZone status determinations. The protested HUBZone
small business concern, the protester, or the contracting officer may
file appeals of protest determinations with OHA. OHA must receive the
appeal no later than 10 business days after the date of receipt of the
protest determination. OHA will dismiss any untimely appeal.
(k) The appeal must be in writing. The appeal 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 that addresses why the HUBZone
status protest determination is alleged to be based on a clear error of
fact or law, together with information supporting such allegation;
(5) The solicitation number, the contract number (if applicable),
and the name, address, and telephone number of the contracting officer;
(6) The name, address, telephone number, facsimile number (if
applicable), and signature of the appellant or the appellant's
attorney; and
(7) A signed certificate of service attached to the appeal in
accordance with 13 CFR 134.204.
(l) Notice. (1) The party appealing the decision must provide
notice of the appeal to--
(i) The contracting officer;
(ii) The protested HUBZone small business concern or the original
protester, as appropriate;
(iii) The D/HUB at [email protected]; and
(iv) The SBA Office of General Counsel, Associate General Counsel
for Procurement Law at [email protected].
(2) OHA will dismiss an appeal that does not meet all the
requirements of this section. OHA will not consider new evidence in
appeals from HUBZone status protest determinations.
(m) Decision. OHA will issue a decision in accordance with the
timelines specified at 13 CFR 134.1310 through 134.1314. OHA will
provide a copy of the decision to the contracting officer, the
protester, and the protested HUBZone small business concern. The SBA
decision, if received before award, will apply to the pending
acquisition. The OHA decision is the final decision.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Amend section 52.212-3 by revising the date of the provision and
paragraph (c)(11) to read as follows:
52.212-3 Offeror Representations and Certifications--Commercial
Products and Commercial Services.
* * * * *
Offeror Representations and Certifications--Commercial Products and
Commercial Services (DATE)
(c) * * *
(11) HUBZone small business concern. [Complete only if the offeror
represented itself as a small business concern in paragraph (c)(1) of
this provision.] The offeror represents, as part of its offer, that it
[square] is, [square] is not a HUBZone joint venture that complies with
the requirements of 13 CFR 126.616(a) through (c). [The offeror shall
enter the name and unique entity identifier of each party to the joint
venture: ___.]
* * * * *
0
4. Amend section 52.212-5 by revising the date of the clause and
paragraphs (b)(15) and (b)(26) to read as follows:
52.212-5 Contract Terms and Conditions Required To Implement Statutes
or Executive Orders--Commercial Products and Commercial Services.
* * * * *
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Products and Commercial Services (DATE)
* * * * *
(b) * * *
_ (15) 52.219-3, Notice of HUBZone Set-Aside or Sole-Source Award
(DATE) (15 U.S.C. 657a).
* * * * *
_ (26) (i) 52.219-28, Post-Award Small Business Program
Rerepresentation (DATE) (15 U.S.C. 632(a)(2)).
* * * * *
0
5. Amend section 52.219-1 by revising the date of the provision and
paragraph (c)(9) to read as follows:
52.219-1 Small Business Program Representations.
* * * * *
Small Business Program Representations (DATE)
* * * * *
(c) * * *
(9) HUBZone small business concern. [Complete only if the offeror
represented itself as a small business concern in paragraph (c)(1) of
this provision.] The offeror represents, as part of its offer, that it
[square] is, [square] is not a HUBZone joint venture that complies with
the requirements of 13 CFR 126.616(a) through (c). [The offeror shall
enter the name and unique entity identifier of each party to the joint
venture: __.]
* * * * *
0
6. Amend section 52.219-3 by--
0
a. Revising the date of the clause and paragraph (a); and
0
b. Adding a new paragraph (f).
The revision and addition read as follows:
52.219-3 Notice of HUBZone Set-Aside or Sole-Source Award.
* * * * *
Notice of HUBZone Set-Aside or Sole-Source Award (DATE)
(a) Definition. ``HUBZone small business concern,'' as used in this
clause, 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 the SBA as a HUBZone small
business concern in the Dynamic Small Business Search (DSBS) (13 CFR
126.103). The SBA designation also appears in the System for Award
Management.
* * * * *
(f) The Contractor agrees that it will attempt to maintain an
employment rate
[[Page 48549]]
of HUBZone residents of 35 percent of its employees during performance
of a HUBZone contract pursuant to 13 CFR 126.200(e)(1).
0
7. Amend section 52.219-28 by revising the date of the clause and
paragraph (h)(9) to read as follows:
52.219-28 Post-Award Small Business Program Rerepresentation.
* * * * *
Post-Award Small Business Program Rerepresentation (DATE)
* * * * *
(h) * * *
(9) [Complete only if the Contractor represented itself as a small
business concern in paragraph (h)(1) of this clause.] The Contractor
represents that it [ballot] is, [ballot] is not a HUBZone joint venture
that complies with the requirements of 13 CFR part 126. [The Contractor
shall enter the names of each of the HUBZone small business concerns
participating in the HUBZone joint venture: ___.]
[Contractor to sign and date and insert authorized signer's name
and title.]
* * * * *
[FR Doc. 2024-12570 Filed 6-6-24; 8:45 am]
BILLING CODE 6820-EP-P