[Federal Register Volume 72, Number 15 (Wednesday, January 24, 2007)]
[Rules and Regulations]
[Page 3040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-966]



[[Page 3040]]

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SMALL BUSINESS ADMINISTRATION

13 CFR Part 125

RIN: 3245-AE66


Small Business Size Regulation; Government Contracting Programs; 
HUBZone Program; Correction

AGENCY: U.S. Small Business Administration.

ACTION: Correcting amendment.

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SUMMARY: This document contains a correction to the final regulations 
which were published in the Federal Register of May 24, 2004. The 
regulations amended several definitions and made procedural and 
technical amendments to cover the U.S. Small Business Administration's 
(SBA) HUBZone, size and government contracting programs. This rule also 
inadvertently included two provisions that except for one word are 
substantively similar. SBA is removing one of these two provisions to 
eliminate the confusion.

DATES: Effective January 24, 2007.

FOR FURTHER INFORMATION CONTACT: Dean Koppel, Assistant Administrator, 
Office of Policy, Planning and Liaison, (202) 205-7322, or 
[email protected].

SUPPLEMENTARY INFORMATION: On May 5, 2004, the SBA published an interim 
final rule that created the Service Disabled Veteran Owned (SDVO) Small 
Business program, 69 FR 25262. In that rule, the SBA added paragraph 
(b) to Sec.  125.6, to address subcontracting limitations for SDVO 
small businesses. As a result of this new paragraph (b), the SBA 
redesignated then-current paragraphs (b), (c), (d), (e), (f), and (g) 
as paragraphs (c), (d), (e), (f), (g), and (h), respectively.
    On May 21, 2004, the SBA published a final rule amending its size 
regulations, as well as the regulations addressing SBA's government 
contracting programs (69 FR 29192). In its final rule, the SBA amended 
Sec.  125.6(g) to state that:

    Where an offeror is exempt from affiliation under Sec.  
121.103(h)(3) of this chapter and qualifies as a small business 
concern, the performance of work requirements set forth in this 
section apply to the cooperative effort of the joint venture, not 
its individual members.

69 FR 29208. The rule removed the term ``team'' from Sec.  125.6(g). 
However, as a result of the SDVO interim final rule, former paragraph 
(g)--addressing the use of cooperative efforts to meet the 
subcontracting limitations--became paragraph (h). Thus, the final rule 
published on May 21, 2004 should have amended paragraph (h) and not 
paragraph (g). Consequently, as of May 21, 2004, both paragraphs (g) 
and (h) addressed using cooperative efforts to meet the subcontracting 
limitations requirements.
    A few days later, on May 24, 2004, the SBA published amendments to 
its size and HUBZone regulations. 69 FR 29411. In the final rule, the 
SBA redesignated paragraphs (c), (d), (e), (f), (g), and (h) of Sec.  
125.6 as paragraphs (e), (f), (g), (h), (i), and (j) (because the SBA 
had added two new paragraphs--(c) and (d)--to address changes to the 
HUBZone program's subcontracting limitations on construction 
contracts). Id. at 29420. Paragraphs (g) and (h) became paragraphs (i) 
and (j). Therefore, except for the term ``team,'' both paragraphs are 
now essentially identical. The regulations now state:

    (i) Where an offeror is exempt from affiliation under Sec.  
121.103(h)(3) of this chapter and qualifies as a small business 
concern, the performance of work requirements set forth in this 
section apply to the cooperative effort of the joint venture, not 
its individual members.
    (j) Where an offeror is exempt from affiliation under Sec.  
121.103(f)(3) of this chapter and qualifies as a small business 
concern, the performance of work requirements set forth in this 
section apply to the cooperative effort of the team or joint 
venture, not its individual members.

13 CFR 125.6. The last regulation that the SBA had promulgated 
concerning cooperative efforts and the subcontracting limitations 
requirement and the regulation that correctly reflects the amendment 
SBA intended is set forth at Sec.  125.6(i). Therefore, to correct this 
error and to eliminate the confusion caused by the two similar, but 
apparently contradictory provisions, the SBA is removing current 
paragraph (j).

List of Subjects in 13 CFR Part 125

    Administrative practice and procedure, Government procurement, 
Small businesses.

0
Accordingly, 13 CFR part 125 is corrected by making the following 
correcting amendment:

PART 125--GOVERNMENT CONTRACTING PROGRAMS

0
1. The authority citation for part 125 continues to read as follows:

    Authority: 15 U.S.C. 632(p), (q), 634(b)(6), 637, 644, and 
657(f).


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2. Amend Sec.  125.6 by removing paragraph (j).

Steven C. Preston,
Administrator.
[FR Doc. E7-966 Filed 1-23-07; 8:45 am]
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