[Federal Register Volume 76, Number 58 (Friday, March 25, 2011)]
[Proposed Rules]
[Pages 16703-16707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7135]


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SMALL BUSINESS ADMINISTRATION

13 CFR Parts 121, 124, 125, 126, and 127

[Docket No. SBA-2011-0006]


Small Business Jobs Act Tour: Selected Provisions Having an 
Effect on Government Contracting

AGENCY: U.S. Small Business Administration.

ACTION: Notice of Public Meetings.

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SUMMARY: The U.S. Small Business Administration's (SBA) Office of 
Government Contracting and Business Development (GC/BD) is tasked with 
implementing several provisions of the Small Business Jobs Act of 2010 
(SBJA). On Monday, March 7, 2011, SBA announced a series of public 
meetings on its implementation of these provisions. The dates, times 
and locations, as well as registration information, are set forth 
below. SBA is providing this supplementary information on the 
government contracting provisions of the SBJA to provide background and 
focus input.

DATES: The meetings will be held on the dates and times specified in 
the Event Information section of the Supplementary Information below. 
It is recommended that all attendees register at least one week prior 
to the scheduled meeting date. In addition, comments to SBA docket 
number SBA-2011-0006 must be received on or before April 16, 2011.

ADDRESSES: The meetings will be held at the locations specified in the 
Event Information section of the Supplementary Information below. 
Parties interested in attending a meeting must register by providing 
the requested registration information at http://www.sba.gov/jobsacttour. In addition, you may submit comments, identified by SBA 
docket number SBA-2011-0006 by any of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Mail: Small Business Jobs Act Tour--Office of Government 
Contracting and Business Development, U.S. Small Business 
Administration, 409 Third Street, SW., Suite 8000, Washington, DC 
20416.
    Hand Delivery/Courier: Richard L. Miller, Small Business Jobs Act 
Tour--Office of Government Contracting and Business Development, 409 
Third Street, SW., Washington, DC 20416.
    SBA will post all comments on http://www.regulations.gov. If you 
wish to submit confidential business information (CBI) as defined in 
the User Notice at http://www.regulations.gov, please submit the 
information to Mr. Miller, address above. Highlight the information 
that you consider to be CBI and explain why you believe SBA should hold 
this information as confidential. SBA will review the information and 
make the final determination whether it will publish the information.

FOR FURTHER INFORMATION CONTACT: Richard L. Miller, Small Business 
Job's Act Tour--Office of Government Contracting and Business 
Development, 409 Third Street, SW., Washington, DC 20416, at (202) 205-
6895; Fax: (202) 481-4291; e-mail: [email protected].

SUPPLEMENTARY INFORMATION

I. Background

    On September 27, 2010, President Obama signed the SBJA, which makes 
many significant small business program improvements. The new law 
provides critical resources to help small businesses continue to drive 
economic recovery and create jobs. The new law extended the successful 
SBA enhanced loan provisions while offering billions more in lending 
support, tax cuts, and other opportunities for entrepreneurs and small 
business owners. The new law also contained numerous provisions to help 
enhance small businesses ability to compete in government contracting 
and subcontracting. For example, the law addresses small business set-
asides on multiple award contracts, contract consolidation, and timely 
payments to small business subcontractors. The contracting provisions 
also dovetail with recommendations released by the Interagency Task 
Force on Small Business Contracting in September (http://www.sba.gov/content/interagency-task-force-federal-contracting-opportunities-small-businesses). The Task Force was established by the President in April 
2010 to identify ways in which to increase small business participation 
in the federal marketplace so that agencies meet and exceed their small 
business contracting goals.
    Accordingly, SBA will conduct a Small Business Jobs Act Tour that 
will cover 13 cities. The objective of the tour is to provide 
information on SBJA provisions and to receive input on key SBJA 
provisions.

II. Topics and Agenda

    While the agenda may vary from city to city, a typical agenda is 
below. Please visit http://www.sba.gov/jobsacttour for updates on each 
location's agenda.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
9 to 10 am................................  Opening Keynote & Overview
                                             of Small Business Jobs Act.
10 to 10:15 am............................  Break.
10:15 to 11:30 am.........................  Room 1--CONTRACTING
                                            Discussion and intake
                                             session surrounding key
                                             Jobs Act provisions:
                                             multiple-award set-asides,
                                             bundling, consolidation of
                                             requirements,
                                             subcontracting, mentor-
                                             prot[eacute]g[eacute]
                                             programs, presumption of
                                             loss and misrepresentation
                                             issues, and annual
                                             certification issues.
                                            Room 2--LENDER ROUNDTABLE
                                            Discussion for current and
                                             prospective SBA lenders:
                                             new efforts to simplify/
                                             streamline, enhance
                                             customer service in areas
                                             such as lending policy,
                                             processing, and oversight.
                                            Room 3--EXPORTING
                                            Discussion of new exporting
                                             tools: increased loan
                                             sizes, the Export Express
                                             program, state-level STEP
                                             grants, and additional
                                             efforts under the National
                                             Export Initiative.
11:30 am to 12:45 pm......................  Room 1--CONTRACTING (session
                                             above continues)
                                            Room 2--LENDER ROUNDTABLE
                                             (session above continues)

[[Page 16704]]

 
                                            Room 3--COUNSELING
                                            Discussion of counseling and
                                             training resources: Jobs
                                             Act support for Small
                                             Business Development
                                             Centers, enhanced efforts
                                             to support export
                                             counseling.
12:45 to 1:45 pm..........................  Break for Lunch.
1:45 to 3 pm..............................  Room 1--CONTRACTING
                                            Discussion of Size
                                             Standards: basics of SBA's
                                             small business size
                                             standards, current
                                             comprehensive review of
                                             size standards including
                                             methodology, other policy
                                             issues.
                                            Room 2--CAPITAL
                                            Discussion of opportunities
                                             in accessing capital: how
                                             SBA loan programs can help
                                             small business owners.
                                            Room 3--EXPORTING (repeat)
                                            Discussion of new exporting
                                             tools: Increased loan
                                             sizes, the Export Express
                                             program, state-level STEP
                                             grants, and additional
                                             efforts under the National
                                             Export Initiative.
3 to 4:15 pm..............................  Room 1--CONTRACTING
                                            Discussion of local/regional
                                             contracting environment and
                                             resources: ``meet-and-
                                             greet'' with
                                             representatives such as
                                             regional/local SBA
                                             officials, 8(a) experts,
                                             and resource partners.
                                            Room 2--CAPITAL
                                            Discussion of new SBA loan
                                             programs and initiatives:
                                             Advantage loans, 504 re-
                                             financing (Jobs Act), the
                                             Dealer Floor Plan pilot
                                             (Jobs Act), and more.
                                            Room 3--COUNSELING (repeat)
                                            Discussion of counseling and
                                             training resources: Jobs
                                             Act support for Small
                                             Business Development
                                             Centers, enhanced efforts
                                             to support export
                                             counseling.
------------------------------------------------------------------------

A. Putting More Capital in the Hands of Small Business Owners

    SBA loans continue to be a critical tool for helping small 
businesses get the capital they need to grow and create jobs. The Small 
Business Jobs Act made permanent enhancements to SBA loan programs, 
such as raising the maximum loan sizes of the 7(a) and 504 programs. In 
addition, temporary provisions in the new law include a Dealer Floor 
Plan financing pilot as well as a program that allows some owner-
occupied businesses to refinance their commercial real estate mortgages 
using an SBA loan. Beyond the SBJA, SBA is taking several steps to 
better serve its lending partners and borrowers, to simplify and 
streamline loan programs, and to improve oversight of SBA lending. 
Small business owners, prospective and current SBA lenders are 
especially encouraged to attend, share their ideas with the SBA, and 
learn more about new tools being offered.

B. Expanding Resources for Counseling and Training

    SBA has at least one District Office in each state, as well as 
about 14,000 affiliated counselors at Small Business Development 
Centers, Women's Business Centers and SCORE chapters. The Small 
Business Jobs Act is helping support these groups in a number of ways. 
For example, $50 million more is being provided to support the network 
of about 900 Small Business Development Centers throughout the country. 
Also, SBA is working with a broad group of counselors to equip them 
with more tools and information to help small firms start or increase 
exporting. All small business owners are encouraged to attend and learn 
more about the knowledge, tools, and contacts that SBA affiliated 
counselors can help provide.

C. Expanding Exporting Opportunities for Small Business

    Small businesses looking for new opportunities to increase sales 
and profit, and take advantage of increased demand for high-quality 
U.S. goods and services, should consider exporting. The Small Business 
Jobs Act includes exporting resources to help small businesses by 
making the SBA Export Express pilot loan program permanent, increasing 
maximum sizes for SBA's three export loan programs, and creating a new 
State Trade and Export Promotion (STEP) grants pilot program which will 
provide funds to states to assist small business interested in 
exporting. See Notice of Grant Opportunities to States: STEP Grant 
Program, 76 FR 10082 (Feb. 23, 2011). These expanded opportunities also 
help build upon the goal of doubling exports in the next five years via 
the National Export Initiative. Small business owners with a current or 
prospective interest in exporting are especially encouraged to attend.

D. Strengthening Small Businesses' Ability To Compete for and Win 
Federal Contracts

    The federal government awards hundreds of billions of dollars each 
year in federal contracts, nearly one-fourth of which goes to small 
firms. The Small Business Jobs Act contained 19 provisions that will 
help small businesses compete more effectively for federal contracts 
and subcontracts. SBA is rolling out these provisions that will help 
ensure more fairness, more opportunities, and more tools to help match 
federal agencies with small businesses that provide high-quality 
products and services. SBA wants to hear from interested parties about 
how it can effectively roll out new provisions, such as those relating 
to Multiple Award Contract set asides, subcontracting, Mentor 
Prot[eacute]g[eacute] Programs, and, at select events, its size 
process. Small business contractors are encouraged to attend, learn 
more about these new tools, and share their thoughts on improving the 
environment for small business contracting. In addition, SBA seeks 
input and suggestions on the following specific SBJA government 
contracting provisions:

E. Multiple Award Contract Set-Asides (Pub. L. 111-240 Sec. Sec.  1311 
1331)

    Section 1311 of the SBJA defines the term ``multiple award 
contract.'' In addition, Sec.  1331 of the SBJA requires the 
Administrator of SBA and the Administrator for Federal Procurement 
Policy, in consultation with the Administrator of the General Services 
Administration (GSA) to issue regulations under which ``Federal 
agencies may, at their discretion--(1) Set aside part or parts of a 
multiple award contract for small business concerns, including the 
subcategories of small business concerns * * * (2) notwithstanding the 
fair opportunity requirements under section 2304c(b) of title 10, 
United States Code, and section 303J(b) of the Federal Property and 
Administrative Services act of 1949 (41 U.S.C. 253j(b)), set aside 
orders placed against multiple award contracts for small business 
concerns, including the subcategories of small business concerns * * * 
and (3) reserve one or more contract awards for small business concerns 
under full and open multiple award procurements, including the 
subcategories of small business concerns.'' In reviewing these 
provisions, the SBA would like input and suggestions on the following 
questions:

[[Page 16705]]

    1. How should guidance differentiate between a total set-aside, a 
partial set-aside, and a procurement otherwise ``reserved'' for small 
businesses When it is appropriate for each to be used? When would it be 
inappropriate for each to be used? What types of ``reserves'' might be 
effective in a full and open competition for a task and delivery order 
contract to facilitate access to small businesses (e.g., designating a 
certain number of the multiple awards for award to small businesses or 
subcategories of small business, or permitting a small business to 
receive a multiple award contract to compete for only a specified 
subset of functions on the task or delivery orders issued against the 
contract)? Should small businesses compete solely against other small 
businesses for contracts that are ``reserved'' for small business?
    2. Should set-asides be authorized under GSA's Multiple Award 
Schedule (MAS) contracts? Should they be required under certain 
circumstances? Why or why not? What additional steps might be 
considered to increase small business participation on the Schedules? 
(Note: GSA has created a new section of its GSA MAS Web site focused on 
small business contracting at http://www.gsa.gov/portal/content/202261. 
Readers are encouraged to review this site in considering their 
response to this question).
    3. Will small business utilization under ``multiple award 
contracts'' including GSA MAS contracts be increased through mandatory 
or discretionary use of set-asides?
    4. If small business set-asides are mandated either at the contract 
level or ordering level, how will it affect a procuring agency's use of 
``multiple award contracts'' including MAS contracts?
    5. If set-asides are applied to ``multiple award contracts'' 
including GSA MAS contracts at the order level, what are some of the 
potential benefits or drawbacks?
    6. At what time should small business size be determined for a 
multiple-award contract--at the time of (1) submission of a proposal 
for the contract, (2) submission of a quotation for the order, or some 
combination? What affect would requiring size determinations at the 
order level have on the procurement process for multiple award 
contracts?
    7. How should the small business requirements (e.g., limitation on 
subcontracting; non-manufacturer rule) apply to orders set aside for 
small business?

F. Bundling Accountability, Consolidation of Contracts Requirements 
(Pub. L. 111-240 Sec. Sec.  1312-1313)

    Section 1313 of the SBJA provide that an agency may not conduct an 
acquisition involving contract requirements with a total value of more 
than $2,000,000, unless the senior procurement executive or Chief 
Acquisition Officer for the Federal agency, before carrying out the 
acquisition strategy--(A) Conducts market research; (B) identifies any 
alternative contracting approaches that would involve a lesser degree 
of consolidation of contract requirements; (C) makes a written 
determination that the consolidation of contract requirements is 
necessary and justified; (D) identifies any negative impact by the 
acquisition strategy on contracting with small business concerns; and 
(E) certifies to the head of the Federal agency that steps will be 
taken to include small business concerns in the acquisition strategy. 
In addition, Sec.  1312 of the SBJA requires agencies to post their 
rationale for a bundled requirement. In reviewing these provisions, the 
SBA would like input and suggestions on the following questions:
    1. If you are a small business, do you frequently form teams (i.e., 
when small businesses joint venture or form a prime and subcontractor 
relationship) for bundled contracts? Do you ever enter into any other 
types of arrangements besides joint ventures or prime/subcontract 
relationships to compete for bundled contracts? If so, please describe 
these arrangements.

G. Subcontracting; Misrepresentations, Plan Improvements, and 
Timeliness of Payment (Pub. L. 111-240 Sec. Sec.  1321, 1322, 1334)

    The SBJA requires the Administrator to establish a policy on small 
business subcontracting compliance, including assignment of periodic 
oversight and review responsibilities between contracting offices, 
small business offices, and program offices (see Sec.  1321). It 
further provides that for contracts requiring subcontracting plans, a 
large business contractor must notify the contracting officer in 
writing when the prime fails to use a small business concern in 
contract performance that the prime used in preparing the bid or offer 
(see Sec.  1322). In addition, the SBJA provides that for contracts 
requiring subcontracting plans, a large business contractor must notify 
the contracting officer in writing when the prime has been paid, the 
subcontractor has performed, and the prime's payment to the 
subcontractor is 90 days past due, or the prime has paid the 
subcontractor a reduced amount. Finally, the SBJA further provides that 
a contracting officer may record the identity of a contractor with a 
history of unjustified, untimely payments in the Federal Awardee 
Performance and Integrity System (see Sec.  1334). In reviewing these 
provisions, SBA would like input and suggestions on the following 
questions:
    1. With respect to Section 1321, who is currently responsible for 
monitoring small business subcontracting plan compliance and 
performance? Is there a function or office that can better monitor 
performance and compliance?
    2. In implementing sections 1322 and 1334, what factors should SBA 
take into account to ensure the provision facilitates opportunities for 
small businesses in a manner that is consistent with economy and 
efficiency in federal contracting? For example, should the contracting 
officer be responsible for determining whether a prime contractor used 
a particular subcontractor in creating a bid or proposal? Should the 
contracting officer be responsible for determining whether the 
subcontractor has satisfactorily completed performance? How should the 
prime contractor report to the contracting officer? How should the 
contracting officer use the reported information? Are subcontractors 
able to report to the contracting officer when a prime contractor fails 
to utilize a subcontractor or fails to pay a subcontractor, or do prime 
contractors restrict subcontractors' ability to contact the contacting 
officer?
    3. With respect to section 1334, what, if any, consequences should 
a prime contractor's late or reduced payment to a small business 
subcontractor have on that contractor's future ability to receive 
federal contracts?

H. Mentor Prot[eacute]g[eacute] Programs for WOSB, HUBZONE, and SDVOSB 
(Pub. L. 111-240 Sec. Sec.  1331-1343)

    The SBA's 8(a) Business Development Program currently authorizes a 
Mentor-Prot[eacute]g[eacute] Program as a tool to aid small Participant 
firms gain needed business development assistance, including expertise 
within their specific industries to successfully compete in the 
marketplace. The SBJA authorizes SBA to implement a Mentor-
Prot[eacute]g[eacute] Program for HUBZone small businesses, service 
disabled veteran owned (SDVO) small businesses, and women-owned small 
businesses (WOSB) similar in structure to the current SBA 8(a) Mentor-
Prot[eacute]g[eacute] Program. SBA is seeking input and suggestions on 
the following questions:

[[Page 16706]]

    1. If SBA implements a Government-wide Mentor-Prot[eacute]g[eacute] 
program for HUBZone small businesses, SDVO small businesses and WOSBs, 
how should these government-wide programs interact with Mentor-
Prot[eacute]g[eacute] programs sponsored by individual agencies? Should 
agency-specific Mentor-Prot[eacute]g[eacute] programs of other agencies 
be maintained? What, if any, challenges might this pose?
    2. Should the Mentor-Prot[eacute]g[eacute] programs be identical 
for each of the programs (HUBZone, SDVO, WOSB) or should current 
differences contained in the programs be continued (e.g., HUBZone 
program regulations currently allow joint ventures for HUBZone 
contracts only between 2 or more certified HUBZone firms; if continued, 
a mentor that is not a HUBZone firm could not perform a HUBZone 
contract as a joint venture with its HUBZone prot[eacute]g[eacute] 
firm)?
    3. Are there specific industry sectors where small business 
development through Mentor-Prot[eacute]g[eacute] programs should be 
focused?
    4. What types of incentives should be considered to encourage the 
formation of Mentor-Prot[eacute]g[eacute] relationships? Are there 
examples of incentives used by other agencies in their Mentor-
Prot[eacute]g[eacute] programs (other than those requiring additional 
outlays of funds) that would benefit SBA's program?
    5. What metrics should be considered to gauge a successful Mentor 
Prot[eacute]g[eacute] relationship?
    6. What controls should be considered to mitigate potential fraud, 
waste, and abuse in the Mentor-Prot[eacute]g[eacute] relationship?
    7. Would small businesses be better served if created a Government-
wide Mentor-Prot[eacute]g[eacute] program to provide oversight and 
offer best practices, or would small businesses prefer Mentor-
Prot[eacute]g[eacute] programs for each individual socioeconomic group?

I. Presumption of Loss/Misrepresentation and Annual Certification of 
Size (Pub. L. 111-240 Sec. Sec.  1341-1343)

    Section 1341 of the SBJA provides that there shall be a presumption 
of loss equal to the value of the contract, subcontract, grant, 
cooperative agreement or cooperative research and development agreement 
set aside or intended for award to a small business when a concern 
willfully sought and received the award by misrepresentation. Section 
1341 also provides that the submission of a bid or proposal for a 
contract, subcontract, grant, cooperative agreement or cooperative 
research and development set aside for small business concerns shall be 
deemed an affirmative, willful and intentional certification of size or 
status. Section 1341 further provides that an offer or application for 
a contract, subcontract or grant shall contain a certification of size 
or status signed by an authorized official on the same page containing 
the certification. Finally, Section 1341 also provides that SBA shall 
promulgate regulations to protect concerns from liability for 
misrepresentations in the case of unintentional errors, technical 
malfunctions and other situations. Section 1342 of the SBJA provides 
that concerns shall update their size or status in federal procurement 
databases at least annually, and firms that fail to update its status 
shall no longer be identified as small or some other status in the 
database. SBA is seeking input and suggestions on the following 
questions:
    1. How does the deemed certification provision interact or relate 
to the requirement to provide a signature in connection with a size or 
status representation or certification?
    2. How can an individual or firm claim a misrepresentation was 
unintentional or a technical malfunction when the individual signed a 
certification that contained the precise size or status being claimed?
    3. What effect will the requirement to update size or status in 
federal procurement databases annually have on multi-year contracts?

III. Event Information

------------------------------------------------------------------------
           Location                    Date               Address
------------------------------------------------------------------------
Columbus, OH..................  March 28, 2011,    The Ohio State
                                 Begins 9 a.m.,     University, Ohio
                                 Ends 4:15 p.m.     Union, 1739 N. High
                                                    St., Columbus, OH
                                                    43210.
Miami, FL.....................  March 28, 2011,    Miami Dade College,
                                 Begins 9 a.m.,     Wolfson Campus,
                                 Ends 4:15 p.m.     Chapman Center
                                                    (Building 3), 300
                                                    NE., 2nd Avenue,
                                                    Miami, FL 33132.
New York, NY..................  March 30, 2011,    26 Federal Plaza, 6th
                                 Begins 9 a.m.,     Floor Conference
                                 Ends 4:15 p.m.     Room A/B, New York,
                                                    NY 10278.
Atlanta, GA...................  March 30, 2011,    Loudermilk Center, 40
                                 Begins 9:30        Courtland Street,
                                 a.m., Ends 4:45    NE., Atlanta, 30303.
                                 p.m.
Boston, MA....................  April 1, 2011,     O'Neill Federal
                                 Begins 9 a.m.,     Building, 10
                                 Ends 4:15 p.m.     Causeway Street,
                                                    Boston, MA 02222.
San Antonio, TX...............  April 1, 2011,     The Norris Conference
                                 Begins 9 a.m.,     Center, 4522
                                 Ends 4:15 p.m.     Fredericksburg Road,
                                                    San Antonio, TX
                                                    78201.
Albuquerque, NM...............  April 11, 2011,    Embassy Suites
                                 Begins 9 a.m.,     Albuquerque, 1000
                                 Ends 4:15 p.m.     Woodward Place, NE.,
                                                    Albuquerque, NM
                                                    87102.
San Diego, CA.................  April 11, 2011,    County Health
                                 Begins 9 a.m.,     Services Complex,
                                 Ends 4:15 p.m.     3851 Rosecrans St.,
                                                    San Diego, CA 92110.
Denver, CO....................  April 13, 2011,    Lowry Conference
                                 Begins 9 a.m.,     Center, 1061 Akron
                                 Ends 4:15 p.m.     Wy. Bldg. 697,
                                                    Denver, CO 80230.
Seattle, WA...................  April 13, 2011,    Holiday Inn, Seattle-
                                 Begins 9 a.m.,     SeaTac International
                                 Ends 4:15 p.m.     Airport, 17338
                                                    International Blvd.,
                                                    Seattle, WA 98188.
Huntsville, AL................  April 15, 2011,    Chan Auditorium,
                                 Begins 9 a.m.,     College of Business,
                                 Ends 4:15 p.m.     801 Sparkman Drive,
                                                    Huntsville, AL
                                                    35899.
Chicago, IL...................  April 15, 2011,    Citigroup Center
                                 Begins 9 a.m.,     Building, 500 West
                                 Ends 4:15 p.m.     Madison Street,
                                                    Suite 1150, Chicago,
                                                    IL 60661.
Washington, DC................  TBD..............  TBD.
------------------------------------------------------------------------

IV. Registration and Oral Presentation

    Any individual interested in attending and making an oral 
presentation shall pre-register in advance with SBA. Oral presentations 
may consist of comments on existing rules and procedures, general 
questions, or new ideas for the SBA to consider. Presentations will be 
made in the breakout sessions, pursuant to the format of each session. 
Based on the

[[Page 16707]]

number of registrants it may be necessary to impose time limits to 
ensure that everyone who wishes to speak has the opportunity to do so. 
Please refer to http://www.sba.gov/jobsacttour for registration 
information. SBA will attempt to accommodate all interested parties.

V. Information on Service for Individuals With Disabilities

    Reasonable accommodations will be provided to those who request 
assistance at least one week in advance of the meeting for which 
assistance is being requested. For a complete list of meeting dates, 
locations and points of contact please visit http://www.sba.gov/jobsacttour.

    Authority:  Pub. L. 111-240.

Ana Ma,
Chief of Staff.
[FR Doc. 2011-7135 Filed 3-24-11; 8:45 am]
BILLING CODE 8025-01-P