[Federal Register Volume 77, Number 93 (Monday, May 14, 2012)]
[Rules and Regulations]
[Pages 28237-28238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11508]



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  Federal Register / Vol. 77, No. 93 / Monday, May 14, 2012 / Rules and 
Regulations  

[[Page 28237]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 124

RIN 3245-AF53


Small Business Size Regulations; 8(a) Business Development/Small 
Disadvantaged Business Status Determinations; Correction

AGENCY: U.S. Small Business Administration.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA) published a final 
rule in the Federal Register on February 11, 2011, to amend the 8(a) 
Business Development (BD) program and SBA size regulations, and the 
regulations affecting Small Disadvantaged Businesses (SDBs). That rule 
was published with a few inadvertent errors that are corrected in this 
document.

DATES: Effective Date: This rule is effective May 14, 2012.

FOR FURTHER INFORMATION CONTACT: LeAnn Delaney, Deputy Associate 
Administrator, Office of Business Development, at (202) 205-5852, or 
[email protected].

SUPPLEMENTARY INFORMATION: 

Need for Correction

    In amending Sec.  124.3, definition for ``Primary industry 
classification'' SBA intended the time period to consist of three years 
not the two years provided for in the definition. This change from two 
years to three years was made in other portions of the rule but was 
inadvertently not changed in 124.3. Correction of this oversight would 
make the section consistent with related provisions of the rule.
    As stated in the preamble of the final rule, SBA intended to make 
the provisions pertaining to Tribes, ANCs, NHOs, and CDCs consistent. 
The section addresses when a subsidiary is eligible for award of a 
follow on contract. The change was inadvertently only made to the 
Tribes and ANC provisions. Therefore, SBA is correcting Sec.  
124.110(e) and Sec.  124.111(d) to make these provisions, relating to 
Native Hawaiian Owned (NHO) entities and Certified Development 
Companies (CDCs) respectively, consistent with the same language 
pertaining to tribally and Alaskan Native Corporation (ANC) and NHO 
owned entities. Additionally, SBA is changing Sec.  124.111(d) which 
contains a reference to SIC instead of NAICS.
    In Sec. Sec.  124.112(b)(6) and (d)(1) SBA is correcting 
typographical errors that result in the wrong word choice. The word 
``contacts'' is replaced with the word ``contracts'' in (b)(6) and the 
word ``though'' is replaced with the word ``through'' in (d)(1)
    In Sec.  124.513(c)(4) SBA omitted the word ``populated'', which is 
necessary for the public to be able to distinguish the treatment of 
profit distribution between populated and unpopulated joint ventures. 
This section will be corrected to insert the missing word.
    With regard to Sec.  124.519, SBA provided incorrect instructions 
to the Federal Register for the amendments to paragraph (a) that was 
inconsistent with the intended amendment as discussed in the preamble 
for the final rule. Specifically, SBA intended to amend only the 
introductory text of Sec.  124.519(a) but provided instructions that 
amended the entire paragraph (a) resulting in the unintended removal of 
paragraphs (1) through (3). SBA is making the correction here to 
reinsert those paragraphs.
    Finally, to avoid confusion for the public, SBA is correcting 
awkward language in Sec.  124.520(c)(3) to clearly articulate the 
standards, as discussed in the preamble, for permitting a 
prot[eacute]g[eacute] firm to have more than one mentor.

List of Subjects in 13 CFR Part 124

    Administrative practice and procedures, Government procurement, 
Hawaiian natives, Indians--business and finance, Minority businesses, 
Reporting and recordkeeping requirements, Tribally-owned concerns, 
Technical assistance.

    Accordingly, 13 CFR part 124 is corrected by making the following 
correcting amendments:

PART 124--8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS 
STATUS DETERMINATIONS

0
1. The authority citation for part 124 continues to read as follows:

    Authority:  15 U.S.C. 634(b)(6), 636(j), 637(a), 637(d) and Pub. 
L. 99-661, Pub. L. 100-656, sec. 1207, Pub. L. 101-37, Pub. L. 101-
574, sec. 8021, Pub. L. 108-87, and 42 U.S.C. 9815.


0
2. In Sec.  124.3 amend the definition for ``primary industry 
classification'' by removing the word ``two-year'' and adding in its 
place the word ``three-year'' in the 4th sentence.

0
3. Amend Sec.  124.110(e) by revising the third sentence to read as 
follows:


Sec.  124.110  Do Native Hawaiian Organizations have any special rules 
for applying to the 8(a) BD program?

* * * * *
    (e) * * * In addition, once an applicant is admitted to the 8(a) BD 
program, it may not receive an 8(a) sole source contract that is a 
follow-on contract to an 8(a) contract that was performed immediately 
previously by another Participant (or former Participant) owned by the 
same Native Hawaiian Organization. * * *
* * * * *

0
4. Amend Sec.  124.111(d) to read as follows:


Sec.  124.111  Do Community Development Corporations (CDCs) have any 
special rules for applying to the 8(a) BD program?

* * * * *
    (d) * * * In addition, once an applicant is admitted to the 8(a) BD 
program, it may not receive an 8(a) sole source contract that is a 
follow-on contract to an 8(a) contract that was performed immediately 
previously by another Participant (or former Participant) owned by the 
same CDC. * * *
* * * * *

0
5. Amend Sec.  124.112 as follows:
0
a. Amend paragraph (b)(6) by removing the word ``contacts'' and adding 
the word ``contracts'' in its place.
0
b. Amend the second sentence in paragraph (d)(1) by removing the word 
``though'' and adding the word ``through'' in its place.

[[Page 28238]]


0
6. Amend Sec.  124.513(c)(4) by adding the word ``populated'' before 
the word ``separate.''

0
7. Amend Sec.  124.519 by adding paragraphs (a)(1), (a)(2), and (a)(3) 
to read as follows:


Sec.  124.519  Are there any dollar limits on the amount of 8(a) 
contracts that a Participant may receive?

    (a) * * *
    (1) For a firm having a receipts-based primary NAICS code at time 
of program entry, the limit above which it can no longer receive sole 
source 8(a) contracts is five times the size standard corresponding to 
its primary NAICS code which is determined as of the date of SBA's 
acceptance of the requirement for the 8(a) BD program or $100,000,000, 
whichever is less.
    (2) For a firm having an employee-based primary NAICS code at time 
of program entry, the limit above which it can no longer receive sole 
source 8(a) contracts is $100,000,000.
    (3) SBA will not consider 8(a) contracts awarded under $100,000 in 
determining whether a Participant has reached the limit identified in 
paragraphs (a)(1) and (a)(2) of this section.
* * * * *

0
8. Amend Sec.  124.520 by revising paragraph (c)(3) to read as follows:


Sec.  124.520  What are the rules governing SBA's Mentor/
Prot[eacute]g[eacute] program?

* * * * *
    (c) * * *
    (3) A prot[eacute]g[eacute] firm may generally have only one mentor 
at a time. The AA/BD may approve a second mentor for a particular 
prot[eacute]g[eacute] firm where the second relationship will not 
compete or otherwise conflict with the business development assistance 
set forth in the first mentor/prot[eacute]g[eacute] relationship and 
either:
    (i) The second relationship pertains to a, secondary NAICS code; or
    (ii) The prot[eacute]g[eacute] firm is seeking to acquire a 
specific expertise that the first mentor does not possess.
* * * * *

    Dated: May 4, 2012.
A. John Shoraka,
Associate Administrator for Government Contracting and Business 
Development.
[FR Doc. 2012-11508 Filed 5-11-12; 8:45 am]
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