[Federal Register Volume 86, Number 34 (Tuesday, February 23, 2021)]
[Rules and Regulations]
[Page 10732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03008]



[[Page 10732]]

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SMALL BUSINESS ADMINISTRATION

13 CFR Part 121 and 127

RIN 3245-AG94


Consolidation of Mentor-Prot[eacute]g[eacute] Programs and Other 
Government Contracting Amendments; Correction

AGENCY: U.S. Small Business Administration.

ACTION: Correcting amendments.

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SUMMARY: The U.S. Small Business Administration (SBA) is correcting 
regulations published in the Federal Register on October 16, 2020. The 
rule merged the 8(a) Business Development (BD) Mentor-
Prot[eacute]g[eacute] Program and the All Small Mentor-
Prot[eacute]g[eacute] Program to eliminate confusion and remove 
unnecessary duplication of functions within SBA. This document is 
making several technical corrections to the regulations.

DATES: Effective February 23, 2021.

FOR FURTHER INFORMATION CONTACT: Mark Hagedorn, U.S. Small Business 
Administration, Office of General Counsel, 409 Third Street SW, 
Washington, DC 20416; (202) 205-7625; [email protected].

SUPPLEMENTARY INFORMATION: SBA published a final rule revising the 
regulations pertaining to the 8(a) BD and size programs in order to 
further reduce unnecessary or excessive burdens on small businesses and 
to eliminate confusion or more clearly delineate SBA's intent in 
certain regulations. (85 FR 66146). This is the third set of 
corrections. The first set of corrections was published in the Federal 
Register on November 16, 2020. (85 FR 72916). The second set of 
corrections was published in the Federal Register on January 14, 2021. 
This document augments those corrections.
    In the final rule, SBA amended Sec.  121.103(h) to revise and 
clarify the requirements for joint ventures. In doing so, the sub-
paragraphs in this section were reorganized. The language about 
ostensible subcontractors moved from Sec.  121.103(h)(4) to Sec.  
121.103(h)(2). This document removes references to Sec.  121.103(h)(4) 
and replaces them with references to Sec.  121.103(h)(2) in the 
introductory text to Sec.  121.103(h), in paragraph Sec.  121.404(d), 
and in paragraph Sec.  127.504(g).

List of Subjects

13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Individuals with 
disabilities, Loan programs--business, Small businesses.

13 CFR Part 127

    Government contracts, Reporting and recordkeeping requirements, 
Small businesses.

    Accordingly, 13 CFR parts 121 and 127 are corrected by making the 
following correcting amendments:

PART 121--SMALL BUSINESS SIZE REGULATIONS

0
1. The authority citation for part 121 continues to read as follows:

    Authority:  15 U.S.C. 632, 634(b)(6), 636(a)(36), 662, and 
694a(9); Pub. L. 116-136, Section 1114.


0
2. In Sec.  121.103 amend paragraph (h) introductory text by revising 
the second-to-last sentence to read as follows:


Sec.  121.103   How does SBA determine affiliation?

* * * * *
    (h) * * * SBA may also determine that the relationship between a 
prime contractor and its subcontractor is a joint venture pursuant to 
paragraph (h)(2). * * *
* * * * *

0
3. Amend Sec.  121.404 by revising paragraph (d) to read as follows:


Sec.  121.404   When is the size status of a business concern 
determined?

* * * * *
    (d) Nonmanufacturer rule, ostensible subcontractor rule, and joint 
venture agreements. Compliance with the nonmanufacturer rule set forth 
in Sec.  121.406(b)(1), the ostensible subcontractor rule set forth in 
Sec.  121.103(h)(2), and the joint venture agreement requirements in 
Sec.  124.513(c) and (d), Sec.  125.8(b) and (c), Sec.  125.18(b)(2) 
and (3), Sec.  126.616(c) and (d), or Sec.  127.506(c) and (d) of this 
chapter, as appropriate, is determined as of the date of the final 
proposal revision for negotiated acquisitions and final bid for sealed 
bidding.
* * * * *

PART 127--WOMEN-OWNED SMALL BUSINESS FEDERAL CONTRACT PROGRAM

0
4. The authority citation for part 127 continues to read as follows:

    Authority:  15 U.S.C. 632, 634(b)(6), 637(m), 644 and 657r.


0
5. Amend Sec.  127.504 by revising the second sentence of paragraph 
(g)(1) to read as follows:


Sec.  127.504   What requirements must an EDWOSB or WOSB meet to be 
eligible for an EDWOSB or WOSB requirement?

* * * * *
    (g) * * *
    (1) * * * When the subcontractor is other than small or alleged to 
be other than small for the size standard assigned to the procurement, 
this issue may be grounds for a size protest, as described at Sec.  
121.103(h)(2) of this chapter.
* * * * *

John W. Klein,
Acting Associate Administrator, Government Contracting and Business 
Development.
[FR Doc. 2021-03008 Filed 2-22-21; 8:45 am]
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