[Federal Register Volume 86, Number 138 (Thursday, July 22, 2021)]
[Rules and Regulations]
[Pages 38537-38538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15357]


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SMALL BUSINESS ADMINISTRATION

13 CFR Parts 121 and 124

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 amendment.

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SUMMARY: The U.S. Small Business Administration (SBA) is correcting a 
final rule that was 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 technical corrections to the final regulations.

DATES: Effective July 22, 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: On October 16, 2020, 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 more clearly delineate SBA's intent in certain 
regulations (85 FR 66146). This is the fourth set of corrections. The 
first set of corrections was published in the Federal Register on 
November 16, 2020 (85 FR 72916).

[[Page 38538]]

The second set of corrections was published in the Federal Register on 
January 14, 2021 (86 FR 2957). The third set of corrections was 
published in the Federal Register on February 23, 2021 (86 FR 10732). 
This document augments those corrections.
    In the final rule, SBA amended Sec.  121.404(a)(1) to revise and 
clarify when the size status of a business concern is determined for a 
multiple-award contract. In doing so, SBA inadvertently removed Sec.  
121.404(a)(1)(iv), which concerned when the size of a concern is 
determined for multiple-award contracts for which offerors are not 
required to submit price as part of the offer. SBA did not intend to 
delete that provision. This document adds back in Sec.  
121.404(a)(1)(iv) as it appeared in SBA's regulations prior to the 
final rule.
    This rule also corrects a typographical error contained in the 
introductory text of Sec.  121.404(g) by removing the word ``until'' 
from the second sentence.
    The final rule also revised Sec.  121.404(g)(2) to add language 
relating to the effect a merger, sale or acquisition that occurs 
between a concern's offer for a particular procurement and the date of 
award for that procurement would have on the concern's continued 
eligibility to receive the award and a procuring agency's ability to 
continue to receive small business credit. The final rule inadvertently 
left out a corresponding change to Sec.  121.404(g)(4). This rule 
corrects that omission by adding the words ``or pending'' to Sec.  
121.404(g)(4) to make clear that the revisions to Sec.  121.404(g)(2) 
were intended to apply to orders issued under multiple award contracts 
(MACs) as well.
    Finally, the final rule also made several revisions to Sec.  
124.509 regarding business activity targets applying to Participants in 
SBA's 8(a) Business Development program. One of the changes made by the 
final rule was to clarify that SBA will compare 8(a) and non-8(a) 
revenues in a Participant's program year, as opposed to its fiscal 
year. The final rule intended to change all references from fiscal year 
to program year. However, one reference to fiscal year was mistakenly 
left in Sec.  124.509(b)(3). This correction changes fiscal year to 
program year in Sec.  124.509(b)(3).

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 124

    Administrative practice and procedure, Government procurement, 
Government property, Small businesses.

    Accordingly, 13 CFR parts 121 and 124 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. Amend Sec.  121.404 by
0
a. Adding paragraph (a)(1)(iv);
0
b. Revising the second sentence of paragraph (g) introductory text; and
0
c. Revising the second sentence of paragraph (g)(4).
    The addition and revisions read as follows:


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

* * * * *
    (a) * * *
    (1) * * *
    (iv) For an indefinite delivery, indefinite quantity (IDIQ), 
Multiple Award Contract, where concerns are not required to submit 
price as part of the offer for the IDIQ contract, size will be 
determined as of the date of initial offer, which may not include 
price.
* * * * *
    (g) * * * Similarly, a concern that represents itself as a small 
business and qualifies as small after a required recertification under 
paragraph (g)(1), (2), or (3) of this section is generally considered 
to be a small business throughout the life of that contract. * * *
* * * * *
    (4) * * * However, if the Multiple Award Contract was set-aside for 
small businesses, partially set-aside for small businesses, or reserved 
for small business, then in the case of a contract novation, or merger 
or acquisition where no novation is required, where the resulting 
contractor is now other than small, the agency cannot count any new or 
pending orders issued pursuant to the contract, from that point 
forward, towards its small business goals. * * *
* * * * *

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

0
3. 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), 644 and 
Pub. L. 99-661, Pub. L. 100-656, sec. 1207, Pub. L. 101-37, Pub. L. 
101-574, section 8021, Pub. L. 108-87, Pub. L. 116-260, sec. 330, 
and 42 U.S.C. 9815.


0
4. Amend Sec.  124.509 by revising the first sentence of paragraph 
(b)(3) to read as follows:


Sec.  124.509   What are non-8(a) business activity targets?

* * * * *
    (b) * * *
    (3) * * * SBA will measure the Participant's compliance with the 
applicable non-8(a) business activity target at the end of each program 
year in the transitional stage by comparing the Participant's non-8(a) 
revenue to its total revenue during the program year just completed. * 
* *
* * * * *

Antonio Doss,
Acting Associate Administrator, Office of Government Contracting and 
Business Development.
[FR Doc. 2021-15357 Filed 7-21-21; 8:45 am]
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