[Federal Register Volume 89, Number 11 (Wednesday, January 17, 2024)]
[Notices]
[Pages 3014-3016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00781]


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SMALL BUSINESS ADMINISTRATION


Small Business Size Standards: Notification of Two Virtual Public 
Forums on the 2023 Revised Size Standards Methodology White Paper

AGENCY: Small Business Administration.

ACTION: Notification of virtual public forums on size standards review 
and methodology.

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SUMMARY: The U.S. Small Business Administration (SBA) is holding a 
series of two virtual public forums on size standards to update the 
public on the status of the forthcoming third five-year review of size 
standards, as mandated by the Small Business Jobs Act of 2010, and to 
consider public testimony on proposed changes to the SBA's size 
standards methodology for establishing, reviewing, or modifying size 
standards, as detailed in SBA's 2023 Revised Size Standards Methodology 
White Paper (2023 Revised Methodology). Testimony presented at these 
forums will become part of the administrative record for SBA's 
consideration when finalizing the 2023 Revised Methodology.

DATES: The virtual forum dates are as follows:
     Tuesday, January 23, 2024, from 1:00 p.m. to 3:00 p.m., 
EST.

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     Thursday, January 25, 2024, from 1:00 p.m. to 3:00 p.m., 
EST.

ADDRESSES: The forums will be held via the Microsoft Teams platform. 
Registration is required to attend these virtual events. Visit SBA's 
size standards web page at http://www.sba.gov/size to register.

FOR FURTHER INFORMATION CONTACT: Samuel Castilla, Economist, Office of 
Size Standards, (202) 619-0389 or [email protected]. The phone 
number above may also be reached by individuals who are deaf or hard of 
hearing, or who have speech disabilities, through the Federal 
Communications Commission's TTY-Based Telecommunications Relay Service 
teletype service at 711.

SUPPLEMENTARY INFORMATION:

I. Background

    SBA is seeking public comments on its SBA's 2023 Revised Size 
Standards Methodology White Paper (2023 Revised Methodology) (available 
at www.sba.gov/size) in accordance with SBA's Federal Register notice 
issued on December 11, 2023 (88 FR 85852) which notified the public of 
the availability of the revised size standards methodology for public 
review and requested comments on SBA's proposed revisions. The 2023 
Revised Methodology explains how SBA establishes, reviews, and modifies 
small business size standards. Specifically, the 2023 Revised 
Methodology provides a detailed description of SBA's size standards 
methodology, including changes from SBA's current methodology (also 
available at www.sba.gov/size), which guided the SBA's recently 
completed second five-year review of size standards required by the 
Small Business Jobs Act of 2010 (Pub. L. 111-240, 124 Stat. 2504, Sept. 
27, 2010) (Jobs Act). SBA welcomes from interested parties comments and 
feedback on the 2023 Revised Methodology, which SBA intends to apply to 
the forthcoming third five-year review of size standards under the Jobs 
Act. The comment period ends on February 9, 2024.
    SBA is proposing changes to its methodology for reviewing size 
standards in order to address public comments received under the second 
five-year review of size standards and to make certain analytical 
improvements. Major changes to the size standards methodology include: 
(1) Replacing the current approach to account for the Federal 
contracting factor with the ``disparity ratio'' approach; (2) Using the 
Federal Procurement Data System--Next Generation (FPDS-NG) and the 
System for Award Management (SAM) data to compute the 20th percentile 
and 80th percentile values of industry factors for evaluating size 
standards at subindustry levels (``exceptions''), instead of having 
those calculated based on the Economic Census data; (3) Updating the 
minimum and maximum size standard levels; and (4) Updating the 20th 
percentile and 80th percentile values of industry factors, derived from 
the 2017 Economic Census (latest available) and other industry data, 
used to evaluate the structure of each industry.
    Comments solicited by SBA on the 2023 Revised Methodology are not 
industry specific, but rather, focused on SBA's process and assumptions 
for evaluating size standards more generally. After evaluating all 
comments received and finalizing the 2023 Revised Methodology, SBA will 
later issue proposed rules detailing the proposed revisions to size 
standards using the process described in the finalized size standards 
methodology.
    Generally, SBA accepts comments on size standards for specific 
industries under the relevant proposed rule detailing the proposed 
revisions to size standards for a particular industry or a group of 
industries. This is to ensure that commenters are fully informed of the 
impacts of SBA's finalized size standards methodology on the industries 
for which they are interested in, and to offer stakeholders the 
opportunity to provide SBA with comments, data, and analysis assessing 
the appropriateness of SBA's proposed size standards. As such, SBA 
encourages commenters with industry-specific comments to share their 
feedback under the relevant forthcoming proposed rule after reviewing 
SBA's proposed size standard for their specific industry, or group of 
industries, of interest. After evaluating all public comments to the 
proposed rule, SBA will issue a final rule adjusting size standards 
under the forthcoming third five-year review of size standards.

II. Virtual Public Forums on Size Standards

    Under this notice, SBA is advising the public that it is hosting a 
series of two virtual public forums on size standards to update the 
public on the status of the forthcoming third five-year review of size 
standards under the Jobs Act and consider public testimony on proposed 
changes contained in the 2023 Revised Methodology. These forums also 
conform to the requirements of section 1344 of the Jobs Act which 
mandates that SBA hold not less than two public forums during its 
quinquennial review of size standards.
    As part of fulfilling that mandate under the recently completed 
second five-year review of size standards, on June 14 and June 16, 
2022, SBA held a series of two virtual forums on size standards in 
order to update the public on the status of the ongoing second five-
year review of size standards and consider public testimony on proposed 
changes to size standards contained in the proposed rule covering 
Manufacturing and other industries with employee-based size standards 
(87 FR 24752; April 26, 2022). Comments received during the virtual 
sessions were entered into the public docket for the rule and used to 
further refine SBA's evaluation of size standards. SBA responded to all 
comments received during the virtual sessions in the final rule for 
Manufacturing and other industries with employee-based size standards 
(88 FR 9970; February 15, 2023). SBA will use a similar format for 
soliciting and evaluating comments on the 2023 Revised Methodology.
    SBA will hold additional public forums after issuing proposed rules 
evaluating size standards under the third five-year review of size 
standards. SBA encourages commenters with industry-specific comments to 
share their feedback at this later stage after reviewing SBA's proposed 
changes to size standards. SBA considers public forums on size 
standards as a valuable component of its deliberations and public 
engagement and believes that these forums allow for constructive 
dialogue with small businesses and their representatives, industry 
trade associations, participants in SBA's contracting and financial 
assistance programs, and other stakeholders.
    The format of the public forums on the SBA's 2023 Revised 
Methodology will consist of a panel of SBA representatives who will 
preside over the session. The oral and written testimony as well as any 
comments SBA receives during the public forums will become part of the 
administrative record for SBA's consideration in finalizing its size 
standards methodology. Written testimony may be submitted in lieu of 
oral testimony on or before February 9, 2024, at www.regulations.gov, 
using the following Docket number: SBA-2023-0015; by email to 
[email protected] with subject line ``Comments to SBA-2023-0015''; 
or by mail to Khem R. Sharma, Chief, Office of Size Standards, 409 3rd 
Street SW, Mail Code 6530, Washington, DC, 20416. SBA will analyze the 
testimony, both oral and written, along with any written comments 
received and respond to all comments in a notice finalizing the 2023 
Revised Methodology. However,

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during the public forums, SBA officials will not provide comment on the 
testimony of speakers. SBA requests that commenters focus on the 
contents of SBA's 2023 Revised Methodology. SBA requests that 
commenters do not raise issues pertaining to specific industries, or 
issues outside the scope of SBA's 2023 Revised Methodology.
    In the December 11, 2023, Federal Register notice, SBA requested 
feedback on a number of questions within the scope of the 2023 Revised 
Methodology, including: (a) Should SBA adopt a new disparity ratio 
approach to evaluating small business participation in the Federal 
market, which will replace the Federal contracting factor the Agency 
used in the past?; (b) Should SBA lower size standards regardless of 
prevailing economic conditions when the analytical results support 
lowering them or should it consider the prevailing economic environment 
when deciding on whether to revise size standards?; (c) Should SBA 
consider adjusting employee-based size standards for labor productivity 
growth or increased automation similar to it adjusts monetary-based 
size standards for inflation?; (d) Should SBA consider lowering its 
size standards generally?; (e) Are there alternative or additional 
factors or data sources that SBA should consider when establishing, 
reviewing, or revising size standards?; and (f) Does SBA's current 
approach to establishing or modifying small business size standards 
make sense in the current economic environment? SBA hopes to receive 
public input on these questions, as well as on others, as posed in the 
December 2023 notice.
    Presenters are encouraged to provide a written copy of their 
testimony. SBA will accept written material that the presenter wishes 
to provide that further supplements his or her testimony during the 
public forums. Electronic or digitized submissions are encouraged. The 
two virtual public forums on size standards will be held on Tuesday, 
January 16, 2024 and Thursday, January 18, 2024, from 1:00 p.m. to 3:00 
p.m. EST; SBA will adjourn early if all testimony has been delivered 
before the end time.

III. Registration

    Participants must pre-register to attend either of the two virtual 
public forums on size standards by visiting SBA's size standards web 
page at http://www.sba.gov/size and registering at the link provided. 
On the registration form, participants may indicate whether they would 
like to testify at the forum. After registering, participants will 
receive an email with an access link and call-in information which can 
be used to access the forum on the scheduled date and time. Additional 
information about the forum is provided on SBA's announcements about 
updating size standards web page, available at https://www.sba.gov/articles?keyword=&article_type=253&field_article_authoring_office_target_id=5086&langcode=All, and in the invitation that participants receive 
upon registration. SBA will attempt to accommodate all interested 
parties that wish to present testimony. Based on the number of 
registrants it may be necessary to impose time limits to ensure that 
everyone who wishes to testify can do so.

IV. Information on Service for Individuals With Disabilities

    For information on services for individuals with disabilities or to 
request special assistance contact Samuel Castilla at the telephone 
number or email address indicated above under the FOR FURTHER 
INFORMATION CONTACT section of this notice.

Sam Le,
Director, Office of Policy, Planning and Liaison.
[FR Doc. 2024-00781 Filed 1-16-24; 8:45 am]
BILLING CODE 8026-09-P