[Federal Register Volume 89, Number 46 (Thursday, March 7, 2024)]
[Rules and Regulations]
[Pages 16445-16446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04854]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 
 ========================================================================
 

  Federal Register / Vol. 89, No. 46 / Thursday, March 7, 2024 / Rules 
and Regulations  

[[Page 16445]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 127

RIN 3245-AI11


Providing Discretion To Extend Women-Owned Small Business Program 
Recertification Where Appropriate

AGENCY: U.S. Small Business Administration.

ACTION: Interim final rule.

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

SUMMARY: This interim final rule contains amendments to the regulations 
governing the Women-Owned Small Business (WOSB) program. The U.S. Small 
Business Administration (SBA) is revising its regulations to 
specifically recognize that the SBA Administrator may extend the date 
of WOSB recertification where appropriate.

DATES: This interim final rule is effective March 7, 2024. Comments 
must be received on or before May 6, 2024.

ADDRESSES: You may submit comments, identified by RIN 3245-AI11, and/or 
Docket Number SBA-2-24-0001 by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov and 
follow the instructions for submitting comments.
     Mail (for paper, disk, or CD-ROM submissions): Harry T. 
Alexander Jr., Business Opportunity Specialist, Office of Contracting 
Assistance, U.S. Small Business Administration, 409 Third Street SW, 
Washington, DC 20416.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
rulemaking. All comments received will be posted 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 comments to Harry T. Alexander 
Jr. and highlight the information that you consider to be CBI and 
explain why you believe this information should be held confidential.

FOR FURTHER INFORMATION CONTACT: Harry T. Alexander Jr., U.S. Small 
Business Administration, Office of Contracting Assistance, 409 Third 
Street SW, Washington, DC 20416; (202) 619-0314, 
[email protected].

SUPPLEMENTARY INFORMATION: Section 127.400 of SBA's WOSB regulations 
specifies that any concern seeking to remain a certified WOSB or 
Economically Disadvantaged Women-Owned Small Business (EDWOSB) must 
undergo a program examination every three years. Currently, there is no 
discretion in postponing recertification beyond the three-year 
anniversary date of a firm's WOSB or EDWOSB certification. SBA believes 
that SBA should have the discretion to postpone a firm's 
recertification date in appropriate circumstances. SBA is not seeking 
to eliminate the requirement that a firm must demonstrate that it 
continues to be eligible for the WOSB program or that SBA must 
recertify the firm as eligible. This change would merely recognize that 
there may be appropriate circumstances in which SBA may permit 
recertification to occur beyond three years from the date of the last 
certification. This change will not have substantive effect on 
eligibility for or the award of contracts set-aside or reserved for 
WOSBs/EDWOSBs. Regardless of whether a recertification has recently 
occurred or not, a firm must qualify as a WOSB/EDWOSB on the date that 
it submits its initial offer, which includes price, for a WOSB/EDWOSB 
contract, reserve, or order issued under a contract that was not itself 
set-aside or reserved for WOSBs or EDWOSBs. Any interested party may 
protest the status of a WOSB or EDWOSB who has been identified as the 
apparent successful offeror. If a protested firm does not continue to 
qualify as a WOSB/EDWOSB as of the date of its initial offer which 
includes price, SBA will find the firm ineligible for award. This rule 
does not change or affect that process in any way.
    To effectuate the discretion identified above, this rule adds a new 
Sec.  127.400(c), which gives specific authority to SBA to postpone the 
date of WOSB/EDWOSB recertification where appropriate circumstances 
exist. SBA's Administrator, or designee, will have the sole discretion 
in determining whether such circumstances exist and there will be no 
authority to appeal or challenge that decision.

Compliance With Executive Orders 12866, 12988, 13132, 13563, the 
Congressional Review Act (5 U.S.C. 801-808), the Paperwork Reduction 
Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 U.S.C. 
601-612)

Executive Order 12866

    The Office of Management and Budget has determined that this rule 
is not a ``significant regulatory action'' under Executive Order No. 
12866. This rule merely provides specific discretion to SBA's 
Administrator or designee to postpone the date of WOSB recertification 
where appropriate. It does not make any substantive changes to the WOSB 
program.
    As such, the rule has no effect on the amount or dollar value of 
any Federal contract requirements or of any financial assistance 
provided through SBA. Therefore, the rule is not likely to have an 
annual economic effect of $200 million or more, result in a major 
increase in costs or prices, or have a significant adverse effect on 
competition or the United States economy. In addition, this rule does 
not create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency, materially alter the 
budgetary impact of entitlements, grants, user fees, loan programs, or 
the rights and obligations of such recipients, nor raise novel legal or 
policy issues arising out of legal mandates, the President's 
priorities, or the principles set forth in the Executive Order.

Executive Order 13563

    Executive Order 13563, Improving Regulation and Regulatory Review 
(January 18, 2011), requires agencies to adopt regulations through a 
process that involves public participation, and to the extent feasible, 
base regulations on the open exchange of information and perspectives 
from affected stakeholders and the public as a whole. SBA has developed 
this rule in a manner consistent with these requirements, and the 
public will have the opportunity to provide comments following the 
publication of this rule.

[[Page 16446]]

Executive Order 12988

    This action meets applicable standards set forth in section 3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. The action does not 
have retroactive or preemptive effect.

Executive Order 13132

    This rule does not have Federalism implications as defined in 
Executive Order 13132. It will not have substantial direct effects on 
the States, on the relationship between the National Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in the Executive Order. As 
such, it does not warrant the preparation of a Federalism Assessment.

Congressional Review Act (5 U.S.C. 801-808)

    The Congressional Review Act, 5 U.S.C. 801 et seq., as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, 
generally provides that before a ``major rule'' may take effect, the 
agency promulgating the rule must submit a rule report, which includes 
a copy of the rule, to each House of the Congress and to the 
Comptroller General of the United States. A major rule cannot take 
effect until 60 days after it is published in the Federal Register. 
This rule is not a ``major rule'' under 5 U.S.C. 804(2).

Paperwork Reduction Act

    The SBA has determined that this rule does not impose additional 
reporting or recordkeeping requirements under the Paperwork Reduction 
Act, 44 U.S.C. Chapter 35.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, as amended (RFA), 5 U.S.C. 
601-612, requires Federal Government agencies to prepare an initial 
regulatory flexibility analysis (IRFA) to consider the potential impact 
of the regulations on small entities. Small entities include small 
businesses, small not-for-profit organizations, and small governmental 
jurisdictions. Section 605 of the RFA allows an agency to certify a 
rule, in lieu of preparing a regulatory flexibility analysis, if the 
rulemaking is not expected to have a significant economic impact on a 
substantial number of small entities.
    This interim final rule provides discretion to SBA to postpone the 
date on which a firm must undergo a program examination and be 
recertified as an eligible WOSB or EDWOSB. Currently, SBA or a third-
party certifier will conduct a program examination three years after 
the concern's initial WOSB or EDWOSB certification. This rule merely 
allows SBA to postpone that program examination and recertification 
process in appropriate, extraordinary circumstances. As such, SBA does 
not anticipate that this rule will have a significant economic impact 
on any small business. Therefore, the Administrator of SBA certifies 
under 5 U.S.C. 605(b) that this rule will not have a significant 
economic impact on a substantial number of small entities.

List of Subjects in 13 CFR Part 127

    Government contracts, Reporting and recordkeeping requirements, 
Small businesses.

    Accordingly, for the reasons stated in the preamble, SBA amends 13 
CFR part 127 as follows:

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

0
1. 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
2. Amend Sec.  127.400 by adding paragraph (c) to read as follows:


Sec.  127.400   How does a concern maintain its WOSB or EDWOSB 
certification?

* * * * *
    (c) The SBA Administrator or designee may postpone the program 
examination and recertification process in appropriate, extraordinary 
circumstances.

Isabella Casillas Guzman,
Administrator.
[FR Doc. 2024-04854 Filed 3-6-24; 8:45 am]
BILLING CODE 8026-03-P