[Federal Register Volume 89, Number 96 (Thursday, May 16, 2024)]
[Proposed Rules]
[Pages 42816-42820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10518]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 89, No. 96 / Thursday, May 16, 2024 / 
Proposed Rules  

[[Page 42816]]



SMALL BUSINESS ADMINISTRATION

13 CFR Parts 124, 127, and 128

[Docket ID SBA-2024-0004]
RIN 3245-AI04


Women-Owned Small Business Federal Contract Program Updates and 
Clarifications

AGENCY: U.S. Small Business Administration.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: This proposed rule would make several changes to the Small 
Business Administration's (SBA or Agency) Women-Owned Small Business 
Federal Contract (WOSB) Program regulations, including adding 
definitions that are not currently included in the regulations and 
conforming the regulations to current statutes that have not yet been 
integrated. The rule would also adopt similar language to that used in 
SBA's other government contracting program regulations regarding the 
length of time that a firm that has been declined three times must wait 
before reapplying to the WOSB Program, and limits on outside 
employment. The Agency requests comment on all aspects of this proposed 
rule.

DATES: Comments must be received on or before July 15, 2024.

ADDRESSES: You may submit comments, identified by RIN 3245-AI04 or 
Docket No. 2024-0004, by any of the following methods:
     Federal eRulemaking Portal: https://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 https://www.regulations.gov. If you wish to submit confidential business 
information (CBI) as defined in the User Notice at https://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: SBA proposes to make changes to the process 
by which an application for certification is reviewed by SBA in order 
to implement a statutory amendment from the National Defense 
Authorization Act for Fiscal Year 2022 regarding the effects of a 
status determination on a small business concern. SBA also proposes to 
remove outdated references to the U.S. Department of Veterans Affairs 
Center for Verification and Evaluation, instead referring to SBA's 
Veteran Small Business Certification Program. The rule would also 
provide additional definitions of terms used in the regulations, 
attempt to provide consistency across the regulations used in SBA's 
other government contracting programs, and define who is authorized to 
represent a firm when validating or signing certification pages during 
the certification process.

Section-by-Section Analysis

Sections 124.106(a), 127.202(c), and 128.203(i)

    Sections 124.106(a) (for the 8(a) Business Development (BD) 
program), 127.202(c) (for the women-owned small business (WOSB 
program), and 128.203(i) (for the veteran small business certification 
(VetCert) program) address limitations on outside employment that can 
affect a business concern's eligibility for participation in the 8(a) 
BD, WOSB, and VetCert programs based on a qualifying individual's lack 
of control. Basically, each of these provisions generally requires the 
qualifying individual to devote fulltime or the number of hours of 
normal operation to the business. Each also requires the business 
concern to demonstrate how a qualifying individual does in fact control 
the day-to-day operations of the business concern if the qualifying 
individual does devotes fewer hours to the business than its normal 
hours of operation. The language of the three provisions, however, is 
not identical. This has led to questions as to whether SBA intended 
different application of the control requirements for different 
programs. In order to clear up any confusion, this rule proposes to 
change the wording of the three provisions to make them identical to 
ensure that the control requirement is consistently applied. Basically, 
the rule would align the language of the restrictions in 8(a) BD and 
WOSB programs to the current restriction in the VetCert Program.

Section 127.102

    Section 127.102 sets out the definitions for the Women-Owned Small 
Business (WOSB) Federal Contract Program. This rule first proposes to 
add a definition for the term ``Applicant'' as a definition was not 
included in the previous version of the regulations and appears in the 
regulations of SBA's other government contracting programs. SBA 
believes that including this definition will provide consistency in the 
rules that apply to its various certification programs and make clear 
that a concern applying for certification in the WOSB Program is an 
``Applicant.''
    The proposed rule would amend the current definition of the term 
``System for Award Management (SAM) (or any successor system).'' SBA 
believes that the definition is outdated and should match the 
definition that is used in the FAR for consistency purposes.
    The proposed rule would also remove the definition for ``WOSB 
Program Repository'' as this definition refers to the old repository 
system that is no longer in use. SBA believes that removing this 
definition, which is not used elsewhere in 13 CFR part 127, will 
alleviate any confusion.
    Lastly, the proposed rule would amend the current definition of 
``Interested party,'' limiting it to certified WOSB concerns or 
concerns that have a pending application for WOSB certification, either 
at SBA or a third-party certifier, that submit an offer for a specific 
Economically Disadvantaged Women-Owned Small Business (EDWOSB) or WOSB 
requirement, rather than any concern

[[Page 42817]]

who submits an offer for a specific EDWOSB or WOSB requirement. SBA 
believes that only certified WOSBs and EDWOSBs or concerns pending WOSB 
certification should be able to submit a protest against an apparent 
successful offeror's EDWOSB or WOSB status. It is not uncommon for an 
incumbent contractor to file a bid or size/status protest in order for 
its performance to be extended pending the resolution of the protest. 
SBA does not want to encourage firms that are not certified WOSBs or 
certified EDWOSBs to submit offers merely to be able to file a status 
protest that could prolong their performance under a preceding 
contract. Such firms have no chance to be awarded a WOSB/EDWOSB 
contract, and such protests may be nothing more than delay tactics. 
Only firms that are capable of winning the WOSB set-aside contract or 
order should be able to protest the WOSB status of an apparent 
successful offeror.

Section 127.202

    Current Sec.  127.202 generally requires that a woman devote 
sufficient time to the business with a rebuttable presumption that the 
business is not a WOSB if a woman devotes fewer hours to the business 
than its normal hours of operation. Where the presumption applies, the 
woman must provide evidence to SBA that she has ultimate managerial and 
supervisory control over both the long-term decision making and day-to-
day management and administration of the business. This rule proposes 
to align this language to the current restriction in the Veteran Small 
Business Certification Program. The business still will be generally 
required to have the qualified woman that controls the concern devote 
the woman's full time to the business during the business's normal 
hours of operation. The business may, however, demonstrate to SBA that 
the woman has ultimate managerial and supervisory control over both the 
long-term decision making and day-to-day management of the business.

Section 127.300

    The proposed rule would amend the outdated references in Sec.  
127.300(a)(2) and (b)(3) to certifications made by the U.S. Department 
of Veterans Affairs (VA) Center for Verification and Evaluation. 
Instead, the regulation would refer to SBA's Veteran Small Business 
Certification Program. SBA believes this change would resolve any 
confusion caused by reference to the VA's Verification Program, which 
no longer certifies veteran-owned or service-disabled veteran-owned 
small business concerns following its transfer to SBA pursuant to 
section 862 of the National Defense Authorization Act for Fiscal Year 
2021.
    The proposed rule would also amend Sec.  127.300(c) by referring to 
SAM, in addition to the Dynamic Small Business Search (DSBS) system. 
This change would recognize that a concern that is a qualified WOSB or 
EDWOSB will be designated as such in both SAM and the DSBS system.

Section 127.303

    The proposed rule would add a new paragraph and reorganize Sec.  
127.303(a)(1) to provide that a concern certified as a veteran-owned or 
service-disabled veteran-owned small business for the Veteran Small 
Business Certification Program and owned and controlled by one or more 
women may use documentation of its Veteran-Owned Small Business Concern 
(VOSB) or Service-Disabled Veteran-Owned Small Business Concern 
(SDVOSB) certification or more recent recertification in support of its 
application for WOSB certification. The proposed rule would further 
provide that if the concern is also seeking EDWOSB certification, it 
must submit documentation that demonstrates it is owned and controlled 
by one or more women who are economically disadvantaged in accordance 
with Sec.  127.203. This change would recognize a concern's ability to 
use documentation from SBA's other certification program in support of 
its application for WOSB certification and refer to the current 
veteran-owned and service-disabled veteran-owned certification program.

Section 127.305

    The proposed rule would incorporate the same language used in Sec.  
124.207 for purposes of applying to the 8(a) Business Development (BD) 
Program. Section 124.207 provides that a concern that has applied to 
the 8(a) BD program and has been declined three times within 18 months 
of the date of the first final Agency decision finding the concern 
ineligible cannot submit a new application for admission to the program 
until 12 months from the date of the third final Agency decision to 
decline. SBA seeks to provide consistency among its various 
certification programs and believes that an applicant that has applied 
three times within a relatively short timeframe and has not corrected 
its deficiencies should be required to wait 12 months before applying 
again. SBA wants to encourage concerns to submit accurate applications 
in the first instance and to fully respond to all deficiencies noted in 
its decline decisions.

Section 127.356(c)

    The proposed rule would revise Sec.  127.356(c) to provide 
consistency between Sec.  127.356(c) and Sec.  127.356(a) and (b). 
Currently, Sec.  127.356(c) states that an approved third-party 
certifier must ensure that all of a concern's documents are uploaded in 
https://certify.sba.gov or any successor system. SBA believes that is 
inconsistent with SBA's intent that it is the responsibility of the 
concern, not the SBA-approved third-party certifier, to ensure that all 
its documents are uploaded. Section 127.356(a) and (b) require the 
applicant concern to apply directly with a third-party certifier and 
register in SAM. Consistent with paragraphs (a) and (b), SBA believes 
that it is the responsibility of the applicant concern, and not the 
third-party certifier, to ensure that all documents necessary to 
determine its eligibility for certification by an approved certifier 
are uploaded with its application. SBA believes this uniformity within 
the section will lead to less confusion about whose duty it is to make 
sure documents have been made available to SBA when a third-party 
certifier is involved. Furthermore, a system has not yet been put in 
place for a third-party certifier to upload the documents on behalf of 
the concern.

Section 127.504(a)

    Section 127.504 permits a concern that has submitted a complete 
application for WOSB or EDWOSB certification to SBA or a third-party 
certifier and has not received a negative determination regarding that 
application to submit an offer for a competitive WOSB or EDWOSB award. 
The proposed rule would define ``pending application,'' as this term is 
not currently defined in this section or elsewhere in the WOSB 
regulations. SBA believes providing this definition will lead to less 
confusion amongst concerns and contracting officers who have been 
unsure when an application is pending and believed an application to be 
pending at the point of application. This change will support the 
acquisition process for WOSB and EDWOSB set-asides.

Section 127.604(f)

    The proposed rule would add the language describing the effects of 
a status determination on a concern and the obligation of a concern to 
update the System for Award Management (or any successor system) within 
two business days of a final determination. This change would be made 
to implement a

[[Page 42818]]

statutory amendment of the National Defense Authorization Act of Fiscal 
Year 2022, which amended section 863 of the Small Business Act, to 
provide such language in the status determination of a concern.

Section 127.701

    The proposed rule would remove this section entirely as it contains 
outdated language regarding the previous WOSB program and system 
whereby a concern certified its WOSB or EDWOSB status on SAM in 
relation with specific eligibility requirements. This section, in its 
entirety, is no longer necessary, as 13 CFR 127.304(f) and other WOSB 
program regulations specify that SBA will update DSBS and SAM to 
indicate that a concern has been certified by SBA as a WOSB and/or 
EDWOSB.

Request for Comments

    SBA invites all interested parties to participate in this 
rulemaking by submitting written data, views, comments, and arguments 
on all aspects of this proposed rule. Comments that will provide the 
most assistance to SBA in implementing these changes will reference a 
specific portion of the proposed rule, explain the reason for any 
recommended change, and include data, information, or authority that 
support such recommended change. Comments submitted in a manner other 
than the methods listed above will not be considered comments on the 
proposed rule and may not receive a response from SBA.

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

Executive Order 12866

    The Office of Management and Budget has determined that this 
proposed rule is not a ``significant regulatory action'' under 
Executive Order 12866. This proposed rule would amend the WOSB 
regulations to provide uniformity amongst SBA's government contracting 
programs and to clarify certain regulations that have been 
misunderstood by concerns and contract officers. As such, the proposed 
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 proposed 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 proposed 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 proposed rule in a manner consistent with these requirements, and 
the public will have the opportunity to provide comments following the 
publication of this proposed rule.

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 proposed 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.

Paperwork Reduction Act

    The SBA has determined that this proposed 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 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 an IRFA, if the rulemaking is not expected 
to have a significant economic impact on a substantial number of small 
entities.
    This proposed rule would revise the WOSB regulations to update 
definitions and adopt similar language to that used in SBA's other 
government contracting program regulations. Specifically, the proposed 
rule would amend the length of time in which a firm that has been 
declined three times must wait before reapplying to the WOSB Program 
and remove reference to the 15-calendar day timeframe in which SBA will 
notify an applicant for certification to the WOSB Program that their 
application is either complete or incomplete. While SBA does not 
anticipate that this proposed rule would have a significant economic 
impact on any small business, we do welcome comments from any small 
business setting out how and to what degree this proposed rule would 
affect it economically. Therefore, the Administrator of SBA certifies 
under 5 U.S.C. 605(b) that this proposed rule would not have a 
significant economic impact on a substantial number of small entities.

List of Subjects

13 CFR Part 124

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

13 CFR Part 127

    Government contracts, Reporting and recordkeeping requirements, 
Small businesses.

13 CFR Part 128

    Government contracts, Government procurement, Reporting and 
recordkeeping requirements, Small businesses, Technical assistance, 
Veterans.

    Accordingly, for the reasons stated in the preamble, SBA proposes 
to amend 13 CFR parts 124, 127, and 128 as follows:

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), 644, 42 
U.S.C. 9815; and Pub. L. 99-661, 100 Stat. 3816; Sec. 1207, Pub. L. 
100-656, 102 Stat. 3853; Pub. L. 101-37, 103 Stat. 70; Pub. L. 101-
574, 104 Stat. 2814; Sec. 8021, Pub. L. 108-87, 117 Stat. 1054; and 
Sec. 330, Pub. L. 116-260.


[[Page 42819]]


0
2. Amend Sec.  124.106 by:
0
a. Revising paragraphs (a)(3) and (4);
0
b. Redesignating paragraph (a)(5) as paragraph (a)(6); and
0
c. Adding a new paragraph (a)(5).
    The revisions and addition read as follows:


Sec.  124.106   When do disadvantaged individuals control an applicant 
or Participant?

* * * * *
    (a) * * *
    (3) One or more disadvantaged individuals who manage the applicant 
or Participant generally must devote full-time to the business concern 
during its normal hours of operations. The disadvantaged individual who 
holds the highest officer position of the business concern may not 
engage in outside employment that prevents the disadvantaged individual 
from devoting the time and attention to the concern necessary to 
control its management and daily business operations.
    (4) Where a disadvantaged individual claiming to control a business 
concern devotes fewer hours to the business than its normal hours of 
operation, SBA will assume that the disadvantaged individual does not 
control the business concern, unless the concern demonstrates that the 
disadvantaged individual has ultimate managerial and supervisory 
control over both the long-term decision making and day-to-day 
management of the business.
    (5) Any disadvantaged individual who seeks to engage in outside 
employment after certification must notify SBA of the nature and 
anticipated duration of the outside employment and demonstrate to SBA 
that the outside employment will not prevent the disadvantaged 
individual from controlling the business concern.
* * * * *

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

0
3. 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
4. Amend Sec.  127.102 by:
0
a. Adding the definition of ``Applicant'' in alphabetical order;
0
b. Revising the definitions of ``Interested party'' and ``System for 
Award Management (SAM) (or any successor system)''; and
0
c. Removing the definition of ``WOSB Program Repository''.
    The addition and revisions read as follows:


Sec.  127.102   What are the definitions of the terms used in this 
part?

* * * * *
    Applicant means a firm applying for certification in the WOSB 
Certification Program.
* * * * *
    Interested party means a concern certified as, or pending 
certification as, a WOSB or EDWOSB that submits an offer for a specific 
EDWOSB or WOSB requirement (including Multiple Award Contracts), any 
concern that submitted an offer in a full and open competition and its 
opportunity for award will be affected by a reserve of an award given 
to a WOSB or EDWOSB, the contracting activity's contracting officer, or 
SBA.
* * * * *
    System for Award Management (SAM) (or any successor system) means 
the primary Government repository for prospective Federal awardee and 
Federal awardee information and the centralized Government system for 
certain contracting, grants, and other assistance-related processes. It 
includes--
    (1) Data collected from prospective Federal Awardees required for 
the conduct of business with the Government;
    (2) Prospective contractor-submitted annual representations and 
certifications in accordance with FAR subpart 4.12; and
    (3) Identification of those parties excluded from receiving Federal 
Contracts, certain subcontracts, and certain types of Federal financial 
and non-financial assistance and benefits.
* * * * *
0
5. Amend Sec.  127.202 by revising paragraph (c) to read as follows:


Sec.  127.202   What are the requirements for control of an EDWOSB or 
WOSB?

* * * * *
    (c) Limitation on outside employment. (1) A woman or economically-
disadvantaged woman generally must devote full-time to the business 
concern during its normal hours of operations. The woman or 
economically-disadvantaged woman who holds the highest officer position 
of the business concern may not engage in outside employment that 
prevents her from devoting sufficient time and attention to the 
business concern to control its management and daily operations.
    (2) Where a woman or economically disadvantaged woman claiming to 
control a business concern devotes fewer hours to the business than its 
normal hours of operation, SBA will assume that she does not control 
the business concern, unless the concern demonstrates that she has 
ultimate managerial and supervisory control over both the long-term 
decision making and day-to-day management and administration of the 
business.
    (3) Any qualifying woman or economically disadvantage woman who 
seeks to engage in outside employment after certification must notify 
SBA of the nature and anticipated duration of the outside employment 
and demonstrate to SBA that the outside employment will not prevent her 
from controlling the business concern.
* * * * *
0
6. Amend Sec.  127.300 by revising the section heading and paragraphs 
(a)(2), (b)(3), and (c) to read as follows:


Sec.  127.300   How is a concern certified as an EDWOSB or WOSB?

    (a) * * *
    (2) A concern may submit evidence to SBA that it is a women-owned 
and controlled small business that is an SBA-certified participant in 
the Veteran Small Business Certification Program.
* * * * *
    (b) * * *
    (3) A concern may submit evidence to SBA that it is an economically 
disadvantaged women-owned and controlled small business that is a 
certified participant in the Veteran Small Business Certification 
Program.
* * * * *
    (c) If SBA determines that the concern is a qualified WOSB or 
EDWOSB, it will issue a letter of certification and designate the 
concern as a certified WOSB or EDWOSB on the Dynamic Small Business 
Search (DSBS) system, SAM, or successor system.
0
7. Amend Sec.  127.303 by:
0
a. Redesignating paragraph (a)(1)(iii) as paragraph (a)(1)(iv);
0
b. Adding new paragraph (a)(1)(iii);
0
c. Removing paragraph (a)(2); and
0
d. Redesignating paragraph (a)(3) as paragraph (a)(2).
    The addition reads as follows:


Sec.  127.303   What must a concern submit for certification?

    (a) * * *
    (1) * * *
    (iii) A concern that is certified by SBA as a veteran-owned or 
service-disabled veteran-owned small business for the Veteran Small 
Business Certification Program and is owned and controlled by one or 
more women may use documentation of its VOSB or SDVOSB certification or 
most recent recertification in support of its application for WOSB 
certification. If the concern is also seeking EDWOSB certification, the 
concern must also submit documentation demonstrating

[[Page 42820]]

that it is owned and controlled by one or more women who are 
economically disadvantaged in accordance with Sec.  127.203(b)(3).
* * * * *
0
8. Amend Sec.  127.304 by revising paragraph (a) to read as follows:


Sec.  127.304   How is an application for certification processed?

    (a) The SBA's Director of Government Contracting (D/GC) or designee 
is authorized to approve or decline applications for certification. SBA 
must receive all required information and supporting documents before 
it will begin processing a concern's application. SBA will not process 
incomplete applications.
    (1) SBA will advise each applicant after the receipt of an 
application whether the application is complete and suitable for 
evaluation and, if not, what additional information or clarification is 
required to complete the application.
    (2) SBA will make its determination within ninety (90) calendar 
days after receipt of a complete package, whenever practicable.
* * * * *
0
9. Amend Sec.  127.305 by revising paragraph (a) to read as follows:


Sec.  127.305   May declined or decertified concerns seek 
recertification at a later date?

    (a) A concern that SBA or a third-party certifier has declined or 
that SBA has decertified may seek certification after ninety (90) days 
from the date of decline or decertification if it believes that it has 
overcome all of the reasons for decline or decertification and is 
currently eligible. However, a concern that has been declined three 
times within 18 months of the date of the first final Agency decision 
finding the concern ineligible cannot submit a new application for 
admission to the program until 12 months from the date of the third 
final Agency decision to decline.
* * * * *
0
10. Amend Sec.  127.356 by revising paragraph (c) to read as follows:


Sec.  127.356   How does a concern obtain certification from an 
approved certifier?

* * * * *
    (c) The concern must ensure that all documents necessary to 
determine its eligibility for certification by an approved certifier 
are uploaded in https://certify.sba.gov or any successor system.
0
11. Amend Sec.  127.504 by adding a sentence to the end of the 
introductory text of paragraph (a) to read as follows:


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

    (a) * * * An application is pending upon notification from SBA that 
the application is deemed complete and has sufficient documentation for 
full analysis.
* * * * *
0
12. Amend Sec.  127.604 by adding paragraph (f)(5) to read as follows:


Sec.  127.604   How will SBA process an EDWOSB or WOSB status protest?

* * * * *
    (f) * * *
    (5) Once a final determination has been made that a concern does 
not meet the requirements of a WOSB or EDWOSB, the concern cannot self-
certify as a WOSB or EDWOSB, as applicable, for any WOSB or EDWOSB 
contract. If a concern does so, it may be in violation of criminal 
laws, including section 16(d) of the Small Business Act, 15 U.S.C. 
645(d). If the concern has already certified itself as a WOSB or EDWOSB 
on a pending procurement, the concern must immediately inform the 
contracting officer for the procuring agency of its decertification.
    (i) Not later than two days after the date on which a final 
determination is made, such concern must update its WOSB/EDWOSB status 
in the System for Award Management (or any successor system).
    (ii) If a business concern fails to update its WOSB/EDWOSB status 
in the System for Award Management (or any successor system) in 
response to the final determination, SBA will make such update within 
two business days of the concern's failure to do so.
    (iii) A concern required to make an update in the System for Award 
Management (or any successor system) shall notify a contracting officer 
for each contract with respect to which such concern has an offer or 
bid pending of the determination made, if the concern finds, in good 
faith, that such determination affects the eligibility of the concern 
to perform such contract.


Sec.  127.701   [Removed]

0
13. Remove Sec.  127.701.

PART 128--VETERAN SMALL BUSINESS CERTIFICATION PROGRAM

0
14. The authority citation for part 128 continues to read as follows:

    Authority: 15 U.S.C. 632(q), 634(b)(6), 644, 645, 657f, 657f-1.

0
15. Amend Sec.  128.203 by revising paragraph (i) to read as follows:


Sec.  128.203   Who does SBA consider to control a VOSB or SDVOSB?

* * * * *
    (i) Limitation on outside employment. (1) A qualifying veteran 
generally must devote full-time to the business concern during its 
normal hours of operations. The qualifying veteran who holds the 
highest officer position of the business concern may not engage in 
outside employment that prevents the qualifying veteran from devoting 
the time and attention to the concern necessary to control its 
management and daily business operations.
    (2) Where a qualifying veteran claiming to control a business 
concern devotes fewer hours to the business than its normal hours of 
operation, SBA will assume that the qualifying veteran does not control 
the business concern, unless the concern demonstrates that the 
qualifying veteran has ultimate managerial and supervisory control over 
both the long-term decision making and day-to-day management of the 
business.
    (3) Any qualifying veteran who seeks to engage in outside 
employment after certification must notify SBA of the nature and 
anticipated duration of the outside employment and demonstrate to SBA 
that the outside employment will not prevent the qualifying veteran 
from controlling the business concern.

Isabella Casillas Guzman,
Administrator.
[FR Doc. 2024-10518 Filed 5-15-24; 8:45 am]
BILLING CODE 8026-09-P