[Federal Register Volume 89, Number 140 (Monday, July 22, 2024)]
[Proposed Rules]
[Pages 59010-59012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16011]


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 Proposed Rules
                                                 Federal Register
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 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. 140 / Monday, July 22, 2024 / 
Proposed Rules  

[[Page 59010]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 126


Tribal Consultation for HUBZone Program Updates and 
Clarifications and Potential Reforms Under Executive Order 14112

AGENCY: U.S. Small Business Administration.

ACTION: Notification of tribal consultation meeting; request for 
comments.

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SUMMARY: The U.S. Small Business Administration (SBA or Agency) 
announces that it is holding tribal consultation meetings in 
Albuquerque, New Mexico, Oklahoma City, Oklahoma, and Anchorage, AK, as 
well as a Listening Session in Honolulu, Hawaii, concerning forthcoming 
proposed revisions to the Historically Underutilized Business Zone 
(HUBZone) program regulations. The proposed rule would amend the 8(a) 
Business Development (BD) and size regulations to clarify certain 
policies. Additionally, SBA requests comments and input on how best to 
implement Executive Order (E.O.) 14112, which, among other things, 
calls on agencies to increase the accessibility, equity, flexibility, 
and utility of Federal funding and support programs for Tribal Nations. 
SBA is also seeking comments on prospective policy changes addressing 
joint venture participation in SBA's programs. Testimony presented at 
these tribal consultations will become part of the administrative 
record for SBA's consideration when the Agency deliberates on 
approaches to changes in the HUBZone and 8(a) BD program regulations.

DATES: The meeting dates are as follows:
    1. Monday, August 19, 2024, 9:00 a.m. to 12:30 p.m. (MDT), 
Albuquerque, New Mexico. Pre-registration for this Tribal Consultation 
meeting is requested by August 12, 2024.
    2. Wednesday, August 21, 2024, 9:00 a.m. to 12:00 p.m. (CDT), 
Oklahoma City, Oklahoma. Pre-registration for this Tribal Consultation 
meeting is requested by August 14, 2024.
    3. Tuesday, August 27, 2024, 9:00 a.m. to 12:30 p.m. (AKDT), 
Anchorage, Alaska. Pre-registration for this Tribal Consultation 
meeting is requested by August 20, 2024.
    4. The Listening Session will be held on Tuesday, September 17, 
2024, 8:30 a.m. to 12:00 p.m. (HST), Honolulu, Hawaii. Pre-registration 
for this Listening Session is requested by September 10, 2024.

ADDRESSES: 
    Meeting Locations:
    1. The Tribal Consultation meeting in Albuquerque, New Mexico will 
be held at the Indian Pueblo Cultural Center, 2401 12th Street NW, 
Albuquerque, New Mexico 87104.
    2. The Tribal Consultation meeting in Oklahoma City, Oklahoma will 
be held at the First Americans Museum, 659 First Americans Boulevard, 
Oklahoma City, OK 73129.
    3. The Tribal Consultation meeting in Anchorage, Alaska will be 
held at the Z.J. Loussac Public Library, 3600 Denali Street, Anchorage, 
AK 99503.
    4. The Listening Session in Honolulu, Hawaii will be held at the 
SBA Hawaii District Office, 500 Ala Moana Boulevard, Suite 1-306, 
Honolulu, Hawaii 96813.
    Pre-registration: Send pre-registration requests to attend and/or 
testify to Chequita Carter of SBA's Office of Native American Affairs, 
U.S. Small Business Administration, 409 3rd Street SW, Washington, DC 
20416; [email protected]; or Facsimile to (202) 481-2177.
    Comments: You may submit comments by any of the following methods:
     Email: to Jackson S. Brossy, Assistant Administrator, 
Office of Native American Affairs, U.S. Small Business Administration, 
at [email protected].
     Mail (for paper, disk, or CD-ROM submissions): to Jackson 
S. Brossy, Assistant Administrator, Office of Native American Affairs, 
U.S. Small Business Administration, 409 3rd Street SW, Washington, DC 
20416.
    Instructions: All submissions received will become part of the 
administrative record for any rulemaking resulting from these tribal 
consultation meetings and listening session. As such, comments received 
may 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 Jackson S. 
Brossy and highlight the information that you consider to be CBI and 
explain why you believe this information should be held confidential. 
SBA will make a final determination as to whether the comments will be 
published.

FOR FURTHER INFORMATION CONTACT: Chequita Carter, Program Assistant for 
SBA's Office of Native American Affairs, at [email protected] or 
(202) 205-6680 or by facsimile to (202) 481-2177. This phone number can 
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 planning to issue a proposed rule concerning the HUBZone 
program regulations under RIN 3245-AH68. The proposed rule is intended 
to clarify and improve several regulatory provisions, including those 
governing HUBZone contract eligibility. The proposed rule would also 
make several changes to SBA's size and 8(a) BD program regulations. In 
particular, the rule would consolidate and redesignate the separate 
recertification requirements for SBA's size, 8(a) BD, HUBZone, Woman-
Owned Small Business, and Service-Disabled Veteran-Owned Small Business 
programs to a new section to reduce confusion and to ensure consistent 
application of the size and status recertification requirements. SBA 
anticipates the proposed rule will be published prior to the tribal 
consultation meetings and the Listening Session announced in this 
document.
    In addition to the above referenced regulatory proposals, SBA is 
asking for input on how best to implement E.O. 14112, Reforming Federal 
Funding and Support for Tribal Nations To Better Embrace Our Trust 
Responsibilities and Promote the Next Era of Tribal Self-Determination, 
which was signed by the President on December 6, 2023. This E.O. 
directs agencies to identify and execute policy reforms designed to 
promote accessible, equitable, and

[[Page 59011]]

flexible administration of Federal funding and support programs for 
Tribal Nations to better live up to the Federal Government's trust 
responsibilities and help address the needs of all Tribal Nations. SBA 
has identified several potential opportunities for improvement, 
including the current requirements for personal guarantees and a waiver 
of sovereign immunity for 7(a) loans to tribally-owned business 
concerns, as well as the match funding requirement applicable to grants 
awarded by Native-serving entrepreneurship organizations, such as Small 
Business Development Centers and Community Development Financial 
Institutions. SBA is seeking comments on these and other potential 
reforms to reduce burdens and improve the accessibility of SBA's 
programs for Tribal stakeholders. Additionally, the Agency requests 
input on a change SBA has already made to address the business and 
economic development needs of Tribal Nations. Specifically, SBA's 
Assistant Administrator for Native American Affairs (ONAA)--who 
previously reported to the Associate Administrator for the Office of 
Entrepreneurial Development--now reports directly to the SBA 
Administrator. SBA would like to better understand whether Tribal 
Nations wish to continue with this current organization and reporting 
structure.
    Lastly, SBA is requesting comments on the perception that mentor-
prot[eacute]g[eacute] joint ventures are winning an inordinate number 
of orders issued under small business multiple award contracts and 
seeks suggestions on how to incentivize a more equitable marketplace 
for individual small businesses who compete against mentor-
prot[eacute]g[eacute] joint ventures for multiple award, small business 
contracts. There is also a perception that small businesses often enter 
joint ventures to seek multiple award contract awards because procuring 
agency past performance and experience requirements make it difficult 
for many small businesses to qualify for the awards individually. SBA 
is considering whether to propose eliminating the exception to 
affiliation between an SBA-approved mentor and its 
prot[eacute]g[eacute] for multiple award contracts to address this 
concern. Such a change would continue to allow joint ventures to seek 
and be awarded single award small business contracts, but would make 
joint ventures ineligible for multiple award contracts. If that would 
occur, SBA would expect the past performance and experience required 
for award of future multiple award contracts to be adjusted to allow 
individual small businesses to more easily qualify for award.
    Another potential approach would be to allow an exclusion from 
affiliation for a joint venture between a prot[eacute]g[eacute] firm 
and its mentor only for contracts or orders that do not exceed five 
years. As SBA has previously stated, SBA believes that a joint venture 
should not be an on-going entity, but something with limited scope and 
limited duration. Thus, SBA has limited the duration that a joint 
venture can submit offers for the award of contracts to two years from 
the date of its first contract award. SBA is questioning whether a 
joint venture performing a contract or order that exceeds five years is 
truly a limited duration entity.
    Specific to qualified HUBZone prot[eacute]g[eacute] firms 
participating in the Mentor-Prot[eacute]g[eacute] Program, SBA is 
considering steps to clarify the applicability of the HUBZone price 
evaluation preference to HUBZone joint ventures formed under the 
Mentor-Prot[eacute]g[eacute] Program. Under the HUBZone price 
evaluation preference, where a procuring agency will award a contract 
on an unrestricted basis (i.e., full and open competition), the agency 
must deem the price offered by a certified HUBZone small business 
concern (including a HUBZone joint venture that complies with the 
requirements of Sec.  126.616) to be lower than the price offered by an 
apparent successful large business offeror if the price offered by the 
certified HUBZone small business concern is not more than 10% higher 
than the price offered by the large business. SBA is requesting 
comments and input on whether it is appropriate for a HUBZone mentor-
prot[eacute]g[eacute] joint venture to benefit from the HUBZone price 
evaluation preference when the joint venture is already benefitting 
from its large business mentor's lower cost structures and pricing. SBA 
is considering whether to propose eliminating the HUBZone price 
evaluation preference's applicability to all joint ventures formed 
under the Mentor-Prot[eacute]g[eacute] Program or, alternatively, to 
offers submitting by a HUBZone joint venture where the mentor exceeds 
the applicable size standard corresponding to the NAICS code assigned 
to the contract.

II. Tribal Consultation Meetings

    The purpose of these tribal consultation meetings is to conform to 
the requirements of Executive Order 13175, Consultation and 
Coordination With Indian Tribal Governments (65 FR 67249), and SBA's 
Tribal Consultation Policy (https://www.sba.gov/document/support-sba-tribal-consultation-policy); to provide interested parties with an 
opportunity to discuss their views on the issues; and for SBA to obtain 
the views of SBA's stakeholders on approaches to the HUBZone and 8(a) 
BD regulations. SBA considers tribal consultation meetings a valuable 
component of its deliberations and believes that this tribal 
consultation meeting will allow for constructive dialogue with the 
Tribal community, Tribal Leaders, Tribal Elders, elected members of 
Alaska Native Villages or their appointed representatives, and 
principals of tribally-owned and ANC-owned firms participating in the 
8(a) BD program.
    The format of these tribal consultation meetings 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 will 
become part of the administrative record for SBA's consideration. 
Written testimony may be submitted in lieu of oral testimony. SBA will 
analyze the testimony, both oral and written, along with any written 
comments received. SBA officials may ask questions of a presenter to 
clarify or further explain the testimony. The purpose of the tribal 
consultation is to assist SBA with gathering information to guide SBA's 
review process and to potentially develop new proposals. SBA requests 
that the comments pertain to SBA's planned rulemaking concerning the 
HUBZone and 8(a) BD programs, general issues as they pertain to the 
HUBZone and 8(a) BD regulations, opportunities for reform under E.O. 
14112, or the unique concerns of the Tribal communities. 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. Electronic or digitized 
copies are encouraged.
    Each tribal consultation meeting will be held for one day. The 
meeting in Albuquerque, New Mexico will begin at 9:00 a.m. and end at 
12:30 p.m. (MDT); the meeting in Oklahoma City, Oklahoma will begin at 
9:00 a.m. and end at 12:30 p.m. (CDT); the meeting in Anchorage, Alaska 
will begin at 9:00 a.m. and end at 12:30 p.m. (AKDT); and the Listening 
Session in Honolulu, Hawaii will begin at 8:30 a.m. and end at 12:00 
p.m. (HST). All registered speakers will have an opportunity to provide 
testimony. SBA may adjourn early if all those scheduled have delivered 
their testimony.

III. Registration

    SBA respectfully requests that any elected or appointed 
representative of

[[Page 59012]]

the tribal communities or principal of a tribally-owned, ANC-owned, or 
NHO-owned 8(a) firm that is interested in attending please pre-register 
in advance and indicate whether you would like to testify at the 
hearing. However, pre-registration is not required for attendance. SBA 
requests that attendees register with SBA no later than: August 12, 
2024, for the consultation meeting in Albuquerque; August 14, 2024, for 
the consultation meeting in Oklahoma City; August 20, 2024, for the 
consultation meeting in Anchorage; and September 10, 2024, for the 
Listening Session in Honolulu. To register, please contact Chequita 
Carter of SBA's Office of Native American Affairs in writing at 
[email protected] or by facsimile to (202) 481-2177. If you are 
interested in testifying, please include the following information 
relating to the person testifying: Name, Organization affiliation, 
Address, Telephone number, Email address and Fax number. 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 has 
the opportunity to do so. SBA will confirm in writing the registration 
of presenters and attendees.

IV. Information on Service for Individuals With Disabilities

    For information on facilities or services for individuals with 
disabilities or to request special assistance at the tribal 
consultation meeting, contact Chequita Carter at the telephone number 
or email address indicated under the FOR FURTHER INFORMATION CONTACT 
section of this document.

    Authority:  15 U.S.C. 634 and E.O. 13175, 65 FR 67249.

Jackson S. Brossy,
Assistant Administrator, Office of Native American Affairs.
[FR Doc. 2024-16011 Filed 7-18-24; 11:15 am]
BILLING CODE 8026-09-P