[Federal Register Volume 89, Number 148 (Thursday, August 1, 2024)]
[Rules and Regulations]
[Page 62653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16961]



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 Rules and Regulations
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  Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / 
Rules and Regulations  

[[Page 62653]]



SMALL BUSINESS ADMINISTRATION

13 CFR Parts 125 and 128


Clarification To Direct Final Rule on Eliminating Self-
Certification for Service-Disabled Veteran-Owned Small Businesses

AGENCY: U.S. Small Business Administration.

ACTION: Clarification to direct final rule.

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SUMMARY: The U.S. Small Business Administration (SBA or Agency) 
publishes this document to clarify a direct final rule published on 
June 6, 2024. SBA revised its regulations to implement a provision in 
the National Defense Authorization Act for Fiscal Year 2024 (NDAA 
2024), which eliminates self-certification for service-disabled 
veteran-owned small businesses (SDVOSBs) that are awarded Federal 
Government contracts or subcontracts that count towards agency or 
subcontracting goals. SBA received seven comments but did not receive 
significant adverse comment.

DATES: SDVOSBs may continue to self-certify until the grace period ends 
on December 22, 2024.

FOR FURTHER INFORMATION CONTACT: Donna Fudge, U.S. Small Business 
Administration, Office of Government Contracting and Business 
Development, 409 Third Street SW, 8th Floor, Washington, DC 20416; 
(202) 205-6353; [email protected]. This phone number 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: On June 6, 2024, SBA published a direct 
final rule, 89 FR 48266, to implement provisions of Section 864 of NDAA 
2024 with an effective date of August 5, 2024. NDAA 2024 amends the 
SDVOSB requirements so that on October 1, 2024, each prime contract 
award and subcontract award counted for the purpose of meeting the 
goals for participation by SDVOSBs in procurement contracts for Federal 
agencies or Federal prime contractors shall be entered into with firms 
certified by VetCert under section 36 of the Small Business Act (15 
U.S.C. 657f). Section 864 also created a grace period so that firms 
that file an application for certification with SBA by December 22, 
2024, may continue to self-certify for such Federal Government 
contracts and subcontracts until SBA makes a final decision.
    SBA received seven comments in response to this direct final rule. 
Several of these comments expressed confusion about the direct final 
rule's effective date because it precedes the date of certification 
required by NDAA 2024. It is not SBA's intent to require certification 
by August 5, 2024. The effective date of the direct final rule is 
simply the date that the Code of Federal Regulations is amended. NDAA 
2024 provides a grace period so that SDVOSBs may continue to self-
certify until December 22, 2024. These provisions are mandated by 
statute and SBA does not have the authority to alter them. SBA's intent 
was to give notice to participants of the upcoming requirement and 
their need to apply for certification by December 22, 2024.
    Additionally, SBA received no significant adverse comments which 
would warrant withdrawing the rule. SBA views this as a non-
controversial administrative action that is limited to implementing the 
provisions of NDAA 2024. These provisions are mandated by statute, and 
SBA does not have the authority to alter them in response to comment.

Larry Stubblefield,
Deputy Associate Administrator, Office of Government Contracting and 
Business Development.
[FR Doc. 2024-16961 Filed 7-31-24; 8:45 am]
BILLING CODE 8026-09-P