[Federal Register Volume 74, Number 233 (Monday, December 7, 2009)]
[Unknown Section]
[Pages 64349-64353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X09-251207]
[[Page 64349]]
U.S. SMALL BUSINESS ADMINISTRATION (SBA)
Statement of Regulatory Priorities
Overview
The U.S. Small Business Administration's (SBA) mission is to maintain
and strengthen the Nation's economy by enabling the establishment and
viability of small businesses and by assisting in economic recovery of
communities after disasters. In order to accomplish this mission, SBA
focuses on improving the economic and regulatory environment for small
businesses, especially those in areas that have significantly higher
unemployment and lower income levels than the Nation's averages and
those in traditionally underserved markets. The agency also focuses on
providing timely, effective financial assistance to businesses -
including non-profit organizations, homeowners, and renters affected by
disasters.
SBA is committed to:
Working with its financial partners to improve small
businesses' access to capital through SBA's loan and
venture capital programs;
Providing technical assistance to small businesses through its
resource partners;
Increasing contracting and business opportunities for small
businesses;
Providing affordable, timely and easily accessible financial
assistance to businesses, homeowners and renters after a
disaster; and
Measuring outcomes, such as revenue growth, job creation,
business longevity, and recovery rate after a disaster, to
ensure that SBA's programs and services are delivered
efficiently and effectively.
SBA's regulatory actions reflect the goals and objectives of the agency
and are designed to provide the small business and residential
communities with the information and guidance they need to succeed as
entrepreneurs and restore their homes or other property after disaster.
In the coming year, SBA's regulatory priorities will focus on
increasing procurement opportunities for Women-Owned Small Business
Concerns (WOSBs). This proposed rule would further SBA's overall goal
to increase contracting and business opportunities for small businesses
by giving contracting officers the ability to restrict competition to
WOSBs in industries in which SBA has determined that WOSBs are
underrepresented and substantially underrepresented and where certain
threshold determinations are made by an agency.
In addition, SBA has prioritized changes to the regulations governing
the Section 8(a) Business Development (8(a) BD) and Small Disadvantaged
Business (SDB) programs, and to SBA's size determinations. The
amendments in this proposed rule will prevent large businesses as well
as other non-8(a) firms from being able to reap the benefits of sole
source contracts intended for tribally-owned or Alaska Native
Corporation-owned 8(a) Participants. The proposed rule will also
benefit eligible business by clarifying SBA's requirements, removing
confusion, and eliminating or easing restrictions that are unnecessary.
Finally, SBA will focus its regulatory priorities on reviewing and
updating its size standards for small businesses to ensure that SBA's
size standards are consistently evaluated using the latest available
data. In particular, SBA intends to publish three proposed rules to
revise the size standards for business in certain industries classified
under the North American Industry Classification System (NAICS): Retail
Trade Industry Sector; Accommodations and Food Services Industry
Sector; and Other Services Industry Sector, which include, for example,
repair and maintenance services, personal and laundry services, and
religious, grant making, civic, and professional services.
_______________________________________________________________________
SBA
-----------
PROPOSED RULE STAGE
-----------
158. 8(A) BUSINESS DEVELOPMENT
Priority:
Other Significant
Legal Authority:
15 USC 634(b)(6), 636(j), 637(a) and (d)
CFR Citation:
13 CFR 124
Legal Deadline:
None
Abstract:
This rule proposes to make a number of changes to the regulations
governing the 8(a) Business Development (8(a) BD) Program and several
changes to SBA's size regulations. Some of the changes involve
technical issues, such as changing the term ``SIC code'' to ``NAICS
code'' to reflect the national conversion to the North American
Industry Classification System. SBA has learned through experience that
certain of its rules governing the 8(a) BD program are too restrictive
and serve to unfairly preclude firms from being admitted to the
program. In other cases, SBA has determined that a rule is too
expansive or indefinite and has sought to restrict or clarify that
rule. Changes are also being proposed to correct past public or agency
misinterpretation. Also, new situations have arisen that were not
anticipated when the current rules were drafted and the proposed rule
seeks to cover those situations. Finally, one of the changes, involving
Native Hawaiian Organizations, implements recently enacted legislation.
Statement of Need:
Sections 8(a) and 7(j) of the Small Business Act authorize the SBA to
administer the 8(a) BD program and assist eligible small disadvantaged
business concerns compete in the American economy through business
development. The 8(a) BD program provides procurement, financial,
management and technical assistance to foster the business growth and
development of 8(a) BD program participants. The proposed regulatory
action is necessary to implement changes to the regulations governing
the 8(a) BD program, the Small Disadvantaged Business (SDB) programs,
and to the SBA size regulations. The changes are proposed as a result
of the continuing need to ensure that SBA is effectively delivering the
8(a) BD program in accordance with the Small Business Act. In addition,
the regulatory action is needed to enable SBA to institute the proper
internal controls that will ensure effective monitoring and oversight
of the 8(a) BD Program.
Summary of Legal Basis:
This rule proposes to make some changes that involve technical issues,
correct some rules governing the 8(a) BD program that are too
restrictive, and others that require clarification. The rule change
will address new situations have arisen that were not anticipated when
the current rules were drafted. Finally, there is one change that
implements a statutory change.
Alternatives:
SBA will analyze and consider the impact of any comments received from
the public as a result of the proposed
[[Page 64350]]
regulations being published in the Federal Register. Where relevant and
appropriate, the regulations will be revised to incorporate these
comments.
Anticipated Cost and Benefits:
It is difficult to estimate the costs and benefits to the various
classes of firms affected by this rule as it is impossible to foresee
which future contracts above the competitive thresholds would be
awarded based on the various options available to contracting officers.
SBA believes that the benefits of the proposed rule exceed its costs
and exceed the benefits of continuing the status quo. SBA believes that
increased clarity and easing of restrictions in the overall proposed
changes set forth in this rule are beneficial to 8(a) applicants and
Participants.
Risks:
Because the 8(a) Program is a business development program--not a
contracting program--it is intended to foster the 8(a) firm's growth
(through various forms of technical, management, procurement and
financial assistance) and viability during the Participant's 9-year
term.
The regulatory action is intended to mitigate any risks associated with
program procedures and internal controls by ensuring clear and concise
regulations.
Timetable:
_______________________________________________________________________
Action Date FR Cite
_______________________________________________________________________
NPRM 10/28/09 74 FR 55694
NPRM Comment Period End 12/28/09
Final Action 04/00/10
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses, Governmental Jurisdictions
Government Levels Affected:
None
URL For Public Comments:
www.regulations.gov
Agency Contact:
Joe Loddo
Associate Administrator, Office of Business Development
Small Business Administration
409 3rd Street SW
Washington, DC 20416
Phone: 202 205-7550
Email: joe.loddo@sba.gov
RIN: 3245-AF53
_______________________________________________________________________
SBA
159. SMALL BUSINESS SIZE STANDARDS: RETAIL TRADE INDUSTRIES
Priority:
Other Significant
Legal Authority:
15 USC 632(a)
CFR Citation:
13 CFR 121
Legal Deadline:
None
Abstract:
An SBA project is the review and update of all SBA size standards over
a 2-year period. This proposed rule is one of a series of proposals
evaluating the size standards for industries within a specific North
American Industry Classification System (NAICS) Industry Sector. This
action proposes revisions to certain industries in the NAICS Retail
Trade Industry Sector. The Retail Trade Industry Sector includes
companies engaged in retailing merchandise and rendering services
incidental to the sale of merchandise. These proposed revisions ensure
that SBA's size standards are consistently evaluated using the latest
available data.
Statement of Need:
SBA's small business size standards are used to establish eligibility
for financial assistance and Federal contracting opportunities for
small businesses. SBA is conducting a comprehensive review of all small
business size standards to ensure that they accurately reflect industry
structure, Federal government procurement practices and current
economic conditions so that Federal programs are able to effectively
assist small businesses. This rule reviews SBA size standards for
industries within NAICS Sector 44-45, Retail Trade, and revises size
standards for certain industries in the sector. The last such review of
size standards for retail trade industries was in the early 1980s.
Summary of Legal Basis:
The Small Business Act (15 U.S.C. 632(a)) delegates to SBA's
Administrator the responsibility for establishing small business
definitions, commonly referred to as size standards. The Act requires
that such definitions vary to reflect industry differences.
Alternatives:
By law, SBA is required to develop numerical size standards for
establishing eligibility for Federal small business assistance
programs. Other than varying size standards by industry, no practical
alternative exists to the systems of numerical size standards.
Anticipated Cost and Benefits:
The rule has proposed to increase size standards for 48 industries
within Sector 44-45, enabling about 8,800 additional firms to obtain
small business status and become eligible for Federal small business
assistance. This could potentially increase the small business share of
Federal contracting dollars by up to between $80 million and $100
million annually. The proposed action is not expected to result in
significant costs to both Federal government and small entities as
necessary administrative and operational mechanisms are already in
place.
Risks:
Not applicable.
Timetable:
_______________________________________________________________________
Action Date FR Cite
_______________________________________________________________________
NPRM 10/21/09 74 FR 53924
NPRM Comment Period End 12/21/09
Final Action 04/00/10
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
URL For Public Comments:
www.regulations.gov
Agency Contact:
Khem Sharma
Division Chief, Division of Size Standards, Office of Government
Contracting/Business Development
Small Business Administration
409 Third Street SW
Washington, DC 20416
Phone: 202 205-7189
Fax: 202 205-6390
RIN: 3245-AF69
[[Page 64351]]
_______________________________________________________________________
SBA
160. SMALL BUSINESS SIZE STANDARDS: OTHER SERVICES
Priority:
Other Significant
Legal Authority:
15 USC 632(a)
CFR Citation:
13 CFR 121
Legal Deadline:
None
Abstract:
An SBA project is the review of all SBA size standards over a 2-year
period. This proposed rule is one of a series of proposals evaluating
the size standards for industries within a specific North American
Industry Classification System (NAICS) Industry Sector. This action
proposes revisions to certain industries in the NAICS Other Services
Industry Sector. Other Services include, for example, repair and
maintenance services, personal and laundry services, and religious,
grant making, civic, and professional services. These proposed
revisions ensure that SBA's size standards are consistently evaluated
using the latest available data.
Statement of Need:
SBA's small business size standards are used to establish eligibility
for financial assistance and Federal contracting opportunities for
small businesses. SBA is conducting a comprehensive review of all small
business size standards to ensure that they accurately reflect industry
structure, Federal government procurement practices and current
economic conditions so that Federal programs are able to effectively
assist small businesses. This rule reviews SBA size standards for
industries within NAICS Sector 81, Other Services, and revises size
standards for certain industries in the sector. The last such review of
size standards for other services industries was in the early 1980s.
Summary of Legal Basis:
The Small Business Act (15 U.S.C. 632(a)) delegates to SBA's
Administrator the responsibility for establishing small business
definitions, commonly referred to as size standards. The Act requires
that such definitions vary to reflect industry differences.
Alternatives:
By law, SBA is required to develop numerical size standards for
establishing eligibility for Federal small business assistance
programs. Other than varying size standards by industry, no practical
alternative exists to the systems of numerical size standards.
Anticipated Cost and Benefits:
The rule has proposed to increase size standards for 18 industries
within Sector 81, enabling about 1,400 additional firms to obtain small
business status and become eligible for Federal small business
assistance. This could potentially increase the small business share of
Federal contracting dollars by up to between $25 million and $30
million annually. The proposed action is not expected to result in
significant costs to both Federal government and small entities as
necessary administrative and operational mechanisms are already in
place.
Risks:
Not applicable.
Timetable:
_______________________________________________________________________
Action Date FR Cite
_______________________________________________________________________
NPRM 10/21/09 74 FR 53941
NPRM Comment Period End 12/21/09
Final Action 04/00/10
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
URL For Public Comments:
www.regulations.gov
Agency Contact:
Khem Sharma
Division Chief, Division of Size Standards, Office of Government
Contracting/Business Development
Small Business Administration
409 Third Street SW
Washington, DC 20416
Phone: 202 205-7189
Fax: 202 205-6390
RIN: 3245-AF70
_______________________________________________________________________
SBA
161. SMALL BUSINESS SIZE STANDARDS: ACCOMMODATIONS AND FOOD SERVICE
INDUSTRIES
Priority:
Other Significant
Legal Authority:
15 USC 632(a)
CFR Citation:
13 CFR 121
Legal Deadline:
None
Abstract:
An SBA project is a review of all SBA size standards over a 2-year
period. This proposed rule is one of a series of proposals evaluating
the size standards for industries within a specific North American
Industry Classification System (NAICS) Industry Sector. This action
proposes revisions to certain industries in the NAICS Accommodations
and Food Services Industry Sector. The Accommodations and Food Services
Industry Sector includes companies that provide lodging and/or prepare
meals, snacks, and beverages for immediate consumption. These proposed
revisions ensure that SBA's size standards are consistently evaluated
using the latest available data.
Statement of Need:
SBA's small business size standards are used to establish eligibility
for financial assistance and Federal contracting opportunities for
small businesses. SBA is conducting a comprehensive review of all small
business size standards to ensure that they accurately reflect industry
structure, Federal government procurement practices and current
economic conditions so that Federal programs are able to effectively
assist small businesses. This rule reviews SBA size standards for
industries within NAICS Sector 72, Accommodation and Food Service, and
revises size standards for certain industries in the sector. The last
such review of size standards for industries in the accommodation and
food service sector was in the early 1980s.
Summary of Legal Basis:
The Small Business Act (15 U.S.C. 632(a)) delegates to SBA's
Administrator the responsibility for establishing small business
definitions, commonly referred to as size standards. The Act requires
that such definitions vary to reflect industry differences.
[[Page 64352]]
Alternatives:
By law, SBA is required to develop numerical size standards for
establishing eligibility for Federal small business assistance
programs. Other than varying size standards by industry, no practical
alternative exists to the systems of numerical size standards.
Anticipated Cost and Benefits:
The rule has proposed to increase size standards for five industries
within Sector 72, enabling about 2,050 additional firms to obtain small
business status and become eligible for Federal small business
assistance. This could potentially increase the small business share of
Federal contracting dollars by up to between $75 million annually. The
proposed action is not expected to result in significant costs to both
Federal government and small entities as necessary administrative and
operational mechanisms are already in place.
Risks:
Not applicable.
Timetable:
_______________________________________________________________________
Action Date FR Cite
_______________________________________________________________________
NPRM 10/21/09 74 FR 53913
NPRM Comment Period End 12/21/09
Final Action 04/00/10
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
None
URL For Public Comments:
www.regulations.gov
Agency Contact:
Khem Sharma
Division Chief, Division of Size Standards, Office of Government
Contracting/Business Development
Small Business Administration
409 Third Street SW
Washington, DC 20416
Phone: 202 205-7189
Fax: 202 205-6390
RIN: 3245-AF71
_______________________________________________________________________
SBA
162. WOMEN-OWNED SMALL BUSINESS FEDERAL CONTRACT PROGRAM
Priority:
Other Significant
Legal Authority:
15 USC 637(m)
CFR Citation:
13 CFR 121; 13 CFR 125; 13 CFR 127; 13 CFR 134
Legal Deadline:
None
Abstract:
The U.S. Small Business Administration (SBA) is prohibited from using
funding in Fiscal Year 2009 to implement the program relating to Women-
Owned Small Business (WOSB) Federal Contract Assistance Procedures
published on October 1, 2008, by the Omnibus Appropriations Act, 2009,
Div. D, title V, section 522 (Mar. 11, 2009). In the future, SBA plans
to withdraw this proposed rule and promulgate a new rule in order to
establish and implement an effective WOSB procurement program. SBA is
committed to moving forward to implement a successful WOSB procurement
program. This rule will establish regulations to implement the Women-
Owned Small Business (WOSB) Federal Contract Assistance Program,
authorized under section 8(m) of the Small Business Act. Section 8(m)
was enacted as part of Public Law 106-554 to provide a targeted
procurement mechanism to assist Federal agencies in achieving the
statutory goal of 5 percent for contracting with WOSBs. In accordance
with section 8(m), the new regulations would authorize contracting
officers to restrict competition to eligible WOSBs for certain Federal
contracts in industries in which SBA has determined that WOSBs are
underrepresented or substantially underrepresented in Federal
procurement. Also consistent with section 8(m), the authority to
restrict competition would be limited to contracts not exceeding $3
million, or $5 million in the case of manufacturing contracts. In
implementing section 8(m) the proposed regulations would further
provide: the eligible industries in which WOSBs are underrepresented or
substantially underrepresented; the specific eligibility requirements
for WOSBs to qualify for program participation; the procedures for
concerns to certify their eligibility; the process for SBA to verify
the continuing WOSB eligibility; the contractual and business
development assistance available under the program; the relevant
protest and appeal procedures; and the applicable penalties.
Statement of Need:
``Although the growth rate in the number of women-owned small
businesses (WOSBs) was almost twice that of all firms between 1997 and
2002, WOSBs have not experienced a proportional increase in their share
of Federal contracting dollars.'' LaLa Wu and Kate Collier, The
National Plan of Action: Then and Now, Bella Abzug Leadership
Institute, November 2007 (hereinafter ``The National Plan of Action'').
``Between 1997 and 2002, the numbers of women-owned firms overall
increased by 19.8 percent and of women-owned employer firms, by 8.3
percent.'' SBA Office of Advocacy. ``Women in Business: 2006. A
Demographic Review of Women's Business Ownership,'' 2007. Most tend be
small; only 1.8 percent of WOSBs have receipts over $1 million and less
than 0.1 percent had more than 500 employees. See The Utilization of
Women-Owned Small Business in Federal Contract, Kauffman-RAND
Institute, 2007. Firms owned by women increased employment by 70,000
and those by men lost 1 million employees. See id. In addition, in
2002, women-owned firms accounted for 28.2 percent of all non-farm
firms in the United States. See id. Despite this growth, the share of
WOSB prime contract awards was 3.39 percent in FY 2008.
Several congressional and executive efforts over the years to increase
Federal contracting with WOSBs have not enhanced the WOSB share of
Federal contracting dollars as much as anticipated. For example, in
1979, when Executive Order 12138 ``charged Federal agencies with
responsibility for providing procurement assistance to women-owned
businesses, WOSBs received only 0.2 percent of all Federal
procurements.'' The National Plan of Action. In 9 years, the percentage
of WOSB Federal procurements had grown to only one percent. See id.
Similarly, in 1988, the Women's Business Ownership Act, Public Law
100--588 (Oct. 25, 1988), ``was enacted to assist women in starting,
managing and growing small businesses.'' Id. ``While this program has
assisted thousands of women in obtaining business financing and
information, it has had less success in the Federal procurement
arena.'' Id.
[[Page 64353]]
Subsequently, in 1994, section 7106 of the Federal Acquisition
Streamlining Act (FASA), Public Law 103--355, ``amended the Small
Business Act by establishing a target that was aimed at increasing
opportunities for women to compete for Federal contracts.'' Id. ``FASA,
among other things, established a Governmentwide goal for participation
by WOSBs in procurement contracts of not less than 5 percent of the
total value of all prime contract and subcontract awards for each
fiscal year.'' Id.
Federal Procurement Data System (FPDS) data indicates that since fiscal
year (FY) 1996, Federal agencies have not met the separate 5 percent
Governmentwide WOSB goal for prime contracts and subcontracts. However,
the share of Federal prime contracting dollars to WOSBs has increased
over the years. For example, in FY 2000, WOSBs received 2.3 percent of
the approximately $200 billion in Federal prime contract awards. The
share of WOSB prime contract award dollars increased to 2.49 percent in
FY 2001, and again to 2.90, 2.98, and 3.03 percent in FYs 2002, 2003
and 2004, respectively. In FY 2005, WOSB prime contract award dollars
increased to 3.18 percent, in FY 2006, increased again to 3.41 percent
of prime contract award dollars, in FY 2007 it remained at 3.41 percent
and in FY 2008 it dropped slightly to 3.39 percent. Although this
increase shows a growing amount of contract of dollars going to WOSBs,
SBA anticipates the WOSB Program will serve to quicken the increase of
that percentage or perhaps give impetus to the development of new
WOSBs.
The foregoing historical data demonstrates the need for targeted
government action to facilitate participation by WOSBs in Federal
government contracting. Congress enacted section 811 of the Small
Business Reauthorization Act of 2000, Public Law 106-554, to provide
that mechanism.
Summary of Legal Basis:
Section 811 of the Small Business Reauthorization Act of 2000, amended
the Small Business Act (Act) by adding a new section 8(m), 15 U.S.C.
637(m), authorizing contracting officers to restrict competition to
eligible WOSBs for certain Federal contracts in industries in which SBA
has determined that WOSBs are underrepresented or substantially
underrepresented in Federal procurement. The new section 8(m) of the
Act explicitly limits the contracting officer's authority to restrict
competition to contracts not exceeding $3 million ($5 million for
manufacturing). It further requires SBA to conduct a study to identify
the industries in which WOSBs are underrepresented and substantially
underrepresented in Federal procurement and requires the head of any
department or agency to provide SBA information that SBA deems
necessary to conduct the study.
Alternatives:
This proposed rule implements statutory provisions for the purpose of
facilitating participation by WOSBs in Federal Government contracting.
Anticipated Cost and Benefits:
Implementing these statutory provisions may impose additional costs on
the Federal Government and small businesses. The costs and benefits of
this proposed rule will be analyzed in the rule's regulatory impact
analysis and its initial regulatory flexibility analysis.
Risks:
This proposed rule poses no risks to public health, safety, or the
environment.
Timetable:
_______________________________________________________________________
Action Date FR Cite
_______________________________________________________________________
NPRM 02/00/10
Regulatory Flexibility Analysis Required:
Yes
Small Entities Affected:
Businesses
Government Levels Affected:
Federal
Agency Contact:
Dean R. Koppel
Acting Director for Government Contracting, Office of Policy, Planning
and Liaison
Small Business Administration
409 3rd Street SW
Washington, DC 20416
Phone: 202 205-7322
Fax: 202 481-1540
RIN: 3245-AG06
BILLING CODE 8025-01-S
