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. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

2571 

Vol. 76, No. 10 

Friday, January 14, 2011 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 115 

RIN 3245–AF77 

Surety Bond Guarantee Program; 

Disaster and Miscellaneous 

Amendments 

AGENCY: Small Business Administration. 

ACTION: Final rule. 

SUMMARY: The U.S. Small Business 

Administration (SBA) is issuing this 

final rule to implement the authority 

provided by the Small Business Disaster 

Response and Loan Improvements Act 

of 2008, for issuing surety bond 

guarantees for contracts and orders 

related to a major disaster. The rule also 

clarifies that the SBA does not cover any 

costs related to any insurance or 

indemnification requirements in the 

bonded contract. 

DATES: This rule is effective on February 

14, 2011. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Barbara J. Brannan, Office of Surety 

Guarantees, 202–205–6545, e-mail: 

barbara.brannan@sba.gov. 

SUPPLEMENTARY INFORMATION: SBA 

guarantees bonds on contracts up to $2 

million for small and emerging 

contractors who cannot obtain surety 

bonds through regular commercial 

channels. SBA’s guarantee provides 

sureties with the incentive to provide 

bonding for these contractors, 

strengthening their ability to obtain 

bonding and to access greater 

contracting opportunities. 

This rule implements the authority 

granted to the Agency in Sec.12079 of 

subtitle B of title XII of Public Law 110– 

246, which establishes the bonding 

thresholds for any procurement related 

to a major disaster. It adds a new 

provision to SBA regulations that 

authorizes SBA to approve, under 

certain conditions, an SBA bond 

guarantee on an individual Contract or 

Order up to $5,000,000 at the time of 

bond execution. For products or 

services procured under non-Federal 

Contracts or Orders up to $5,000,000, 

SBA may issue a bond guarantee if the 

products will be manufactured or the 

services will be performed in a major 

disaster area identified in the Federal 

Emergency Management Agency 

(FEMA) Web site. For products or 

services procured under Federal 

Contracts or Orders up to $5,000,000, 

SBA may issue a bond guarantee if: 

(a) The products will be manufactured 

or the services will be performed in the 

major disaster area identified in the 

FEMA Web site; or (2) the products will 

be manufactured or the services will be 

performed outside the major disaster 

area and the products or services will 

directly assist in the recovery efforts in 

the major disaster area. SBA may issue 

a bond guarantee on a Federal Contract 

or Order up to $10,000,000 if it meets 

one of the conditions above and is 

requested by the Head of the Agency 

involved in disaster reconstruction 

efforts. 

Additionally, this final rule provides 

that SBA’s authority to guarantee bonds 

in the amounts authorized by Public 

Law 110–246 for a specific disaster 

would apply only during the 12 month 

period following the disaster declaration 

unless SBA extends, in its discretion, 

the authority for such disaster. SBA will 

publish any notices of extension in the 

Federal Register. 

Lastly, this final rule clarifies that 

SBA does not cover any costs related to 

any insurance or indemnification 

requirements in the bonded contract. 

Discussion of Public Comments 

On April 26, 2010, SBA published the 

notice of proposed rulemaking with 

request for comment on these changes to 

the surety bond program in the Federal 

Register at 75 FR 21521. The comment 

period ended on May 26, 2010. SBA did 

not receive any public comments. 

Compliance With Executive Orders 

12866, 12988, and 13132, 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 

(OMB) has determined that this rule 

does not constitute a significant 

regulatory action under Executive Order 

12866. This rule is also not a major rule 

under the Congressional Review Act. 

Executive Order 12988 

This action meets applicable 

standards set forth in Sections 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 

For purposes of Executive Order 

13132, SBA has determined that this 

final rule 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. Therefore, for the 

purpose of Executive Order 13132, 

Federalism, SBA has determined that 

this final rule has no federalism 

implications warranting preparation of a 

federalism assessment. 

Paperwork Reduction Act, 44 U.S.C., 

Ch. 35 

SBA has determined that this final 

rule does not impose additional 

reporting or recordkeeping requirements 

under the Paperwork Reduction Act, 44 

U.S.C., Chapter 35. 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612 

The Regulatory Flexibility Act (RFA), 

5 U.S.C. 601, requires administrative 

agencies to consider the effect of their 

actions on small entities, small nonprofit enterprises, and small local 

governments. Pursuant to the RFA, 

when an agency issues a rulemaking, 

the agency must prepare a regulatory 

flexibility analysis which describes the 

impact of the rule on small entities. 

However, section 605 of the RFA allows 

an agency to certify a rule, in lieu of 

preparing an analysis, if the rulemaking 

is not expected to have a significant 

economic impact on a substantial 

number of small entities. Within the 

meaning of RFA, SBA certifies that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. There are 

sixteen Sureties that participate in the 

SBA program, and no part of this final 

rule would impose any significant 

additional cost or burden on them. 


srobinson on DSKHWCL6B1PROD with RULES
2572 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Rules and Regulations 

List of Subjects in 13 CFR Part 115 

Claims, Reporting and recordkeeping 

requirements, Small businesses, Surety 

bonds. 

For the reasons stated in the 

preamble, the Small Business 

Administration amends 13 CFR Part 115 

as follows: 

PART 115—SURETY BOND 

GUARANTEE 

■ 1. The authority citation for part 115 

is revised to read as follows: 

Authority: 5 U.S.C. app. 3; 15 U.S.C. 687b, 

687c, 694a, 694b note, Pub. L. 106–554; Pub. 

L. 108–447, Div K, Sec. 203; Pub. L. 110–246, 

Sec. 12079, 122 Stat. 1651; and Pub. L. 111– 

5, 123 Stat.115. 

■ 2. In § 115.10, revise the definition of 

‘‘Applicable Statutory Limit’’ and add a 

definition of ‘‘Head of Agency’’ in 

alphabetical order to read as follows: 

§ 115.10 Definitions. 

* * * * * 

Applicable Statutory Limit means the 

maximum amount of any Contract or 

Order for which section 411(a) of the 

Small Business Investment Act, as 

amended from time to time, or other 

law, authorizes SBA to guarantee, or 

commit to guarantee, a Bid Bond, 

Payment Bond, Performance Bond, or 

Ancillary Bond. 

* * * * * 

Head of Agency means in the case of 

a cabinet department, the Secretary; and 

in the case of an independent 

commission, board, or agency, the Chair 

or Administrator; or any person to 

whom the Secretary, Chair, or 

Administrator has directly delegated the 

authority to request SBA to guarantee 

bonds on Contracts or Orders in excess 

of $5,000,000. 

* * * * * 

■ 3. In § 115.12, add paragraph (e)(5) to 

read as follows: 

§ 115.12 General program policies and 

provisions. 

* * * * * 

(e) * * * 

(5) Guarantee authority for Contracts 

and Orders related to a major disaster 

area. Subject to the availability of funds 

appropriated in advance specifically for 

the purpose of guaranteeing bonds for 

any Contract or Order related to a major 

disaster, SBA may guarantee bonds on 

any Contract or Order under the 

following terms and conditions: 

(i) The Contract or Order does not 

exceed $5,000,000 at the time of bond 

execution, and: 

(A) For products or services procured 

under a Federal Contract or Order, the 

products will be manufactured or the 

services will be performed in the major 

disaster area identified in the Federal 

Emergency Management Agency 

(FEMA) Web site at http:// 

www.fema.gov, or the products will be 

manufactured or the services will be 

performed outside the major disaster 

area and the products or services will 

directly assist in the recovery efforts in 

the major disaster area; or 

(B) For products or services procured 

under any other Contract or Order, the 

products will be manufactured or the 

services will be performed in the major 

disaster area identified in the FEMA 

Web site at http://www.fema.gov; 

(ii) At the request of the Head of the 

Agency involved in reconstruction 

efforts in response to a major disaster, 

SBA may guarantee bonds on Federal 

Contracts or Orders in excess of 

$5,000,000, but not more than 

$10,000,000; 

(iii) The restrictions set forth in 

paragraph (e)(3) of this section do not 

apply to the guarantees issued under 

this paragraph (e)(5); and 

(iv) A guarantee may be issued under 

this paragraph (e)(5) for any Contract or 

Order for which an offer is submitted or 

an award is made within 12 months 

from the date an area is designated a 

major disaster area in the Federal 

Register. SBA may, at its discretion, 

extend this time period for any 

particular disaster, and will publish a 

notice of the extension in the Federal 

Register. 

* * * * * 

■ 4. Amend § 115.16 as follows: 

■ a. Remove the word ‘‘and’’ at the end 

of paragraph (f)(3); 

■ b. Remove the punctuation ‘‘.’’ at the 

end of paragraph (f)(4) and add ‘‘; and’’ 

in its place; and 

■ c. Add paragraph (f)(5) to read as 

follows: 

§ 115.16 Determination of Surety’s Loss. 

* * * * * 

(f) * * * 

(5) Any costs that arise from the 

Principal’s failure to secure and 

maintain insurance coverage required 

by the Contract or Order, or any costs 

that result from any claims or judgments 

that exceed the amount of any insurance 

coverage required by the Contract or 

Order, as well as any costs that arise as 

a result of any agreement by the 

Principal in the Contract or Order to 

indemnify the Obligee or any other 

Persons. 

Dated: January 6, 2011. 

Karen G. Mills, 

Administrator. 

[FR Doc. 2011–652 Filed 1–13–11; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2010–0808; Airspace 

Docket No. 10–AWP–14] 

RIN 2120–AA66 

Amendment of Class E Airspace; 

Kwajalein Island, Marshall Islands, RMI 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; correction. 

SUMMARY: This action corrects a final 

rule; technical amendment published in 

the Federal Register. In that rule, errors 

were made in the airspace description. 

This action corrects those errors. 

DATES: Effective date 0901 UTC, January 

13, 2011. The Director of the Federal 

Register approves this incorporation by 

reference action under 1 CFR part 51, 

subject to the annual revision of FAA 

Order 7400.9 and publication of 

conforming amendments. 

FOR FURTHER INFORMATION CONTACT: Ken 

McElroy, Airspace Regulation and ATC 

Procedures Group, Office of Mission 

Support Services, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591; 

telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

History 

On October 7, 2010, a final rule; 

technical amendment was published in 

the Federal Register, FAA Docket No. 

FAA–2010–0808, Airspace Docket No. 

10–AWP–14 that amended Title 14 

Code of Federal Regulations part 71 by 

amending Class E airspace; Kwajalein 

Island, Marshall Islands, RMI (75 FR 

61993). Specifically, the Kwajalein 

Tactical Air Navigation System 

reference was removed from the legal 

descriptions. However, the airspace 

descriptions contained several data 

points that were in error. This action 

corrects those errors. The correct full 

legal description is provided below. 

Correction to Final Rule 

Accordingly, pursuant to the 

authority delegated to me, the legal 

description for the Class E airspace area 

for Kwajalein Island, Marshall Islands, 

RMI, as published in the Federal 


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