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

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REGISTER issue of each week.

Rules and Regulations Federal Register

75819

Vol. 69, No. 243

Monday, December 20, 2004

1The primary, secondary, and seasonal credit 

rates described in this section apply to both 

advances and discounts made under the primary, secondary, and seasonal credit programs, 

respectively.

FEDERAL RESERVE SYSTEM 

12 CFR Part 201 

[Regulation A] 

Extensions of Credit by Federal 

Reserve Banks

AGENCY: Board of Governors of the 

Federal Reserve System.

ACTION: Final rule.

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

adopted final amendments to its 

Regulation A to reflect the Board’s 

approval of an increase in the primary 

credit rate at each Federal Reserve Bank. 

The secondary credit rate at each 

Reserve Bank automatically increased 

by formula as a result of the Board’s 

primary credit rate action.

DATES: The amendments to part 201 

(Regulation A) are effective December 

20, 2004. The rate changes for primary 

and secondary credit were effective on 

the dates specified in 12 CFR 201.51, as 

amended.

FOR FURTHER INFORMATION CONTACT:

Jennifer J. Johnson, Secretary of the 

Board (202/452–3259); for users of 

Telecommunication Devices for the Deaf 

(TDD) only, contact 202/263–4869.

SUPPLEMENTARY INFORMATION: The 

Federal Reserve Banks make primary 

and secondary credit available to 

depository institutions as a backup 

source of funding on a short-term basis, 

usually overnight. The primary and 

secondary credit rates are the interest 

rates that the twelve Federal Reserve 

Banks charge for extensions of credit 

under these programs. In accordance 

with the Federal Reserve Act, the 

primary and secondary credit rates are 

established by the boards of directors of 

the Federal Reserve Banks, subject to 

the review and determination of the 

Board. 

The Board approved requests by the 

Reserve Banks to increase by 25 basis 

points the primary credit rate in effect 

at each of the twelve Federal Reserve 

Banks, thereby increasing from 3.00 

percent to 3.25 percent the rate that 

each Reserve Bank charges for 

extensions of primary credit. As a result 

of the Board’s action on the primary 

credit rate, the rate that each Reserve 

Bank charges for extensions of 

secondary credit automatically 

increased from 3.50 percent to 3.75 

percent under the secondary credit rate 

formula. The final amendments to 

Regulation A reflect these rate changes. 

The 25-basis-point increase in the 

primary credit rate was associated with 

a similar increase in the target for the 

federal funds rate (from 2.00 percent to 

2.25 percent) approved by the Federal 

Open Market Committee (Committee) 

and announced at the same time. A 

press release announcing these actions 

indicated that:

The Committee believes that, even after 

this action, the stance of monetary policy 

remains accommodative and, coupled with 

robust underlying growth in productivity, is 

providing ongoing support to economic 

activity. Output appears to be growing at a 

moderate pace despite the earlier rise in 

energy prices, and labor market conditions 

continue to improve gradually. Inflation and 

longer-term inflation expectations remain 

well contained. 

The Committee perceives the upside and 

downside risks to the attainment of both 

sustainable growth and price stability for the 

next few quarters to be roughly equal. With 

underlying inflation expected to be relatively 

low, the Committee believes that policy 

accommodation can be removed at a pace 

that is likely to be measured. Nonetheless, 

the Committee will respond to changes in 

economic prospects as needed to fulfill its 

obligation to maintain price stability.

Regulatory Flexibility Act Certification 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. 605(b)), the Board certifies 

that the new primary and secondary 

credit rates will not have a significantly 

adverse economic impact on a 

substantial number of small entities 

because the final rule does not impose 

any additional requirements on entities 

affected by the regulation. 

Administrative Procedure Act 

The Board did not follow the 

provisions of 5 U.S.C. 553(b) relating to 

notice and public participation in 

connection with the adoption of these 

amendments because the Board for good 

cause determined that delaying 

implementation of the new primary and 

secondary credit rates in order to allow 

notice and public comment would be 

unnecessary and contrary to the public 

interest in fostering price stability and 

sustainable economic growth. For these 

same reasons, the Board also has not 

provided 30 days prior notice of the 

effective date of the rule under section 

553(d). 

12 CFR Chapter II

List of Subjects in 12 CFR Part 201 

Banks, Banking, Federal Reserve 

System, Reporting and recordkeeping.

Authority and Issuance

■ For the reasons set forth in the 

preamble, the Board is amending 12 CFR 

Chapter II to read as follows:

PART 201—EXTENSIONS OF CREDIT 

BY FEDERAL RESERVE BANKS 

(REGULATION A)

■ 1. The authority citation for part 201 

continues to read as follows:

Authority: 12 U.S.C. 248(i)–(j), 343 et seq., 

347a, 347b, 347c, 348 et seq., 357, 374, 374a, 

and 461.

■ 2. In § 201.51, paragraphs (a) and (b) 

are revised to read as follows:

§ 201.51 Interest rates applicable to credit 

extended by a Federal Reserve Bank.1

(a) Primary credit. The interest rates 

for primary credit provided to 

depository institutions under § 201.4(a) 

are:

Federal reserve bank Rate Effective 

Boston ...................................................................................................................................................................... 3.25 December 14, 2004. 

New York ................................................................................................................................................................. 3.25 December 14, 2004. 

75820 Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 

Federal reserve bank Rate Effective 

Philadelphia ............................................................................................................................................................. 3.25 December 14, 2004. 

Cleveland ................................................................................................................................................................. 3.25 December 14, 2004. 

Richmond ................................................................................................................................................................. 3.25 December 14, 2004. 

Atlanta ...................................................................................................................................................................... 3.25 December 14, 2004. 

Chicago .................................................................................................................................................................... 3.25 December 14, 2004. 

St. Louis ................................................................................................................................................................... 3.25 December 15, 2004. 

Minneapolis .............................................................................................................................................................. 3.25 December 14, 2004. 

Kansas City .............................................................................................................................................................. 3.25 December 14, 2004. 

Dallas ....................................................................................................................................................................... 3.25 December 14, 2004. 

San Francisco .......................................................................................................................................................... 3.25 December 14, 2004. 

(b) Secondary credit. The interest 

rates for secondary credit provided to 

depository institutions under § 201.4(b) 

are:

Federal reserve bank Rate Effective 

Boston ...................................................................................................................................................................... 3.75 December 14, 2004 

New York ................................................................................................................................................................. 3.75 December 14, 2004 

Philadelphia ............................................................................................................................................................. 3.75 December 14, 2004 

Cleveland ................................................................................................................................................................. 3.75 December 14, 2004 

Richmond ................................................................................................................................................................. 3.75 December 14, 2004 

Atlanta ...................................................................................................................................................................... 3.75 December 14, 2004 

Chicago .................................................................................................................................................................... 3.75 December 14, 2004 

St. Louis ................................................................................................................................................................... 3.75 December 15, 2004 

Minneapolis .............................................................................................................................................................. 3.75 December 14, 2004 

Kansas City .............................................................................................................................................................. 3.75 December 14, 2004 

Dallas ....................................................................................................................................................................... 3.75 December 14, 2004 

San Francisco .......................................................................................................................................................... 3.75 December 14, 2004 

* * * * *

By order of the Board of Governors of the 

Federal Reserve System, December 15, 2004. 

Jennifer J. Johnson, 

Secretary of the Board.

[FR Doc. 04–27788 Filed 12–17–04; 8:45 am] 

BILLING CODE 6210–02–P

SMALL BUSINESS ADMINISTRATION

13 CFR Part 125

RIN 3245–AF12

Small Business Government 

Contracting Programs; Subcontracting

AGENCY: U.S. Small Business 

Administration.

ACTION: Final rule.

SUMMARY: This final rule amends the 

U.S. Small Business Administration 

(SBA) regulations government small 

business subcontracting to address 

comments received in response to SBA’s 

proposed rule on subcontracting, which 

was published in the Federal Register

on October 20, 2003. The final rule also 

addresses comments in response to 

SBA’s earlier proposed rule on contract 

bundling, which was published in the 

Federal Register on January 31, 2003. 

Specifically, this final rule provides a 

list of factors to consider in evaluating 

a prime contractor’s performance and 

good-faith efforts to achieve the 

requirements in its subcontracting plan. 

The final rule also authorizes the use of 

goals in subcontracting plans, and/or 

past performance in meeting such goals, 

as a factor in source selection when 

placing orders against Federal Supply 

Schedules, government-wide 

acquisition contracts, and multi-agency 

contracts. In addition, this final rule 

implements statutory provisions and 

other administrative procedures relating 

to subcontracting goals and assistance. 

In particular, the final rule lists the 

various categories of small businesses 

that must be afforded maximum 

practicable subcontracting 

opportunities, and clarifies the 

responsibilities of prime contractors and 

SBA’s Commercial Market 

Representatives (CMRs) under the 

subcontracting assistance program. The 

final rule also supplies guidance on 

Subcontracting Orientation and 

Assistance Reviews (SOARs), which 

CMRs perform to assist prime 

contractors in their efforts to understand 

and comply with the requirements 

governing the small business 

subcontracting assistance program.

DATES: This rule is effective on 

December 20, 2004.

FOR FURTHER INFORMATION CONTACT:

Dean Koppel, Assistant Administrator, 

Office of Policy and Research, (202) 

401–8150 or dean.koppel@sba.gov.

SUPPLEMENTARY INFORMATION: 

A. Background 

On January 31, 2003, SBA published 

a proposed rule in the Federal Register,

67 FR 47244, to solicit comments on its 

proposal to implement several 

recommendations included in the Office 

of Management and Budget’s October 

2002 report, entitled ‘‘Contract 

Bundling: A Strategy for Increasing 

Federal Contracting Opportunities for 

Small Business.’’ Several of the 

responding commenters identified the 

need for more guidance on evaluating 

large prime contractor performance in 

awarding subcontracts to small 

businesses and their efforts to achieve 

subcontracting plans, including 

examples of what types of conduct 

constitute ‘‘good-faith’’ efforts to comply 

with subcontracting plans. SBA thought 

that this suggestion was valid; 

accordingly, on October 20, 2003, the 

agency published a proposed rule 

addressing these as well as other major 

issues in subcontracting. 

In response to the proposed rule 

published on October 20, 2003, which 

had a 60-day public-comment period, 

SBA received 19 written comments. The 

commenters included three members of 

Congress (two letters, one signed by two 

members), three Federal agencies 

(including SBA’s own Office of 

Advocacy), two prime contractors, 

seven trade associations or smallbusiness advocacy groups, four small 

businesses, and one private citizen