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

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REGISTER issue of each week.

Rules and Regulations Federal Register

1857 

Vol. 77, No. 8 

Thursday, January 12, 2012 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 124, 125, 126, and 127 

RIN 3245–AG34 

Women-Owned Small Business 

Federal Contract Program 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Interim final rule; request for 

comments. 

SUMMARY: The U.S. Small Business 

Administration (SBA) is amending its 

regulations to make them consistent 

with the inflationary adjustments that 

are already codified in the Federal 

Acquisition Regulation (FAR) as they 

relate to the Women-Owned Small 

Business (WOSB) Program and the 

Simplified Acquisition Threshold. In 

addition, the SBA is amending its 

regulations pertaining to the WOSB 

Program protest procedures so that they 

are consistent with the protest 

procedures for SBA’s other government 

contracting programs. 

DATES: Effective Date: This rule is 

effective on January 12, 2012. 

Comment Date: Comments must be 

received on or before February 13, 2012. 

ADDRESSES: You may submit comments, 

identified by RIN 3245–AG06 by any of 

the following methods: 

• Federal Rulemaking Portal: http:// 

www.regulations.gov and follow the 

instructions for submitting comments. 

• Mail, for paper, disk, or CD–ROM 

submissions: Dean Koppel, Assistant 

Director for Policy and Research, 409 

Third Street SW., Washington, DC 

20416. 

• Hand Delivery/Courier: Dean 

Koppel, Assistant Director for Policy 

and Research, 409 Third Street SW., 

Washington, DC 20416. 

SBA will post all comments 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 information to Dean 

Koppel and highlight the information 

that you consider to be CBI and explain 

why you believe this information 

should be held confidential. SBA will 

review the information and make a final 

determination of whether the 

information will be published or not. 

FOR FURTHER INFORMATION CONTACT: 

Dean Koppel, Assistant Director for 

Policy, and Research, at (202) 205–7322 

or by email at dean.koppel@sba.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 811 of the Small Business 

Reauthorization Act of 2000, Public Law 

106–554, added section 8(m) to the 

Small Business Act, 15 U.S.C. 637(m), 

authorizing Federal contracting officers 

to restrict competition to eligible 

Women-Owned Small Businesses 

(WOSBs) or Economically 

Disadvantaged Women-Owned Small 

Business (EDWOSBs) for Federal 

contracts in certain industries. Section 

8(m) of the Small Business Act (Act) 

sets forth certain criteria for the WOSB 

Program. Specifically, the Act provides 

the following requirements in order for 

a contracting officer to restrict 

competition for EDWOSBs or WOSBS 

under this program: 

• An eligible concern must be not less 

than 51 percent owned by one or more 

women who are ‘‘economically 

disadvantaged’’ (i.e. an EDWOSB). 

However, SBA may waive this 

requirement of economic disadvantage 

for procurements in industries in which 

WOSBs are ‘‘substantially 

underrepresented.’’ 

• A WOSB is a small business 

concern owned and controlled by 

women, as defined in section 3(n) of the 

Act. Section 3(n) of the Act defines a 

women owned business as one that is at 

least 51 percent owned by one or more 

women and the management and daily 

business operations of the concern is 

controlled by one or more women. 15 

U.S.C. 632(n). 

• The contracting officer must have a 

reasonable expectation that, in 

industries in which WOSBs are 

underrepresented, two or more 

EDWOSBs will submit offers for the 

contract or, in industries where WOSBs 

are substantially under represented, two 

or more WOSBs will submit offers for 

the contract. 

• The anticipated award price of the 

contract must not exceed $5 million in 

the case of manufacturing contracts and 

$3 million in the case of all other 

contracts. 

• In the estimation of the contracting 

officer, the contract can be awarded at 

a fair and reasonable price. 

• Each competing concern must be 

duly certified by a national certifying 

entity approved by SBA, as an EDWOSB 

or WOSB, or must self-certify to the 

contracting officer and provide adequate 

documentation that it is an EDWOSB or 

WOSB. The statute imposes penalties 

for a concern’s misrepresentation of its 

status. 

• The contract must be for the 

procurement of goods or services with 

respect to an industry identified by SBA 

pursuant to a statutorily mandated 

study as one in which EDWOSBs are 

underrepresented or substantially 

underrepresented or WOSBs are 

substantially underrepresented with 

respect to Federal procurement. 

Thus, the Small Business Act sets forth 

statutory thresholds of $5 million and 

$3 million for contracts awarded under 

this program. 15 U.S.C. 637(m)(2)(D). 

These thresholds have been in statute 

since 2000. 

Recently, the SBA implemented the 

WOSB program by publishing a final 

rule in the Federal Register on October 

7, 2010, (75 FR 62258). That final rule 

sets forth the procedures for the WOSB 

Program and included the abovereferenced statutory thresholds of $5 

million and $3 million. 

Subsequent to SBA’s publication of 

the final rule in the Federal Register, 

the Federal Acquisition Regulatory 

(FAR) Council published an interim 

final rule in the Federal Register on 

April 1, 2011 (76 FR 18304) that 

incorporated provisions of the WOSB 

Program into the FAR. The FAR Council 

is authorized by 41 U.S.C 431a to review 

all statutes with dollar based 

acquisition-related thresholds and 

adjust for inflation where appropriate. 

Accordingly, in this interim final rule, 

the FAR Council adjusted the statutory 

thresholds of $5 million and $3 million 

for contracts awarded under the WOSB 

Program. The FAR Council amended the 

thresholds so that the anticipated award 

price of the contract awarded under the 

WOSB Program must not exceed $6.5 

million in the case of manufacturing 

contracts and $4 million in the case of 


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all other contracts. Consequently, SBA 

is amending these thresholds in its 

regulations, as well. 

In addition, the WOSB Program final 

rule addresses application of the 

program for certain dollar value 

acquisitions. Specifically, in several 

sections of its regulations, SBA 

addresses contracting among the various 

SBA small business programs for 

acquisitions valued above and below the 

Simplified Acquisition Threshold. The 

FAR Council published a rule in the 

Federal Register on August 30, 2010, 

effective October 1, 2010, at 75 FR 

53129, that has adjusted the Simplified 

Acquisition Threshold for inflation. The 

WOSB rule is not consistent with these 

changes. For example, the WOSB rule 

states that the Simplified Acquisition 

Threshold is $100,000, but the FAR has 

adjusted that threshold to $150,000. 

Consequently, SBA is amending these 

thresholds in its regulations, as well. 

SBA is also amending its protest 

procedures for the WOSB Program. The 

SBA published a final rule in the 

Federal Register on February 2, 2011, at 

76 FR 5680, amending its protest and 

appeal procedures for all of its 

government contracting programs 

(HUBZone, Service-Disabled VeteranOwned (SDVO), and size programs). 

That final rule varies slightly from the 

protest procedures set forth in the 

WOSB Program final rule. Therefore, the 

SBA intends to amend the regulations 

so that all of its procurement program 

protest procedures are consistent. 

Further, SBA has noticed one error in 

the regulations that it would like to 

correct. Each of these amendments is 

discussed below. 

II. Section-By-Section Analysis 

SBA is amending §§ 124.503(j), 

125.2(f), 125.19(b), 126.607(b), 

127.503(d), by deleting the prior 

Simplified Acquisition Thresholds and 

Micro-purchase Thresholds referenced 

and replacing those threshold values in 

all cases with the phrase ‘‘Simplified 

Acquisition Threshold’’ or ‘‘Micropurchase Threshold.’’ Because these 

thresholds are subject to change for 

inflation and are commonly known in 

the procurement community, the SBA 

believes it would be best to simply refer 

to the terms. 

The SBA is also clarifying 

§ 127.301(a)(2), which addresses when a 

contracting officer may accept a 

business concern’s self-certification in 

the Online Representations and 

Certifications Application (ORCA). The 

regulation explains that a contracting 

officer may accept a concern’s self 

certification in ORCA if the apparent 

successful offeror WOSB or EDWOSB 

has provided the required documents. 

The SBA is amending the regulation to 

clarify that the contracting officer can 

accept the self-certification if, in 

addition to providing the required 

documents, there has been no protest or 

other credible information that calls into 

question the concern’s eligibility as an 

EDWOSB or WOSB. The SBA has 

received some inquiries about this issue 

and believes it would be best to clarify 

it in the regulations. If there is a protest 

or information that calls into question 

an apparent awardee’s eligibility, the 

contracting officer should not be making 

an award to that business concern until 

its status has been verified. 

SBA is also amending § 127.503(a)(2) 

and § 127.503(b)(2) to revise the 

acquisition-related dollar thresholds the 

Federal agencies use for determining 

when the procuring activities can set 

aside a requirement for WOSBs or 

EDWOSBs. As discussed above, the FAR 

Council has adjusted these thresholds 

for inflation. The regulation now 

explains that the anticipated award 

price of the contract must not exceed 

$6.5 million in the case of 

manufacturing contracts and $4 million 

in the case of all other contracts for a 

WOSB or EDWOSB set aside. With this 

amendment, the FAR and SBA’s 

regulations will be consistent. 

SBA is also amending § 127.503 by 

adding a new paragraph (f) to inform the 

users about the FAR Council’s authority 

to make inflationary adjustments for the 

WOSB Program’s competitive 

thresholds. This information is set forth 

in SBA’s regulations for its other 

contracting programs (see e.g. 13 CFR 

126.601(a)), and SBA believes it should 

be in the WOSB Program rule, as well. 

The SBA is also amending § 127.604, 

which addresses WOSB and EDWOSB 

protest procedures. According to the 

current WOSB rule, a contracting officer 

may award a contract after receipt of a 

protest if he/she determines in writing 

that an award must be made to prevent 

significant harm to the public interest. 

However, the final protest rule SBA 

issued with respect to the other 

government contracting programs 

permits a contracting officer to proceed 

with an award after receipt of a protest 

if necessary to protect the public 

interest. The SBA has changed the 

WOSB Program rule to state the same 

for consistency. 

The SBA has also amended 

§ 127.604(a) to clarify that even if a 

contracting officer determines that 

award must be made to protect the 

public interest, then notwithstanding 

such a determination, the provisions of 

paragraph (f) of that section apply to the 

procurement in question. Paragraph (f) 

addresses the effect of a WOSB or 

EDWOSB status determination. Again, 

this clarification is to ensure that the 

WOSB protest regulations are consistent 

with SBA’s final protest rule issued 

with respect to the other government 

contracting programs. 

In addition, the SBA is deleting the 

second and third sentences of current 

§ 127.604(d), which requires the 

contracting officer to contact SBA if 

SBA has not yet issued a status 

determination by the 15 day deadline. 

The SBA’s final rule on protests for its 

other government contracting programs 

did not have such a requirement, but 

rather explained that if SBA does not 

issue its determination within the 

15 day period, the contracting officer 

may award the contract if he or she 

determines in writing that there is an 

immediate need to award the contract 

and that waiting until SBA makes its 

determination will be disadvantageous 

to the Government. However, 

notwithstanding such a determination, 

the contracting officer must follow the 

procedures outlined regarding the effect 

of SBA’s status determination. The SBA 

has amended the WOSB program protest 

procedures to be consistent with SBA’s 

protest procedures for its other 

contracting programs. 

The SBA has also amended 

§ 127.604(f)(2)(i) to explain that if a 

contracting officer receives an SBA 

determination that the apparent 

successful WOSB or EDWOSB is not 

eligible after contract award, and no 

Office of Hearings and Appeals appeal 

has been filed, the contracting officer 

shall terminate the award. Again, this is 

consistent with SBA’s protest 

procedures for its other contracting 

programs. 

Finally, the SBA is correcting an error 

in the third sentence of § 127.604(c)(1), 

which addresses how SBA processes a 

WOSB or EDWOSB status protest. 

Specifically, SBA is replacing the 

requirement that the EDWOSB submit 

‘‘the two most recent personal income 

tax returns’’ with ‘‘the three most recent 

personal income tax returns’’. In 

§ 127.402, the SBA discusses the 

documents to be collected for eligibility 

examinations and states that the agency 

requires the three most recent personal 

income tax returns. SBA intended to 

collect the three most recent personal 

income tax returns with respect to 

protests, as well, and so the two 

regulation sections need to be 

consistent. 

III. Justification for Publication as an 

Interim Final Rule 

In general, SBA publishes a rule for 

public comment before issuing a final 


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rule in accordance with the 

Administrative Procedures Act (APA) 

and SBA regulations. 5 U.S.C. 553 and 

13 CFR 101.108. The APA provides an 

exception to this standard rulemaking 

process where an agency finds good 

cause to adopt a rule without prior 

public participation. 5 U.S.C. 

553(b)(3)(B). The good cause 

requirement is satisfied when prior 

public participation is impracticable, 

unnecessary, or contrary to the public 

interest. Under such circumstances, an 

agency may publish an interim final 

rule without soliciting public comment. 

In the present case, the SBA notes that 

Public Law 108–375, 41 U.S.C. 431a 

requires the FAR Council to take 

responsibility for adjusting each 

acquisition-related dollar threshold 

provided by law and publish a notice of 

the adjusted dollar thresholds in the 

Federal Register. These actions have 

been completed and a final rule with an 

immediate effective date was published 

in the Federal Register on April 1, 2011, 

76 FR 18304, which affects the WOSB 

Program. Another such action was taken 

and a final rule with an immediate 

effective date was published in the 

Federal Register on August 30, 2010 at 

75 FR 53129, which affects the 

Simplified Acquisition Threshold. The 

WOSB Program final rule contained 

acquisition-related dollar thresholds 

subject to inflationary adjustments that 

are currently codified in the FAR. This 

interim final rule is amending SBA’s 

regulations to acknowledge and 

implement the adjustments that are 

codified in the FAR. The SBA is not 

establishing new or differing 

acquisition-related dollar thresholds 

with this interim final rule. Rather, SBA 

is merely amending its regulations to 

conform to the FAR and advise the users 

of SBA’s regulations of the inflationary 

adjustments to SBA’s small business 

programs every five years. Immediate 

implementation of the interim final rule 

is needed to ensure a consistency 

between the SBA’s regulations and the 

FAR for the acquisition-related dollar 

thresholds governing small business 

contracting opportunities. 

Consequently, SBA believes it is 

unnecessary to publish this rule as a 

proposed rule because it is beneficial to 

the public and acquisition communities 

that the regulations governing the SBA’s 

small business programs are made 

consistent through implementing this 

rule promptly. 

Likewise, SBA believes it is important 

that the protest procedures for all of its 

government contracting programs be 

consistent. The rule governing the other 

programs was subject to public notice 

and comment; therefore, it would not be 

contrary to the public interest to 

proceed with these conforming changes 

to the WOSB protest procedures in an 

interim final rule. At this time, there 

have been only a few protests and no 

appeals such that amending these 

procedures will not affect many parties. 

Finally, we note that the public will 

still have the opportunity to offer 

comments on this, which will be 

reviewed by the SBA. Accordingly, SBA 

finds that good cause exists to publish 

this rule as an interim final rule as 

quickly as possible. 

IV. Justification for Immediate Effective 

Date of Interim Final Rule 

The APA requires that ‘‘publication or 

service of a substantive rule shall be 

made not less than 30 days before its 

effective date, except * * * as 

otherwise provided by the agency for 

good cause found and published with 

the rule.’’ 5 U.S.C. 553(d)(3) SBA finds 

that good cause exists to make this final 

rule effective the same day it is 

published in the Federal Register. 

The purpose of the APA provision is 

to provide interested and affected 

members of the public sufficient time to 

adjust their behavior before the rule 

takes effect. For the reasons set forth 

above in Section III, ‘‘Justification for 

Publication as Interim Final Rule,’’ SBA 

finds that good cause exists for making 

this interim final rule effective 

immediately, instead of observing the 

30-day period between publication and 

effective date. Nonetheless, the public 

may provide comments to SBA by the 

deadline for comments. SBA will review 

any comments received. 

V. Compliance With Executive Orders 

12866, 12988, and 13132, and 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 constitute a significant regulatory 

action under E.O. 12866. Accordingly, 

the next section contains SBA’s 

Regulatory Impact Analysis. This is not 

a major rule, however, under the 

Congressional Review Act, 5 U.S.C. 800. 

Regulatory Impact Analysis 

1. Is there a need for the regulatory 

action? 

This regulatory action amends 

regulations that implement section 8(m) 

of the Act, which was enacted as part of 

section 811 of the Small Business 

Reauthorization Act of 2000, Public Law 

106–554. These amendments are 

necessary because without such 

amendments, the SBA’s WOSB Program 

rules conflict with parts of the FAR and 

SBA’s rules concerning protest 

procedures for its other government 

contract programs. Such conflict and 

inconsistency causes confusion to 

members of the procurement 

community, including small businesses. 

2. What are the potential benefits and 

costs of this regulatory action? 

The benefits of this rule are that there 

will not be a conflict between the SBA’s 

rules and the FAR rule, or other parts of 

SBA’s rules. Such conflicts result in 

confusion amongst members of the 

contracting community and small 

businesses. 

3. What are the alternatives to this final 

rule? 

The SBA considered as an alternative 

referencing the FAR acquisition 

thresholds in all cases, since those 

thresholds are subject to change every 

five years as a result of inflation, and 

that would mean SBA could need to 

amend its regulations every five years. 

However, the SBA believed that while it 

would be beneficial to reference the 

FAR Simplified Acquisition Thresholds 

and Micro-Purchase Thresholds, since 

those dollar values are commonly used, 

referred to and known in the acquisition 

community, the SBA did not believe it 

should reference the FAR with respect 

to the acquisition threshold relating to 

when a contracting officer may set aside 

a requirement for WOSBs or EDWOSBs. 

Those thresholds are new and not as 

well known, and should be specifically 

set forth in SBA’s regulations, similar to 

how the thresholds for the 8(a), 

HUBZone and SDVO SBC programs are 

set forth in the SBA’s regulations. 

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 the purpose of Executive Order 

13132, SBA has determined that the 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, 

this final rule has no federalism 

implications warranting the preparation 

of a federalism assessment. 


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Paperwork Reduction Act 

For the purpose of the Paperwork 

Reduction Act, 44 U.S.C., Chapter 35, 

SBA has determined that this rule does 

not impose additional reporting or 

recordkeeping requirements. 

Regulatory Flexibility Act (RFA) 

Because this rule is an interim final 

rule, there is no requirement for SBA to 

prepare an Initial Regulatory Flexibility 

Act analysis. The RFA requires 

administrative agencies to consider the 

effect of their actions on small entities, 

small non-profit businesses, and small 

local governments. Pursuant to the RFA, 

when an agency issues a rule the agency 

must prepare analysis that describes 

whether the impact of the rule will have 

a significant economic impact on a 

substantial number of small entities. 

However, the RFA requires such 

analysis only where notice and 

comment rulemaking is required but as 

discussed above, SBA has determined 

that there is good cause to publish this 

rule without the need for public notice 

and comment. 

List of Subjects in 13 CFR Parts 124, 

125, 126, and 127 

Administrative practice and 

procedure, Government procurement, 

Government property, Grant programs— 

business, Loan programs—business, 

Individuals with disabilities, Reporting 

and recordkeeping requirements, Small 

businesses. 

For the reasons stated in the 

preamble, the Small Business 

Administration amends 13 CFR parts 

124, 125, 126, and 127 as follows: 

PART 124—8(a) BUSINESS 

DEVELOPMENT/SMALL 

DISADVANTAGED BUSINESS STATUS 

DETERMINATIONS 

■ 1. The authority citation for 13 CFR 

part 124 continues to read as follows: 

Authority: 15 U.S.C. 634(b)(6), 636(j), 

637(a), 637(d) and Pub. L. 99–661, Pub. L. 

100–656, sec. 1207, Pub. L. 101–37, Pub. L. 

101–574, section 8021, Pub. L. 108–87, and 

42 U.S.C. 9815. 

■ 2. Amend § 124.503 as follows: 

■ a. Revise paragraph (j)(1); and 

■ b. Revise the paragraph (j)(2) heading 

and the first sentence of paragraph 

(j)(2)(i). 

The revisions read as follows: 

§ 124.503 How does SBA accept a 

procurement for award through the 8(a) BD 

program? 

* * * * * 

(j) * * * 

(1) Acquisitions Valued At or Below 

the Simplified Acquisition Threshold. 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Micropurchase Threshold but not exceeding 

the Simplified Acquisition Threshold 

(defined in the FAR at 48 CFR 2.101) for 

small business concerns when there is 

a reasonable expectation that offers will 

be obtained from at least two small 

business concerns that are competitive 

in terms of quality and delivery and 

award will be made at fair market 

prices. This requirement does not 

preclude a contracting officer from 

making an award to a small business 

under the 8(a) BD, HUBZone, SDVO 

SBC or WOSB Programs. 

(2) Acquisitions Valued Above the 

Simplified Acquisition Threshold. (i) 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Simplified 

Acquisition Threshold (defined in the 

FAR at 48 CFR 2.101) for small business 

concerns when there is a reasonable 

expectation that offers will be obtained 

from at least two small business 

concerns that are competitive in terms 

of quality and delivery and award will 

be made at fair market prices. * * * 

* * * * * 

PART 125—GOVERNMENT 

CONTRACTING PROGRAMS 

■ 3. The authority citation for 13 CFR 

part 125 continues to read as follows: 

Authority: 15 U.S.C. 632(p), (q); 634(b)(6); 

637; 644 and 657f. 

■ 4. Amend § 125.2 as follows: 

■ a. Revise paragraph (f)(1); and 

■ b. Revise the paragraph (f)(2) heading 

and first sentence of paragraph (f)(2)(i). 

The revisions read as follows: 

§ 125.2 Prime contracting assistance. 

* * * * * 

(f) * * * 

(1) Acquisitions Valued At or Below 

the Simplified Acquisition Threshold. 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Micropurchase Threshold but not exceeding 

the Simplified Acquisition Threshold 

(defined in the FAR at 48 CFR 2.101) for 

small business concerns when there is 

a reasonable expectation that offers will 

be obtained from at least two small 

business concerns that are competitive 

in terms of quality and delivery and 

award will be made at fair market 

prices. This requirement does not 

preclude a contracting officer from 

making an award to a small business 

under the 8(a) BD, HUBZone, SDVO 

SBC or WOSB Programs. 

(2) Acquisitions Valued Above the 

Simplified Acquisition Threshold. (i) 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Simplified 

Acquisition Threshold (defined in the 

FAR at 48 CFR 2.101) for small business 

concerns when there is a reasonable 

expectation that offers will be obtained 

from at least two small business 

concerns that are competitive in terms 

of quality and delivery and award will 

be made at fair market prices. * * * 

* * * * * 

■ 5. Amend § 125.19 by: 

■ a. Revising paragraph (b)(1); and 

■ b. Revising the paragraph (b)(2) 

heading and first sentence of paragraph 

(b)(2)(i). 

The revisions read as follows: 

§ 125.19 When may a contracting officer 

set aside a procurement for SDVO SBCs? 

* * * * * 

(b) * * * 

(1) Acquisitions Valued At or Below 

the Simplified Acquisition Threshold. 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Micropurchase Threshold but not exceeding 

the Simplified Acquisition Threshold 

(defined in the FAR at 48 CFR 2.101) for 

small business concerns when there is 

a reasonable expectation that offers will 

be obtained from at least two small 

business concerns that are competitive 

in terms of quality and delivery and 

award will be made at fair market 

prices. This requirement does not 

preclude a contracting officer from 

making an award to a small business 

under the 8(a) BD, HUBZone, SDVO 

SBC or WOSB Programs. 

(2) Acquisitions Valued Above the 

Simplified Acquisition Threshold. (i) 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Simplified 

Acquisition Threshold (defined in the 

FAR at 48 CFR 2.101) for small business 

concerns when there is a reasonable 

expectation that offers will be obtained 

from at least two small business 

concerns that are competitive in terms 

of quality and delivery and award will 

be made at fair market prices. * * * 

* * * * * 

PART 126—HUBZONE PROGRAM 

■ 6. The authority citation for part 126 

continues to read as follows: 

Authority: 15 U.S.C. 632(a), 632(j), 632(p) 

and 657a. 

■ 7. Amend § 126.607 as follows: 

■ a. Revise paragraph (b)(1); and 

■ b. Revise the paragraph (b)(2) heading 

and first sentence of paragraph (b)(2)(i). 

The revsions read as follows: 


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§ 126.607 When must a contracting officer 

set aside a requirement for qualified 

HUBZone SBCs? 

* * * * * 

(b) * * * 

(1) Acquisitions Valued At or Below 

the Simplified Acquisition Threshold. 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Micropurchase Threshold but not exceeding 

the Simplified Acquisition Threshold 

(defined in the FAR at 48 CFR 2.101) for 

small business concerns when there is 

a reasonable expectation that offers will 

be obtained from at least two small 

business concerns that are competitive 

in terms of quality and delivery and 

award will be made at fair market 

prices. This requirement does not 

preclude a contracting officer from 

making an award to a small business 

under the 8(a) BD, HUBZone, SDVO 

SBC or WOSB Programs. 

(2) Acquisitions Valued Above the 

Simplified Acquisition Threshold. (i) 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Simplified 

Acquisition Threshold (defined in the 

FAR at 48 CFR 2.101) for small business 

concerns when there is a reasonable 

expectation that offers will be obtained 

from at least two small business 

concerns that are competitive in terms 

of quality and delivery and award will 

be made at fair market prices. * * * 

* * * * * 

PART 127—WOMEN-OWNED SMALL 

BUSINESS FEDERAL CONTRACT 

PROGRAM 

■ 8. The authority citation for part 127 

continues to read as follows: 

Authority: 15 U.S.C. 632, 634(b)(6), 

637(m), and 644. 

■ 9. Amend § 127.301 by revising 

paragraph (a)(2) to read as follows: 

§ 127.301 When may a contracting officer 

accept a concern’s self-certification? 

(a) * * * 

(2) Non-Third Party Certification. A 

contracting officer may accept a 

concern’s self-certification in ORCA if 

the apparent successful offeror WOSB or 

EDWOSB has provided the required 

documents, which are set forth in 

§ 127.300(e), and there has been no 

protest or other credible information 

that calls into question the concern’s 

eligibility as an EDWOSB or WOSB. 

* * * * * 

■ 10. Amend § 127.503 as follows: 

■ a. In paragraph (a)(2), remove 

‘‘$5,000,000’’ and add in its place 

‘‘$6,500,000’’ and remove ‘‘$3,000,000’’ 

and add in its place ‘‘$4,000,000’’; 

■ b. In paragraph (b)(2), remove 

‘$5,000,000’’ and add in its place 

‘‘$6,500,000’’ and remove ‘‘$3,000,000’’ 

and add in its place ‘‘$4,000,000’’; 

■ c. Revise paragraph (d)(1); 

■ d. Revise the paragraph (d)(2) heading 

and the first sentence of paragraph 

(d)(2)(i); and 

■ e. Add paragraph (f). 

The revisions and addition read as 

follows: 

§ 127.503 When is a contracting officer 

authorized to restrict competition under this 

part? 

* * * * * 

(d) * * * 

(1) Acquisitions Valued At or Below 

the Simplified Acquisition Threshold. 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Micropurchase Threshold but not exceeding 

the Simplified Acquisition Threshold 

(defined in the FAR at 48 CFR 2.101) for 

small business concerns when there is 

a reasonable expectation that offers will 

be obtained from at least two small 

business concerns that are competitive 

in terms of quality and delivery and 

award will be made at fair market 

prices. This requirement does not 

preclude a contracting officer from 

making an award to a small business 

under the 8(a) BD, HUBZone, SDVO 

SBC or WOSB Programs. 

(2) Acquisitions Valued Above the 

Simplified Acquisition Threshold. (i) 

The contracting officer shall set aside 

any acquisition with an anticipated 

dollar value exceeding the Simplified 

Acquisition Threshold (defined in the 

FAR at 48 CFR 2.101) for small business 

concerns when there is a reasonable 

expectation that offers will be obtained 

from at least two small business 

concerns that are competitive in terms 

of quality and delivery and award will 

be made at fair market prices. * * * 

* * * * * 

(f) Acquisition-Related Dollar 

Thresholds. The Federal Acquisition 

Regulatory Council (FAR Council) has 

the responsibility of adjusting each 

acquisition-related dollar threshold on 

October 1, of each year that is evenly 

divisible by five. Acquisition-related 

dollar thresholds are defined as dollar 

thresholds that are specified in law as 

a factor in defining the scope of the 

applicability of a policy, procedure, 

requirement, or restriction provided in 

that law to the procurement of property 

or services by an executive agency as 

determined by the FAR Council. 41 

U.S.C. 431a(c). Part 127, Women-Owned 

Small Business Federal Contract 

Program, contains acquisition-related 

dollar thresholds subject to inflationary 

adjustments. The FAR Council shall 

publish a notice of the adjusted dollar 

thresholds in the Federal Register. The 

adjusted dollar thresholds shall take 

effect on the date of publication. 

■ 11. Amend § 127.604 as follows: 

■ a. In paragraph (a), revise the second 

sentence and add a third sentence; 

■ b. In the third sentence of paragraph 

(c)(1) remove the word ‘‘two’’ and add 

in its place the word ‘‘three’’; 

■ c. Revise the second and third 

sentences of paragraph (d); and 

■ d. Revise paragraph (f)(2)(i). 

The revsions and addition read as 

follows: 

§ 127.604 How will SBA process an 

EDWOSB or WOSB status protest? 

(a) Notice of receipt of protest. * * * 

The contracting officer may award the 

contract after receipt of a protest if the 

contracting officer determines in writing 

that an award must be made to protect 

the public interest. Notwithstanding 

such a determination, the provisions of 

paragraph (f) of this section apply to the 

procurement in question. 

* * * * * 

(d) Time period for determination. 

* * * If SBA does not issue its 

determination within the fifteen (15) 

business day period (or within any 

extension of that time the contracting 

officer has granted), the contracting 

officer may award the contract if he or 

she determines in writing that there is 

an immediate need to award the 

contract and that waiting until SBA 

makes its determination will be 

disadvantageous to the Government. 

Notwithstanding such a determination, 

the provisions of paragraph (f) of this 

section apply to the procurement in 

question. * * * 

* * * * * 

(f) * * * 

(2) * * * 

(i) If a contracting officer receives 

such a determination after contract 

award, and no OHA appeal has been 

filed, the contracting officer shall 

terminate the award. 

* * * * * 

Dated: October 10, 2011. 

Karen G. Mills, 

Administrator. 

[FR Doc. 2012–467 Filed 1–11–12; 8:45 am] 

BILLING CODE 8025–01–P 


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