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.

Rules and Regulations Federal Register

74107 

Vol. 89, No. 177 

Thursday, September 12, 2024 

OFFICE OF GOVERNMENT ETHICS 

5 CFR Part 2641 

RIN 3209–AA59 

Post-Employment Conflict of Interest 

Restrictions; Revision of Departmental 

Component Designations 

AGENCY: Office of Government Ethics. 

ACTION: Final rule. 

SUMMARY: The U.S. Office of 

Government Ethics (OGE) is issuing this 

final rule to revise the component 

designations of one agency for purposes 

of the one-year post-employment 

conflict of interest restriction for senior 

employees. Specifically, based on the 

recommendation of the Department of 

Health and Human Services, OGE is 

designating one new component in its 

regulations. 

DATES: This rule is effective September 

12, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Kimberly L. Sikora Panza, Senior 

Associate Counsel, U.S. Office of 

Government Ethics, 250 E Street SW, 

Suite 750, Washington, DC 20024–3249; 

Telephone: 202–482–9300; TTY: 800– 

877–8339; FAX: 202–482–9237. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Director of OGE (Director) is 

authorized by 18 U.S.C. 207(h) to 

designate distinct and separate 

departmental or agency components in 

the executive branch for purposes of 18 

U.S.C. 207(c), the one-year postemployment conflict of interest 

restriction for senior employees. Under 

18 U.S.C. 207(h)(2), component 

designations do not apply to persons 

employed at a rate of pay specified in 

or fixed according to subchapter II of 5 

U.S.C. chapter 53 (the Executive 

Schedule). Component designations are 

listed in appendix B to 5 CFR part 2641. 

The representational bar of 18 U.S.C. 

207(c) usually extends to the whole of 

any department or agency in which a 

former senior employee served in any 

capacity during the year prior to 

termination from a senior employee 

position. However, 18 U.S.C. 207(h) 

provides that whenever the Director 

‘‘determines that an agency or bureau 

within a department or agency in the 

executive branch exercises functions 

which are distinct and separate from the 

remaining functions of the department 

or agency and that there exists no 

potential for use of undue influence or 

unfair advantage based on past 

Government service,’’ the Director shall 

by rule designate that agency or bureau 

as a separate component of that 

department or agency. 

Pursuant to the procedures prescribed 

in 5 CFR 2641.302(e), the Department of 

Health and Human Services (HHS) 

requested that OGE amend its 

components listed in appendix B to part 

2641. On May 28, 2024, OGE published 

a proposed rule in the Federal Register 

that proposed to designate the 

Administration for Strategic 

Preparedness and Response (ASPR) in 

appendix B to part 2641 as a separate 

component of HHS for purposes of 18 

U.S.C. 207(c). The proposed rule 

provided for a 30-day comment period, 

which ended on June 27, 2024; OGE did 

not receive any comments. The rationale 

for the rule, which OGE is now adopting 

as final, is explained in the proposed 

rule preamble at 89 FR 46036. 

For the reasons stated in the preamble 

to the proposed rule, OGE is granting 

the request of HHS to amend its listing 

in appendix B to part 2641 to designate 

ASPR as a distinct and separate 

component of the agency for purposes of 

18 U.S.C. 207(c). As indicated in 5 CFR 

2641.302(f), a designation ‘‘shall be 

effective on the date the rule creating 

the designation is published in the 

Federal Register and shall be effective 

as to individuals who terminated senior 

service either before, on or after that 

date.’’ Initial designations in appendix B 

to part 2641 were effective as of January 

1, 1991. The effective date of subsequent 

designations is indicated by means of 

parenthetical entries in appendix B. The 

new component designation made in 

this rule for ASPR is effective on the 

date this final rule is published in the 

Federal Register. 

II. Matters of Regulatory Procedure 

Regulatory Flexibility Act 

As Acting Director of the Office of 

Government Ethics, I certify under the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) that this final rule will not 

have a significant economic impact on 

a substantial number of small entities 

because it affects only Federal 

departments and agencies and current 

and former Federal employees. 

Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) does not apply to this 

final rule because it does not contain 

information collection requirements that 

require the approval of the Office of 

Management and Budget. 

Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (2 U.S.C. 

chapter 25, subchapter II), this final rule 

will not significantly or uniquely affect 

small governments and will not result in 

increased expenditures by State, local, 

and Tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more (as adjusted for 

inflation) in any one year. 

Congressional Review Act 

The final rule is not a major rule as 

defined in 5 U.S.C. chapter 8, 

Congressional Review of Agency 

Rulemaking. 

Executive Orders 12866, 13563 and 

14094 

In promulgating this final rule, the 

Office of Government Ethics has 

adhered to the regulatory philosophy 

and the applicable principles of 

regulation set forth in Executive Order 

12866, Regulatory Planning and Review 

(58 FR 51735, Oct. 4, 1993); Executive 

Order 13563, Improving Regulation and 

Regulatory Review (76 FR 3821, Jan. 21, 

2011); and Executive Order 14094, 

Modernizing Regulatory Review (88 FR 

21879, Apr. 11, 2023). Executive Orders 

13563 and 12866 direct agencies to 

assess all costs and benefits of available 

regulatory alternatives and, if regulation 

is necessary, to select the regulatory 

approaches that maximize net benefits 

(including economic, environmental, 

public health and safety effects, 

distributive impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 


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74108 Federal Register / Vol. 89, No. 177 / Thursday, September 12, 2024 / Rules and Regulations 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. 

This rule has not been reviewed by 

the Office of Management and Budget 

under Executive Order 12866 because it 

is not a ‘‘significant’’ regulatory action 

for the purposes of that order. 

Executive Order 12988 

As Acting Director of the Office of 

Government Ethics, I have reviewed this 

final rule in light of section 3 of 

Executive Order 12988, Civil Justice 

Reform, and certify that it meets the 

applicable standards provided therein. 

Executive Order 13715 

The Office of Government Ethics has 

evaluated this final rule under the 

criteria set forth in Executive Order 

13175 and determined that Tribal 

consultation is not required as this 

proposed rule has no substantial direct 

effect on one or more Indian tribes, on 

the relationship between the Federal 

Government and Indian tribes, or on the 

distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

List of Subjects in 5 CFR Part 2641 

Conflict of interests, Government 

employees. 

Approved: September 9, 2024. 

Shelley K. Finlayson, 

Acting Director, Office of Government Ethics. 

Accordingly, for the reasons set forth 

in the preamble, the U.S. Office of 

Government Ethics is amending 5 CFR 

part 2641 as set forth below: 

PART 2641—POST–EMPLOYMENT 

CONFLICT OF INTEREST 

RESTRICTIONS 

■ 1. The authority citation for part 2641 

is revised to read as follows: 

Authority: 5 U.S.C. ch. 131; 18 U.S.C. 207; 

E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., 

p. 215, as modified by E.O. 12731, 55 FR 

42547, 3 CFR, 1990 Comp., p. 306. 

■ 2. Revise appendix B to read as 

follows: 

Appendix B to Part 2641—Agency 

Components for Purposes of 18 U.S.C. 

207(c) 

Pursuant to the provisions of 18 U.S.C. 

207(h), each of the following agencies is 

determined, for purposes of 18 U.S.C. 207(c), 

and 5 CFR 2641.204, to have within it 

distinct and separate components as set forth 

below. Except as otherwise indicated, all 

designations are effective as of January 1, 

1991. 

Parent: Department of Commerce 

Components 

Bureau of the Census. 

Bureau of Economic Analysis (effective 

June 26, 2020). 

Bureau of Industry and Security (formerly 

Bureau of Export Administration) (effective 

January 28, 1992). 

Economic Development Administration. 

International Trade Administration. 

Minority Business Development Agency 

(formerly listed as Minority Business 

Development Administration). 

National Institute of Standards and 

Technology (effective March 6, 2008). 

National Oceanic and Atmospheric 

Administration. 

National Technical Information Service 

(effective March 6, 2008). 

National Telecommunications and 

Information Administration. 

United States Patent and Trademark Office 

(formerly Patent and Trademark Office). 

Parent: Department of Defense 

Components 

Defense Advanced Research Projects 

Agency (DARPA) (effective April 6, 2021). 

Department of the Air Force. 

Department of the Army. 

Department of the Navy. 

Defense Information Systems Agency. 

Defense Intelligence Agency. 

Defense Logistics Agency. 

Defense Threat Reduction Agency 

(effective February 5, 1999). 

National Geospatial-Intelligence Agency 

(formerly National Imagery and Mapping 

Agency) (effective May 16, 1997). 

National Reconnaissance Office (effective 

January 30, 2003). 

National Security Agency. 

Parent: Department of Energy 

Component 

Federal Energy Regulatory Commission. 

Parent: Department of Health and Human 

Services 

Components 

Administration for Children and Families 

(effective January 28, 1992). 

Administration for Community Living 

(effective December 4, 2014). 

Administration for Strategic Preparedness 

and Response (effective September 12, 2024). 

Agency for Healthcare Research and 

Quality (formerly Agency for Health Care 

Policy and Research) (effective May 16, 

1997). 

Agency for Toxic Substances and Disease 

Registry (effective May 16, 1997). 

Centers for Disease Control and Prevention 

(effective May 16, 1997). 

Centers for Medicare and Medicaid 

Services (formerly Health Care Financing 

Administration). 

Food and Drug Administration. 

Health Resources and Services 

Administration (effective May 16, 1997). 

Indian Health Service (effective May 16, 

1997). 

National Institutes of Health (effective May 

16, 1997). 

Substance Abuse and Mental Health 

Services Administration (effective May 16, 

1997). 

Parent: Department of the Interior 

Components [1]

Bureau of Indian Affairs (effective January 

28, 1992). 

Bureau of Land Management (effective 

January 28, 1992). 

Bureau of Reclamation (effective January 

28, 1992). 

National Park Service (effective January 28, 

1992). 

Office of Surface Mining Reclamation and 

Enforcement (effective January 28, 1992). 

U.S. Fish and Wildlife Service (effective 

January 28, 1992). 

U.S. Geological Survey (effective January 

28, 1992). 

Parent: Department of Justice 

Components 

Antitrust Division. 

Bureau of Alcohol, Tobacco, Firearms and 

Explosives (effective November 23, 2004). 

Bureau of Prisons (including Federal 

Prison Industries, Inc.). 

Civil Division. 

Civil Rights Division. 

Community Relations Service. 

Criminal Division. 

Drug Enforcement Administration. 

Environment and Natural Resources 

Division. 

Executive Office for United States 

Attorneys [2] (effective January 28, 1992). 

Executive Office for United States 

Trustees [3] (effective January 28, 1992). 

Federal Bureau of Investigation. 

Foreign Claims Settlement Commission. 

Independent Counsel appointed by the 

Attorney General. 

Office of Justice Programs. 

Office of the Pardon Attorney (effective 

January 28, 1992). 

Offices of the United States Attorney (each 

of 94 offices). 

Offices of the United States Trustee (each 

of 21 offices). 

Office on Violence Against Women [4]

(effective March 8, 2007). 

Tax Division. 

United States Marshals Service (effective 

May 16, 1997). 

United States Parole Commission. 

Parent: Department of Labor 

Components 

Bureau of Labor Statistics. 

Employee Benefits Security Administration 

(formerly Pension and Welfare Benefits 

Administration) (effective May 16, 1997). 

Employment and Training Administration. 

Mine Safety and Health Administration. 

Occupational Safety and Health 

Administration. 

Office of Disability Employment Policy 

(effective January 30, 2003). 

Office of Federal Contract Compliance 

Programs (effective December 29, 2016). 

Office of Labor Management Standards 

(effective December 29, 2016). 

Office of Workers’ Compensation Programs 

(effective December 29, 2016). 


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1See Report on the First Five-Year 

Comprehensive Review of Size Standards at https:// 

www.sba.gov/sites/sbagov/files/2023-09/ 

Report%20on%20the%20First%205- 

Year%20Comprehensive%20Size%20Standards

%20Review-508F.pdf. 

2See Report on the Second Five-Year 

Comprehensive Review of Size Standards at https:// 

www.sba.gov/sites/sbagov/files/2023-07/ 

SBA%27s%20Report%20on%20the%20

Second%205%20Year%20Review%20of%20

Size%20Standards_Final.pdf. 

Pension Benefit Guaranty Corporation 

(effective May 25, 2011). 

Veterans’ Employment and Training 

Service (effective June 26, 2020). 

Wage and Hour Division (effective 

December 29, 2016). 

Parent: Department of State 

Component 

Foreign Service Grievance Board. 

Parent: Department of Transportation 

Components 

Federal Aviation Administration. 

Federal Highway Administration. 

Federal Motor Carrier Safety 

Administration (effective January 30, 2003). 

Federal Railroad Administration. 

Federal Transit Administration. 

Maritime Administration. 

National Highway Traffic Safety 

Administration. 

Pipeline and Hazardous Materials Safety 

Administration (effective December 29, 

2016). 

Saint Lawrence Seaway Development 

Corporation. 

Parent: Department of the Treasury 

Components 

Alcohol and Tobacco Tax and Trade 

Bureau (effective November 23, 2004). 

Bureau of Engraving and Printing. 

Bureau of the Fiscal Service (effective 

December 4, 2014). 

Comptroller of the Currency. 

Financial Crimes Enforcement Network 

(FinCEN) (effective January 30, 2003). 

Internal Revenue Service. 

United States Mint (formerly listed as 

Bureau of the Mint). 

Footnotes—Appendix B to Part 2641 

[1]All designated components under the 

jurisdiction of a particular Assistant 

Secretary shall be considered a single 

component for purposes of determining the 

scope of 18 U.S.C. 207(c) as applied to senior 

employees serving on the immediate staff of 

that Assistant Secretary. 

[2]The Executive Office for United States 

Attorneys shall not be considered separate 

from any Office of the United States Attorney 

for a judicial district, but only from other 

designated components of the Department of 

Justice. 

[3]The Executive Office for United States 

Trustees shall not be considered separate 

from any Office of the United States Trustee 

for a region, but only from other designated 

components of the Department of Justice. 

[4]The Office on Violence Against Women 

shall not be considered separate from the 

Office of Justice Programs, but only from 

other designated components of the 

Department of Justice. 

[FR Doc. 2024–20699 Filed 9–11–24; 8:45 am] 

BILLING CODE 6345–03–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 121 

Small Business Size Standards: 

Revised Size Standards Methodology 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of availability of white 

paper on revised size standards 

methodology. 

SUMMARY: The U.S. Small Business 

Administration (SBA or Agency) advises 

the public that it has revised its size 

standards methodology white paper, 

entitled ‘‘SBA’s Size Standards 

Methodology (June 2024)’’ (the Revised 

Methodology or Methodology), 

explaining how it establishes, reviews, 

or revises small business size standards. 

SBA will apply the Revised 

Methodology to the forthcoming third 

five-year review of size standards 

required by the Small Business Jobs Act 

of 2010. On December 11, 2023, SBA 

published a notification seeking 

comments on proposed revisions to its 

Methodology. This notification 

describes major changes to the 

Methodology and their impacts on size 

standards, followed by a discussion of 

the comments SBA received on the 

proposed revisions to the Methodology 

and Agency’s responses. 

DATES: September 12, 2024. 

ADDRESSES: The 2024 Revised 

Methodology is available on the SBA’s 

website at www.sba.gov/size. 

FOR FURTHER INFORMATION CONTACT: 

Khem R. Sharma, Chief, Office of Size 

Standards, (202) 205–7189, or 

sizestandards@sba.gov. 

SUPPLEMENTARY INFORMATION: 

A. Background 

To determine eligibility for Federal 

small business assistance programs, 

SBA establishes small business size 

definitions (commonly referred to as 

‘‘size standards’’) for private sector 

industries in the United States. Under 

the Small Business Act (the Act), 15 

U.S.C. 632(a) (Pub. L. 85–536, 67 Stat. 

232, as amended), the SBA’s 

Administrator (Administrator) has 

authority to establish size standards for 

Federal Government programs. SBA’s 

existing size standards use two primary 

measures of business size: average 

annual receipts and average number of 

employees. Financial assets and refining 

capacity are used as size measures for a 

few specialized industries. In addition, 

the SBA’s Small Business Investment 

Company (SBIC), 7(a), and Certified 

Development Company (CDC/504) 

Programs determine small business 

eligibility using either the industrybased size standards or tangible net 

worth and net income based alternative 

size standards. Presently, there are 102 

different size standards, covering 978 

industries and 14 subindustries, also 

known as ‘‘exceptions.’’ Of these, 505 

are based on average annual receipts, 

483 on number of employees (one of 

which also includes barrels per calendar 

day total refining capacity), and four on 

average assets. 

The Small Business Jobs Act 2010 

(Pub. L. 111–240, 124 Stat. 2504, Sept. 

27, 2010) requires SBA to review, every 

five years, all size standards and make 

necessary adjustments to reflect market 

conditions. SBA completed the first 

five-year review of size standards under 

the Jobs Act in early 2016 1 and 

completed the second five-year review 

of size standards in early 2023.2 SBA 

will begin the next (third) five-year 

review of size standards in the near 

future. 

The goal of SBA’s size standards 

review is to determine whether its 

existing size standards reflect the 

current industry structure and Federal 

market conditions and revise them if the 

latest available data suggests that 

revisions are warranted. The Act 

requires that the size standard varies 

from industry to industry to the extent 

necessary to reflect the differing 

characteristics of the various industries. 

SBA evaluates the structure of each 

industry in terms of four economic 

characteristics or factors, namely 

average firm size, average assets size as 

a proxy of startup costs and entry 

barriers, the four-firm concentration 

ratio as a measure of industry 

competition, and size distribution of 

firms using the Gini coefficient (13 CFR 

121.102(a)). Besides industry structure, 

SBA also examines the impact of an 

existing size standard as well as the 

potential impact of a revised size 

standard on small business participation 

in Federal contracting as an additional 

primary factor when establishing, 

reviewing, or modifying the size 

standards. SBA generally considers 

these five factors—average firm size, 

average assets size, four-firm 

concentration ratio, Gini coefficient, and 

small business participation in Federal 


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