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

96089 

Vol. 89, No. 233 

Wednesday, December 4, 2024 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 124, 126, 127, 128, and 

134 

RIN 3245–AI04 

Women-Owned Small Business 

Federal Contract Program Updates and 

Clarifications 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Final rule. 

SUMMARY: This final rule makes several 

changes to the Small Business 

Administration (SBA or Agency) 

Women-Owned Small Business (WOSB) 

Federal Contract Program regulations, 

including adding definitions that are not 

currently included in the regulations 

and conforming the regulations to 

current statutes that have not yet been 

integrated. The rule also adopts similar 

language to that used in SBA’s other 

government contracting program 

regulations regarding requirements for 

the qualifying individual’s control of an 

applicant concern and limits on outside 

employment and makes changes to the 

process by which an application for 

certification is reviewed by SBA in 

order to implement a statutory 

amendment from the National Defense 

Authorization Act for Fiscal Year 2022 

regarding the effects of a status 

determination on a small business 

concern. 

DATES: This rule is effective January 3, 

2025. It applies to all solicitations 

issued on or after that date. 

FOR FURTHER INFORMATION CONTACT: 

Harry T. Alexander Jr., U.S. Small 

Business Administration, Office of 

Contracting Assistance, 409 Third Street 

SW, Washington, DC 20416; (202) 619– 

0314, harry.alexanderjr@sba.gov. 

SUPPLEMENTARY INFORMATION: On May 

16, 2024, SBA published a proposed 

rule in the Federal Register to change 

the process by which an application for 

certification is reviewed by SBA. SBA 

proposed this change in order to 

implement a statutory amendment from 

the National Defense Authorization Act 

for Fiscal Year 2022 (Pub. L. 117–81) 

regarding the effects of a status 

determination on a small business 

concern. SBA also proposed to replace 

outdated references to the U.S. 

Department of Veterans Affairs Center 

for Verification and Evaluation with 

references to SBA’s Veteran Small 

Business Certification (VetCert) 

Program, add definitions of terms used 

in the Women-Owned Small Business 

(WOSB) regulations, provide 

consistency across the regulations used 

in SBA’s other government contracting 

programs, and define who is authorized 

to represent a firm when validating or 

signing certification pages during the 

certification process. 

During the rule’s 60-day comment 

period, SBA timely received comments 

from two commenters, with one 

commenter expressing full support for 

the proposed rule. The other commenter 

expressed general support for the 

substantive changes proposed by SBA, 

noting that the rule is ‘‘generally wellconceived and addresses the concerns of 

the industry,’’ and appreciated SBA’s 

efforts to standardize the requirements 

of the government contracting programs. 

Section-by-Section Analysis and 

Response to Comments 

Sections 124.106(a), 127.202(c), and 

128.203(i) 

Sections 124.106(a), 127.202(c), and 

128.203(i) address limitations on 

outside employment that can affect a 

business concern’s eligibility for 

participation in the 8(a) Business 

Development (BD), WOSB, and VetCert 

programs, respectively, based on a 

qualifying individual’s lack of control. 

Each of these provisions generally 

requires the qualifying individual to 

devote full time or the number of hours 

of normal operation to the business. 

Each also requires the business concern 

to demonstrate how a qualifying 

individual controls the day-to-day 

operations of the business concern, 

particularly if the qualifying individual 

devotes fewer hours to the business than 

its normal hours of operation. The 

language of the three provisions, 

however, is not identical. These 

discrepancies led to questions as to 

whether SBA intended different 

application of the control requirements 

for different programs. Current 

§ 127.202 generally requires that a 

woman devote sufficient time to the 

business with a rebuttable presumption 

that the business does not qualify for 

WOSB if a woman devotes fewer hours 

to the business than its normal hours of 

operation. Where the presumption 

applies, the woman must provide 

evidence to SBA that she has ultimate 

managerial and supervisory control over 

both the long-term decision making and 

day-to-day management and 

administration of the business. This 

final rule aligns the language of this 

section to the current restriction in the 

VetCert Program. The business will still 

be generally required to have the 

qualified woman that controls the 

concern devote full time to the business 

during the business’s normal hours of 

operation. The business may, however, 

demonstrate to SBA that the woman has 

ultimate managerial and supervisory 

control over both the long-term decision 

making and day-to-day management of 

the business although the woman may 

not meet full-time devotion. 

One commenter expressed support for 

this change but identified minor 

inconsistencies remaining between the 

rule as proposed and §§ 124.106(a)(4) 

and 128.203(i). The commenter 

suggested SBA revise the rule to fully 

conform these sections. SBA has made 

minor wording changes to § 127.202 to 

conform that language to the language 

regarding outside employment 

contained in § 124.106(a) for the 8(a) BD 

program and § 128.203(i) for the VetCert 

program. The commenter additionally 

noted that the proposed rule does not 

clarify whether WOSB allows for 

exceptions to the control requirements 

in ‘‘extraordinary circumstances’’ as the 

VetCert regulations provide. SBA agrees 

that the ‘‘extraordinary circumstances’’ 

provisions should equally apply in the 

WOSB program and has proposed to 

incorporate them into the WOSB 

regulations in a separate rulemaking. 

See 89 FR 68274, 68316 (Aug. 23, 2024). 

Sections 127.102, 126.103, 128.500, and 

134.1002 

Section 127.102 sets out the 

definitions for the WOSB Program. SBA 

proposed to add a definition for the 

term ‘‘Applicant,’’ as a definition was 

not included in the previous version of 

the regulations and appears in the 

regulations of SBA’s other government 


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contracting programs. SBA believes that 

including this definition will provide 

consistency in the rules that apply to its 

various certification programs and make 

clear that a concern applying for 

certification in the WOSB Program is an 

‘‘Applicant.’’ SBA received no 

comments to this provision and adopts 

it as final in this rule. 

SBA also proposed to amend the 

current definition of the term ‘‘System 

for Award Management (SAM) (or any 

successor system).’’ SBA believes that 

the definition is outdated and should 

match the definition that is used in the 

FAR for consistency purposes. SBA 

received no comments to this provision 

and adopts it as final. 

The proposed rule also removed the 

definition for ‘‘WOSB Program 

Repository’’ as this definition refers to 

the old repository system that is no 

longer in use. SBA believes that 

removing this definition, which is not 

used elsewhere in 13 CFR part 127, will 

alleviate any confusion. 

Lastly, the proposed rule amended the 

definition of ‘‘Interested party,’’ limiting 

it to certified WOSB concerns or 

concerns that have a pending 

application for WOSB certification, 

either at SBA or a third-party certifier, 

and that submit an offer for a specific 

Economically Disadvantaged WomenOwned Small Business (EDWOSB) or 

WOSB requirement, rather than any 

concern that submits an offer for a 

specific EDWOSB or WOSB 

requirement. SBA believes that only 

certified WOSBs and EDWOSBs or 

concerns pending WOSB certification 

should be able to submit a protest 

against an apparent successful offeror’s 

EDWOSB or WOSB status since only 

those firms can themselves be eligible 

for award and truly have an economic 

interest in the award. It is not 

uncommon for an incumbent contractor 

to file a bid or size/status protest in 

order for its performance to be extended 

pending the resolution of the protest. 

SBA does not want to encourage firms 

that are not certified WOSBs or certified 

EDWOSBs to submit offers merely to be 

able to file a status protest that could 

prolong their performance under a 

preceding contract. Such firms have no 

chance to be awarded a WOSB/ 

EDWOSB contract, and such protests 

may be nothing more than delay tactics. 

Only firms that are capable of winning 

the WOSB set-aside contract or order 

should be able to protest the WOSB 

status of an apparent successful offeror. 

Furthermore, in Fiscal Year 2024, only 

one of the twelve protests received by 

the WOSB program office would have 

been impacted by this change in the 

definition of ‘‘interested party.’’ Thus, 

this change would have an insignificant 

impact on the number of status protests 

that would have been reviewed. Status 

protests for the VetCert program are 

heard by SBA’s Office of Hearings and 

Appeals (OHA). The expected impact on 

firms able to submit a VetCert status 

protest would be similarly insignificant 

by this change in the definition of 

‘‘interested party.’’ 

One commenter expressed support for 

this change, and suggested SBA 

similarly update the 8(a) BD Program, 

Historically Underutilized Business 

Zone (HUBZone) Program, and VetCert 

Program regulations. SBA first notes 

that it does not allow status protests in 

connection with the award of 8(a) 

contracts. Second, SBA proposed to 

similarly change the definition of 

interested party for the HUBZone 

program in a separate rulemaking. See 

89 FR 68274, 68307. SBA received two 

positive comments and no negative 

comments about this proposed change 

for the HUBZone program. SBA agrees 

with the commenter that similar 

treatment should be afforded to the 

HUBZone program and VetCert program 

and, thus, has adopted this comment 

and amended §§ 126.103 and 128.500 in 

this final rule. 

In addition to the changes made to 

§§ 126.103, 127.102, and 128.500, the 

definition for ‘‘interested party’’ must 

also be updated in OHA’s regulations as 

OHA has jurisdiction over VetCert 

status protests and who may file a 

Veteran-Owned Small Business Concern 

(VOSB) or Service-Disabled VeteranOwned Small Business Concern 

(SDVOSB) status protest. As such, SBA 

also amends § 134.1002(b) in this final 

rule for uniformity purposes and to 

dispel confusion about the appropriate 

definition. 

Section 127.300 

The proposed rule amended the 

outdated references in §§ 127.300(a)(2) 

and (b)(3) to certifications made by the 

U.S. Department of Veterans Affairs 

(VA) Center for Verification and 

Evaluation. Instead, the proposed rule 

referred to SBA’s Veteran Small 

Business Certification Program. SBA 

believes this change will resolve any 

confusion caused by reference to the 

VA’s Verification Program, which no 

longer certifies veteran-owned or 

service-disabled veteran-owned small 

business concerns following its transfer 

to SBA pursuant to section 862 of the 

National Defense Authorization Act for 

Fiscal Year 2021 (Pub. L. 116–283). 

The proposed rule also amended 

§ 127.300(c) by referring to SAM, in 

addition to the Dynamic Small Business 

Search (DSBS) system. This change 

recognizes that a concern that is a 

qualified WOSB or EDWOSB will be 

designated as such in both SAM and the 

DSBS system. 

SBA did not receive any comments on 

either of these provisions and adopts 

them as final in this rule. 

Section 127.303 

SBA proposed to add a new paragraph 

and reorganize § 127.303(a)(1) to 

provide that a concern certified as a 

veteran-owned or service-disabled 

veteran-owned small business for the 

VetCert Program and owned and 

controlled by one or more women may 

use documentation of its VOSB or 

SDVOSB certification or more recent 

recertification in support of its 

application for WOSB certification. The 

proposed rule further provided that if 

the concern is also seeking EDWOSB 

certification, it must submit 

documentation that demonstrates it is 

owned and controlled by one or more 

women who are economically 

disadvantaged in accordance with 

§ 127.203. This change recognizes a 

concern’s ability to use documentation 

from SBA’s other certification program 

in support of its application for WOSB 

certification. One commenter expressed 

specific support for this change. With 

no objections to this change, it is 

adopted as final in this rule. 

Section 127.305 

The proposed rule incorporated the 

same language used in § 124.207 for 

purposes of applying to the 8(a) BD 

Program. Section 124.207 provides that 

a concern that has applied to the 8(a) BD 

program and has been declined three 

times within 18 months of the date of 

the first final Agency decision finding 

the concern ineligible cannot submit a 

new application for admission to the 

program until 12 months from the date 

of the third final Agency decision to 

decline. SBA proposed this change to 

the WOSB program to provide 

consistency among its various 

certification programs. One commenter 

supported this change, and suggested 

SBA similarly conform the VOSB 

regulation at § 128.305. In a separate 

rulemaking after this proposed rule, 

SBA proposed to eliminate the language 

in § 124.207 that a concern must wait 12 

months to reapply to the 8(a) BD 

program where it has been declined 

three times within 18 months. See 89 FR 

68274, 68280. SBA noted that it 

believed such a provision was 

unnecessary and should not seek to 

thwart firms that have made legitimate 

attempts to overcome deficiencies from 

reapplying to the 8(a) BD program. 

Because the proposed change to the 


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WOSB program to incorporate the 12- 

month waiting period was intended to 

promote consistency in SBA’s 

certification programs and SBA has now 

proposed to eliminate the similar 

provision in the 8(a) BD regulations, 

SBA does not finalize the proposed 

language to § 127.305 in this rule. 

Section 127.356(c) 

SBA proposed to revise § 127.356(c) 

to provide consistency between 

§ 127.356(c) and § 127.356(a) and (b). 

Currently, § 127.356(c) states that an 

approved third-party certifier must 

ensure that all of a concern’s documents 

are uploaded in https://certify.sba.gov or 

any successor system. SBA believes that 

is inconsistent with SBA’s intent that it 

is the responsibility of the concern, not 

the SBA-approved third-party certifier, 

to ensure that all its documents are 

uploaded. Paragraphs 127.356(a) and (b) 

require the applicant concern to apply 

directly with a third-party certifier and 

register in SAM. Consistent with 

paragraphs (a) and (b), SBA believes that 

it is the responsibility of the applicant 

concern, and not the third-party 

certifier, to ensure that all documents 

necessary to determine its eligibility for 

certification by an approved certifier are 

uploaded with its application. SBA 

believes this uniformity within the 

section will lead to less confusion about 

whose duty it is to make sure 

documents have been made available to 

SBA when a third-party certifier is 

involved. Furthermore, a system has not 

yet been put in place for a third-party 

certifier to upload the documents on 

behalf of the concern. One commenter 

expressed support for this clarification. 

As such, the final rule adopts the 

change as proposed. 

Section 127.504(a) 

Section 127.504 permits a concern 

that has submitted a complete 

application for WOSB or EDWOSB 

certification to SBA or a third-party 

certifier and has not received a negative 

determination regarding that application 

to submit an offer for a competitive 

WOSB or EDWOSB award. The 

proposed rule sought to define ‘‘pending 

application,’’ as this term is not 

currently defined in § 127.504 or 

elsewhere in the WOSB regulations. 

SBA believes providing this definition 

will lead to less confusion amongst 

concerns and contracting officers who 

have been unsure when an application 

is pending and believed an application 

to be pending at the point of 

application. This change will support 

the acquisition process for WOSB and 

EDWOSB set-asides. 

One commenter agreed with this 

addition but suggested that the rule also 

define when an application may be 

considered ‘‘complete.’’ The commenter 

suggested SBA define applications as 

‘‘complete’’ once the applicant provides 

initial submissions of all required 

materials. SBA does not believe that is 

necessary. The only time a ‘‘complete’’ 

application is relevant is in determining 

whether all necessary documents have 

been provided to SBA to enable SBA to 

evaluate whether an applicant is eligible 

for the program. Current § 127.304(a) 

provides that SBA will advise each 

applicant within 15 calendar days after 

the receipt of an application whether 

the application is complete and suitable 

for evaluation. Whether an application 

is complete depends upon various 

factors. An exhaustive definition of 

‘‘complete’’ application would not be 

simple and would introduce 

unnecessary complexity to the 

regulations. Different documents are 

required depending on the business 

structure of the applicant (e.g., whether 

an applicant is a corporation or 

partnership), whether it is seeking 

EDWOSB or merely WOSB certification, 

or whether it has received another SBA 

certification. Although SBA could add a 

definition saying that a complete 

application is one where all required 

documents have been submitted, SBA 

does not believe that adds any 

meaningful substance to the current 

regulation. As such, SBA does not adopt 

this recommendation, but rather adopts 

the proposed language as final in this 

rule. 

Section 127.604(f)(5) 

SBA proposed to add language 

describing the effects of a status 

determination on a concern and the 

obligation of a concern to update the 

System for Award Management (or any 

successor system) within two business 

days of a final determination. This 

change implements section 863 of the 

National Defense Authorization Act of 

Fiscal Year 2022 (Pub. L. 117–81), 

which amended section 5(i) of the Small 

Business Act (15 U.S.C. 634(i)), to 

provide such language in the status 

determination of a concern. 

One commenter expressed support for 

this addition and suggested SBA 

similarly revise § 128.500(d). The 

proposed additions to § 127.604(f)(5) are 

currently contained in § 128.500(d), 

except for new § 127.604(f)(5)(iii). SBA 

adds similar language to that contained 

in § 127.604(f)(5)(iii) to a new paragraph 

§ 128.500(d)(3) for consistency purposes 

in this final rule. 

Section 127.701 

SBA proposed to remove this section 

entirely as it contains outdated language 

regarding the previous WOSB program 

and system whereby a concern certified 

its WOSB or EDWOSB status on SAM in 

relation with specific eligibility 

requirements. This section, in its 

entirety, is no longer necessary, as 

§ 127.304(f) and other WOSB program 

regulations specify that SBA will update 

DSBS and SAM to indicate that a 

concern has been certified by SBA as a 

WOSB and/or EDWOSB. One 

commenter expressed support for this 

overall deletion. The final rule 

accordingly deletes this section. 

Compliance With Executive Orders 

12866, 12988, 13132, 13563, and the 

Paperwork Reduction Act (44 U.S.C. 

Ch. 35), the Regulatory Flexibility Act 

(5 U.S.C. 601–612), and the 

Congressional Review Act (5 U.S.C. 

801–808) 

Executive Orders 12866, 13563, and 

14094 

Executive Order 12866, Regulatory 

Planning and Review, Modernizing 

Regulatory Review, requires agencies to 

provide a Regulatory Impact Analysis 

assessing costs and benefits and 

addressing available alternatives for any 

‘‘significant regulatory action’’ as 

defined in Executive Order 14094, 

Modernizing Regulatory Review. The 

Office of Management and Budget has 

determined that this final rule is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866. 

Executive Order 13563, Improving 

Regulation and Regulatory Review, 

reaffirms the principles of Executive 

Order 12866 and requires agencies to 

adopt regulations through a process that 

involves public participation and, to the 

extent feasible, base regulations on the 

open exchange of information and 

perspectives from affected stakeholders 

and the public as a whole. SBA has 

developed this rule in a manner 

consistent with these requirements. 

Executive Order 13563 also requires 

agencies to assess the benefits and costs 

of any regulations and address available 

alternatives to direct regulation. This 

rule amends the WOSB regulations to 

provide uniformity amongst SBA’s 

government contracting programs and 

clarifies certain regulations that have 

been misunderstood by concerns and 

contract officers. As such, the rule has 

no effect on the amount or dollar value 

of any Federal contract requirements or 

of any financial assistance provided 

through SBA. Therefore, the rule is not 

likely to have an annual economic effect 

of $200 million or more, result in a 


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96092 Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Rules and Regulations 

major increase in costs or prices, or have 

a significant adverse effect on 

competition or the United States 

economy. In addition, this rule does not 

create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency, 

materially alter the budgetary impact of 

entitlements, grants, user fees, loan 

programs, or the rights and obligations 

of such recipients, nor raise novel legal 

or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

order. 

Executive Order 12988 

This action meets the standards set 

forth in sections 3(a) and 3(b)(2) of 

Executive Order 12988, Civil Justice 

Reform. SBA has taken the necessary 

steps to minimize litigation, eliminate 

drafting errors and ambiguity, reduce 

burden, and provide a clear legal 

standard for affected conduct. The 

action does not have preemptive or 

retroactive effect. 

Executive Order 13132 

This action does not have federalism 

implications as defined in Executive 

Order 13132, Federalism. The action 

would 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 action does not warrant the 

preparation of a Federalism Assessment. 

Paperwork Reduction Act 

The 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 

When an agency issues a rulemaking 

proposal, the Regulatory Flexibility Act 

(RFA) requires the agency to ‘‘prepare 

and make available for public comment 

an initial regulatory flexibility analysis’’ 

which will ‘‘describe the impact of the 

proposed rule on small entities.’’ (5 

U.S.C. 603(a)). Section 605 of the RFA 

allows an agency to certify a rule, in lieu 

of preparing an analysis, if the proposed 

rulemaking is not expected to have a 

significant economic impact on a 

substantial number of small entities. 

This final rule may affect all WOSBs, 

HUBZone concerns, 8(a) concerns, and 

VOSB/SDVOSBs, of which there are 

currently 13,289, 4,015, 5,679, and 

32,729, respectively, according to the 

Dynamic Small Business Search as of 

November 2024. All WOSBs, HUBZone 

concerns, 8(a) concerns, and VOSB/ 

SDVOSBs are small entities. Given that 

this is a large portion of the SBA’s 

contracting program portfolio, the SBA 

has determined that this proposed rule 

will have an impact on a substantial 

number of small entities. 

However, SBA has determined that 

the impact on entities affected by the 

final rule will not be significant, 

because this rule does not increase the 

burden on small entities and instead is 

intended to clarify and provide 

consistency and uniformity to existing 

regulations. As consistency and 

uniformity are difficult items to measure 

and there is not a dataset available, this 

determination has been assessed 

qualitatively. The effect of the final rule 

will be to adopt similar language across 

SBA’s government contracting programs 

regarding requirements for the 

qualifying individual’s control of an 

applicant concern and limits on outside 

employment. In addition, this final rule 

will provide consistency within the 

WOSB regulations by clarifying 

definitions and by incorporating a 

statutory amendment from the National 

Defense Authorization Act for FY 2022. 

SBA expects the economic impact of the 

final rule will be negligible. SBA asserts 

that the economic impact, if any, will be 

minimal and beneficial to WOSBs, 

HUBZone concerns, 8(a), and VOSB/ 

SDVOSBs due to conformity across the 

programs that will assist in limiting 

confusion for applicants. 

SBA invited comments on whether 

this rule would have a significant 

impact on a substantial number of small 

entities in the proposed rule but 

received none. Accordingly, the 

Administrator of the SBA hereby 

certifies that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

Congressional Review Act 

This rule has been determined not to 

meet the criteria set forth in 5 U.S.C. 

804(2). SBA will submit the rule to 

Congress and the Government 

Accountability Office consistent with 

the Congressional Review Act’s 

requirements. 

List of Subjects 

13 CFR Part 124 

Administrative practice and 

procedure, Government procurement, 

Government property, Small businesses. 

13 CFR Part 126 

Administrative practice and 

procedure, Government procurement, 

Penalties, Reporting and recordkeeping 

requirements, Small businesses. 

13 CFR Part 127 

Government contracts, Government 

employees, Reporting and 

recordkeeping requirements, Small 

businesses, Women. 

13 CFR Part 128 

Government contracts, Government 

procurement, Reporting and 

recordkeeping requirements, Small 

businesses, Technical assistance, 

Veterans. 

13 CFR Part 134 

Administrative practice and 

procedure, Claims, Confidential 

business information, Equal access to 

justice, Equal employment opportunity, 

Lawyers, Organization and function 

(Government agencies). 

Accordingly, for the reasons stated in 

the preamble, SBA amends 13 CFR parts 

124, 126, 127, 128, and 134 as follows: 

PART 124—8(A) BUSINESS 

DEVELOPMENT/SMALL 

DISADVANTAGED BUSINESS STATUS 

DETERMINATIONS 

■ 1. The authority citation for part 124 

continues to read as follows: 

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

637(a), 637(d), 644, 42 U.S.C. 9815; and Pub. 

L. 99–661, 100 Stat. 3816; Sec. 1207, Pub. L. 

100–656, 102 Stat. 3853; Pub. L. 101–37, 103 

Stat. 70; Pub. L. 101–574, 104 Stat. 2814; Sec. 

8021, Pub. L. 108–87, 117 Stat. 1054; and 

Sec. 330, Pub. L. 116–260. 

■ 2. Amend § 124.106 by: 

■ a. Revising paragraphs (a)(3) and (4); 

■ b. Redesignating paragraph (a)(5) as 

paragraph (a)(6); and 

■ c. Adding a new paragraph (a)(5). 

The revisions and addition read as 

follows: 

§ 124.106 When do disadvantaged 

individuals control an applicant or 

Participant? 

* * * * * 

(a) * * * 

(3) One or more disadvantaged 

individuals who manage the applicant 

or Participant generally must devote 

full-time to the business concern during 

its normal hours of operations. The 

disadvantaged individual who holds the 

highest officer position of the business 

concern may not engage in outside 

employment that prevents the 

disadvantaged individual from devoting 

the time and attention to the concern 

necessary to control its management and 

daily business operations. 

(4) Where a disadvantaged individual 

claiming to control a business concern 

devotes fewer hours to the business than 

its normal hours of operation, SBA will 

assume that the disadvantaged 


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individual does not control the business 

concern, unless the concern 

demonstrates that the disadvantaged 

individual has ultimate managerial and 

supervisory control over both the longterm decision making and day-to-day 

management of the business. 

(5) Any disadvantaged individual 

who seeks to engage in outside 

employment after certification must 

notify SBA of the nature and anticipated 

duration of the outside employment and 

demonstrate to SBA that the outside 

employment will not prevent the 

disadvantaged individual from 

controlling the business concern. 

* * * * * 

PART 126—HUBZONE PROGRAM 

■ 3. The authority citation for part 126 

continues to read as follow: 

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

644 and 657a. 

■ 4. Amend § 126.103 by revising the 

definition of ‘‘Interested party’’ to read 

as follows: 

§ 126.103 What definitions are important in 

the HUBZone program? 

* * * * * 

Interested party means any certified 

HUBZone small business concern that 

submits an offer for a specific HUBZone 

set-aside contract (including a multiple 

award contract) or order, any concern 

that submitted an offer in full and open 

competition and its opportunity for 

award will be affected by a price 

evaluation preference given to a 

certified HUBZone small business 

concern or by a reserve of an award 

given to a certified HUBZone small 

business concern, the contracting 

activity’s contracting officer, or SBA. 

* * * * * 

PART 127—WOMEN OWNED SMALL 

BUSINESS FEDERAL CONTRACT 

PROGRAM 

■ 5. The authority citation for part 127 

continues to read as follows: 

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

637(m), 644 and 657r. 

■ 6. Amend § 127.102 by: 

■ a. Adding a definition for ‘‘Applicant’’ 

in alphabetical order; 

■ b. Revising the definitions of 

‘‘Interested party’’ and ‘‘System for 

Award Management (SAM) (or any 

successor system)’’; and 

■ c. Removing the definition of ‘‘WOSB 

Program Repository’’. 

The addition and revisions read as 

follows: 

§ 127.102 What are the definitions of the 

terms used in this part? 

* * * * * 

Applicant means a firm applying for 

certification in the WOSB Certification 

Program. 

* * * * * 

Interested party means a concern 

certified as, or pending certification as, 

a WOSB or EDWOSB that submits an 

offer for a specific EDWOSB or WOSB 

contract (including Multiple Award 

Contracts) or order, or SBA. 

* * * * * 

System for Award Management (SAM) 

(or any successor system) means the 

primary Government repository for 

prospective Federal awardee and 

Federal awardee information and the 

centralized Government system for 

certain contracting, grants, and other 

assistance-related processes. It 

includes— 

(1) Data collected from prospective 

Federal Awardees required for the 

conduct of business with the 

Government; 

(2) Prospective contractor-submitted 

annual representations and 

certifications in accordance with FAR 

subpart 4.12 (48 CFR subpart 4.12); and 

(3) Identification of those parties 

excluded from receiving Federal 

Contracts, certain subcontracts, and 

certain types of Federal financial and 

non-financial assistance and benefits. 

* * * * * 

■ 7. Amend § 127.202 by revising 

paragraph (c) to read as follows: 

§ 127.202 What are the requirements for 

control of an EDWOSB or WOSB? 

* * * * * 

(c) Limitation on outside employment. 

(1) A woman or economically 

disadvantaged woman generally must 

devote full time to the business concern 

during its normal hours of operations. 

The woman or economically 

disadvantaged woman who holds the 

highest officer position of the business 

concern may not engage in outside 

employment that prevents her from 

devoting the time and attention to the 

business concern necessary to control 

its management and daily operations. 

(2) Where a woman or economically 

disadvantaged woman claiming to 

control a business concern devotes 

fewer hours to the business than its 

normal hours of operation, SBA will 

assume that she does not control the 

business concern, unless the concern 

demonstrates that she has ultimate 

managerial and supervisory control over 

both the long-term decision making and 

day-to-day management of the business. 

(3) Any qualifying woman or 

economically disadvantage woman who 

seeks to engage in outside employment 

after certification must notify SBA of the 

nature and anticipated duration of the 

outside employment and demonstrate to 

SBA that the outside employment will 

not prevent her from controlling the 

business concern. 

* * * * * 

■ 8. Amend § 127.300 by revising the 

section heading and paragraphs (a)(2), 

(b)(3), and (c) to read as follows: 

§ 127.300 How is a concern certified as an 

EDWOSB or WOSB? 

(a) * * * 

(2) A concern may submit evidence to 

SBA that it is a women-owned and 

controlled small business that is an 

SBA-certified participant in the Veteran 

Small Business Certification Program. 

* * * * * 

(b) * * * 

(3) A concern may submit evidence to 

SBA that it is an economically 

disadvantaged women-owned and 

controlled small business that is a 

certified participant in the Veteran 

Small Business Certification Program. 

* * * * * 

(c) If SBA determines that the concern 

is a qualified WOSB or EDWOSB, it will 

issue a letter of certification and 

designate the concern as a certified 

WOSB or EDWOSB on the Dynamic 

Small Business Search (DSBS) system, 

SAM, or successor system. 

■ 9. Amend § 127.303 by: 

■ a. Redesignating paragraph (a)(1)(iii) 

as paragraph (a)(1)(iv); 

■ b. Adding new paragraph (a)(1)(iii); 

■ c. Removing paragraph (a)(2); and 

■ d. Redesignating paragraph (a)(3) as 

paragraph (a)(2). 

The addition reads as follows: 

§ 127.303 What must a concern submit for 

certification? 

(a) * * * 

(1) * * * 

(iii) A concern that is certified by SBA 

as a veteran-owned or service-disabled 

veteran-owned small business for the 

Veteran Small Business Certification 

Program and is owned and controlled by 

one or more women may use 

documentation of its VOSB or SDVOSB 

certification or most recent 

recertification in support of its 

application for WOSB certification. If 

the concern is also seeking EDWOSB 

certification, the concern must also 

submit documentation demonstrating 

that it is owned and controlled by one 

or more women who are economically 

disadvantaged in accordance with 

§ 127.203(b)(3). 

* * * * * 

■ 10. Amend § 127.304 by revising 

paragraph (a) to read as follows: 


ddrumheller on DSK120RN23PROD with RULES1
96094 Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Rules and Regulations 

§ 127.304 How is an application for 

certification processed? 

(a) The SBA’s Director of Government 

Contracting (D/GC) or designee is 

authorized to approve or decline 

applications for certification. SBA must 

receive all required information and 

supporting documents before it will 

begin processing a concern’s 

application. SBA will not process 

incomplete applications. 

(1) SBA will advise each applicant 

after the receipt of an application 

whether the application is complete and 

suitable for evaluation and, if not, what 

additional information or clarification is 

required to complete the application. 

(2) SBA will make its determination 

within ninety (90) calendar days after 

receipt of a complete package, whenever 

practicable. 

* * * * * 

■ 11. Amend § 127.356 by revising 

paragraph (c) to read as follows: 

§ 127.356 How does a concern obtain 

certification from an approved certifier? 

* * * * * 

(c) The concern must ensure that all 

documents necessary to determine its 

eligibility for certification by an 

approved certifier are uploaded in 

https://certify.sba.gov or any successor 

system. 

■ 12. Amend § 127.504 by adding a 

sentence to the end of paragraph (a) 

introductory text to read as follows: 

§ 127.504 What requirements must an 

EDWOSB or WOSB meet to be eligible for 

an EDWOSB or WOSB requirement? 

(a) * * * An application is pending 

upon notification from SBA that the 

application is deemed complete and has 

sufficient documentation for full 

analysis. 

* * * * * 

■ 13. Amend § 127.604 by adding 

paragraph (f)(5) to read as follows: 

§ 127.604 How will SBA process an 

EDWOSB or WOSB status protest? 

* * * * * 

(f) * * * 

(5) Once a final determination has 

been made that a concern does not meet 

the requirements of a WOSB or 

EDWOSB, the concern cannot selfcertify as a WOSB or EDWOSB, as 

applicable, for any WOSB or EDWOSB 

contract. If a concern does so, it may be 

in violation of criminal laws, including 

section 16(d) of the Small Business Act, 

15 U.S.C. 645(d). If the concern has 

already certified itself as a WOSB or 

EDWOSB on a pending procurement, 

the concern must immediately inform 

the contracting officer for the procuring 

agency of its decertification. 

(i) Not later than two days after the 

date on which a final determination is 

made, such concern must update its 

WOSB/EDWOSB status in the System 

for Award Management (or any 

successor system). 

(ii) If a business concern fails to 

update its WOSB/EDWOSB status in the 

System for Award Management (or any 

successor system) in response to the 

final determination, SBA will make 

such update within two business days 

of the concern’s failure to do so. 

(iii) A concern required to make an 

update in the System for Award 

Management (or any successor system) 

shall notify a contracting officer for each 

contract with respect to which such 

concern has an offer or bid pending of 

the determination made, if the concern 

finds, in good faith, that such 

determination affects the eligibility of 

the concern to perform such contract. 

§ 127.701 [Removed] 

■ 14. Remove § 127.701. 

PART 128—VETERAN SMALL 

BUSINESS CERTIFICATION PROGRAM 

■ 15. The authority citation for part 128 

continues to read as follows: 

Authority: 15 U.S.C. 632(q), 634(b)(6), 644, 

645, 657f, 657f–1. 

■ 16. Amend § 128.203 by revising 

paragraph (i) to read as follows: 

§ 128.203 Who does SBA consider to 

control a VOSB or SDVOSB? 

* * * * * 

(i) Limitation on outside employment. 

(1) A qualifying veteran generally must 

devote full time to the business concern 

during its normal hours of operations. 

The qualifying veteran who holds the 

highest officer position of the business 

concern may not engage in outside 

employment that prevents the 

qualifying veteran from devoting the 

time and attention to the concern 

necessary to control its management and 

daily business operations. 

(2) Where a qualifying veteran 

claiming to control a business concern 

devotes fewer hours to the business than 

its normal hours of operation, SBA will 

assume that the qualifying veteran does 

not control the business concern, unless 

the concern demonstrates that the 

qualifying veteran has ultimate 

managerial and supervisory control over 

both the long-term decision making and 

day-to-day management of the business. 

(3) Any qualifying veteran who seeks 

to engage in outside employment after 

certification must notify SBA of the 

nature and anticipated duration of the 

outside employment and demonstrate to 

SBA that the outside employment will 

not prevent the qualifying veteran from 

controlling the business concern. 

* * * * * 

■ 17. Amend § 128.500 by adding 

paragraphs (d)(3) and (e) to read as 

follows: 

§ 128.500 What are the requirements for 

filing a VOSB or SDVOSB status protest? 

* * * * * 

(d) * * * 

(3) A concern required to make an 

update in the System for Award 

Management (or any successor system) 

shall notify a contracting officer for each 

contract with respect to which such 

concern has an offer or bid pending of 

the determination made, if the concern 

finds, in good faith, that such 

determination affects the eligibility of 

the concern to perform such contract. 

(e) Only interested parties may protest 

the VOSB or SDVOSB status of an 

apparent successful offeror for a VOSB 

or SDVOSB contract. An interested 

party means any certified VOSB or 

SDVOSB that submits an offer for a 

specific VOSB or SDVOSB set-aside 

contract (including a multiple award 

contract) or order, or SBA. 

PART 134—RULES OF PROCEDURE 

GOVERNING CASES BEFORE THE 

OFFICE OF HEARINGS AND APPEALS 

■ 18. The authority citation for part 134 

continues to read as follows: 

Authority: 5 U.S.C. 504; 15 U.S.C. 632, 

634(b)(6), 634(i), 637(a), 648(l), 656(i), 657t 

and 687(c); E.O. 12549, 51 FR 6370, 3 CFR, 

1986 Comp., p. 189. 

Subpart J issued under 15 U.S.C. 657f. 

Subpart K issued under 15 U.S.C. 657f. 

Subpart L issued under 15 U.S.C. 

636(a)(36); Pub. L. 116–136, 134 Stat. 281; 

Pub. L. 116–139, 134 Stat. 620; Pub. L. 116– 

142, 134 Stat. 641; and Pub. L. 116–147, 134 

Stat. 660. 

Subpart M issued under 15 U.S.C. 657a; 

Pub. L. 117–81, 135 Stat. 1541. 

■ 19. Amend § 134.1002 by revising 

paragraph (b) to read as follows: 

§ 134.1002 Who may file a VOSB or 

SDVOSB status protest? 

* * * * * 

(b) For all other procurements, any 

interested party may protest the 

apparent successful offeror’s VOSB or 

SDVOSB status. An interested party 

means the contracting officer, SBA, VA, 

or any certified VOSB or SDVOSB that 

submits an offer for a specific set-aside 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Rules and Regulations 96095 

VOSB or SDVOSB contract (including 

Multiple Award Contracts) or order. 

* * * * * 

Isabella Casillas Guzman, 

Administrator. 

[FR Doc. 2024–28200 Filed 12–3–24; 8:45 am] 

BILLING CODE 8026–09–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 732, 734, 736, 740, 742, 

744, 746, 748, 758, 762, 772, and 774 

[Docket No. 241129–0307] 

RIN 0694–XC111 

Public Briefing on Changes to 

Advanced Computing and 

Semiconductor Manufacturing Items 

AGENCY: Bureau of Industry and 

Security, U.S. Department of Commerce. 

ACTION: Notification of public briefing 

on regulatory actions. 

SUMMARY: On December 2, 2024, the 

Office of the Federal Register posted for 

public inspection two related Bureau of 

Industry and Security (BIS) rules: an 

interim final rule, ‘‘Foreign-Produced 

Direct Product Rule Additions, and 

Refinements to Controls for Advanced 

Computing and Semiconductor 

Manufacturing Items,’’ (RIN 0694–AJ74) 

and a final rule, ‘‘Additions and 

Modifications to the Entity List; 

Removals from the Validated End-User 

(VEU) Program’’ (RIN 0694–AJ77). This 

document announces that, on December 

5, 2024, BIS will host a virtual public 

briefing on these rules. This document 

also provides details on the procedures 

for participating in the virtual public 

briefing. 

DATES: 

Virtual public briefing: The virtual 

public briefing will be held on 

December 5, 2024. The public briefing 

will begin at 3 p.m. Eastern Standard 

Time (EST) and conclude at 4 p.m. EST. 

Deadline to register: Register by 1 

p.m. EST on December 5, 2024, for 

virtual participation. 

ADDRESSES: To attend this event 

virtually, register at: https://

events.gcc.teams.microsoft.com/event/ 

abac2c31-743f-4f61-806f-0b7f4c376bcf@

44cf3ec3-840c-4086-b7dee3bc9a6c2db4. 

Recordkeeping: A summary of the 

briefing will be posted for the record at: 

https://events.gcc.teams.microsoft.com/ 

event/abac2c31-743f-4f61-806f0b7f4c376bcf@44cf3ec3-840c-4086- 

b7de-e3bc9a6c2db4 and at https://

regulations.gov under the 

regulations.gov ID for this notice (BIS– 

2024–0028). 

FOR FURTHER INFORMATION CONTACT: For 

questions on this virtual public briefing, 

contact Regulatory Policy Division, 

Office of Exporter Services, Bureau of 

Industry and Security, U.S. Department 

of Commerce at 202–482–2440 or by 

email: RPD2@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On December 2, 2024, the Office of 

Federal Register posted for public 

inspection the BIS interim final rule, 

‘‘Foreign-Produced Direct Product Rule 

Additions, and Refinements to Controls 

for Advanced Computing and 

Semiconductor Manufacturing Items,’’ 

which amends the Export 

Administration Regulations (EAR). 

These amendments revise controls for 

certain advanced computing items, 

supercomputers, and semiconductor 

manufacturing equipment, which 

includes adding new controls for certain 

semiconductor manufacturing 

equipment and related items, creating 

new Foreign Direct Product (FDP) rules 

for certain commodities to impair the 

capability to produce ‘‘advanced-node 

integrated circuits’’ (‘‘advanced-node 

ICs’’) by certain destinations or entities 

of concern, adding new controls for 

certain high bandwidth memory (HBM) 

important for advanced computing, and 

clarifying controls on certain software 

keys that allow for the use of items such 

as software tools. 

On the same day, the Office of Federal 

Register posted for public inspection the 

BIS final rule, ‘‘Additions and 

Modifications to the Entity List; 

Removals from the Validated End-User 

(VEU) Program,’’ which amends the 

EAR by adding 140 entities to the Entity 

List. These entries are listed on the 

Entity List under the destinations of 

China, People’s Republic of (China), 

Japan, South Korea, and Singapore, and 

have been determined by the U.S. 

Government to be acting contrary to the 

national security and foreign policy 

interests of the United States. 

That final rule also modifies 14 

existing entries on the Entity List, 

consisting of revisions to 14 entries 

under China and is part of this larger 

effort to ensure that appropriate EAR 

controls are in place on these items, 

including in connection with 

transactions destined to or otherwise 

involving the entities being added to the 

Entity List, as well as for existing entries 

on the Entity List that are being 

modified. Additionally, that final rule 

designates nine of these entities being 

added and seven of the entries being 

modified as entities for which entityspecific restrictions apply with respect 

to certain foreign-produced items. The 

final rule also amends the EAR by 

removing three entities from the 

Validated End-User (VEU) Program. 

Public Briefing 

On December 5, 2024, BIS will host a 

public briefing to address the details of 

these two rules. The virtual public 

briefing will be held on December 5, 

2024. The virtual public briefing will 

begin at 3 p.m. EST and conclude at 4 

p.m. EST. 

Procedure for Requesting Participation 

To participate in the public meeting 

virtually, register at: https://

events.gcc.teams.microsoft.com/event/ 

abac2c31-743f-4f61-806f-0b7f4c376bcf@

44cf3ec3-840c-4086-b7de-e3bc9a6c2db4 

no later than 1 p.m. EST on December 

5, 2024, for virtual participation. This 

web page will also display the agenda 

of the public meeting and any other 

necessary information. 

Special Accommodations 

For any special accommodation 

needs, please send an email to: rpd2@

bis.doc.gov. 

Matthew S. Borman, 

Principal Deputy Assistant Secretary for 

Strategic Trade and Technology Security. 

[FR Doc. 2024–28423 Filed 12–2–24; 11:15 am] 

BILLING CODE 3510–33–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 275 

[Release No. IA–6773; File No. S7–03–22] 

Private Fund Advisers; Documentation 

of Registered Investment Adviser 

Compliance Reviews 

Correction 

In Rule Document 2024–26524, 

appearing on pages 91252 through 

91253, in the issue of Tuesday, 

November 19, 2024, make the following 

correction: 

On page 91253, in the first column, in 

the 14th and 15th lines the text 

‘‘[INSERT DATE OF PUBLICATION IN 

THE FEDERAL REGISTER]’’ should 

read ‘‘November 19, 2024’’. 

[FR Doc. C1–2024–26524 Filed 12–2–24; 4:15 pm] 

BILLING CODE 0099–10–D 


ddrumheller on DSK120RN23PROD with RULES1