`[Federal Register Volume 89, Number 233 (Wednesday, December 4, 2024)]
[Rules and Regulations]
[Pages 96089-96095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28200]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
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  Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / 
Rules and Regulations  

[[Page 96089]]



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, 
[email protected].

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 well-conceived 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 Sec.  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 
Sec. Sec.  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 Sec.  127.202 to conform that language to the 
language regarding outside employment contained in Sec.  124.106(a) for 
the 8(a) BD program and Sec.  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

[[Page 96090]]

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 Women-Owned 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 Sec. Sec.  126.103 and 
128.500 in this final rule.
    In addition to the changes made to Sec. Sec.  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 Veteran-Owned Small Business Concern (SDVOSB) 
status protest. As such, SBA also amends Sec.  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 Sec. Sec.  
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 Sec.  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 Sec.  
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 Sec.  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 Sec.  
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 
Sec.  128.305. In a separate rulemaking after this proposed rule, SBA 
proposed to eliminate the language in Sec.  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

[[Page 96091]]

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 Sec.  127.305 in this 
rule.

Section 127.356(c)

    SBA proposed to revise Sec.  127.356(c) to provide consistency 
between Sec.  127.356(c) and Sec.  127.356(a) and (b). Currently, Sec.  
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 Sec.  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 Sec.  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 Sec.  128.500(d). The proposed additions to Sec.  
127.604(f)(5) are currently contained in Sec.  128.500(d), except for 
new Sec.  127.604(f)(5)(iii). SBA adds similar language to that 
contained in Sec.  127.604(f)(5)(iii) to a new paragraph Sec.  
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 Sec.  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

[[Page 96092]]

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

0
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.


0
2. Amend Sec.  124.106 by:
0
a. Revising paragraphs (a)(3) and (4);
0
b. Redesignating paragraph (a)(5) as paragraph (a)(6); and
0
c. Adding a new paragraph (a)(5).
    The revisions and addition read as follows:


Sec.  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

[[Page 96093]]

individual does not control the business concern, unless the concern 
demonstrates that the disadvantaged individual has ultimate managerial 
and supervisory control over both the long-term 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

0
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.


0
4. Amend Sec.  126.103 by revising the definition of ``Interested 
party'' to read as follows:


Sec.  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

0
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.


0
6. Amend Sec.  127.102 by:
0
a. Adding a definition for ``Applicant'' in alphabetical order;
0
b. Revising the definitions of ``Interested party'' and ``System for 
Award Management (SAM) (or any successor system)''; and
0
c. Removing the definition of ``WOSB Program Repository''.
    The addition and revisions read as follows:


Sec.  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.
* * * * *

0
7. Amend Sec.  127.202 by revising paragraph (c) to read as follows:


Sec.  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.
* * * * *

0
8. Amend Sec.  127.300 by revising the section heading and paragraphs 
(a)(2), (b)(3), and (c) to read as follows:


Sec.  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.

0
9. Amend Sec.  127.303 by:
0
a. Redesignating paragraph (a)(1)(iii) as paragraph (a)(1)(iv);
0
b. Adding new paragraph (a)(1)(iii);
0
c. Removing paragraph (a)(2); and
0
d. Redesignating paragraph (a)(3) as paragraph (a)(2).
    The addition reads as follows:


Sec.  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 Sec.  127.203(b)(3).
* * * * *

0
10. Amend Sec.  127.304 by revising paragraph (a) to read as follows:

[[Page 96094]]

Sec.  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.
* * * * *

0
11. Amend Sec.  127.356 by revising paragraph (c) to read as follows:


Sec.  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.

0
12. Amend Sec.  127.504 by adding a sentence to the end of paragraph 
(a) introductory text to read as follows:


Sec.  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.
* * * * *

0
13. Amend Sec.  127.604 by adding paragraph (f)(5) to read as follows:


Sec.  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 self-
certify 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.


Sec.  127.701  [Removed]

0
14. Remove Sec.  127.701.

PART 128--VETERAN SMALL BUSINESS CERTIFICATION PROGRAM

0
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.


0
16. Amend Sec.  128.203 by revising paragraph (i) to read as follows:


Sec.  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.
* * * * *

0
17. Amend Sec.  128.500 by adding paragraphs (d)(3) and (e) to read as 
follows:


Sec.  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

0
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.


0
19. Amend Sec.  134.1002 by revising paragraph (b) to read as follows:


Sec.  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

[[Page 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`