31468 Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Proposed Rules 

Commission proposes to withhold from 

routine public inspection, subject to the 

Commission’s rules, attachments 

designated as ‘‘confidential.’’ The 

Commission seeks comments on these 

proposals. 

24. In addition to the approach 

proposed above, the Commission seeks 

comments on the extent to which the 

Bureau should treat additional 

information fields on the Application 

Request for Funding Allocation in 

Appendix A and the Reimbursement 

Claim Request in Appendix B as 

presumptively confidential and not 

subject to public disclosure. If so, the 

Commission invites parties to specify 

which information fields should be 

deemed presumptively confidential and 

the legal basis for the presumption. 

25. Treasury Offset. The U.S. 

Department of the Treasury (Treasury) 

has a number of collection tools, 

including the Treasury Offset Program 

(TOP), whereby it collects delinquent 

debts owed to federal agencies and 

states by individuals and entities, by 

offsetting those debts against federal 

monies owed to the debtors. 

Reimbursement Program participants 

owing past-due debt to a federal agency 

or a state may have all or part of their 

disbursement payments offset by 

Treasury to satisfy such debt. Prior to 

referral of its debt to Treasury, an entity 

is notified of the debt owed, including 

repayment instructions. If the referred 

debt of a Reimbursement Program 

participant remains outstanding at the 

time of a disbursement payment from 

the Reimbursement Program to that 

participant, the participant will be 

notified by Treasury that some or all of 

its payment has been offset to satisfy an 

outstanding federal or state debt. 

Program participants that owe past due 

federal or state debts that have been 

referred to Treasury are encouraged to 

resolve such debts prior to submitting 

their Application Request for Funding 

Allocation. The Bureau lacks discretion 

to deviate from the requirements of the 

TOP. 

26. Red Light Rule. The Commission 

proposes to waive the Commission’s 

‘‘red light’’ rule with respect to 

applications filed in the Reimbursement 

Program and seek comment on this 

approach. As part of the collection and 

disbursement rules associated with the 

Debt Collection Improvement Act of 

1996, the Commission may withhold 

action on applications and requests 

made by any entity found to be 

delinquent in its debt to the 

Commission until full payment or 

resolution of such debt. This is 

commonly referred to as the 

Commission’s ‘‘red light’’ rule. Given 

the importance of removing 

communications equipment and service 

that poses a national security risk from 

the Commission Nation’s networks as 

soon as possible, the Commission finds 

extremely unusual circumstances exist 

to justify waiving the red light rule to 

allow Reimbursement Program 

recipients to receive funding allocations 

and disbursements notwithstanding an 

outstanding delinquency with the 

Commission. Any waiver would not 

affect the Commissions’ right or 

obligation to collect any debt owed by 

an applicant by any other means 

available to the Commission, including 

by referral to the Treasury for collection. 

27. Do Not Pay. Before releasing any 

Reimbursement Program funds to 

participants, the Commission proposes 

the Bureau and/or Fund Administrator, 

in coordination with the Commission’s 

Office of Managing Director (OMD), 

conduct a thorough review of the federal 

Do Not Pay system Database to verify an 

applicant’s eligibility for payments and 

awards. Pursuant to the Payment 

Integrity Information Act of 2019 (PIIA), 

the Commission is required to review 

applicable federal databases to 

determine eligibility for federal funds to 

prevent improper payments. The 

Treasury’s Bureau of the Fiscal Service 

administers the Do Not Pay system 

database. If an applicant is prohibited 

from receiving payment of federal funds 

pursuant to the Do Not Pay system, the 

Bureau and/or Fund Administrator will 

withhold funding allocations and 

disbursements from the Reimbursement 

Program. The Commission proposes 

having the Bureau and/or Fund 

Administrator offer the participant an 

opportunity to cure any Do Not Pay 

issues if the recipient can produce 

evidence that its listing in the Do Not 

Pay system should be removed. 

However, the Commission proposes 

requiring the participant to be 

responsible for working with the 

relevant agency to correct its 

information before a Reimbursement 

Program payment will be issued by 

Treasury. 

III. Procedural Matters 

28. Paperwork Reduction Act of 1995 

Analysis. This document contains 

proposed new information collection 

requirements. The Commission has, 

pursuant to the Paperwork Reduction 

Act of 1995 (PRA), Public Law 104–13, 

published a notice in the Federal 

Register seeking comment on the new 

information collection requirements 

contained in this Public Notice. See 86 

FR 22050, Apr. 26, 2021. The 

Commission, as part of its continuing 

effort to reduce paperwork burdens, 

invites the general public and the Office 

of Management and Budget (OMB) to 

comment on the information collection 

requirements contained in this 

document, as required by the PRA. In 

addition, pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107–198, see 44 U.S.C. 

3506(c)(4), we seek specific comment on 

how we might further reduce the 

information collection burden for small 

business concerns with fewer than 25 

employees. 

Federal Communications Commission. 

Cheryl Callahan, 

Assistant Chief, Telecommunications Access 

Policy Division Wireline Competition Bureau. 

[FR Doc. 2021–12385 Filed 6–11–21; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 5, 6, 13, 19 and 52 

[FAR Case 2019–007; Docket No. FAR 2019– 

0007, Sequence No. 1] 

RIN 9000–AN90 

Federal Acquisition Regulation: 

Update of Historically Underutilized 

Business Zone Program 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: DoD, GSA, and NASA are 

proposing to amend the Federal 

Acquisition Regulation (FAR) to 

implement changes to the Small 

Business Administration’s regulations 

for the Historically Underutilized 

Business Zone Program. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat Division at the address 

shown below on or before August 13, 

2021 to be considered in the formation 

of the final rule. 

ADDRESSES: Submit comments in 

response to FAR Case 2019–007 to the 

Federal eRulemaking portal at https://

www.regulations.gov by searching for 

‘‘FAR Case 2019–007’’. Select the link 

‘‘Comment Now’’ that corresponds with 

‘‘FAR Case 2019–007’’. Follow the 

instructions provided at the ‘‘Comment 

Now’’ screen. Please include your name, 

company name (if any), and ‘‘FAR Case 


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2019–007’’ on your attached document. 

If your comment cannot be submitted 

using https://www.regulations.gov, call 

or email the points of contact in the FOR

FURTHER INFORMATION CONTACT section of 

this document for alternate instructions. 

Instructions: Please submit comments 

only and cite ‘‘FAR Case 2019–007’’ in 

all correspondence related to this case. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. To confirm 

receipt of your comment(s), please 

check https://www.regulations.gov, 

approximately two to three days after 

submission to verify posting. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Malissa Jones, Procurement Analyst, at 

703–605–2815, or by email at 

malissa.jones@gsa.gov, for clarification 

of content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat Division at 

202–501–4755 or GSARegSec@gsa.gov. 

Please cite FAR Case 2019–007. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA are proposing 

to amend the FAR to implement 

revisions the Small Business 

Administration (SBA) has made in its 

regulations for the Historically 

Underutilized Business Zone 

(HUBZone) Program. Following a 

review of its HUBZone program 

regulations, SBA issued a rule on 

November 26, 2019, at 84 FR 65222, to 

update its regulations to reflect current 

policies, to eliminate ambiguities in its 

regulations, and to reduce burdens on 

small businesses and procuring 

agencies. This proposed FAR rule 

updates terminology and processes to 

correspond with SBA’s changes, such as 

updating the definition of a HUBZone 

small business concern and the 

procedures for filing and processing 

HUBZone protests. 

II. Discussion and Analysis 

The proposed changes to the FAR are 

summarized in the following 

paragraphs. 

A. Definitions and Terminology 

The definition of ‘‘HUBZone small 

business concern’’ at FAR 2.101, 

Definitions, and FAR 52.219–8, 

Utilization of Small Business Concerns, 

is revised to refer to the requirements 

described in 13 CFR 126.200 and SBA’s 

designation of a HUBZone small 

business concern in the Dynamic Small 

Business Search (DSBS). The term 

‘‘qualified’’ HUBZone is removed 

throughout as the definition of 

HUBZone specifies it is a firm the SBA 

has certified as a HUBZone small 

business concern. 

The representations for HUBZone 

small business concerns in FAR 52.212– 

3, Offeror Representations and 

Certifications—Commercial Items, and 

in FAR 52.219–1, Small Business 

Program Representations, are revised to 

replace references to SBA’s List of 

Qualified HUBZone Small Business 

Concerns with references to DSBS. 

Throughout the FAR, instructions to 

contact SBA to ascertain a concern’s 

status as a HUBZone small business 

concern are revised to direct the reader 

to DSBS. 

B. Process for Filing a Protest 

HUBZone status protests procedures 

at FAR 19.306 are revised to specify 

who may protest the prospective 

contractor’s HUBZone status for 

HUBZone sole-source awards, that the 

Director of SBA’s HUBZone Program 

will determine whether a protested 

concern has certified HUBZone status 

and, if SBA upholds the protest, that 

SBA will remove the concern’s 

HUBZone status in DSBS. Updated 

references and procedures for filing 

protests against a HUBZone joint 

venture, based on SBA’s regulations, are 

added. 

C. Removal of Obsolete Text 

This rule proposes to delete obsolete 

text in FAR subpart 19.13, Historically 

Underutilized Business Zone 

(HUBZone) Program. In FAR 19.1302, 

Applicability, text is deleted regarding 

the application of the procedures in 

FAR subpart 19.13 to all Federal 

agencies that employ one or more 

contracting officers. This text is no 

longer necessary because agencies using 

the FAR employ one or more 

contracting officers. Paragraph (e) is 

deleted in FAR 19.1304, Exclusions. 

This paragraph contains an outdated 

exclusion for requirements that do not 

exceed the micro-purchase threshold. 

SBA removed this requirement from 

their regulations at 13 CFR 126.608; 

therefore, this rule proposes to remove 

it from the FAR. 

D. Removal of Notification Requirement 

This rule proposes to delete language 

at FAR 19.1303(d), FAR 52.212– 

3(c)(10)(i), paragraph (g) in the clause at 

FAR 52.219–3, Notice of HUBZone SetAside or Sole-Source Award, and 

paragraph (f) in the clause at FAR 

52.219–4, Notice of Price Evaluation 

Preference for HUBZone Small Business 

Concerns. The current language requires 

a HUBZone offeror to be a HUBZone 

small business concern at the time of 

contract award and to notify the 

contracting officer if material changes 

occur before contract award that could 

affect its HUBZone eligibility. SBA’s 

rule removes this requirement; 

therefore, this FAR rule proposes to 

remove it from the FAR. 

E. Removal of Restriction To Applying 

HUBZone Authorities to Contracts and 

Subcontracts at or Below the Simplified 

Acquisition Threshold 

This rule proposes to delete paragraph 

(a)(9) of FAR 13.005, List of laws 

inapplicable to contracts and 

subcontracts at or below the simplified 

acquisition threshold (SAT). This would 

remove the restriction against applying 

the HUBZone Act of 1997, 15 U.S.C. 

657a, to contracts and subcontracts at or 

below the SAT. In FAR 19.1305, 

HUBZone set-aside procedures, the 

exception for acquisitions not exceeding 

the simplified acquisition threshold is 

proposed for deletion. This would result 

in the procedures at FAR 19.202–1 and 

FAR 19.402 being applied to HUBZone 

set-asides that do not exceed the 

simplified acquisition threshold. 

Additionally, FAR 19.1306, HUBZone 

sole-source awards, was revised to 

remove paragraph (a)(4), which 

restricted HUBZone sole-source awards 

to those valued above the SAT. This 

means that contracting officers would be 

able to make HUBZone sole-source 

awards with dollar values at or below 

the SAT. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT) and for Commercial 

Items, Including Commercially 

Available Off-The-Shelf (COTS) Items 

This rule amends the provision and 

clauses at FAR 52.212–3, 52.219–1, 

52.219–4, and 52.219–8. However, this 

rule does not impose any new 

requirements on contracts at or below 

the SAT or for commercial items, 

including COTS items. These provisions 

and clauses continue to apply to 

acquisitions at or below the SAT and to 

acquisitions for commercial items, 

including COTS items. 

This rule proposes to apply HUBZone 

sole-source authority of 15 U.S.C. 657a 

to acquisitions at or below the SAT. 

Therefore, the clause at FAR 52.219–3 

will apply to acquisitions at or below 

the SAT. 

A. Applicability to Contracts at or Below 

the Simplified Acquisition Threshold 

41 U.S.C. 1905 governs the 

applicability of laws to acquisitions at 

or below the SAT. Section 1905 

generally limits the applicability of new 

laws when agencies are making 


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acquisitions at or below the SAT, but 

provides that such acquisitions will not 

be exempt from a provision of law 

under certain circumstances, including 

when the FAR Council makes a written 

determination and finding that it would 

not be in the best interest of the Federal 

Government to exempt contracts and 

subcontracts in amounts not greater 

than the SAT from the provision of law. 

The FAR Council intends to make a 

determination to apply this statute to 

acquisitions at or below the SAT. 

B. Applicability to Contracts for the 

Acquisition of Commercial Items, 

Including Commercially Available OffThe-Shelf (COTS) Items 

41 U.S.C. 1906 governs the 

applicability of laws to contracts for the 

acquisition of commercial items, and is 

intended to limit the applicability of 

laws to contracts for the acquisition of 

commercial items. Section 1906 

provides that if the FAR Council makes 

a written determination that it is not in 

the best interest of the Federal 

Government to exempt commercial item 

contracts, the provision of law will 

apply to contracts for the acquisition of 

commercial items. 

41 U.S.C. 1907 states that acquisitions 

of COTS items will be exempt from 

certain provisions of law unless the 

Administrator for Federal Procurement 

Policy makes a written determination 

and finds that it would not be in the best 

interest of the Federal Government to 

exempt contracts for the procurement of 

COTS items. 

The FAR Council intends to make a 

determination to apply this statute to 

acquisitions for commercial items. The 

Administrator for Federal Procurement 

Policy intends to make a determination 

to apply this statute to acquisitions for 

COTS items. 

C. Determinations 

The HUBZone Act of 1997, 15 U.S.C. 

657a, tasks SBA with administering a 

program to assist participating small 

businesses located in areas with low 

income levels, high poverty and high 

unemployment rates, Indian 

reservations, closed military bases, or 

disaster areas with contracting 

opportunities in the form of set-asides, 

sole-source awards, and priceevaluation preferences. Its primary 

objectives are job creation and increased 

capital investment in distressed 

communities. The purpose of this rule 

is to implement revisions SBA has 

finalized in their HUBZone program. 

These statutory requirements are 

reflected in SBA’s final rule published 

in the Federal Register at 84 FR 65222 

on November 26, 2019, which did not 

exempt acquisitions at or below the SAT 

that are set aside for, or awarded on a 

sole-source basis to HUBZone small 

businesses. 

The law is silent on the applicability 

of these requirements to acquisitions at 

or below the SAT and does not 

independently provide for criminal or 

civil penalties; nor does it include terms 

making express reference to 41 U.S.C. 

1905 and its application to acquisitions 

at or below the SAT. Therefore, it does 

not apply to acquisitions at or below the 

SAT unless the FAR Council makes a 

written determination as provided at 41 

U.S.C. 1905. 

Application of the law to acquisitions 

at or below the SAT will maximize the 

positive impact set-aside and solesource contracts provide for HUBZone 

small businesses by ensuring these 

benefits extend to the many contracts 

valued at or below the SAT. According 

to the Federal Procurement Data 

System, an average of 283,374 contracts 

per year resulted from FAR part 19 setasides and sole-source awards at or 

below the SAT during fiscal years 2016– 

2018. Failure to apply the HUBZone Act 

to the maximum extent possible would 

exclude a significant number of 

acquisitions, which would not advance 

the interests of small businesses and 

increase their opportunities in the 

Federal marketplace. The Federal 

Government has a policy of promoting 

HUBZone participation in Government 

contracting. The Small Business Act 

(Section 15(g)(1), 15 U.S.C. 644(g)(1)) 

includes a 3% annual HUBZone 

contracting goal for all prime contracts 

and subcontract awards each fiscal year. 

Historically, the Federal Government 

has not achieved the HUBZone goal. 

Applying the requirement below the 

SAT will aid Federal agencies in 

achieving the goal. 

For these reasons, it is in the best 

interest of the Federal Government to 

apply the requirements of the rule to 

acquisitions at or below the SAT. 

In addition, SBA’s final rule did not 

exempt the acquisition of commercial 

items that are set aside for, or awarded 

on a sole-source basis to HUBZone 

small businesses. The law is silent on 

the applicability of these requirements 

to acquisitions of commercial items and 

does not independently provide for 

criminal or civil penalties; nor does it 

include terms making express reference 

to 41 U.S.C. 1906 and its application to 

acquisitions of commercial items. 

Therefore, it does not apply to 

acquisitions of commercial items unless 

the FAR Council makes a written 

determination as provided at 41 U.S.C. 

1906. 

Application of the law to acquisitions 

of commercial items will maximize the 

positive impact set-aside and solesource contracts provide for HUBZone 

small businesses by ensuring these 

benefits extend to the many contracts 

for commercial items. According to the 

Federal Procurement Data System, an 

average of 1,548,105 contracts per year 

resulted from FAR part 19 set-asides 

and sole-source awards for commercial 

items during fiscal years 2016–2018. 

Failure to apply the HUBZone Act to the 

maximum extent possible would 

exclude a significant number of 

acquisitions, which would not advance 

the interests of small businesses and 

increase their opportunities in the 

Federal marketplace. The Federal 

Government has a policy of promoting 

HUBZone participation in Government 

contracting. The Small Business Act 

(Section 15(g)(1), 15 U.S.C. 644(g)(1)) 

includes a 3% annual HUBZone 

contracting goal for all prime contracts 

and subcontract awards each fiscal year. 

Historically the Federal Government has 

not achieved the HUBZone goal. 

Applying the requirement to 

commercial items will aid Federal 

agencies in achieving the goal. 

For these reasons, it is in the best 

interest of the Federal Government to 

apply the requirements of the rule to the 

acquisition of commercial items. 

IV. Expected Impact of the Rule 

This proposed rule will impact the 

operations of the Government as 

described in this section. The proposed 

rule specifies SBA certifies firms as 

HUBZone small business concerns in 

DSBS. The HUBZone small business 

certification data contained in SBA’s 

DSBS is also available in the System for 

Award Management (SAM). Contracting 

officers may use this information to 

identify certified HUBZone small 

business concerns. The proposed rule 

removes the requirement for a HUBZone 

offeror to be a HUBZone small business 

concern at the time of contract award 

and to notify the contracting officer if 

material changes occur before contract 

award that could affect its HUBZone 

eligibility. Additionally, minor changes 

are made to the processing of HUBZone 

status protests. 

This proposed rule is not expected to 

result in any costs to contractors or 

offerors. 

V. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 


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(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. 

VI. Congressional Review Act 

As required by the Congressional 

Review Act (5 U.S.C. 801–808) before an 

interim or final rule takes effect, DoD, 

GSA and NASA will send the rule and 

the ‘‘Submission of Federal Rules Under 

the Congressional Review Act’’ form to 

each House of the Congress and to the 

Comptroller General of the United 

States. A major rule cannot take effect 

until 60 days after it is published in the 

Federal Register. This rule is not 

anticipated to be a major rule under 5 

U.S.C. 804. 

VII. Regulatory Flexibility Act 

The change may have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act 5 U.S.C. 601–612. The Initial 

Regulatory Flexibility Analysis (IRFA) 

has been performed and is summarized 

as follows: 

DoD, GSA, and NASA are proposing to 

amend the FAR to implement revisions SBA 

has made in its regulations for the HUBZone 

Program. Following a review of its HUBZone 

program regulations, SBA issued a final rule 

on November 26, 2019, at 84 FR 65222, to 

update its regulations to reflect current 

policies, to eliminate ambiguities in its 

regulations, and to reduce burdens on small 

businesses and procuring agencies. This 

proposed FAR rule updates terminology and 

processes to correspond with SBA’s changes, 

such as updating the definition of HUBZone 

small business concern and the procedures 

for filing and processing HUBZone protests. 

This rule also proposes to remove the 

restriction against applying the HUBZone Act 

of 1997, 15 U.S.C. 657a, to contracts and 

subcontracts at or below the SAT. 

The objective of this rule is to implement 

SBA’s revisions to the HUBZone program 

regulations. 

This rule may have a positive economic 

impact on small entities that qualify for the 

HUBZone program and that are interested in 

participating in Federal procurement. By 

reducing burden on firms interested in 

becoming HUBZone small business concerns, 

more firms may participate in and benefit 

from the program. SBA’s Dynamic Small 

Business Search database includes 6,897 

small businesses with active HUBZone 

certifications. For fiscal years 2016, 2017, 

and 2018, the Federal Government made 

approximately 6,600 awards to 

approximately 662 unique entities certified 

by SBA as HUBZone small business 

concerns. About 5,627 of these were awarded 

to 601 unique entities through a HUBZone 

set-aside; 203 were awarded to 97 unique 

entities on a sole-source basis under the 

HUBZone program; and 632 were awarded to 

25 unique entities using the HUBZone price 

evaluation preference. Approximately 46,187 

were awarded to about 2,084 unique 

HUBZone small businesses in open 

competition with other firms. According to 

the Federal Procurement Data System, an 

average of 283,374 contracts per year resulted 

from FAR part 19 set-asides and sole-source 

awards at or below the SAT during fiscal 

years 2016–2018. Application of the 

HUBZone Act to acquisitions at or below the 

SAT is expected to increase the benefits from 

HUBZone set-aside and sole-source contracts 

and increase HUBZone small businesses’ 

opportunities in the Federal marketplace. 

This proposed rule does not include any 

new reporting, recordkeeping, or other 

compliance requirements for small entities. 

The proposed rule does not duplicate, 

overlap, or conflict with any other Federal 

rules. 

There are no known significant alternative 

approaches that would accomplish the stated 

objectives. 

The Regulatory Secretariat Division 

has submitted a copy of the IRFA to the 

Chief Counsel for Advocacy of the Small 

Business Administration. A copy of the 

IRFA may be obtained from the 

Regulatory Secretariat Division. DoD, 

GSA, and NASA invite comments from 

small business concerns and other 

interested parties on the expected 

impact of this rule on small entities. 

DoD, GSA, and NASA will also 

consider comments from small entities 

concerning the existing regulations in 

subparts affected by this rule in 

accordance with 5 U.S.C. 610. Interested 

parties must submit comments 

separately and should cite 5 U.S.C. 610 

(FAR Case 2019–007) in 

correspondence. 

VIII. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 3501–3521) applies to 

the information collection described in 

this rule; however, these changes to the 

FAR do not impose additional 

information collection requirements to 

the paperwork burden previously 

approved under OMB Control Numbers 

9000–0136, Commercial Item 

Acquisitions, and 9000–0007, 

Subcontracting Plans. 

List of Subjects in 48 CFR Parts 2, 5, 6, 

13, 19, and 52 

Government procurement. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR parts 2, 5, 6, 

13, 19, and 52 as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 2, 5, 6, 13, 19, and 52 continues 

to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 51 U.S.C. 20113. 

PART 2—DEFINITIONS OF WORDS 

AND TERMS 

■ 2. Amend section 2.101 in paragraph 

(b)(2) by— 

■ a. In the definition ‘‘HUBZone’’ 

removing ‘‘or redesignated areas,’’ and 

adding ‘‘redesignated areas, governordesignated covered areas, or qualified 

disaster areas,’’ in its place; 

■ b. In the definition ‘‘HUBZone 

contract’’ removing from paragraph (1) 

‘‘sole source’’ and adding ‘‘sole-source’’ 

in its place; and 

■ c. Revising the definition ‘‘HUBZone 

small business concern’’ to read as 

follows: 

§ 2.101 Definitions. 

* * * * * 

(b) * * * 

(2) * * * 

HUBZone small business concern 

means a small business concern that 

meets the requirements described in 13 

CFR 126.200, certified by the Small 

Business Administration (SBA) and 

designated by SBA as a HUBZone small 

business concern in the Dynamic Small 

Business Search (DSBS) (13 CFR 

126.103). 

* * * * * 

PART 5—PUBLICIZING CONTRACT 

ACTIONS 

§ 5.206 [Amended] 

■ 3. Amend section 5.206 in paragraph 

(a) introductory text, by removing the 

word ‘‘qualified’’. 

PART 6—COMPETITION 

REQUIREMENTS 

■ 4. Amend section 6.205 by revising 

paragraph (a); and removing from 

paragraph (b) the word ‘‘qualified’’. 

The revision reads as follows: 

§ 6.205 Set-asides for HUBZone small 

business concerns. 

(a) To fulfill the statutory 

requirements relating to the HUBZone 


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31472 Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Proposed Rules 

Act of 1997 (15 U.S.C. 631 note), 

contracting officers may set aside 

solicitations to allow only HUBZone 

small business concerns to compete (see 

19.1305). 

* * * * * 

PART 13—SIMPLIFIED ACQUISITION 

PROCEDURES 

§ 13.003 [Amended] 

■ 5. Amend section 13.003 in paragraph 

(b)(2)(ii) by removing ‘‘and 

19.1306(a)(4)’’. 

§ 13.005 [Amended] 

■ 6. Amend section 13.005 by removing 

paragraph (a)(5), and redesignating 

paragraphs (a)(6) through (8) as 

paragraphs (a)(5) through (7), 

respectively. 

PART 19—SMALL BUSINESS 

PROGRAMS 

19.301–1 [Amended] 

■ 7. Amend section 19.301–1 in 

paragraph (d) by removing ‘‘concern 

both at the time of initial offer and at the 

time of contract award’’ and adding 

‘‘concern at the time of initial offer’’ in 

its place. 

■ 8. Amend section 19.306 by— 

■ a. Revising paragraph (b); 

■ b. In paragraph (c) removing 

‘‘HUBZone qualifying’’ and adding 

‘‘HUBZone eligibility’’ in its place; 

■ c. Revising paragraph (d); 

■ d. In paragraph (e)— 

■ i. Revising the heading; 

■ ii. Removing from the introductory 

text of paragraph (e)(1) ‘‘protest’’ and 

adding ‘‘written protest’’ in its place; 

■ e. Revising paragraphs (f) and 

(h)(1)(ii); 

■ f. Removing paragraph (h)(3); 

■ g. In paragraph (i)— 

■ i. Removing from the introductory text 

‘‘The HUBZone Program Director’’ and 

‘‘(AA/GCBD)’’ and adding ‘‘SBA’’ and 

‘‘(AA/GC&BD)’’ in their places, 

respectively; 

■ ii. Revising the second sentence of 

paragraph (1); 

■ iii. Removing from paragraph (2) 

‘‘AA/GCBD’’ and adding ‘‘AA/GC&BD’’ 

in its place; 

■ iv. Revising paragraph (3); 

■ v. Removing from paragraph (4) ‘‘or 

(h)(3)’’, and removing wherever it 

appears ‘‘(AA/GCBD)’’ and adding 

‘‘(AA/GC&BD)’’ in its place; and 

■ vi. Revising paragraph (5). 

■ h. In paragraph (l)— 

■ i. Adding to the end of paragraph (i) 

‘‘and’’; 

■ ii. Removing paragraph (ii), and 

redesignating paragraph (iii) as 

paragraph (ii); and 

■ iii. Removing from paragraph (2) 

‘‘Director/HUB’s decision’’ and adding 

‘‘HUBZone Program Director’s 

determination’’ in its place; and 

■ i. Removing from paragraph (m) 

wherever it appears ‘‘AA/GCBD’’ and 

adding ‘‘AA/GC&BD’’ in its place. 

The revisions read as follows: 

19.306 Protesting a firm’s status as a 

HUBZone small business concern. 

* * * * * 

(b)(1) For sole-source procurements, 

SBA or the contracting officer may 

protest the prospective contractor’s 

certified HUBZone status; for all other 

procurements, SBA, the contracting 

officer, or any other interested party 

may protest the apparent successful 

offeror’s certified HUBZone status. (See 

13 CFR 126.800.) 

(2) The Director of SBA’s Office of the 

HUBZone Program will determine 

whether the concern has certified 

HUBZone status. If SBA upholds the 

protest, SBA will remove the concern’s 

HUBZone status in the Dynamic Small 

Business Search (DSBS). SBA’s protest 

regulations are found in subpart H 

‘‘Protests’’ at 13 CFR 126.800 through 

126.805. 

* * * * * 

(d)(1) All protests must be in writing 

and must state all specific grounds for 

the protest, i.e., why the protested 

concern did not meet the eligibility 

requirements at 13 CFR 126.200 at the 

time of the concern’s application to SBA 

for certification as a HUBZone small 

business concern or at the time SBA 

certified or last recertified the concern 

as a HUBZone small business concern. 

Assertions that a protested concern is 

not a HUBZone small business concern, 

without setting forth specific facts or 

allegations, will not be considered by 

SBA (see 13 CFR 126.801(b)). 

(2) Protests filed against a HUBZone 

joint venture must state one or, if 

applicable, both of the following: 

(i) Why the HUBZone small business 

party to the joint venture did not meet 

the eligibility requirements at 13 CFR 

126.200 at the time of its application to 

SBA for certification or at the time SBA 

certified or last recertified the concern 

as a HUBZone small business concern. 

(ii) Why the joint venture did not 

meet the requirements at 13 CFR 

126.616 at the time of submission of its 

offer for a HUBZone contract. 

(e) Submission of a protest. * * * 

(f) The contracting officer shall 

forward all protests with a referral letter 

to the Director of SBA’s Office of the 

HUBZone Program, by email to 

hzprotests@sba.gov. The referral letter 

shall include the following: 

(1) The solicitation number. 

(2) The contracting officer’s name and 

contact information. 

(3) The type of HUBZone contract 

(i.e., sole source, set-aside, full and open 

competition with a HUBZone price 

evaluation preference, or reserve for 

HUBZone small business concerns 

under a multiple-award contract). 

(4) For a procurement conducted 

using full and open competition with a 

HUBZone price evaluation preference, 

whether the protester’s opportunity for 

award was affected by the preference. 

(5) For a HUBZone set-aside, whether 

the protester submitted an offer. 

(6) Whether the protested concern 

was the apparent successful offeror. 

(7) Whether the procurement was 

conducted using sealed bid or 

negotiated procedures. 

(8) The bid opening date, if 

applicable. 

(9) The date the protester was notified 

of the apparent successful offeror. 

(10) The date the contracting officer 

received the protest. 

(11) The date the protested concern 

submitted its initial offer or quote to the 

contracting officer. 

(12) Whether a contract has been 

awarded, and if so, the date of award 

and contract number. 

* * * * * 

(h) * * * 

(1) * * * 

(ii) Award the contract if— 

(A) SBA does not issue its decision 

within 15 business days after receipt of 

the protest; and 

(B) The contracting officer determines 

in writing that there is an immediate 

need to award the contract and that 

waiting for SBA’s determination will be 

disadvantageous to the Government. 

* * * * * 

(i) * * * 

(1) * * *. If the AA/GC&BD 

subsequently overturns the initial 

determination or dismissal, the 

contracting officer may apply the AA/ 

GC&BD decision to the procurement in 

question. 

* * * * * 

(3) If the contracting officer has made 

a written determination in accordance 

with (h)(1)(ii) of this section, awarded 

the contract, and the Director of SBA’s 

Office of the HUBZone Program’s ruling 

sustaining the protest is received after 

award— 

(i) The contracting officer shall 

either— 

(A) Terminate the contract; or 

(B)(1) Make a written determination 

that termination is not in the best 

interests of the Government; and 

(2) Not exercise any options or award 

further task or delivery orders under the 

contract; 


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Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Proposed Rules 31473 

(ii) SBA will remove the concern’s 

designation as a certified HUBZone 

small business concern in the Dynamic 

Small Business Search (DSBS). The 

concern is not permitted to submit an 

offer as a HUBZone small business 

concern, until SBA issues a decision 

that the ineligibility is resolved; and 

(iii) After SBA updates the concern’s 

designation as a HUBZone small 

business in DSBS, the contracting 

officer shall update the Federal 

Procurement Data System (FPDS) to 

reflect the final decision of the 

HUBZone Program Director if no appeal 

is filed. 

* * * * * 

(5) If the AA/GC&BD affirms the 

decision of the HUBZone Program 

Director, finding the protested concern 

is ineligible, and contract award has 

occurred— 

(i) The contracting officer shall 

either— 

(A) Terminate the contract; or 

(B)(1) Make a written determination 

that termination is not in the best 

interests of the Government; and 

(2) Not exercise any options or award 

further task or delivery orders under the 

contract; 

(ii) SBA will remove the concern’s 

designation as a certified HUBZone 

small business concern in DSBS. The 

concern is not permitted to submit an 

offer as a HUBZone small business 

concern until SBA issues a decision that 

the ineligibility is resolved or the AA/ 

GC&BD finds the concern is eligible on 

appeal; and 

(iii) After SBA updates the concern’s 

designation as a HUBZone small 

business in DSBS, the contracting 

officer shall update FPDS to reflect the 

AA/GC&BD decision. 

* * * * * 

■ 9. Amend section 19.703 by revising 

paragraph (d)(1) to read as follows: 

19.703 Eligibility requirements for 

participating in the program. 

* * * * * 

(d)(1) Contractors are required to 

confirm that a subcontractor 

representing itself as a HUBZone small 

business concern is certified by SBA as 

a HUBZone small business concern by 

accessing SAM or the Dynamic Small 

Business Search (DSBS) at https://

web.sba.gov/pro-net/search/dsp_

dsbs.cfm. 

* * * * * 

19.1302 [Removed and Reserved] 

■ 10. Remove and reserve section 

19.1302. 

■ 11. Amend section 19.1303 by 

revising paragraphs (b) and (d) to read 

as follows: 

19.1303 Status as a HUBZone small 

business concern. 

* * * * * 

(b) If SBA determines that a concern 

is a HUBZone small business, it will 

designate the concern as a HUBZone 

small business in the Dynamic Small 

Business Search (DSBS) at https://

web.sba.gov/pro-net/search/dsp_

dsbs.cfm. SBA’s designation also 

appears in SAM. Only firms designated 

in DSBS as HUBZone small business 

concerns are eligible for HUBZone 

preferences. HUBZone preferences are 

not contingent on the place of 

performance. 

* * * * * 

(d) To be eligible for a HUBZone 

contract under this section, a HUBZone 

small business concern must be a 

HUBZone small business concern at the 

time of its initial offer. 

19.1304 [Amended] 

■ 12. Amend section 19.1304 by 

removing paragraph (e) and 

redesignating paragraph (f) as paragraph 

(e). 

19.1305 [Amended] 

■ 13. Amend section 19.1305 by— 

■ a. Removing from paragraph (a)(3) 

‘‘sole source’’ and adding ‘‘sole-source’’ 

in its place; 

■ b. Removing from paragraph (c) 

‘‘qualified’’; 

■ c. In paragraph (d)— 

■ i. Removing from the introductory text 

‘‘, except for acquisitions not exceeding 

the simplified acquisition threshold,’’; 

and 

■ ii. Removing from paragraph (2) 

‘‘acquisition’’ and adding ‘‘acquisition 

until the head of the contracting activity 

issues a written decision on the appeal,’’ 

in its place. 

■ 14. Amend section 19.1306 by— 

■ a. Revising the section heading; 

■ b. In paragraph (a)— 

■ i. Removing from the introductory text 

‘‘sole source’’ and adding ‘‘sole-source’’ 

in its place; 

■ ii. Removing paragraph (4); 

■ iii. Redesignating paragraphs (5) and 

(6) as paragraphs (4) and (5); and 

■ c. Removing from paragraph (b) ‘‘sole 

source award’’ and adding ‘‘sole-source 

award (see 13 CFR 126.610)’’ in its 

place. 

The revision reads as follows: 

19.1306 HUBZone sole-source awards. 

* * * * * 

19.1309 [Amended] 

■ 15. Amend section 19.1309 by 

removing from paragraph (a)(1) ‘‘Sole 

Source Award’’ and ‘‘sole source basis’’ 

and adding ‘‘Sole-Source Award’’ and 

‘‘sole-source basis’’ in their places, 

respectively. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 16. Amend section 52.212–3 by 

revising the date of the provision and 

paragraph (c)(10)(i) to read as follows: 

52.212–3 Offeror Representations and 

Certifications—Commercial Items. 

* * * * * 

Offeror Representations and 

Certifications—Commercial Items 

(DATE) 

* * * * * 

(c) * * * 

(10) * * * 

(i) It b is, b is not a HUBZone small 

business concern listed, on the date of 

this representation, as having been 

certified by SBA as a HUBZone small 

business concern in the Dynamic Small 

Business Search, and will attempt to 

maintain (see 13 CFR 126.200(e)) an 

employment rate of HUBZone residents 

of 35 percent of its employees during 

performance of a HUBZone contract; 

and 

* * * * * 

■ 17. Amend section 52.212–5 by— 

■ a. Revising the date of the clause; 

■ b. Removing from paragraph (b)(11)(i) 

‘‘Sole Source’’ and ‘‘(MAR 2020)’’ and 

adding ‘‘Sole-Source’’ and ‘‘(DATE)’’ in 

their places, respectively; 

■ c. Removing from paragraph (b)(12)(i) 

‘‘(MAR 2020)’’ and adding ‘‘(DATE)’’ in 

its place; 

■ d. Removing from paragraph (b)(16) 

‘‘(OCT 2018)’’ and adding ‘‘(DATE)’’ in 

its place; 

■ e. Removing from paragraph (b)(17)(i) 

‘‘(JUN 2020)’’ and adding ‘‘(DATE)’’ in 

its place; 

■ f. In paragraph (e)(1)— 

■ i. Removing from the introductory text 

‘‘of this paragraph’’; and 

■ ii. Removing from paragraph (v) 

‘‘(OCT 2018)’’ and adding ‘‘(DATE)’’ in 

its place; 

■ g. In Alternate II— 

■ i. Revising the date; and 

■ ii. In paragraph (e)(1)(ii)(E) removing 

‘‘(OCT 2018)’’ and adding ‘‘(DATE)’’ in 

its place. 

The revisions read as follows: 

52.212–5 Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial Items. 

* * * * * 

Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial Items 

(DATE) 

* * * * * 


lotter on DSK11XQN23PROD with PROPOSALS1
31474 Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Proposed Rules 

Alternate II (DATE). * * * 

* * * * * 

■ 18. Amend section 52.213–4 by 

revising the date of the clause and 

removing from paragraph (a)(2)(viii) 

‘‘(NOV 2020)’’ and adding ‘‘(DATE)’’ in 

its place. 

The revision reads as follows: 

52.213–4 Terms and Conditions-Simplified 

Acquisitions (Other Than Commercial 

Items). 

* * * * * 

Terms and Conditions-Simplified 

Acquisitions (Other Than Commercial 

Items) (DATE) 

* * * * * 

■ 19. Amend section 52.219–1 by 

revising the date of the provision and 

paragraph (c)(8)(i) to read as follows: 

52.219–1 Small Business Program 

Representations. 

* * * * * 

Small Business Program 

Representations (DATE) 

* * * * * 

(c) * * * 

(8) * * * 

(i) It b is, b is not a HUBZone small 

business concern listed, on the date of 

this representation, as having been 

certified by SBA as a HUBZone small 

business concern in the Dynamic Small 

Business Search, and will attempt to 

maintain (see 13 CFR 126.200(e)) an 

employment rate of HUBZone residents 

of 35 percent of its employees during 

performance of a HUBZone contract; 

and 

* * * * * 

■ 20. Amend section 52.219–3 by 

revising the heading, clause heading 

and date; and removing paragraph (g). 

The revisions read as follows: 

52.219–3 Notice of HUBZone Set-Aside or 

Sole-Source Award. 

* * * * * 

Notice of HUBZone Set-Aside or SoleSource Award (DATE) 

* * * * * 

■ 21. Amend section 52.219–4 by 

revising the clause heading and date, 

and removing paragraph (f). 

The revision reads as follows: 

52.219–4 Notice of Price Evaluation 

Preference for HUBZone Small Business 

Concerns. 

* * * * * 

Notice of Price Evaluation Preference 

for HUBZone Small Business Concerns 

(DATE) 

* * * * * 

■ 22. Amend section 52.219–8 by— 

■ a. Revising the date of the clause; 

■ b. In paragraph (a), revising the 

definition ‘‘HUBZone small business 

concern’’; and 

■ c. Revising paragraph (d)(5). 

The revisions read as follows: 

52.219–8 Utilization of Small Business 

Concerns. 

* * * * * 

Utilization of Small Business Concerns 

(DATE) 

(a) * * * 

HUBZone small business concern 

means a small business concern that 

meets the requirements described in 13 

CFR 126.200, certified by the Small 

Business Administration (SBA) and 

designated by SBA as a HUBZone small 

business concern in the Dynamic Small 

Business Search (DSBS). 

* * * * * 

(d) * * * 

(5) The Contractor shall confirm that 

a subcontractor representing itself as a 

HUBZone small business concern is 

certified by SBA as a HUBZone small 

business concern by accessing DSBS at 

https://web.sba.gov/pro-net/search/dsp_

dsbs.cfm or SAM. 

* * * * * 

■ 23. Amend section 52.219–9 by 

revising the date of clause and 

paragraph (e)(4) to read as follows: 

52.219–9 Small Business Subcontracting 

Plan. 

* * * * * 

Small Business Subcontracting Plan 

(DATE) 

* * * * * 

(e) * * * 

(4) Confirm that a subcontractor 

representing itself as a HUBZone small 

business concern is certified by SBA as 

a HUBZone small business concern by 

accessing the Dynamic Small Business 

Search (DSBS) at https://web.sba.gov/ 

pro-net/search/dsp_dsbs.cfm or SAM. 

* * * * * 

■ 24. Amend section 52.244–6 by— 

■ a. Revising the date of the clause; and 

■ b. Removing from paragraph (c)(1)(vii) 

‘‘(Oct 2018)’’ and adding ‘‘(DATE)’’ in 

its place. 

The revision reads as follows: 

52.244–6 Subcontracts for Commercial 

Items. 

* * * * * 

Subcontracts for Commercial Items 

(DATE) 

* * * * * 

[FR Doc. 2021–12003 Filed 6–11–21; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 679 

[RTID 0648–XA980] 

Fisheries of the Exclusive Economic 

Zone Off Alaska; Standardized Bycatch 

Reporting Methodology Amendments 

to the Fishery Management Plans for 

the Bering Sea/Aleutian Islands King 

and Tanner Crabs, Scallops, and 

Salmon 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Announcement of availability of 

fishery management plan amendments; 

request for comments. 

SUMMARY: The North Pacific Fishery 

Management Council (Council) 

submitted Amendment 51 to the Fishery 

Management Plan (FMP) for Bering Sea/ 

Aleutian Islands (BSAI) King and 

Tanner Crabs (Crab FMP), Amendment 

17 to the FMP for the Scallop Fishery 

Off Alaska (Scallop FMP), and 

Amendment 15 to the FMP for the 

Salmon Fisheries in the Exclusive 

Economic Zone (EEZ) Off Alaska 

(Salmon FMP) (collectively 

Amendments). If approved, these 

Amendments would add to or modify 

language in the Crab, Scallop, and 

Salmon FMPs to more transparently 

reflect and align the FMPs with the way 

bycatch is currently reported in the 

fisheries managed by the Council. These 

Amendments are intended to promote 

the goals and objectives of the 

Magnuson-Stevens Fishery 

Conservation and Management Act 

(Magnuson-Stevens Act); the Crab, 

Scallop, and Salmon FMPs; and other 

applicable laws. 

DATES: Comments on the Amendments 

must be received no later than August 

13, 2021. 

ADDRESSES: You may submit comments 

on this document, identified by NOAA– 

NMFS–2021–0036, by any of the 

following methods: 

• Electronic Submission: Submit all 

electronic public comments via the 

Federal e-Rulemaking Portal. Go to 

https://www.regulations.gov and enter 

NOAA–NMFS–2021–0036 in the Search 

box. Click on the ‘‘Comment’’ icon, 

complete the required fields, and enter 

or attach your comments. 

• Mail: Submit written comments to 

Glenn Merrill, Assistant Regional 

Administrator, Sustainable Fisheries 


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