[Federal Register: April 18, 2006 (Volume 71, Number 74)]
[Rules and Regulations]
[Page 19812-19813]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ap06-5]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
RIN 3245-AE92
Small Business Size Standards; Correction
AGENCY: U.S. Small Business Administration.
ACTION: Correcting amendment.
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SUMMARY: This document contains a correction to the final regulations
which were published in the Federal Register of Friday, May 21, 2004
(69 FR 29192). The regulations amended several definitions and made
procedural and technical amendments to cover several of the U.S. Small
Business Administration's (SBA's or Agency's) programs.
DATES: Effective April 18, 2006.
FOR FURTHER INFORMATION CONTACT: Gary Jackson, Assistant Administrator,
Office of Size Standards, (202) 205-6618, or sizestandards@sba.gov.
SUPPLEMENTARY INFORMATION:
Background
On May 21, 2004 the SBA published a final rule amending its size
regulations (69 FR 29192). These regulations are used to determine
eligibility for all SBA and Federal programs that require an entity to
be a small business concern. Section 121.404 was amended to address the
treatment of the acquisition of a small business concern by another
concern during contract performance. Specifically, the final regulation
states that the new entity must submit a written self-certification
that it is small to the procuring agency so that the agency can count
the award, options or orders issued pursuant to the contract towards
its small business goals. In the preamble to the final rule, however,
the SBA explained that the
amended regulations now state that the new entity must submit a
written self-certification that it is small to the procuring agency
so that the agency can count the award options, or orders issued
pursuant to that contract, towards its small business goals.
69 FR 29192, 29198 (May 21, 2004). According to the preamble, it is
clear that the self-certifications for novations and change-of-name
agreements affected the subsequent options and orders, but not the
original contract award or any option or order executed before the
novation or change-of-name agreement.
Need for Correction
The final regulatory text, however, contained an error that has
caused some confusion. The SBA misplaced a comma in the final rule,
which has caused many readers to interpret section 121.404 to require
concerns to submit a self-certification as a small business at the time
of a novation or change-of-name so that the procuring agency can count
the original contract award towards its small business goals. This
interpretation is incorrect, however, as the procuring agency was
already given credit towards its small business goals for the original
contract award. Section 121.404 is only meant to address whether the
procuring agency can count any future award options or orders issued
pursuant to the contract toward the agency's small business goals, if
there has been a novation or change-of-name during contract
performance. Therefore, the removal of the comma after the word award
will eliminate any doubt as to the SBA's intent regarding this
provision.
List of Subjects in 13 CFR Part 121
Administrative practice and procedure, Government procurement,
Government property, Grant programs--business, Loan programs--business,
Small businesses.
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Accordingly, 13 CFR part 121 is corrected by making the following
correcting amendment:
[[Page 19813]]
PART 121--SMALL BUSINESS SIZE REGULATIONS
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1. The authority citation for part 121 continues to read as follows:
Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 637(a), 644, and
662(5); and Pub.L. 105-135, sec. 401 et seq., 111 Stat. 2592.
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2. Revise paragraph (i) of Sec. 121.404 to read as follows:
Sec. 121.404 When does SBA determine the size status of a business
concern?
* * * * *
(i) At the time a novation or change-of-name agreement has been
executed pursuant to FAR subject 42.12, the new entity must submit a
written self-certification that it is small to the procuring agency so
that the agency can count the award options, or orders issued pursuant
to the contract, towards its small business goals.
* * * * *
Dated: March 14, 2006.
Anthony Martoccia,
Associate Deputy Administrator for Government Contracting and Business
Development.
[FR Doc. 06-3672 Filed 4-17-06; 8:45 am]
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