[Federal Register Volume 70, Number 188 (Thursday, September 29, 2005)]
[Rules and Regulations]
[Pages 56813-56814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19512]
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SMALL BUSINESS ADMINISTRATION
13 CFR Parts 121 and 125
RIN 3245-AF38
The Very Small Business Program
AGENCY: U.S. Small Business Administration.
ACTION: Final rule.
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SUMMARY: The U.S. Small Business Administration (SBA or Agency) is
amending its regulations to remove provisions relating to the Very
Small Business Program (VSB). The Agency no longer has statutory
authority to provide assistance under this program; therefore, the
regulations are unnecessary. Without any authority to carry out the
program, removal of the applicable regulations is a ministerial act
that does not require a comment period.
DATES: The rule is effective September 29, 2005.
FOR FURTHER INFORMATION CONTACT: Dean Koppel, Assistant Administrator,
Office of Procurement Policy and Liaison, (202) 205-7322 or
[email protected].
SUPPLEMENTARY INFORMATION: The VSB program was authorized as a pilot
program by the Small Business Administration Reauthorization and
Amendments Act of 1994 (Act). (See Pub. L. 103-403, Section 304). The
purpose of the VSB program was to improve access to Federal contract
opportunities for concerns that are substantially below SBA's size
standards by reserving certain procurements for competition among very
small business concerns. Specifically, under the VSB program, federal
agencies with procurement needs valued at $2,500 to $50,000 were
required to give small businesses with 15 or fewer employees, average
annual revenues of less than $1 million, and that were located in
certain designated areas, the first opportunity to meet those
[[Page 56814]]
needs. The pilot was originally scheduled to expire in 1998 but was
extended until December 8, 2004, through a series of legislative
actions. On December 8, 2004, President Bush signed Public Law 108-447,
Division K, which included the Small Business Administration
Reauthorization and Manufacturing Assistance Act of 2004. This Act gave
SBA authorization to continue several programs but did not re-authorize
the VSB program. Because SBA no longer has statutory authority to
conduct the VSB program, the regulations applicable to the program are
no longer necessary and will be removed from the Code of Federal
Regulations. Removal of these regulations is an entirely administrative
action that will minimize confusion about the status of the VSB program
and how agencies are to conduct procurements.
The expiration of the authority to give preference to very small
businesses under the VSB program also impacts the Federal Acquisition
Regulation (FAR). SBA has notified the Civilian Agency Acquisition
Council (Council) as well as the Federal procurement agencies of the
expiration of the VSB program and intends to work with the Council to
implement the necessary amendments to the FAR.
Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork
Reduction Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5
U.S.C. 601-612)
OMB has determined that this final rule does not constitute a
''significant regulatory action'' under Executive Order 12866.
For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, the
SBA determines that this rule does not impose new reporting or
recordkeeping requirements.
This action meets applicable standards set forth in sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
This regulation will not have substantial direct effect 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, for the purposes of Executive
Order 13132, SBA determines that this final rule has no federalism
implications warranting preparation of a federalism assessment.
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires
administrative agencies to consider the effect of their actions on
small entities, small non-profit enterprises, and small local
governments. Pursuant to the RFA, when an agency issues a rulemaking,
the agency must prepare a regulatory flexibility analysis which
describes the impact of the rule on small entities. However, section
605 of the RFA allows an agency to certify a rule, in lieu of preparing
an analysis, if the rulemaking is not expected to have a significant
economic impact on a substantial number of small entities. Within the
meaning of RFA, SBA certifies that this rule will not have a
significant economic impact on a substantial number of small entities.
List of Subjects
13 CFR Part 121
Administrative practice and procedures, Government procurement,
Government property, Reporting and recordkeeping requirements, Small
businesses.
13 CFR Part 125
Government contracts, Government procurement, Small businesses,
Reporting and recordkeeping requirements, Small businesses, Technical
assistance.
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For the reasons stated in the preamble, the Small Business
Administration amends 13 CFR parts 121 and 125 as follows:
PART 121--SMALL BUSINESS SIZE REGULATIONS
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1. The authority citation for Part 121 is revised to read as follows:
Authority: 15 U.S.C. 632(a), (p), (q), 634(b)(6), 637(a), 644,
and 662(5); Pub. L. 105-135 sec. 401 et seq.
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2. Revise Sec. 121.401 to read as follows:
Sec. 121.401 What procurement programs are subject to size
determinations?
The rules set forth in Sec. Sec. 121.401 through 121.413 apply to
all Federal procurement programs for which status as a small business
is required or advantageous, including the small business set-aside
program, SBA's Certificate of Competency program, SBA's 8(a) Business
Development program, SBA's HUBZone program, SBA's Service-Disabled
Veteran-Owned Small Business program, the Small Business Subcontracting
program, and the Federal Small Disadvantaged Business (SDB) program.
Sec. 121.413 [Removed and Reserved]
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3. Remove and reserve Sec. 121.413.
PART 125--GOVERNMENT CONTRACTING PROGRAMS
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4. The authority citation for Part 125 is revised to read as follows:
Authority: 15 U.S.C. 632(p), (q); 634(b)(6); 637; 644 and
657(f).
Sec. 125.7 [Removed and Reserved]
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5. Amend Part 125 by removing and reserving Sec. 125.7.
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6. Revise Sec. 125.13 to read as follows:
Sec. 125.13 May 8(a) Program participants, HUBZone SBCs, Small and
Disadvantaged Businesses, or Women-Owned Small Businesses qualify as
SDVO SBCs?
Yes, 8(a) Program participants, HUBZone SBCs, Small and
Disadvantaged Businesses, and Women-Owned SBCs, may also qualify as
SDVO SBCs if they meet the requirements in this subject.
Dated: September 23, 2005.
Hector V. Barretto,
Administrator.
[FR Doc. 05-19512 Filed 9-28-05; 8:45 am]
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