81_FR_95189 81 FR 94941 - Small Business Mentor Protégé Programs; Correction

81 FR 94941 - Small Business Mentor Protégé Programs; Correction

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 81, Issue 248 (December 27, 2016)

Page Range94941-94942
FR Document2016-30873

The U.S. Small Business Administration (SBA) published a final rule in the Federal Register on July 25, 2016, amending its regulations to establish a new Government-wide mentor-prot[eacute]g[eacute] program for all small business concerns, consistent with SBA's mentor- prot[eacute]g[eacute] program for Participants in SBA's 8(a) Business Development (BD) program. The rule also made several additional changes to current size, 8(a), Office of Hearings and Appeals, and HUBZone regulations, concerning among other things, ownership and control, changes in primary industry, economic disadvantage of a Native Hawaiian Organization (NHO), standards of review, and interested party status for some appeals. This document makes several technical corrections to that final rule, eliminating a portion of a sentence concerning joint venture profits.

Federal Register, Volume 81 Issue 248 (Tuesday, December 27, 2016)
[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Rules and Regulations]
[Pages 94941-94942]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30873]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION

13 CFR Parts 125, 126, and 127

RIN 3245-AG24


Small Business Mentor Prot[eacute]g[eacute] Programs; Correction

AGENCY: U.S. Small Business Administration.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA) published a final 
rule in the Federal Register on July 25, 2016, amending its regulations 
to establish a new Government-wide mentor-prot[eacute]g[eacute] program 
for all small business concerns, consistent with SBA's mentor-
prot[eacute]g[eacute] program for Participants in SBA's 8(a) Business 
Development (BD) program. The rule also made several additional changes 
to current size, 8(a), Office of Hearings and Appeals, and HUBZone 
regulations, concerning among other things, ownership and control, 
changes in primary industry, economic disadvantage of a Native Hawaiian 
Organization (NHO), standards of review, and interested party status 
for some appeals. This document makes several technical corrections to 
that final rule, eliminating a portion of a sentence concerning joint 
venture profits.

DATES: Effective December 27, 2016.

FOR FURTHER INFORMATION CONTACT: Michael McLaughlin, Office of Policy, 
Planning & Liaison, U.S. Small Business Administration, 409 Third 
Street SW., Washington, DC 20416; 202-205-5353; 
[email protected].

SUPPLEMENTARY INFORMATION: The final rule published on July 25, 2016, 
at 81 FR 48557, contained errors that must be corrected in order ensure 
consistency within the regulations and to avoid public uncertainty or 
confusion.
    On October 19, 2016, SBA issued a correction pertaining to 8(a) 
joint venture profits. 81 FR 71981. As SBA explained, due to the change 
made to Sec.  121.103(h), which eliminated the ability of a joint 
venture to be populated with individuals intended to perform contracts 
awarded to the joint venture, a conforming correction was needed to 
Sec.  124.513(c), which references populated joint ventures. 
Specifically, Sec.  124.513(c)(4) provided that in the case of a 
populated separate legal entity joint venture, 8(a) Participant(s) must 
receive profits from the joint venture commensurate with their 
ownership interests in the joint venture. Because SBA eliminated 
populated joint ventures, that provision was superfluous and was 
deleted. SBA's 8(a) joint venture rule now states that the 8(a) 
Participant(s) in a joint venture must receive profits from the joint 
venture commensurate with the work performed by the 8(a) 
Participant(s). 13 CFR 124.513(c)(4). This change was necessary because 
under the mentor prot[eacute]g[eacute] program, a prot[eacute]g[eacute] 
may perform as little as 40% of the total work performed by the joint 
venture in aggregate. It would not make sense to require a firm to 
receive 51% of the profits for doing only 40% of the work.
    The same language that SBA corrected in the 8(a) regulations is 
currently in place for joint ventures under all small mentor 
prot[eacute]g[eacute], Service-Disabled Veteran-Owned, Women-Owned and 
HUBZone small business programs. SBA's intent was for profits to be 
commensurate with the work performed by each member of the joint 
venture. These rules currently state that in the case of a separate 
legal entity, the firm must receive profits commensurate with their 
ownership interests in the joint venture, which is contrary to SBA's 
intent. Consequently, SBA is correcting Sec. Sec.  125.8(b)(2)(iv), 
125.18(b)(2)(iv), 126.616(c)(4) and 127.506(c)(4) to the make the rules 
consistent with 124.513(c)(4) and across all programs.

List of Subjects

13 CFR 125

    Government contracts, Government procurement, Reporting and 
recordkeeping requirements, Small businesses, Technical assistance, 
Veterans.

13 CFR 126

    Administrative practice and procedure, Government procurement, 
Penalties, Reporting and recordkeeping requirements, Small businesses.

13 CFR 127

    Government contracts, Reporting and recordkeeping requirements, 
Small businesses.

    Accordingly, 13 CFR parts 125, 126, and 127 are corrected by making 
the following correcting amendments:

PART 125--GOVERNMENT CONTRACTING PROGRAMS

0
1. The authority citation for part 125 continues to read as follows:

    Authority: 15 U.S.C. 632(p), (q), 634(b)(6), 637, 644, 657f, and 
657q.


0
2. In Sec.  125.8, revise paragraph (b)(2)(iv) to read as follows:


Sec.  125.8  What requirements must a joint venture satisfy to submit 
an offer for a procurement or sale set aside or reserved for small 
business?

* * * * *
    (c) * * *
    (2) * * *
    (iv) Stating that each participant must receive profits from the 
joint venture commensurate with the work performed by the concern;
* * * * *

0
3. In Sec.  125.18, revise paragraph (b)(2)(iv) to read as follows:


Sec.  125.18  What requirements must an SDVO SBC meet to submit an 
offer on a contract?

* * * * *
    (b) * * *
    (2) * * *
    (iv) Stating that the SDVO SBC(s) must receive profits from the 
joint venture commensurate with the work performed by the SDVO SBC;
* * * * *

PART 126--HUBZONE PROGRAM

0
4. The authority citation for part 126 continues to read as follows:

    Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644; and 657a; Pub. 
L. 111-240, 24 Stat. 2504.


0
5. In Sec.  126.616, revise paragraph (c)(4) to read as follows:


Sec.  126.616  What requirements must a joint venture satisfy to submit 
an offer on a HUBZone contract?

* * * * *
    (c) * * *
    (4) Stating that the HUBZone SBC(s) must receive profits from the 
joint venture commensurate with the work performed by the HUBZone SBC;
* * * * *

[[Page 94942]]

PART 127--WOMEN-OWNED SMALL BUSINESS FEDERAL CONTRACT PROGRAM

0
6. The authority citation for part 127 continues to read as follows:

    Authority: 15 U.S.C. 632, 634(b)(6), 637(m), and 644.


0
7. In Sec.  127.506, revise paragraph (c)(4) to read as follows:


Sec.  127.506  May a joint venture submit an offer on an EDWOSB or WOSB 
requirement?

* * * * *
    (c) * * *
    (4) Stating that the WOSB(s) must receive profits from the joint 
venture commensurate with the work performed by the WOSB;
* * * * *

    Dated: December 16, 2016.
A. John Shoraka,
Associate Administrator, Office of Government Contracting & Business 
Development.
[FR Doc. 2016-30873 Filed 12-23-16; 8:45 am]
BILLING CODE 8205-01-P



                                                                   Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Rules and Regulations                                           94941

                                                  time nor 100 free pages of reproduction                   On October 19, 2016, SBA issued a                   13 CFR 127
                                                  of documents.                                           correction pertaining to 8(a) joint
                                                                                                                                                                  Government contracts, Reporting and
                                                  *      *     *      *    *                              venture profits. 81 FR 71981. As SBA
                                                                                                                                                                recordkeeping requirements, Small
                                                     (v) Fees for unsuccessful search and                 explained, due to the change made to
                                                                                                                                                                businesses.
                                                  review. The Council may assess fees for                 § 121.103(h), which eliminated the
                                                  time spent searching and reviewing,                     ability of a joint venture to be populated              Accordingly, 13 CFR parts 125, 126,
                                                  even if it fails to locate the records or               with individuals intended to perform                  and 127 are corrected by making the
                                                  if records located are determined to be                 contracts awarded to the joint venture,               following correcting amendments:
                                                  exempt from disclosure.                                 a conforming correction was needed to
                                                                                                          § 124.513(c), which references                        PART 125—GOVERNMENT
                                                  *      *     *      *    *
                                                                                                          populated joint ventures. Specifically,               CONTRACTING PROGRAMS
                                                  Federal Financial Institutions Examination
                                                  Council.                                                § 124.513(c)(4) provided that in the case
                                                                                                                                                                ■ 1. The authority citation for part 125
                                                  Judith E. Dupre,                                        of a populated separate legal entity joint
                                                                                                                                                                continues to read as follows:
                                                  FFIEC Executive Secretary.                              venture, 8(a) Participant(s) must receive
                                                                                                          profits from the joint venture                          Authority: 15 U.S.C. 632(p), (q), 634(b)(6),
                                                  [FR Doc. 2016–30696 Filed 12–23–16; 8:45 am]                                                                  637, 644, 657f, and 657q.
                                                  BILLING CODE 7535–01–P 6714–01–P 6210–01–P 4810–
                                                                                                          commensurate with their ownership
                                                  33–P 4810–AM–P                                          interests in the joint venture. Because               ■ 2. In § 125.8, revise paragraph
                                                                                                          SBA eliminated populated joint                        (b)(2)(iv) to read as follows:
                                                                                                          ventures, that provision was
                                                  SMALL BUSINESS ADMINISTRATION                           superfluous and was deleted. SBA’s 8(a)               § 125.8 What requirements must a joint
                                                                                                          joint venture rule now states that the                venture satisfy to submit an offer for a
                                                  13 CFR Parts 125, 126, and 127                                                                                procurement or sale set aside or reserved
                                                                                                          8(a) Participant(s) in a joint venture
                                                                                                                                                                for small business?
                                                  RIN 3245–AG24                                           must receive profits from the joint
                                                                                                          venture commensurate with the work                    *     *     *     *    *
                                                  Small Business Mentor Protégé                         performed by the 8(a) Participant(s). 13                (c) * * *
                                                  Programs; Correction                                    CFR 124.513(c)(4). This change was                      (2) * * *
                                                                                                          necessary because under the mentor                      (iv) Stating that each participant must
                                                  AGENCY:  U.S. Small Business                            protégé program, a protégé may perform
                                                  Administration.                                                                                               receive profits from the joint venture
                                                                                                          as little as 40% of the total work                    commensurate with the work performed
                                                  ACTION: Correcting amendments.                          performed by the joint venture in                     by the concern;
                                                  SUMMARY:    The U.S. Small Business                     aggregate. It would not make sense to                 *     *     *     *    *
                                                  Administration (SBA) published a final                  require a firm to receive 51% of the
                                                                                                          profits for doing only 40% of the work.               ■ 3. In § 125.18, revise paragraph
                                                  rule in the Federal Register on July 25,                                                                      (b)(2)(iv) to read as follows:
                                                  2016, amending its regulations to                         The same language that SBA corrected
                                                  establish a new Government-wide                         in the 8(a) regulations is currently in               § 125.18 What requirements must an
                                                  mentor-protégé program for all small                  place for joint ventures under all small              SDVO SBC meet to submit an offer on a
                                                  business concerns, consistent with                      mentor protégé, Service-Disabled                    contract?
                                                  SBA’s mentor-protégé program for                      Veteran-Owned, Women-Owned and                        *     *     *     *     *
                                                  Participants in SBA’s 8(a) Business                     HUBZone small business programs.                        (b) * * *
                                                  Development (BD) program. The rule                      SBA’s intent was for profits to be                      (2) * * *
                                                  also made several additional changes to                 commensurate with the work performed
                                                  current size, 8(a), Office of Hearings and                                                                      (iv) Stating that the SDVO SBC(s)
                                                                                                          by each member of the joint venture.                  must receive profits from the joint
                                                  Appeals, and HUBZone regulations,                       These rules currently state that in the
                                                  concerning among other things,                                                                                venture commensurate with the work
                                                                                                          case of a separate legal entity, the firm             performed by the SDVO SBC;
                                                  ownership and control, changes in                       must receive profits commensurate with
                                                  primary industry, economic                                                                                    *     *     *     *     *
                                                                                                          their ownership interests in the joint
                                                  disadvantage of a Native Hawaiian                       venture, which is contrary to SBA’s
                                                  Organization (NHO), standards of                                                                              PART 126—HUBZONE PROGRAM
                                                                                                          intent. Consequently, SBA is correcting
                                                  review, and interested party status for                 §§ 125.8(b)(2)(iv), 125.18(b)(2)(iv),
                                                  some appeals. This document makes                                                                             ■ 4. The authority citation for part 126
                                                                                                          126.616(c)(4) and 127.506(c)(4) to the                continues to read as follows:
                                                  several technical corrections to that                   make the rules consistent with
                                                  final rule, eliminating a portion of a                                                                          Authority: 15 U.S.C. 632(a), 632(j), 632(p),
                                                                                                          124.513(c)(4) and across all programs.
                                                  sentence concerning joint venture                                                                             644; and 657a; Pub. L. 111–240, 24 Stat.
                                                  profits.                                                List of Subjects                                      2504.

                                                  DATES: Effective December 27, 2016.                     13 CFR 125                                            ■ 5. In § 126.616, revise paragraph (c)(4)
                                                  FOR FURTHER INFORMATION CONTACT:                                                                              to read as follows:
                                                  Michael McLaughlin, Office of Policy,                     Government contracts, Government
                                                                                                          procurement, Reporting and                            § 126.616 What requirements must a joint
                                                  Planning & Liaison, U.S. Small Business
                                                                                                          recordkeeping requirements, Small                     venture satisfy to submit an offer on a
                                                  Administration, 409 Third Street SW.,                                                                         HUBZone contract?
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  Washington, DC 20416; 202–205–5353;                     businesses, Technical assistance,
                                                  michael.mclaughlin@sba.gov.                             Veterans.                                             *     *     *     *    *
                                                  SUPPLEMENTARY INFORMATION: The final                                                                            (c) * * *
                                                                                                          13 CFR 126
                                                  rule published on July 25, 2016, at 81                                                                          (4) Stating that the HUBZone SBC(s)
                                                  FR 48557, contained errors that must be                   Administrative practice and                         must receive profits from the joint
                                                  corrected in order ensure consistency                   procedure, Government procurement,                    venture commensurate with the work
                                                  within the regulations and to avoid                     Penalties, Reporting and recordkeeping                performed by the HUBZone SBC;
                                                  public uncertainty or confusion.                        requirements, Small businesses.                       *     *     *     *    *


                                             VerDate Sep<11>2014   19:06 Dec 23, 2016   Jkt 241001   PO 00000   Frm 00033   Fmt 4700   Sfmt 4700   E:\FR\FM\27DER1.SGM   27DER1


                                                  94942            Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Rules and Regulations

                                                  PART 127—WOMEN-OWNED SMALL                              Airbus Helicopters, 2701 N. Forum                        The NPRM was prompted by AD No.
                                                  BUSINESS FEDERAL CONTRACT                               Drive, Grand Prairie, TX 75052;                       2011–0192–E, dated October 4, 2011,
                                                  PROGRAM                                                 telephone (972) 641–0000 or (800) 232–                issued by EASA, which is the Technical
                                                                                                          0323; fax (972) 641–3775; or at http://               Agent for the Member States of the
                                                  ■ 6. The authority citation for part 127                www.airbushelicopters.com/techpub.                    European Union, to correct an unsafe
                                                  continues to read as follows:                              You may review the referenced                      condition for Eurocopter (now Airbus
                                                    Authority: 15 U.S.C. 632, 634(b)(6),                  service information at the FAA, Office                Helicopters) Model AS355NP
                                                  637(m), and 644.                                        of the Regional Counsel, Southwest                    helicopters with an Arrius 1A1 fire
                                                                                                          Region, 10101 Hillwood Pkwy., Room                    extinguishing system installed through
                                                  ■ 7. In § 127.506, revise paragraph (c)(4)                                                                    production modification (mod) OP–
                                                                                                          6N–321, Fort Worth, TX 76177. It is also
                                                  to read as follows:                                                                                           3931.
                                                                                                          available on the Internet at http://
                                                  § 127.506 May a joint venture submit an                 www.regulations.gov by searching for                     EASA advises that during an
                                                  offer on an EDWOSB or WOSB                              and locating Docket No. FAA–2015–                     inspection of the engine fire
                                                  requirement?                                            5807.                                                 extinguishing system on an AS355NP
                                                  *     *     *     *    *                                                                                      helicopter, the left-hand (LH) fire
                                                                                                          Examining the AD Docket                               extinguisher discharge system was
                                                    (c) * * *
                                                    (4) Stating that the WOSB(s) must                        You may examine the AD docket on                   found connected to the right-hand (RH)
                                                  receive profits from the joint venture                  the Internet at http://                               engine compartment and the RH
                                                  commensurate with the work performed                    www.regulations.gov by searching for                  discharge system was connected to the
                                                  by the WOSB;                                            and locating Docket No. FAA–2015–                     LH engine compartment. An
                                                                                                          5807; or in person at the Docket                      investigation showed that this erroneous
                                                  *     *     *     *    *
                                                                                                          Operations Office between 9 a.m. and 5                installation was inherent in Eurocopter
                                                    Dated: December 16, 2016.                             p.m., Monday through Friday, except                   production modification (mod) OP–
                                                  A. John Shoraka,                                        Federal holidays. The AD docket                       3931. According to EASA, this
                                                  Associate Administrator, Office of                      contains this AD, the European Aviation               condition, if not detected and corrected,
                                                  Government Contracting & Business                       Safety Agency (EASA) ADs, any                         could lead to the discharge of the fire
                                                  Development.                                            incorporated-by-reference service                     extinguisher in the wrong engine
                                                  [FR Doc. 2016–30873 Filed 12–23–16; 8:45 am]            information, the economic evaluation,                 compartment in the event of a fire.
                                                  BILLING CODE 8205–01–P                                  any comments received, and other                      Pending the development of a modified
                                                                                                          information. The street address for the               extinguishing system, EASA Emergency
                                                                                                          Docket Operations Office (phone: 800–                 AD No. 2011–0192–E required installing
                                                  DEPARTMENT OF TRANSPORTATION                            647–5527) is U.S. Department of                       a placard warning the flight crew of the
                                                                                                          Transportation, Docket Operations                     erroneous installation until the squibs
                                                  Federal Aviation Administration                         Office, M–30, West Building Ground                    on each fire extinguisher are exchanged.
                                                                                                          Floor, Room W12–140, 1200 New Jersey                     After EASA issued Emergency AD No.
                                                  14 CFR Part 39                                          Avenue SE., Washington, DC 20590.                     2011–0192–E, Airbus Helicopters
                                                  [Docket No. FAA–2015–5807; Directorate                  FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                developed a permanent modification of
                                                  Identifier 2015–SW–063–AD; Amendment                    George Schwab, Aviation Safety                        the discharge system to reconfigure the
                                                  39–18754; AD 2016–25–28]                                Engineer, Safety Management Group,                    position of the squibs on each fire
                                                                                                          Rotorcraft Directorate, FAA, 10101                    extinguisher to line up with the control
                                                  RIN 2120–AA64                                                                                                 buttons. EASA subsequently issued
                                                                                                          Hillwood Pkwy, Fort Worth, TX 76177;
                                                                                                          telephone (817) 222–5110; email                       superseding EASA AD No. 2015–0181,
                                                  Airworthiness Directives; Airbus
                                                                                                          george.schwab@faa.gov.                                dated August 31, 2015, to retain the
                                                  Helicopters
                                                                                                                                                                requirements of its previous Emergency
                                                                                                          SUPPLEMENTARY INFORMATION:
                                                  AGENCY:  Federal Aviation                                                                                     AD and require the modification of the
                                                  Administration (FAA), DOT.                              Discussion                                            engine fire extinguishing discharge
                                                  ACTION: Final rule.                                                                                           system within 12 months.
                                                                                                             On April 12, 2016, at 81 FR 21493, the
                                                                                                          Federal Register published our notice of              Comments
                                                  SUMMARY:   We are adopting a new
                                                  airworthiness directive (AD) for Airbus                 proposed rulemaking (NPRM), which                       After our NPRM (81 FR 21493, April
                                                  Helicopters Model AS355NP                               proposed to amend 14 CFR part 39 by                   12, 2016) was published, we received
                                                  helicopters. This AD requires removing                  adding an AD that would apply to                      two comments from Airbus Helicopters.
                                                  and installing the fire extinguishing                   Airbus Helicopters Model AS355NP
                                                                                                          helicopters with an Arrius 1A1 fire                   Request
                                                  system pipes. This AD is prompted by
                                                  the discovery that the left-hand and                    extinguishing system installed. The                     Airbus Helicopters requested that the
                                                  right-hand fire extinguishing discharge                 NPRM proposed to require removing                     proposed AD have mod 073990 as a
                                                  systems were incorrectly connected.                     and correctly installing the fire                     terminating action and exempt Model
                                                  The actions of this AD are intended to                  extinguishing system pipes in                         AS355NP aircraft that are ‘‘post mod
                                                  correct the unsafe condition on these                   accordance with Airbus Helicopters’                   073990’’ from the AD’s requirements.
                                                  products.                                               service information and removing any                    We agree with the comment but
                                                                                                          placards on the instrument panel if                   disagree that a change to the AD is
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  DATES:  This AD is effective January 31,                installed. The proposed requirements                  necessary. The AD requires compliance
                                                  2017.                                                   were intended to correct the                          with the service information that Airbus
                                                    The Director of the Federal Register                  connections and to prevent the fire                   Helicopters has identified as mod
                                                  approved the incorporation by reference                 extinguishing system from discharging                 073990. A Model AS355NP helicopter
                                                  of a certain document listed in this AD                 to the wrong engine compartment,                      in a ‘‘post mod 073990’’ configuration
                                                  as of January 31, 2017.                                 failure of the fire extinguishing system              has complied with the service
                                                  ADDRESSES: For service information                      to control a fire, and subsequent loss of             information, and therefore has also
                                                  identified in this final rule, contact                  control of the helicopter.                            previously complied with the required


                                             VerDate Sep<11>2014   19:06 Dec 23, 2016   Jkt 241001   PO 00000   Frm 00034   Fmt 4700   Sfmt 4700   E:\FR\FM\27DER1.SGM   27DER1



Document Created: 2018-02-14 09:13:48
Document Modified: 2018-02-14 09:13:48
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionCorrecting amendments.
DatesEffective December 27, 2016.
ContactMichael McLaughlin, Office of Policy, Planning & Liaison, U.S. Small Business Administration, 409 Third Street SW., Washington, DC 20416; 202-205-5353; [email protected]
FR Citation81 FR 94941 
RIN Number3245-AG24
CFR Citation13 CFR 125
13 CFR 126
13 CFR 127

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR