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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations
the NDAA 2021 in order to provide relief to 8a firms adversely impacted by the March 13, 2020, emergency declaration. SBA anticipates that this rule will substantially benefit such 8a firms, their employees, and the communities they serve. The rule will allow 8a firms to continue to be eligible to be awarded both competitive and sole source 8a contracts for an extended period in the program. In FY
2019, 8a firms were awarded 5.15% of federal contract dollars amounting to $30.39 billion with $8.62 billion awarded through set asides, $9.90
billion awarded as sole-source, and $11.87 billion awarded though open competition or with another preference e.g., HUBZone applied.1 In the past five years FY 2016FY 2020 the average total contract awards per 8a firm ranged from $3.15 million in FY
2018 to $4.45 million in FY 2016.
An addition of one year to the term of 8a firms will increase the pool of firms participating in the program by up to 400 to 600 8a firms each year for the next ten years, which reflects the amount of firms that have graduated from the 8a program annually in the past five years, on average.
Approximately 4,150 8a firms would be eligible to receive benefits for an additional year in the 8a program during the course of the next ten years based on the number of firms within the current 8a portfolio and including those firms that graduated since March 13, 2020. While more firms will be eligible to participate in the 8a program each year, the impact on 8a contract dollars awarded is anticipated to be non-substantive.
SBA will also need to account for costs associated with the management of an additional year of eligibility for 8a firms, which includes business development assistance and compliance oversight. In FY 2019, with nearly 5,200
8a firms in the program, SBA
expended approximately $12,150 per 8a Program Participant based on a total program cost of $63.17 million; this figure includes overhead costs 2. An additional year of eligibility would likely increase total program costs stemming from program services.
However, some of these costs e.g., overhead would be redistributed across the 8a program and other SBA
programs or reduced due to economies of scale. SBA is unable to estimate the 1 Congressional Research Service, SBAs 8a Program: Overview, History, and Current Issues, Page 3637, https crsreports.congress.gov/
product/pdf/R/R44844.
2 SBAs FY 2021 Congressional Justification and Annual Performance Report, Table 10, Page 16, https www.sba.gov/cj.

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marginal costs associated with an additional year at the end of a firms term in the 8a program, but anticipates that it would not exceed SBAs annual costs for an 8a Participant.
Executive Order 13771
This rule is not an E.O. 13771
regulatory action because this rule is not significant under E.O. 12866.
Executive Order 12988
This action meets applicable standards set forth in sections 3a and 3b2 of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. The action does not have retroactive or preemptive effect.
Executive Order 13132
This rule does not have federalism implications as defined in Executive Order 13132. It will not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in the Executive Order. As such it does not warrant the preparation of a Federalism Assessment.
Executive Order 13175
This rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.
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Regulatory Flexibility Act The Regulatory Flexibility Act RFA, 5 U.S.C. 601, requires administrative agencies to consider the effect of their actions on small entities, small nonprofit 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, rules that are exempt from notice and comment are exempt from the RFA requirements when the agency for good cause finds that notice and public procedure are impracticable, unnecessary, or contrary to the public interest. Small Business Administrations Office of Advocacy guide: How to Comply with the Regulatory Flexibility Ac. Ch.1. p.9.
Accordingly, SBA is not required to conduct a regulatory flexibility analysis.
List of Subjects in 13 CFR Part 124
Administrative practice and procedure, Government procurement, Government property, Small businesses.
Accordingly, for the reasons stated in the preamble, SBA is amending 13 CFR
part 124 as follows:
PART 1248a BUSINESS
DEVELOPMENT/SMALL
DISADVANTAGED BUSINESS STATUS
DETERMINATIONS
1. The authority citation for part 124
is revised to read as follows:

Authority: 15 U.S.C. 634b6, 636j, 637a, 637d, 644 and Pub. L. 99661, Pub.
L. 100656, sec. 1207, Pub. L. 10137, Pub.
L. 101574, section 8021, Pub. L. 10887, Pub. L. 116260, sec. 330, and 42 U.S.C.
9815.

The SBA has determined that this rule does not affect any existing collection of information. The rule does require a concern seeking to be readmitted to the 8a BD program to notify SBA of its intent to be readmitted and make a certification that it continues to meet the applicable 8a BD program eligibility requirements as set forth in 124.101 through 124.111 of title 13 of the Code of Federal Regulations. SBA is not seeking to collect information through any required form, but rather is anticipating a simple email from the business concern to SBA notifying SBA
of its intent to be readmitted to the 8a BD program. There are 346 business concerns whose program terms have expired since March 13, 2020. Those are the only business concerns who would
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be subject to the notification requirement.

2. Revise 124.2 to read as follows:

124.2 What length of time may a business participate in the 8a BD
program?

a Except as set forth in paragraph b of this section, a Participant receives a program term of nine years from the date of SBAs approval letter certifying the concerns admission to the program.
The Participant must maintain its program eligibility during its tenure in the program and must inform SBA of any changes that would adversely affect its program eligibility. The nine-year program term may be shortened only by termination, early graduation including voluntary early graduation or voluntary withdrawal as provided for in this subpart.
b Pursuant to section 330 of the Consolidated Appropriations Act, 2021,
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