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Federal Register / Vol. 86, No. 227 / Tuesday, November 30, 2021 / Rules and Regulations
attributable to the rule by about 95%. This policy alternative would also result in small reduction in the number of masks needed for children. About 1% of Head Start children are age 5 years and older, and some of these children may get vaccinated in response to CDCs recommendation that children 5 to 11
years old be vaccinated against COVID19
with the Pfizer-BioNTech pediatric vaccine. 143 We estimate that the cost of masking under this policy alternative would be about $1.0 million, which is about $0.6
million lower than the masking requirement under the interim final rule.
While we do not include a monetized benefit for the masking requirement, we anticipate that it will reduce transmission of SARSCOV2 at in-person Head Start settings from individuals covered by the requirement. This impact includes a reduction in transmission from children to Head Start teachers, staff, and other children.
The reductions in transmission attributable to the interim final rule will result in additional, unquantified reductions in mortality and morbidity risks to Head Start children and families, and to the general public. Compared to the analysis of the interim final rule, the two masking policy alternatives would result in fewer averted COVID19 cases, hospitalizations, and deaths.
Finally, we considered a policy alternative of linking the vaccination, masking, and other requirements of the interim final rule to the COVID19 public health emergency.
Evaluating this policy alternative requires an additional assumption about the duration of the public health emergency. In the Uncertainty and Sensitivity Analysis, we
explore a scenario in which the requirements would be repealed through subsequent rulemaking or expire on January 16, 2022, which corresponds to the last day of the most recent renewal of the COVID19 public health emergency. That sensitivity analysis represents one possible outcome for this policy alternative. The main analysis, which assumes that the requirements will remain in effect through the time horizon of this analysis, represents another possible outcome for this policy alternative.
III. Final Small Entity Analysis We have examined the economic implications of this interim final rule as required by the Regulatory Flexibility Act.
This analysis, as well as other sections in this Regulatory Impact Analysis, serves as the Initial Regulatory Flexibility Analysis, as required under the Regulatory Flexibility Act.
A. Description and Number of Affected Small Entities The U.S. Small Business Administration SBA maintains a Table of Small Business Size Standards Matched to North American Industry Classification System Codes NAICS.144 We replicate the SBAs description of this table:
This table lists small business size standards matched to industries described in the North American Industry Classification System NAICS, as modified by the Office of Management and Budget, effective January 1, 2017. The latest NAICS codes are referred to as NAICS 2017.

The size standards are for the most part expressed in either millions of dollars those preceded by $ or number of employees those without the $. A size standard is the largest that a concern can be and still qualify as a small business for Federal Government programs. For the most part, size standards are the average annual receipts or the average employment of a firm.
This interim final rule will impact small entities in NAICS category 624410, Child Day Care Services, which has a size standard of $8.0 million dollars. We assume that all 20,717 Head Start centers are below this threshold and are considered small entities.
B. Description of the Impacts of the Rule on Small Entities We identify three categories of costs of the interim final rule that could impact small entities. Specifically, we expect that small entities will need to train Head Start staff to replace those who resign, and monetize these costs at about $13.2 million. For the purposes of this calculation, we assume that Head Start centers will purchase masks sufficient to cover every in-person staff, child, and volunteer, at a cost of about $1.7 million. We also assume that Head Start centers will incur the costs of testing for staff, at a cost of about $2.3 million. Finally, we attribute the costs of recordkeeping to small entities, at a cost of about $0.3 million. These combine for a total cost to small entities of $17.5 million. Dividing by the 20,717 Head Start centers, these costs are about $847 per small entity. As an alternative calculation, we estimate these costs are $864 per small entity, excluding closed Head Start centers.

Table 27. Costs Per Small Entity
Impact
Costs to Small Entities
Entity
Training
$13,231,039

$638.66

Masking
$1,680,509

$81.12

Testing
$2,306,273

$111.32

$330,565

$15.96

$17,548,386

$847.05

Recordkeeping
lotter on DSK11XQN23PROD with RULES2

Total
The Department considers a rule to have a significant impact on a substantial number of small entities if it has at least a 3% impact on revenue on at least 5% of small entities.
Therefore, we perform a threshold analysis to
determine whether these costs are likely to result in a significant impact on a substantial number of small entities. For $847 to exceed the impact threshold, a small entity would need to have revenue below $28,235 over the
time horizon of the analysis, or annual revenue of less than about $113,000.
The Administration for Children and Families awards about $10 billion in grants to Head Start programs, including Early Head
143 https www.cdc.gov/media/releases/2021/
s1102-PediatricCOVID-19Vaccine.html.

144 U.S. Small Business Administration 2019.
Table of Size Standards. August 19, 2019. https

www.sba.gov/document/support-table-sizestandards.

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Cost Per Small