[Federal Register Volume 77, Number 185 (Monday, September 24, 2012)]
[Rules and Regulations]
[Pages 58755-58761]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-23394]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AG30


Small Business Size Standards: Health Care and Social Assistance

AGENCY: U.S. Small Business Administration.

ACTION: Final rule.

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SUMMARY: The United States Small Business Administration (SBA) is 
increasing the small business size standards for 28 industries in North 
American Industry Classification System (NAICS) Sector 62, Health Care 
and Social Assistance, and retaining the current standards for the 
remaining 11 industries in that Sector. As part of its ongoing 
comprehensive review of all size standards, SBA evaluated every 
industry in NAICS Sector 62 to determine whether the existing size 
standards should be retained or revised.

DATES: This rule is effective October 24, 2012.

FOR FURTHER INFORMATION CONTACT: Jorge Laboy-Bruno, Economist, Size 
Standards Division, by phone at (202) 205-6618 or by email at 
sizestandards@sba.gov.

SUPPLEMENTARY INFORMATION:

Introduction

    To determine eligibility for Federal small business assistance 
programs, SBA establishes small business size definitions (referred to 
as size standards) for private sector industries in the United States. 
SBA's existing size standards use two primary measures of business 
size--average annual receipts and number of employees. Financial 
assets, electric output and refining capacity are used as size measures 
for a few specialized industries. In addition, SBA's Small Business 
Investment Company (SBIC), 7(a), and the Certified Development Company 
(CDC or 504) Loan Programs determine small business eligibility using 
either the industry based size standards or alternative net worth and 
net income based size standards. At the start of the current 
comprehensive SBA's size standards review, there were 41 different size 
levels, covering 1,141 NAICS industries and 18 sub-industry activities 
(i.e., ``exceptions'' in SBA's table of size standards). Of these, 31 
were based on average annual receipts, seven based on number of 
employees, and three based on other measures.
    Over the years, SBA has received comments that its size standards 
have not kept up with changes in the economy, in particular the changes 
in the Federal contracting marketplace and industry structure. The last 
comprehensive review of size standards occurred during the late 1970s 
and early 1980s. Since then, most reviews of size standards were 
limited to a few specific industries in response to requests from the 
public and Federal agencies. SBA also makes periodic inflation 
adjustments to its monetary based size standards. The latest inflation 
adjustment to size standards was published in the Federal Register on 
July 18, 2008 (73 FR 41237).
    SBA recognizes that changes in industry structure and the Federal 
marketplace since the last overall review have rendered existing size 
standards for some industries no longer supportable by current data. 
Accordingly, in 2007, SBA began a comprehensive review of its size 
standards to determine whether existing size standards have supportable 
bases relative to the current data, and to revise them, where 
necessary.
    In addition, on September 27, 2010, the President of the United 
States signed the Small Business Jobs Act of 2010 (Jobs Act). The Jobs 
Act directs SBA to conduct a detailed review of all size standards and 
to make appropriate adjustments to reflect market conditions. 
Specifically, the Jobs Act requires SBA to conduct a detailed review of 
at least one-third of all size standards during every 18-month period 
from the date of its enactment and review all size standards not less 
frequently than once every 5 years thereafter. Reviewing existing small 
business size standards and making appropriate adjustments based on 
current data is also consistent with Executive Order 13563 on improving 
regulation and regulatory review.
    Rather than review all size standards at one time, SBA is reviewing 
a group of related industries on a Sector by Sector basis.
    As part of SBA's comprehensive review of size standards, the Agency 
evaluated every industry in NAICS Sector 62, Health Care and Social 
Assistance, to determine whether the existing size standards should be 
retained or revised. On February 24, 2012, SBA published a proposed 
rule in the Federal Register (77 FR 11001) seeking public comment on 
its proposal to increase the size standards for 28 industries in that 
Sector. The comment period ended on April 24, 2012.
    SBA has recently developed a ``Size Standards Methodology'' for 
establishing, reviewing and modifying size standards, where necessary. 
SBA has published the document on its Web site at www.sba.gov/size for 
public review and comment and also included it as a supporting document 
in the electronic docket of the February 24, 2012 proposed rule at 
www.regulations.gov.
    In evaluating an industry's size standard, SBA examines its 
characteristics (such as average firm size, startup costs, industry 
competition, and distribution of firms by size) and the level and small 
business share of

[[Page 58756]]

Federal contract dollars in that industry. SBA also examines the 
potential impact a size standard revision might have on its financial 
assistance programs and whether a business concern under a revised size 
standard would be dominant in its industry. SBA analyzed the 
characteristics of each industry in NAICS Sector 62, mostly using a 
special tabulation obtained from the U.S. Bureau of the Census from its 
2007 Economic Census (the latest available). SBA also evaluated the 
level and small business share of Federal contract dollars in each of 
those industries using the data from the Federal Procurement Data 
System--Next Generation (FPDS-NG) for fiscal years 2008 to 2010. To 
evaluate the impact of changes to size standards on its loan programs, 
SBA analyzed internal data on its guaranteed loan programs for fiscal 
years 2008 to 2010.
    SBA's ``Size Standards Methodology'' provides a detailed 
description of analyses of various industry and program factors and 
data sources, and how the Agency uses the results to derive size 
standards. In the proposed rule, SBA detailed how it applied its ``Size 
Standards Methodology'' to review, and modify, where necessary, the 
existing standards for industries in NAICS Sector 62. SBA sought 
comments from the public on a number of issues about its ``Size 
Standards Methodology,'' such as whether there are alternative 
methodologies that SBA should consider; whether there are alternative 
or additional factors or data sources that SBA should evaluate; whether 
SBA's approach to establishing small business size standards makes 
sense in the current economic environment; whether SBA's application of 
anchor size standards is appropriate in the current economy; whether 
there are gaps in SBA's methodology because of the lack of 
comprehensive data; and whether there are other facts or issues that 
SBA should consider.
    In the proposed rule, SBA sought comments on its proposal to 
increase the size standards for 28 industries and retain the existing 
size standards for the remaining 11 industries in Sector 62. 
Specifically, SBA requested comments on whether the size standards 
should be revised as proposed and whether the proposed revisions are 
appropriate. SBA also invited comments on whether its proposed eight 
fixed size standard levels are appropriate and whether it should adopt 
common size standards for certain Industry Groups and Subsectors in 
NAICS Sector 62.
    SBA's analyses could allow lowering existing size standards for two 
industries in NAICS Sector 62, should the Agency choose to do so. 
However, as SBA explained in the proposed rule, lowering size standards 
would reduce the number of firms eligible to participate in Federal 
small business assistance programs and would be counter to what the 
Federal government and SBA are doing to help small businesses and 
create jobs. Therefore, SBA proposed to retain the current size 
standards for those industries and requested comments on whether the 
Agency should lower size standards for those two industries for which 
its analyses might support lowering them.

Summary of Comments

    SBA received only one response to the proposed rule. The respondent 
asked what the fine is for a firm that performs sterilization 
procedures and does not use an autoclave to sterilize. The question 
does not address or relate to the size standards changes that SBA 
proposed for NAICS Sector 62, Health Care and Social Assistance. The 
regulations or guidelines governing sterilization procedures are beyond 
the purview of SBA and hence this proposed rule. Thus, SBA is not 
making any adjustment to proposed size standards based on this comment.
    The comment to the proposed rule is available for public review at 
http://www.regulations.gov, using RIN 3245-AG30 or docket number SBA-
2012-0003.

Conclusion

    Based on the analyses of relevant industry and program data and no 
public comments against the proposed rule, SBA has decided to increase 
the small business size standards for the 28 industries in NAICS 
Sectors 62, as proposed. The revised size standards are shown in Table 
1, Summary of Revised Size Standards in NAICS Sector 62, below.

                          Table 1--Summary of Revised Size Standards in NAICS Sector 62
----------------------------------------------------------------------------------------------------------------
                                                                                   Current size    Revised size
               NAICS Codes                          NAICS Industry title           standard  ($    standard  ($
                                                                                     million)        million)
----------------------------------------------------------------------------------------------------------------
621420...................................  Outpatient Mental Health and                    $10.0           $14.0
                                            Substance Abuse Centers.
621491...................................  HMO Medical Centers..................            10.0            30.0
621492...................................  Kidney Dialysis Centers..............            34.5            35.5
621493...................................  Freestanding Ambulatory Surgical and             10.0            14.0
                                            Emergency Centers.
621498...................................  All Other Outpatient Care Centers....            10.0            19.0
621511...................................  Medical Laboratories.................            13.5            30.0
621512...................................  Diagnostic Imaging Centers...........            13.5            14.0
621610...................................  Home Health Care Services............            13.5            14.0
621910...................................  Ambulance Services...................             7.0            14.0
621991...................................  Blood and Organ Banks................            10.0            30.0
621999...................................  All Other Miscellaneous Ambulatory               10.0            14.0
                                            Health Care Services.
622110...................................  General Medical and Surgical                     34.5            35.5
                                            Hospitals.
622210...................................  Psychiatric and Substance Abuse                  34.5            35.5
                                            Hospitals.
622310...................................  Specialty (except Psychiatric and                34.5            35.5
                                            Substance Abuse) Hospitals.
623110...................................  Nursing Care Facilities (Skilled                 13.5            25.5
                                            Nursing Facilities).
623210...................................  Residential Intellectual and                     10.0            14.0
                                            Developmental Disability Facilities.
623220...................................  Residential Mental Health and                     7.0            14.0
                                            Substance Abuse Facilities.
623311...................................  Continuing Care Retirement                       13.5            25.5
                                            Communities.
623312...................................  Assisted Living Facilities for the                7.0            10.0
                                            Elderly.
623990...................................  Other Residential Care Facilities....             7.0            10.0
624110...................................  Child and Youth Services.............             7.0            10.0
624120...................................  Services for the Elderly and Persons              7.0            10.0
                                            with Disabilities.
624190...................................  Other Individual and Family Services.             7.0            10.0
624210...................................  Community Food Services..............             7.0            10.0
624221...................................  Temporary Shelters...................             7.0            10.0

[[Page 58757]]

 
624229...................................  Other Community Housing Services.....             7.0            14.0
624230...................................  Emergency and Other Relief Services..             7.0            30.0
624310...................................  Vocational Rehabilitation Services...             7.0            10.0
----------------------------------------------------------------------------------------------------------------

    For the reasons as stated above in this rule and in the proposed 
rule, SBA is retaining the current size standards for the two 
industries for which analytical results suggested the Agency could 
lower. This is consistent with SBA's recent final rules on NAICS Sector 
44-45, Retail Trade (75 FR 61597 (October 6, 2010)), NAICS Sector 72, 
Accommodation and Food Services (75 FR 61604 (October 6, 2010)), NAICS 
Sector 81, Other Services (75 FR 61591 (October 6, 2010)), NAICS Sector 
54, Professional, Scientific and Technical Services (77 FR 7490 
(February 10, 2012)), and NAICS Sector 48-49, Transportation and 
Warehousing (77 FR 10943 (February 24, 2012)). In each of those final 
rules, SBA retained the existing size standards for those that it could 
have reduced. SBA is also retaining the existing size standards for the 
nine industries in NAICS Sector 62 for which the results supported 
their current levels.

Compliance With Executive Orders 12866, 13563, 12988, and 13132, the 
Paperwork Reduction Act (44 U.S.C. Ch. 35), and the Regulatory 
Flexibility Act (5 U.S.C. 601-612)

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
final rule is not a ``significant regulatory action for purposes of 
Executive Order 12866. In order to help explain the need for this rule 
and the rule's potential benefits and costs, SBA is providing a Cost 
Benefit Analysis in this section of the rule. This is also not a 
``major rule'' under the Congressional Review Act (5 U.S.C. 801)

Cost Benefit Analysis

1. Is there a need for the regulatory action?

    SBA believes that the revised changes to small business size 
standards for 28 industries in NAICS Sector 62, Health Care and Social 
Assistance, reflect the changes in economic characteristics of small 
businesses and the Federal procurement market. SBA's mission is to aid 
and assist small businesses through a variety of financial, 
procurement, business development, and advocacy programs. To assist the 
intended beneficiaries of these programs, SBA establishes distinct 
definitions to determine which businesses are deemed small. The Small 
Business Act delegates to SBA's Administrator the responsibility for 
establishing small business size definitions (15 U.S.C. 632(a)). The 
Act also requires that small business size definitions vary to reflect 
industry differences. The Jobs Act requires the Administrator to review 
at least one-third of all size standards within each 18-month period 
from the date of its enactment, and review all size standards at least 
every five years thereafter. The supplementary information sections of 
the February 24, 2012 proposed rule and this final rule explained in 
detail SBA's methodology for analyzing a size standard for a particular 
industry.

2. What are the potential benefits and costs of this regulatory action?

    The most significant benefit to businesses obtaining small business 
status because of this rule is gaining eligibility for Federal small 
business assistance programs. These include SBA's financial assistance 
programs and Federal procurement programs reserved for small 
businesses. Federal small business programs provide targeted 
opportunities for small businesses under SBA's business development 
programs, such as 8(a), Small Disadvantaged Businesses (SDB), small 
businesses located in Historically Underutilized Business Zones 
(HUBZone), women-owned small businesses (WOSB), and service-disabled 
veteran-owned small businesses (SDVOSB). Other Federal agencies may 
also use SBA's size standards for a variety of regulatory and program 
purposes. These programs assist small businesses to become more 
knowledgeable, stable, and competitive. In the 28 industries in NAICS 
Sector 62 for which SBA has increased size standards, SBA estimates 
that more than 4,100 additional firms will obtain small business status 
and become eligible for these programs. That is about 0.7 percent of 
the total number of firms that are classified as small under the 
current standards in all industries within NAICS Sector 62. SBA 
estimates this will increase the small business share of total industry 
receipts in all industries within NAICS Sector 62 from about 30 percent 
under the current size standards to nearly 32 percent.
    Three groups will benefit from the revised size standards in NAICS 
Sector 62 in the following ways: (1) Some businesses that are above the 
current size standards may gain small business status under the higher 
size standards, thereby enabling them to participate in Federal small 
business assistance programs; (2) growing small businesses that are 
close to exceeding the current size standards will be able to retain 
their small business status under the higher size standards, thereby 
enabling them to continue their participation in the programs; and (3) 
Federal agencies will have a larger pool of small businesses from which 
to draw for their small business procurement programs.
    During fiscal years 2008 to 2010, about 66 percent of Federal 
contracting dollars spent in industries in NAICS Sector 62 were 
accounted for by the 28 industries for which SBA has increased size 
standards. SBA estimates that additional firms gaining small business 
status in those industries under the revised size standards could 
potentially obtain Federal contracts totaling up to $25 million to $30 
million annually under SBA's small business, 8(a), SDB, HUBZone, WOSB, 
and SDVOSB Programs, and other unrestricted procurements. The added 
competition for many of these procurements can also result in lower 
prices to the Government for procurements reserved for small 
businesses, although SBA cannot quantify this benefit.
    Under SBA's 7(a) and 504 Loan Programs, based on the data for 
fiscal years 2008 to 2010 data, SBA estimates about 35 to 45 additional 
loans totaling about $11 million to $15 million in Federal loan 
guarantees could be made to these newly defined small businesses under 
the proposed standards. Under the Jobs Act, SBA can now guarantee 
substantially larger loans than in the past. In addition, as described 
above, the Jobs Act established an alternative size standard ($15 
million in tangible net worth and $5 million in net income

[[Page 58758]]

after income taxes) for business concerns that do not meet the size 
standards for their industry. Thus, increasing the size standards will 
likely result in more small business guaranteed loans to businesses in 
these industries, but it would be impractical to try to estimate the 
extent of their number and the total amount loaned.
    Newly defined small businesses will also benefit from SBA's 
Economic Injury Disaster Loan (EIDL) Program. Since this program is 
contingent on the occurrence and severity of one or more disasters, SBA 
cannot make a meaningful estimate of future EIDL benefits.
    To the extent that all 4,100 newly defined additional small firms 
under the revised size standards become active in Federal procurement 
programs, there may be some additional administrative costs to the 
Federal Government associated with additional bidders for Federal small 
business procurement opportunities. In addition, there will be new 
firms seeking SBA's guaranteed loans, more firms eligible for 
enrollment in the Central Contractor Registration's Dynamic Small 
Business Search database, and more firms seeking certification as 8(a) 
or HUBZone forms or those qualifying for small business, WOSB, SDVOSB, 
and SDB status. Among businesses seeking SBA's assistance, there could 
be some additional costs associated with compliance and verification of 
small business status and protests of small business status. These 
added costs are likely to be minimal because mechanisms are already in 
place to handle these administrative requirements.
    The costs to the Federal Government may be higher on some Federal 
contracts under the higher revised size standards. With a greater 
number of businesses defined as small, Federal agencies may choose to 
set aside more contracts for competition among small businesses rather 
than using full and open competition. The movement from unrestricted to 
set-aside contracting might result in competition among fewer total 
bidders, although there will be more small businesses eligible to 
submit offers. In addition, higher costs may result when more full and 
open contracts are awarded to HUBZone businesses because of a price 
evaluation preference. The additional costs associated with fewer 
bidders, however, will likely be minor since, as a matter of law, 
procurements may be set aside for small businesses or reserved for the 
small business, 8(a), HUBZone, WOSB, or SDVOSB Programs only if awards 
are expected to be made at fair and reasonable prices.
    The revised size standards may have some distributional effects 
among large and small businesses. Although SBA cannot estimate with 
certainty the actual outcome of the gains and losses among small and 
large businesses, there are several likely impacts. There may be a 
transfer of some Federal contracts to small businesses from large 
businesses. Large businesses may have fewer Federal contract 
opportunities as Federal agencies decide to set aside more Federal 
contracts for small businesses. In addition, some Federal agencies may 
award more Federal contracts to HUBZone concerns instead of large 
businesses since HUBZone concerns may be eligible for price evaluation 
adjustments when they compete on full and open bidding opportunities. 
Similarly, currently defined small businesses may obtain fewer Federal 
contracts due to the increased competition from more businesses defined 
as small under the revised size standards. This transfer may be offset 
by more Federal procurements set aside for all small businesses. The 
number of newly defined and expanding small businesses that are willing 
and able to sell to the Federal Government will limit the potential 
transfer of contracts away from large and small businesses under the 
existing size standards. SBA cannot estimate with precision the 
potential distributional impacts of these transfers.
    The revisions to the existing size standards in NAICS Sector 62, 
Health Care and Social Assistance, are consistent with SBA's statutory 
mandate to assist small business. This regulatory action promotes the 
Administration's objectives. One of SBA's goals in support of the 
Administration's objectives is to help individual small businesses 
succeed through fair and equitable access to capital and credit, 
Government contracts, and management and technical assistance. 
Reviewing and modifying size standards, when appropriate, ensures that 
intended beneficiaries have access to small business programs designed 
to assist them.

Executive Order 13563

    A description of the need for this regulatory action and benefits 
and costs associated with this action including possible distributional 
impacts that relate to Executive Order 13563 are included above in the 
Cost Benefit Analysis.
    In an effort to engage interested parties in this action, SBA has 
presented its methodology (discussed above under Supplementary 
Information) to various industry associations and trade groups. SBA 
also met with various industry groups to get their feedback on its 
methodology and other size standards issues. In addition, SBA presented 
its size standards methodology to businesses in 13 cities in the U.S. 
and sought their input as part of the Jobs Act tours. The presentation 
also included information on the latest status of the comprehensive 
size standards review and how interested parties can provide SBA with 
input and feedback on the size standards review.
    Furthermore, when SBA issued the proposed rule, it provided notice 
of its publication to individuals and companies that had in recent 
years exhibited an interest by letter, email, or phone, in size 
standards for NAICS Sector 62 so they could comment.
    Additionally, SBA sent letters to the Directors of the Offices of 
Small and Disadvantaged Business Utilization (OSDBU) at several Federal 
agencies with considerable procurement responsibilities requesting 
their feedback on how the agencies use SBA size standards and whether 
current standards meet their programmatic needs (both procurement and 
non-procurement). SBA gave appropriate consideration to all input, 
suggestions, recommendations, and relevant information obtained from 
industry groups, individual businesses, and Federal agencies in 
preparing the proposed rule and this final rule for NAICS Sector 62.
    The review of size standards in NAICS Sector 62, Health Care and 
Social Assistance, is consistent with Executive Order 13563, Section 6, 
calling for retrospective analyses of existing rules. The last overall 
review of size standards occurred during the late 1970s and early 
1980s. Since then, except for periodic adjustments for monetary based 
size standards, most reviews of size standards were limited to a few 
specific industries in response to requests from the public and Federal 
agencies. SBA recognizes that changes in industry structure and the 
Federal marketplace since the last overall review have rendered 
existing size standards for some industries no longer supportable by 
current data. Accordingly, in 2007, SBA began a comprehensive review of 
all size standards to ensure that existing size standards have 
supportable bases and to revise them, where necessary. In addition, the 
Jobs Act requires SBA to conduct a detailed review of all size 
standards and to make appropriate adjustments to reflect market 
conditions. Specifically, the Jobs Act requires SBA to conduct a 
detailed review of at least one-third of all size

[[Page 58759]]

standards during every 18-month period from the date of its enactment 
and review all size standards not less frequently than once every 5 
years thereafter.

Executive Order 12988

    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.

Executive Order 13132

    For the purposes of Executive Order 13132, SBA has determined that 
this final rule 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. Therefore, SBA has determined that this 
final rule has no Federalism implications warranting preparation of a 
Federalism assessment.

Paperwork Reduction Act

    For the purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, 
SBA has determined that this final rule will not impose any new 
reporting or record keeping requirements.

Final Regulatory Flexibility Analysis

    Under the Regulatory Flexibility Act (RFA), this final rule may 
have a significant impact on a substantial number of small entities in 
NAICS Sector 62, Health Care and Social Assistance. As described above, 
this rule may affect small entities seeking Federal contracts, SBA's 
7(a), 504 and economic injury disaster loans, and various small 
business benefits under other programs.
    Immediately below, SBA sets forth a final regulatory flexibility 
analysis (RFA) of this final rule addressing the following questions: 
(1) What are the need for and objective of the rule? (2) What are SBA's 
description and estimate of the number of small businesses to which the 
rule will apply? (3) What are the projected reporting, record keeping, 
and other compliance requirements of the rule? (4) What are the 
relevant Federal rules that may duplicate, overlap, or conflict with 
the rule? and (5) What alternatives will allow the Agency to accomplish 
its regulatory objectives while minimizing the impact on small 
entities?

1. What are the need for and objective of the rule?

    Although size standards for three Subsectors of NAICS 62 (NAICS 
Subsector 621, Ambulatory Health Care Services; NAICS Subsector 622, 
Hospitals; and NAICS Subsector 623, Nursing and Residential Care 
Facilities) were reviewed during 1999-2000, size standards for NAICS 
Subsector 624, Social Assistance, which includes nine industries, have 
not been reviewed since the early 1980s. Changes in industry structure, 
technological changes, productivity growth, mergers and acquisitions, 
and updated industry definitions may have changed the structure of many 
industries within NAICS Sector 62. Such changes can be sufficient to 
support revisions to current size standards for some industries. Based 
on the analysis of the latest data available, SBA believes that the 
revised size standards in this final rule more appropriately reflect 
the size of businesses in those industries that need Federal 
assistance. Additionally, the Jobs Act requires SBA to review all size 
standards and make appropriate adjustments to reflect current data and 
market conditions.

2. What are SBA's description and estimate of the number of small 
entities to which the rule will apply?

    SBA estimates that more than 4,100 additional firms will become 
small because of increases in size standards in 28 industries in NAICS 
Sector 62. That represents 0.7 percent of total firms that are small 
under current size standards in all industries within that Sector. This 
will result in an increase in the small business share of total 
industry receipts for the Sector from about 30 percent under the 
current size standard to nearly 32 percent under the proposed 
standards. The revised size standards will enable more small businesses 
to retain their small business status for a longer period. Many have 
lost their eligibility and find it difficult to compete at current size 
standards with companies that are significantly larger than they are. 
SBA believes the competitive impact will be positive for existing small 
businesses and for those that exceed the size standards but are on the 
very low end of those that are not small. They might otherwise be 
called or referred to as mid-sized businesses, although SBA only 
defines what is small; other entities are other than small.

3. What are the projected reporting, record keeping and other 
compliance requirements of the rule?

    Revising size standards does not impose any additional reporting or 
record keeping requirements on small entities. However, qualifying for 
Federal procurement and a number of other programs requires that 
entities register in the Central Contractor Registration (CCR) database 
and certify at least once annually that they are small in the Online 
Representations and Certifications Application (ORCA). Therefore, 
businesses opting to participate in those programs must comply with CCR 
and ORCA requirements. There are no costs associated with either CCR 
registration or ORCA certification. Revising size standards alters the 
access to Federal programs that assist small businesses, but does not 
impose a regulatory burden as they neither regulate nor control 
business behavior.

4. What are the relevant Federal rules which may duplicate, overlap, or 
conflict with the rule?

    Under Sec.  3(a)(2)(C) of the Small Business Act, 15 U.S.C. 
632(a)(2)(c), Federal agencies must use SBA's size standards to define 
a small business, unless specifically authorized by statute to do 
otherwise. In 1995, SBA published in the Federal Register a list of 
statutory and regulatory size standards that identified the application 
of SBA's size standards as well as other size standards used by Federal 
agencies (60 FR 57988 (November 24, 1995)). SBA is not aware of any 
Federal rule that would duplicate or conflict with establishing size 
standards.
    However, the Small Business Act and SBA's regulations allow Federal 
agencies to develop different size standards if they believe that SBA's 
size standards are not appropriate for their programs, with the 
approval of SBA's Administrator (13 CFR 121.903). The Regulatory 
Flexibility Act authorizes an Agency to establish an alternative small 
business definition, after consultation with the Office of Advocacy of 
the U.S. Small Business Administration (5 U.S.C. 601(3)).

5. What alternatives will allow the Agency to accomplish its regulatory 
objectives while minimizing the impact on small entities?

    By law, SBA is required to develop numerical size standards for 
establishing eligibility for Federal small business assistance 
programs. Other than varying size standards by industry and changing 
the size measures, no

[[Page 58760]]

practical alternative exists to the existing system of numerical size 
standards. The possible alternative size standards considered for the 
individual industries within NAICS Sector 62 are discussed in the 
supplementary information to the proposed rule and this final rule.

List of Subjects in 13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Individuals with 
disabilities, Loan programs--business, Reporting and recordkeeping 
requirements, Small businesses.

    For the reasons set forth in the preamble, SBA amends 13 CFR Part 
121 as follows:

PART 121--SMALL BUSINESS SIZE REGULATIONS

0
1. The authority citation for Part 121 continues to read as follows:

    Authority:  15 U.S.C. 632, 634(b)(6), 636(b), 662, and 694a(9).


0
2. In Sec.  121.201, in the table, revise the entries for ``621420'', 
``621491'', ``621492'', ``621493'', ``621498'', ``621511'', ``621512'', 
``621610'', ``621910'', ``621991'', ``621999'', ``622110'', ``622210'', 
``622310'', ``623110'', ``623210'', ``623220'', ``623311'', ``623312'', 
``623990'', ``624110'', ``624120'', ``624190'', ``624210'', ``624221'', 
``624229'', ``624230'', and ``624310'' to read as follows:


Sec.  121.201  What size standards has SBA identified by North American 
Industry Classification System codes?

* * * * *

                                 Small Business Size Standards by NAICS Industry
----------------------------------------------------------------------------------------------------------------
                                                                                       Size            Size
                                                                                   standards  in   standards  in
               NAICS Codes                       NAICS U.S. Industry title         millions  of     number  of
                                                                                      dollars        employees
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
621420...................................  Outpatient Mental Health and                    $14.0  ..............
                                            Substance Abuse Centers.
621491...................................  HMO Medical Centers..................            30.0  ..............
621492...................................  Kidney Dialysis Centers..............            35.5  ..............
621493...................................  Freestanding Ambulatory Surgical and             14.0  ..............
                                            Emergency Centers.
621498...................................  All Other Outpatient Care Centers....            19.0  ..............
621511...................................  Medical Laboratories.................            30.0  ..............
621512...................................  Diagnostic Imaging Centers...........            14.0  ..............
621610...................................  Home Health Care Services............            14.0  ..............
621910...................................  Ambulance Services...................            14.0  ..............
621991...................................  Blood and Organ Banks................            30.0  ..............
621999...................................  All Other Miscellaneous Ambulatory               14.0  ..............
                                            Health Care Services.
 
                                                  * * * * * * *
622110...................................  General Medical and Surgical                     35.5  ..............
                                            Hospitals.
622210...................................  Psychiatric and Substance Abuse                  35.5  ..............
                                            Hospitals.
622310...................................  Specialty (except Psychiatric and                35.5  ..............
                                            Substance Abuse) Hospitals.
 
                                                  * * * * * * *
623110...................................  Nursing Care Facilities (Skilled                 25.5  ..............
                                            Nursing Facilities).
623210...................................  Residential Intellectual and                     14.0  ..............
                                            Developmental Disability Facilities.
623220...................................  Residential Mental Health and                    14.0  ..............
                                            Substance Abuse Facilities.
623311...................................  Continuing Care Retirement                       25.5  ..............
                                            Communities.
623312...................................  Assisted Living Facilities for the               10.0  ..............
                                            Elderly.
623990...................................  Other Residential Care Facilities....            10.0  ..............
 
                                                  * * * * * * *
624110...................................  Child and Youth Services.............            10.0  ..............
624120...................................  Services for the Elderly and Persons             10.0  ..............
                                            with Disabilities.
624190...................................  Other Individual and Family Services.            10.0  ..............
624210...................................  Community Food Services..............            10.0  ..............
624221...................................  Temporary Shelters...................            10.0  ..............
624229...................................  Other Community Housing Services.....            14.0  ..............
624230...................................  Emergency and Other Relief Services..            30.0  ..............
624310...................................  Vocational Rehabilitation Services...            10.0  ..............
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------



[[Page 58761]]

    Dated: September 14, 2012.
Karen G. Mills,
Administrator.
[FR Doc. 2012-23394 Filed 9-21-12; 8:45 am]
BILLING CODE 8025-01-P