If the bit is 0, the address is universally administered, which is why this bit is 0 in all OUIs. If it is 1, the address is locally administered. In the example address the first octet is 06 (hexadecimal), the binary form of which is 00000110, where the second-least-significant bit is 1. Therefore, it is a locally administered address. Even though many hypervisors manage dynamic MAC addresses within their own OUI, often it is useful to create an entire unique MAC within the LAA range.