97-1959. Small Business Size Standards; Waiver of the Nonmanufacturer Rule

[Federal Register Volume 62, Number 18 (Tuesday, January 28, 1997)]
[Rules and Regulations]
[Page 3985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1959]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 121


Small Business Size Standards; Waiver of the Nonmanufacturer Rule

AGENCY: Small Business Administration.

ACTION: Waiver of the Nonmanufacturer Rule for 8mm Tri-Deck Airborne 
Recorder (ruggedized).

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SUMMARY: This document advises the public that the Small Business 
Administration (SBA) is establishing a waiver of the Nonmanufacturer 
Rule for 8mm Tri-Deck Airborne Recorder (ruggedized). The basis for a 
waiver is that no small business manufacturers are available to 
participate in the Federal market for these products. The effect of a 
waiver will allow otherwise qualified nonmanufacturers to supply the 
products of any domestic manufacturer on a Federal contract set-aside 
for small businesses or awarded through the SBA 8(a) Program.

EFFECTIVE DATE: January 28, 1997.

ADDRESSES: David Wm. Loines, Procurement Analyst, U.S. Small Business 
Administration, 409 3rd Street S.W., Washington, DC 20416, Tel: (202) 
205-6475.

FOR FURTHER INFORMATION CONTACT: David Wm. Loines, Procurement Analyst, 
[phone], FAX [phone].

SUPPLEMENTARY INFORMATION: Public Law 100-656, enacted on November 15, 
1988, incorporated into the Small Business Act the previously existing 
regulation that recipients of Federal contracts set-aside for small 
businesses or the SBA 8(a) Program procurement must provide the product 
of a small business manufacturer or processor if the recipient is other 
than the actual manufacturer or processor. This requirement is commonly 
referred to as the Nonmanufacturer Rule. The SBA regulations imposing 
this requirement are found at 13 CFR 121.406(b). Section 303(h) of the 
law provides for waiver of this requirement by SBA for any ``class of 
products'' for which there are no small business manufacturers or 
processors in the Federal market. To be considered available to 
participate in the Federal market on these classes of products, a small 
business manufacturer must have submitted a proposal for a contract 
solicitation or received a contract from the Federal Government within 
the last 24 months. The SBA defines ``class of products'' based on two 
coding systems. The first is the Office of Management and Budget 
Standard Industrial Classification Manual. The second is the Product 
and Service Code (PSC) established by the Federal Procurement Data 
System.
    The SBA was asked to issue a waiver for 8mm Tri-Deck Airborne 
Recorder (ruggedized) because of an apparent lack of any small business 
manufacturers or processors for them within the Federal market. The SBA 
searched its Procurement Automated Source System (PASS) for small 
business participants and found none. We then published a document in 
the Federal Register on November 22, 1996 (vol.61, no.227, p.59382), of 
our intent to grant a waiver for these classes of products unless new 
information was found. The proposed waiver covered 8mm Tri-Deck 
Airborne Recorder (ruggedized). The document described the legal 
provisions for a waiver, how SBA defines the market, and asked for 
small business participants of these classes of products. After the 15-
day comment period, no small businesses were identified for 8mm Tri-
Deck Airborne Recorder (ruggedized). This waiver is being granted 
pursuant to statutory authority under section 303(h) of Public Law 100-
656 for 8mm Tri-Deck Airborne Recorder (ruggedized). The waiver will 
last indefinitely but is subject to both an annual review and a review 
upon receipt of information that the conditions required for a waiver 
no longer exist. If such information is found, the waiver may be 
terminated.
Judith A. Roussel,
Associate Administrator for Government Contracting.
[FR Doc. 97-1959 Filed 1-27-97; 8:45 am]
BILLING CODE 8025-01-P