96-26932. Small Business Size Standards; Notice of Waiver of the Nonmanufacturer Rule

[Federal Register Volume 61, Number 204 (Monday, October 21, 1996)]
[Rules and Regulations]
[Page 54538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26932]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION

13 CFR PART 121


Small Business Size Standards; Notice of Waiver of the 
Nonmanufacturer Rule

AGENCY: Small Business Administration.

ACTION: Notice to waive the Nonmanufacturer Rule for Purified 
Terephthalic Acid Ground (PTAG) and Un-Ground (PTAU).

-----------------------------------------------------------------------

SUMMARY: This notice advises the public that the Small Business 
Administration (SBA) is establishing a waiver of the Nonmanufacturer 
Rule for Purified Terephthalic Acid Ground (PTAG) and Un-Ground (PTAU). 
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: October 21, 1996.

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 PTAG and PTAU 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 notice in the Federal Register on May 
6, 1996 (vol. 61, no. 88, found none. We then published a notice in the 
Federal Register on May 6, 1996 (vol. 61, no. 88, p. 20191), of our 
intent to grant a waiver for these classes of products unless new 
information was found. The proposed waiver covered PTAG and PTAU (PSC 
6810). The notice 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 PTAG and PTAU. This waiver is being 
granted pursuant to statutory authority under section 303(h) of Public 
Law 100-656 for PTAG and PTAU. 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. 96-26932 Filed 10-18-96; 8:45 am]
BILLING CODE 8025-01-P