97-3458. Small Business Size Standards; Waiver of the Nonmanufacturer Rule

[Federal Register Volume 62, Number 29 (Wednesday, February 12, 1997)]
[Rules and Regulations]
[Page 6454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3458]


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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 Routers and Switches.

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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 Routers and Switches. 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: February 12, 1997.

ADDRESSES: David Wm. Loines, Procurement Analyst, U.S. Small Business 
Administration, 409 3rd Street SW, 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 Routers and Switches 
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 (61 FR 59382), of our intent to 
grant a waiver for these classes of products unless new information was 
found. The proposed waiver covered Routers and Switches. 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 Routers and Switches. This waiver is being granted 
pursuant to statutory authority under section 303(h) of Public Law 100-
656 for Routers and Switches. 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. 97-3458 Filed 2-11-97; 8:45 am]
BILLING CODE 8025-01-P