E9-5737. Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY:

U.S. Small Business Administration.

ACTION:

Notice to terminate the Nonmanufacturer Rule Class Waiver for Product Service Code (PSC) 3930, Warehouse Trucks and Tractors, Self-Propelled.

SUMMARY:

The U.S. Small Business Administration (SBA) has terminated a waiver of the Nonmanufacturer Rule for PSC 3930, Warehouse Trucks and Tractors, Self-Propelled based on SBA's recent discovery of small business manufacturers. Terminating this waiver will require recipients of contracts set aside for small businesses, service-disabled veteran-owned small businesses, or participants in SBA's 8(a) Business Development (BD) Program to provide the products of small business manufacturers or processors on such contracts.

DATE:

This waiver is effective April 1, 2009.

FOR FURTHER INFORMATION CONTACT:

Ms. Edith G. Butler, by telephone at [phone]; by FAX at [phone]; or by e-mail at [e-mail].

SUPPLEMENTARY INFORMATION:

Section 8(a)(17) of the Small Business Act (Act), 15 U.S.C. 637(a)(17), and SBA's implementing regulations require that recipients of Federal contracts set aside for small businesses, service-disabled veteran-owned small businesses, or participants in the SBA's 8(a) Business Development Program, provide the product of a small business manufacturer or processor, if the recipient is other than the actual manufacturer or processor of the product. This requirement is commonly referred to as the Nonmanufacturer Rule. 13 CFR 121.406(b), 125.15(c). Section 8(a)(17)(b)(iv) of the Act authorizes SBA to waive the Nonmanufacturer Rule for any “class of products” for which there are no small business manufacturers or processors available to participate in the Federal market.

In order to be considered available to participate in the Federal market for a class 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. 13 CFR 121.1202(c).

The SBA defines “class of products” based on a six digit coding system. The coding system is the Office of Management and Budget North American Industry Classification System (NAICS). In addition, SBA uses Product Service Codes (PSC) to identify particular products within the NAICS code to which a waiver would apply.

SBA announced its decision to grant the waiver for PSC 3930 in the Federal Register on September 13, 1990. 55 Federal Register 38313 (1990). SBA received a request on December 18, 2008, to terminate the waiver to the nonmanufacturer rule for Warehouse Trucks and Tractors, Self-Propelled, under PSC 3930. In response, on February 12, 2009, SBA issued a notice of intent to terminate the wavier of the Nonmanufacturer Rule for Warehouse Trucks and Tractors, Self-Propelled. Comments were received from this notice and SBA has determined that there are small business manufacturers, and is therefore terminating the waiver for Warehouse Trucks and Tractors, Self-Propelled, PSC 3930, under NAICS code 333319.

Dated: March 10, 2009.

Karen C. Hontz,

Director for Government Contracting.