E6-3353. Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY:

U.S. Small Business Administration.

ACTION:

Notice of intent to Waive the Nonmanufacturer Rule for Chemical and Allied Products.

SUMMARY:

The U.S. Small Business Administration (SBA) is considering granting a request for a waiver of the Nonmanufacturer Rule for Ammonia (except fertilizer material) merchant wholesalers; Chemical gases merchant wholesalers; Chemicals (except agriculture); Compressed gases (except LP gas) merchant wholesalers; Dry ice merchant wholesalers; Gases, compressed and liquefied (except liquefied petroleum gas), merchant wholesaler; Ice, dry, merchant wholesalers; Industrial chemicals merchant wholesalers; Liquefied gases (except LP) merchant wholesalers; Organic chemicals merchant wholesalers; and Welding gases merchant wholesalers.

According to the request, no small business manufacturers supply this class of products to the Federal government. If granted, the waiver would allow otherwise qualified regular dealers to supply the products of any domestic manufacturer on a Federal contract set aside for small businesses; service-disabled veteran-owned small businesses or SBA's 8(a) Business Development Program.

DATES:

Comments and source information must be submitted by March 24, 2006.

ADDRESSES:

You may submit comments and source information to Edith Butler, Program Analyst, U.S. Small Business Administration, Office of Government Contracting, 409 3rd Street, SW., Suite 8800, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT:

Edith Butler, Program Analyst, 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), requires that recipients of Federal contracts set aside for small businesses, service-disabled veteran-owned small businesses, or 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. The SBA regulations imposing this requirement are found at 13 CFR 121.406(b). 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.

As implemented in SBA's regulations at 13 CFR 121.1202(c), 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. 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).

The SBA is currently processing a request to waive the Nonmanufacturer Rule for Ammonia (except fertilizer material) merchant wholesalers; Chemical gases merchant wholesalers; Chemicals (except agriculture); Compressed gases (except LP gas) merchant wholesalers; Dry ice merchant wholesalers; Gases, compressed and liquefied (except liquefied petroleum gas), merchant wholesaler; Ice, dry, merchant wholesalers; Industrial chemicals merchant wholesalers; Liquefied gases (except LP) merchant wholesalers; Organic chemicals merchant wholesalers; and Welding gases merchant wholesalers North American Industry Classification System (NAICS) codes 424690. The public is invited to comment or provide source information to SBA on the proposed waiver of the Nonmanufacturer Rule for this class of NAICS code by March 24, 2006.

Dated: February 18, 2006.

Karen C. Hontz,

Associate Administrator for Government Contracting.