[Federal Register Volume 63, Number 138 (Monday, July 20, 1998)]
[Rules and Regulations]
[Page 38742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19236]
[[Page 38742]]
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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: Notice to waive the Nonmanufacturer Rule for Towers, Telegraph
Apparatus, Turbines, Cellular Handsets and Telephones, Automobile Motor
Vehicles, Motor Trucks, and Radiotelephones.
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SUMMARY: This notice advises the public that the Small Business
Administration (SBA) is establishing a waiver of the Nonmanufacturer
Rule for Towers, Telegraph Apparatus, Turbines, Cellular Handsets and
Telephones, Automobile Motor Vehicles, Motor Trucks, and
Radiotelephones. 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: July 20, 1998.
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, (202) 205-6475.
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 Towers, Telegraph
Apparatus, Turbines, Cellular Handsets and Telephones, Automobile Motor
Vehicles, Motor Trucks, and Radiotelephones because of an apparent lack
of any small business manufacturers or processors for them within the
Federal market. The SBA searched its Procurement Marketing and Access
Network (PRO-net) for small business participants and found none. We
then published a notice in the Federal Register on April 23, 1998 (vol.
63, no. 78, p. 20139), of our intent to grant a waiver for these
classes of products unless new information was found. The proposed
waiver covered Towers, Telegraph Apparatus, Turbines, Cellular Handsets
and Telephones, Automobile Motor Vehicles, Motor Trucks, and
Radiotelephones. 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 Towers, Telegraph Apparatus, Turbines, Cellular Handsets
and Telephones, Automobile Motor Vehicles, Motor Trucks, and
Radiotelephones. This waiver is being granted pursuant to statutory
authority under section 303(h) of Public Law 100-656 for Towers,
Telegraph Apparatus, Turbines, Cellular Handsets and Telephones,
Automobile Motor Vehicles, Motor Trucks, and Radiotelephones. 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. 98-19236 Filed 7-17-98; 8:45 am]
BILLING CODE 8025-01-U
