[Federal Register Volume 59, Number 143 (Wednesday, July 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18068]
[[Page Unknown]]
[Federal Register: July 27, 1994]
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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 office copiers.
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SUMMARY: The Small Business Administration (SBA) is establishing a
waiver of the Nonmanufacturer Rule for office copiers. The basis for a
waiver for office copiers is that there are no small business
manufacturers or processors available to supply them to the Federal
Government. The effect of this waiver is to allow otherwise qualified
regular dealers 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 for office copiers.
EFFECTIVE DATES: July 27, 1994. This class waiver applies to all
solicitations dated on or after July 27, 1994.
FOR FURTHER INFORMATION CONTACT:
James Parker, Procurement Analyst, U.S. Small Business Administration,
409 3rd Street, SW., Washington, DC 20416, Tel: (202) 205-6465.
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 must provide the products 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 which implement
this requirement are found at 13 CFR 121.906(b) and 121.1106(b).
Section 8(a)(17)(B)(vi)(II) of the Small Business Act, 15 U.S.C.
637(a)(17)(B)(iv)(II), provides for waiver of this requirement by SBA
for any ``class of products'' for which there are no small business
manufacturers or processors available to participate in the Federal
procurement market. To be considered available to participate in the
Federal procurement 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, and the second is the
Product and Service Code established by the Federal Procurement Data
System.
The SBA was originally asked to process a request for a class
waiver of the Nonmanufacturer Rule for copiers. After discussions with
the General Services Administration's Office of Scientific Equipment
Commodity Center, this was modified to be copiers/duplicating
equipment. The SBA then searched the Procurement Automated Source
System (PASS) and Thomas Register and published a notice seeking
potential sources in the Commerce Business Daily. In addition, SBA
published a notice of intent to grant a class waiver of the
Nonmanufacturer Rule in the March 15, 1994, Federal Register, 59 FR
11938 (1994). After a 15-day comment period, two comments were
received. Both comments regarded the existence of a small business
manufacturer of duplicators.
The comment from a Federal agency informed SBA of the existence of
a small business which manufactures office duplicators. The second
comment was from a small business manufacturer of spirit duplicators
and stencil/mimeograph duplicators, which they routinely provide to the
Federal Government. Their duplicators use liquid ink and spirit fluid
to produce duplicates, and when compared with office copiers, their
duplicators are slow and labor intensive. Due to their speed and labor
intensive nature, these duplicators tend to be marketed primarily to
churches and schools, and are intended for relatively low volume work.
The firm's marketing representative informed SBA that these duplicators
are not in direct competition with office copiers.
After reviewing the marketing information for these duplicators, it
became apparent that these products are in a different category than
office copiers. For these reasons, the class of products which is being
waived from the Nonmanufacturer Rule is more narrowly defined to
include only office copiers. All types of duplicating equipment are
excluded from this class waiver.
Based on the above information, SBA is establishing a waiver for
office copiers (SIC code 3579, PSC code 3610) pursuant to Section
8(a)(17)(B)(iv)(II) of the Small Business Act, 15 U.S.C.
636(a)(17)(B)(iv)(II). The effect of this class waiver is to allow
otherwise qualified regular dealers 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 for office copiers.
This waiver will be in effect indefinitely, but is subject to periodic
review by the SBA.
Dated: July 19, 1994.
Thomas A. Dumaresq,
Associate Administrator for Government Contracting.
[FR Doc. 94-18068 Filed 7-26-94; 8:45 am]
BILLING CODE 8025-01-M
