E9-18590. Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY:

U.S. Small Business Administration.

ACTION:

Notice of intent to terminate the Nonmanufacturer Rule for radio telephones, (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing) Product Service Code (PSC) 5805 under North American Industry Classification System 334220.

SUMMARY:

The U.S. Small Business Administration (SBA) intends to terminate a waiver of the Nonmanufacturer Rule for radio telephones based on SBA's recent discovery of a small business manufacturer. 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.

DATES:

Comments and source information must be submitted August 19, 2009.

ADDRESSES:

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

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), and 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) BD 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. The SBA defines “class of products” based on the NAICS. In addition, SBA uses PSCs to identify particular products within the NAICS code to which a waiver would apply.

SBA announced its decision to grant the waiver for radio telephones, in the Federal Register on July 20, 1998 63 FR 38742. SBA recently became aware of the existence of a small business manufacturer for this item. For this reason, SBA intends to terminate the waiver previously granted for radio telephones, identified under PSC 5805, and NAICS code 334220.

The public is invited to comment to SBA on the proposed termination of the waiver of the Nonmanufacturer Rule for this class of product specified. All comments by the public will be duly considered by SBA in determining whether to finalize its intent to terminate this class of product.

Dated: July 29, 2009.

James A. Gambardella,

Acting Director, Office of Government Contracting.