[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: 94-18066]


[[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 television receiving 
sets and compact disc players.

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SUMMARY: The Small Business Administration (SBA) is establishing a 
waiver of the Nonmanufacturer Rule for television receiving sets and 
compact disc players. The basis for a waiver for these classes of 
products is that there are no small business manufacturers or 
processors available to supply them to the Federal Government. The 
effect of these waivers 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 television receiving sets or compact disc players.

EFFECTIVE DATE: 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)(iv)(II), 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 15 class waivers of these 
Nonmanufacturer Rule, and sources were found for all but these 
remaining two classes: (1) Television receiving sets and (2) compact 
disc players.
    Regarding television receiving sets, the SBA sought small business 
sources by contacting the General Services Administration's Federal 
Supply Service in Fort Worth, Texas. The SBA also researched its 
Procurement Automated Source System (PASS) and the Thomas Register. In 
addition, SBA published a notice seeking potential sources in the May 
6, 1994, Commerce Business Daily and an intent to grant a class waiver 
in the April 22, 1994, Federal Register, 59 FR 19150. After a 15-day 
comment period, two comments were received received.
    Both comments regarded the existence of a small business 
manufacturer of health care televisions. These televisions are wall- or 
ceiling-mounted and are normally used in hospitals, nursing homes and 
dialysis facilities. Although health care televisions may be purchased 
and used by individuals in their homes, these televisions are not 
normally used in households for home entertainment. Two marketing firms 
for these televisions confirmed that these televisions are not 
considered household items and are not marketed to individuals for home 
entertainment. After reviewing the marketing information for health 
care televisions, it has become apparent that they are in a different 
category from household television receiving sets.
    Based on the absence of small business manufacturers, SBA is 
establishing a class waiver for television receiving sets (SIC code 
3651, PSC code 7730) pursuant to Section 8(a)(17)(B)(iv)(ii) of the 
Small Business Act, 15 U.S.C. 637(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 
household television receiving. This waiver will be in effect 
indefinitely, but is subject to review by SBA.
    Regarding compact disc players, the SBA sought small business 
sources by contacting the General Services Administration's Federal 
Supply Service in Fort Worth, Texas. The SBA also researched the PASS 
and the Thomas Register. In addition, SBA published a notice seeking 
potential sources in the May 9, 1994, Commerce Business Daily and an 
intent to grant a class waiver in the April 22, 1994, Federal Register, 
59 FR 19150. After a 15-day comment period, no comments were received.
    Based on the absence of small business manufacturers, SBA is 
establishing a class waiver for compact disc players (SIC code 3651, 
PSC code 7730) pursuant to the statutory authority cited above. 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 compact disc players. This waiver will be in 
effect indefinitely, but is subject to review by SBA.

    Dated: July 19, 1994.
Thomas A. Dumaresq,
Associate Administrator for Government Contracting.
[FR Doc. 94-18066 Filed 7-26-94; 8:45 am]
BILLING CODE 8025-01-M