[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: 94-18069]


[[Page Unknown]]

[Federal Register: July 27, 1994]


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SMALL BUSINESS ADMINISTRATION
13 CFR Part 121

 

Small Business Size Standards; Termination of Waiver of the 
Nonmanufacturer Rule

AGENCY: Small Business Administration.

ACTION: Termination of waivers of the Nonmanufacturer Rule for two 
classes of metal products and the retention of waivers for five classes 
of metal products.

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SUMMARY: The first purpose of this document is to announce that the 
Small Business Administration (SBA) is terminating the waiver of the 
Nonmanufacturer Rule for: (1) Bars and rods, high nickel alloy, 
aluminum, nickel-copper, nickel-copper-aluminum, copper, copper-nickel, 
aluminum-bronze, and naval brass; and (2) Structural shapes, angles, 
channels, tees and zees, aluminum and high nickel alloy. The decision 
to terminate these waivers of the Nonmanufacturer Rule is based on 
evidence provided to the SBA that there is a small business which 
manufactures items within these classes of products. This small 
business is available to provide items within each class to the Federal 
government. Terminating these waivers will require recipients of 
contracts set aside for small or 8(a) businesses to provide the 
products of domestic small business manufacturers or processors where 
these classes of products are required.
    The second purpose of this document is to announce that SBA is 
retaining class waivers for: (1) Bars and rods, high nickel alloy; (2) 
plate sheet, strip and foil, stainless steel and high nickel alloy; (3) 
wire, nonelectrical, high nickel alloy; (4) plate, sheet and strip, 
nickel-copper, nickel-copper-aluminum, copper-nickel, and copper; and 
(5) sheet and plate aluminum products. The effect of retaining these 
class waivers is that small businesses which receive either small 
business set-aside or SBA 8(a) Program contracts for these products 
awards may provide the products of any domestic manufacturer or 
processor.

EFFECTIVE DATE: July 27, 1994. The terminations effectuated by this 
notice apply to all solicitations dated on or after October 25, 1994.

FOR FURTHER INFORMATION CONTACT:
James Parker, Procurement Analyst, phone (202) 205-6465.

SUPPLEMENTARY INFORMATION: Public Law 100-656, enacted on November 15, 
1988, incorporated into the Small Business Act the previously existing 
requirement that recipients of Federal contracts set aside for small 
businesses or the SBA 8(a) Program must provide the products of small 
business manufacturers or processors. The SBA regulations imposing this 
requirement are found at 13 CFR 121.906(b) and 121.1106(b).
    Section 210 of Public Law 101-574 further amended the Small 
Business Act to allow for waivers for classes of products for which 
there are no small business manufacturers or processors ``available to 
participate in the Federal procurement market,'' 15 U.S.C. 
637(a)(17)(B)(iv)(II).
    Decision to terminate two class waivers:
    1. SBA announced its decision to grant a class waiver for bars and 
rods, high nickel alloy, aluminum, nickel-copper, nickel-copper-
aluminum, copper, copper-nickel, aluminum-bronze, and naval brass in 
the Federal Register on May 15, 1991, 56 FR 22306. Recently, the 
Defense Logistics Agency's (DLA) Defense Industrial Supply Center 
(DISC) brought to SBA's attention the existence of a small business 
manufacturer for items within this class of products. Based on this 
information, a notice of the Agency's intent to terminate this waiver 
and waivers for six other classes of products was published in the 
Federal Register on January 10, 1994, 59 FR 1360. The notice allowed 
thirty days for a comment period.
    The comments received from the small businesses and DLA were 
similar to each other. They agreed that a small business exists which 
manufactures items in this class of products. However, they believed 
they may not be able to supply all of their potential procurement 
requirements with items manufactured by the small business.
    According to the SBA's published regulations, 58 FR 48954 (1993), 
``(u)pon receipt by the SBA of evidence that a small business 
manufacturer or processor exists in the Federal market for a waived 
class of products, the waiver shall be terminated by the Associate 
Administrator for (Government Contracting).'' Based on this regulation, 
the SBA is required to terminate the class waiver for this class of 
products.
    Therefore, the waiver previously granted for bars and rods, high 
nickel alloy, aluminum, nickel-copper, nickel-copper-aluminum, copper, 
copper-nickel, aluminum-bronze, and naval brass (Product and Service 
Code (PSC) 9530, Standard Industrial Classification Code (SIC) 3356) is 
terminated, effective ninety days from the date of this notice. Small 
business set-aside or SBA 8(a) Program contracts for this class of 
products may rely on this waiver where the solicitation is dated before 
the ninetieth day after the date of the Federal Register publication of 
this termination.
    2. SBA announced its decision to grant the waiver for structural 
shapes, angles, channels, tees and zees, aluminum and high nickel alloy 
in the Federal Register on May 15, 1991, 56 FR 22306. The DISC brought 
to SBA's attention the existence of a small business manufacturer for 
items within this class of products. Based on this information, a 
notice of the Agency's intent to terminate this waiver was published in 
the Federal Register on January 10, 1994, 59 FR 1360. The notice 
allowed thirty days for a comment period.
    The comments received from the small businesses and DLA were 
similar to each other. They agreed that a small business exists which 
manufactures items in this class of products. However, they believed 
they may not be able to supply all of their potential procurement 
requirements with items manufactured by the small business.
    According to the SBA's published regulations, 58 FR 48954 (1993), 
``(u)pon receipt by the SBA of evidence that a small business 
manufacturer or processor exists in the Federal market for a waived 
class of products, the waiver shall be terminated by the Associate 
Administrator for (Government Contracting).'' Based on this regulation, 
the SBA is required to terminate the class waiver for this class of 
products.
    Therefore, the waiver previously granted for structural shapes, 
angles, channels, tees and zees, aluminum and high nickel alloy (PSC 
9540, SIC 3354) is terminated, effective ninety days from the date of 
this notice. Small business set-aside or SBA 8(a) Program contracts for 
this class of products may rely on this waiver where the solicitation 
is dated before the ninetieth day after the date of the Federal 
Register publication of this termination.
    Retention of five class waivers:
    The second part of this announcement addresses the decision to 
retain waivers for five classes of products which were proposed for 
termination in the Federal Register on January 10, 1994, 59 FR 1360. 
Those five classes are: (1) Bars and rods, high nickel alloy (PSC 9510, 
SIC 3312); (2) Plate, sheet, strip and foil, stainless steel and high 
nickel alloy (PSC 9515, SIC 3312); (3) Wire, nonelectrical, high nickel 
alloy (PSC 9525, SIC 3356); (4) Plate, sheet and strip, nickel-copper, 
nickel-copper-aluminum, copper-nickel, and copper (PSC 9535, SIC 3353); 
and (5) Sheet and plate aluminum products (PSC 9535, SIC 3353).
    The SBA originally announced its decision to grant class waivers of 
the Nonmanufacturer Rule for these five classes of products in the 
Federal Register on May 15, 1991, 56 FR 22306. While researching SBA's 
Procurement Automated Source System (PASS) on a related issue, SBA 
became aware of the possible existence of small business manufacturers 
for items within each of these classes of products. After the Federal 
Register announcement on January 10, 1994, of an intent to terminate 
these classes of products, the SBA received comments from several small 
businesses and DLA regarding this matter. All parties urged that SBA 
not terminate waivers for these five classes of products on the basis 
that doing so would adversely affect both the Federal procurement 
process for these items and the existing suppliers for those products. 
Also, we learned that the production capabilities of the small business 
manufacturers of these products is severely limited in quantity and 
product type. Based on these comments, the SBA will retain the class 
waivers for these classes of products.

    Dated: July 19, 1994.
Thomas A. Dumaresq,
Associate Administrator for Government Contracting.
[FR Doc. 94-18069 Filed 7-26-94; 8:45 am]
BILLING CODE 8025-01-M