[Federal Register Volume 62, Number 86 (Monday, May 5, 1997)]
[Rules and Regulations]
[Page 24325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11555]



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  Federal Register / Vol. 62, No. 86 / Monday, May 5, 1997 / Rules and 
Regulations  

[[Page 24325]]


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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 power circuit breakers, 
current and potential transformers, autotransformer, and surge 
arresters.

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SUMMARY: This document advises the public that the Small Business 
Administration (SBA) is establishing a waiver of the Nonmanufacturer 
Rule for Power Circuit Breakers, Current and Potential Transformers, 
Autotransformer, and Surge Arresters. 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: May 5, 1997.

ADDRESSES: David Wm. Loines, Procurement Analyst, U.S. Small Business 
Administration, 409 3rd Street SW., Washington, DC 20416, Tel: (202) 
205-6475.

FOR FURTHER INFORMATION CONTACT:
David Wm. Loines, Procurement Analyst, (202) 205-6475, FAX (202) 205-
7324.

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 Power Circuit Breakers, 
Current and Potential Transformers, Autotransformer, and Surge 
Arresters because of an apparent lack of any small business 
manufacturers of processors for them within the Federal market. The SBA 
searched its Procurement Automated Source System (PASS) for small 
business participants and found none. We then published a document in 
the Federal Register on February 12, 1997, 62 FR 6499, of our intent to 
grant a waiver for these classes of products unless new information was 
found. The proposed waiver covered Power Circuit Breakers, Current and 
Potential Transformers, Autotransformer, and Surge Arresters. The 
document 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 Power Circuit Breakers, Current and Potential 
Transformers, Autotransformer, and Surge Arresters. This waiver is 
being granted pursuant to statutory authority under section 303(h) of 
Public Law 100-656 for Power Circuit Breakers, Current and Potential 
Transformers, Autotransformer, Surge Arresters. 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. 97-11555 Filed 5-2-97; 8:45 am]
BILLING CODE 8025-01-M