[Federal Register Volume 63, Number 78 (Thursday, April 23, 1998)]
[Proposed Rules]
[Pages 20139-20140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10762]


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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: Notice of intent to waive the Nonmanufacturer Rule for towers, 
telephone and telegraph apparatus, electrical measuring and integrating 
instruments, engines and turbines, storage batteries, cellular handsets 
and telephones, automobile motor vehicles, motor trucks (except off-
highway), fuel, radiotelephones, and fiber optic cable.

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SUMMARY: The Small Business Administration (SBA) is considering 
granting a waiver of the Nonmanufacturer Rule for towers, telephone and 
telegraph apparatus, electrical measuring and integrating instruments, 
engines and turbines, storage batteries, cellular handsets and 
telephones, automobile motor vehicles, motor trucks (except off-
highway), fuel, radiotelephones, and fiber optic cable. The basis for a 
waiver of the Nonmanufacturer Rule for these products is that there are 
no small business manufacturers or processors available to supply these 
products to the Federal Government. The effect of a waiver would be to 
allow an otherwise qualified Nonmanufacturer to supply other than the 
product of a domestic small business manufacturer or processor on a 
Federal contract set aside for small businesses or awarded through the 
SBA 8(a) Program. The purpose of this notice is to solicit comments and 
potential source information from interested parties.

DATES: Comments and sources must be submitted on or before May 14, 
1998.

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

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 (SIC). 
The second is the Product and Service Code (PSC) established by the 
Federal Procurement Data System.
    The Small Business Administration is currently processing a request 
for a waiver of the Nonmanufacturer Rule for Electrical Measuring and 
Integrating Instruments (SIC 3825 PSC 5805), Storage Batteries (SIC 
3691), Fiber Optic Cable (SIC 3357 PSC 6015), Engines and Turbines (SIC 
3511,3519 PSC 2835), Automobile Motor Vehicles and Motor Trucks (SIC 
3711 PSC 2310 2320), Fuel

[[Page 20140]]

(SIC 2911), Towers, Telephone and Telegraph Apparatus (3661 PSC 5805), 
Cellular Handsets and Telephones (SIC 3663 PSC 5805). and invites the 
public to comment or provide information on potential small business 
manufacturers for this product.
    In an effort to identify potential small business manufacturers, 
the SBA has searched the Procurement Marketing and Access Network (PRO-
net) and Thomas Register, and the SBA will publish a notice in the 
Commerce Business Daily. The public is invited to comment or provide 
source information to SBA on the proposed waiver of the Nonmanufacturer 
Rule for this class of products.
Judith A. Roussel,
Associate Administrator for Government Contracting.
[FR Doc. 98-10762 Filed 4-22-98; 8:45 am]
BILLING CODE 8025-01-P