[Federal Register Volume 63, Number 138 (Monday, July 20, 1998)]
[Rules and Regulations]
[Page 38742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19236]



[[Page 38742]]

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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 to waive the Nonmanufacturer Rule for Towers, Telegraph 
Apparatus, Turbines, Cellular Handsets and Telephones, Automobile Motor 
Vehicles, Motor Trucks, and Radiotelephones.

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SUMMARY: This notice advises the public that the Small Business 
Administration (SBA) is establishing a waiver of the Nonmanufacturer 
Rule for Towers, Telegraph Apparatus, Turbines, Cellular Handsets and 
Telephones, Automobile Motor Vehicles, Motor Trucks, and 
Radiotelephones. 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: July 20, 1998.

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

FOR FURTHER INFORMATION CONTACT: David Wm. Loines, (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. 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 Towers, Telegraph 
Apparatus, Turbines, Cellular Handsets and Telephones, Automobile Motor 
Vehicles, Motor Trucks, and Radiotelephones because of an apparent lack 
of any small business manufacturers or processors for them within the 
Federal market. The SBA searched its Procurement Marketing and Access 
Network (PRO-net) for small business participants and found none. We 
then published a notice in the Federal Register on April 23, 1998 (vol. 
63, no. 78, p. 20139), of our intent to grant a waiver for these 
classes of products unless new information was found. The proposed 
waiver covered Towers, Telegraph Apparatus, Turbines, Cellular Handsets 
and Telephones, Automobile Motor Vehicles, Motor Trucks, and 
Radiotelephones. The notice 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 Towers, Telegraph Apparatus, Turbines, Cellular Handsets 
and Telephones, Automobile Motor Vehicles, Motor Trucks, and 
Radiotelephones. This waiver is being granted pursuant to statutory 
authority under section 303(h) of Public Law 100-656 for Towers, 
Telegraph Apparatus, Turbines, Cellular Handsets and Telephones, 
Automobile Motor Vehicles, Motor Trucks, and Radiotelephones. 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. 98-19236 Filed 7-17-98; 8:45 am]
BILLING CODE 8025-01-U