[Federal Register Volume 67, Number 173 (Friday, September 6, 2002)]
[Rules and Regulations]
[Pages 56928-56929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22649]



13 CFR Part 121

Small Business Size Standards; Waiver of the Nonmanufacturer Rule

AGENCY: Small Business Administration.

ACTION: Final decision to waive the nonmanufacturer rule.


SUMMARY: This document advises the public that the U.S. Small Business 
Administration (SBA) is establishing a waiver of the Nonmanufacturer 
Rule for Small Arms Ammunition Manufacturing. The basis for waivers 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 
business or awarded through the SBA 8(a) Program.

EFFECTIVE DATE: September 6, 2002.

FOR FURTHER INFORMATION CONTACT: Edith Butler, Program Analyst, U.S. 
Small Business Administration, 409 3rd Street, SW., Washington DC 20416 
Tel: (202) 619-0422.

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 
business or 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) and 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 six digit coding 
systems. The North American Industry Classification System (NAICS) 
replaced the Standard Industrial Classification (SIC) code. The second 
is the Product and Service Code established by the Federal Procurement 
Data System.
    This document waives the Nonmanufacturer Rule for Small Arms

[[Page 56929]]

Ammunition Manufacturing, North American Industry Classification System 
(NAICS) 332992.
    Documents proposing to waive the nonmanufacturer rule for Small 
Arms Ammunition Manufacturing was published in the Federal Register 
June 7, 2002 (66 FR 39311) and on August 2, 2002 (66 FR 50383). No 
comments were received.

Linda G. Williams,
Associate Administrator for Government Contracting.
[FR Doc. 02-22649 Filed 9-5-02; 8:45 am]