[Federal Register Volume 68, Number 131 (Wednesday, July 9, 2003)]
[Proposed Rules]
[Pages 40820-40821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17322]



13 CFR Part 121

Small Business Size Standards; Waiver of the Nonmanufacturer Rule

AGENCY: Small Business Administration.

ACTION: Notice of intent to terminate waiver of the Nonmanufactuer Rule 
for Small Arms Ammunition Manufacturing.


SUMMARY: The U.S. Small Business Administration (SBA) intends to 
terminate the waivers of the Nonmanufacturer Rule for Small Arms 
Ammunition Manufacturing. SBA's intent to terminate the waivers of the 
Nonmanufacturer Rule is based on our recent discovery of small business 
manufacturers for these classes of products. Terminating these waivers 
will require recipients of contracts set aside for small or 8(a) 
businesses to provide the products of small business manufacturers or 
processor on such contracts.

DATES: Comments must be received on or before July 31, 2003.

ADDRESS COMMENTS TO: Edith Butler, Program Analyst, U.S. Small Business 
Administration, 409 3rd Street, SW

[[Page 40821]]

Washington DC, 20416, Tel: (202) 619-0422.

FOR FUTHER INFORMATION CONTACT: Edith Butler, Program Analyst, (202) 
619-0422 FAX (202) 205-7280.

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 SBA's 8(a) Program 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 a six digit North American Industry 
Classification System (NAICS) and the four digit Product and Service 
Code established by the Federal Procurement Data System.
    SBA announced its decision to grant the waiver of Small Arms 
Ammunition Manufacturing, in the Federal Register on August 2, 2002. It 
was recently brought to SBA's attention by a small business 
manufacturer and SBA's Procurement Center Representatives that a small 
business manufacturer exists for items within this class of products. 
For this reason, SBA intends to terminate the waiver previously granted 
for Small Arms Manufacturing, identified under Product Service Code 
(PSC) 1305 and North American Industry Classification System (NAICS) 
    Based on the above information, this notice proposes to terminate 
the class waivers of the Nonmanufacturer Rule for Small Arms Ammunition 
Manufacturing, PSC 1305, NAICS 332992.
    The public is invited to comment to SBA on the proposed termination 
of the waivers of the nonmanufacturer rule for the class of products 
specified. All comments by the public will be duly considered by SBA in 
determining whether to finalize its intent to terminate these classes 
of products.

Linda G. Williams,
Associate Administrator for Government Contracting.
[FR Doc. 03-17322 Filed 7-8-03; 8:45 am]