[Federal Register Volume 69, Number 50 (Monday, March 15, 2004)]
[Notices]
[Page 12193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5706]


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SMALL BUSINESS ADMINISTRATION


Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY: Small Business Administration.

ACTION: Notice of termination of waiver of the Nonmanufacturer Rule for 
Small Arms Manufacturing.

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SUMMARY: The U.S. Small Business Administration (SBA) is terminating 
the waiver of the Nonmanufacturer Rule for Small Arms Manufacturing 
based on our recent discovery of small business manufacturers for this 
class of products. Terminating this waiver 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: This termination of waiver is effective on March 30, 2004.

FOR FURTHER INFORMATI0N CONTACT: Edith Butler, Program Analyst, by 
telephone at (202) 619-0422; by FAX (202) 205-7280; or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: Section 8(a)(17) of the Small Business Act 
(Act), 15 U.S.C. 637(a)(17), requires that recipients of Federal 
contracts set aside for small businesses or SBA's 8(a) Business 
Development Program provide the product of a small business 
manufacturer or processor, if the recipient is other than the actual 
manufacturer or processor of the product. 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 
8(a)(17)(b)(iv) of the Act authorizes SBA to waive the Nonmanufacturer 
Rule for any ``class of products'' for which there are no small 
business manufacturers or processors available to participate in the 
Federal market.
    As implemented in SBA's regulations at 13 CFR 121.1204, in order to 
be considered available to participate in the Federal market for a 
class of product, 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 the six digit North American Industry 
Classification System (NAICS) and the four digit Product and Service 
Code established by the Federal Procurement Data System.
    SBA granted a waiver of the Nonmanufacturer Rule for Small Arms 
Manufacturing, based on its determination that no small business 
manufacturers were available to participate in the Federal market for 
this class of products. It was recently brought to SBA's attention by 
small business manufacturers and a SBA Procurement Center 
Representative that small business manufacturers exist for items within 
the Small Arms Manufacturing class of products, identified under the 
NAICS 332994. In response, on October 29, 2003, SBA published in the 
Federal Register a notice of intent to terminate the waiver of the 
Nonmanufacturer Rule for Small Arms Manufacturing. SBA explained in the 
notice that it had discovered the existence of small business 
manufacturers of that class of products. SBA did not receive any 
comments in response to the published notice. Accordingly, based on the 
available information, SBA has determined that there are small business 
manufacturers of this class of products, and is therefore terminating 
the class waiver of the Nonmanufacturer Rule for Small Arms 
Manufacturing, NAICS 332994.

    Authority: 15 U.S.C. 637(a)(17).

    Dated: March 8, 2004.
Barry S. Meltz,
Acting Associate Administrator for Government Contracting.
[FR Doc. 04-5706 Filed 3-12-04; 8:45 am]
BILLING CODE 8025-01-P