[Federal Register Volume 70, Number 171 (Tuesday, September 6, 2005)]
[Notices]
[Page 53038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-17585]


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SMALL BUSINESS ADMINISTRATION


Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY: Small Business Administration.

ACTION: Notice to terminate waiver of the Nonmanufacturer Rule for 
Sporting and Athletic Goods Manufacturing.

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SUMMARY: The U.S. Small Business Administration (SBA) is terminating 
the waiver of the Nonmanufacturer Rule for Sporting and Athletic Goods 
Manufacturing based on our recent discovery of a small business 
manufacturer for this class of products. Terminating this waiver will 
require recipients of contracts set aside for small businesses, 
service-disabled veteran-owned small businesses, or SBA's 8(a) Business 
Development Program to provide the products of small business 
manufacturers or processors on such contracts.

DATES: This waiver is effective September 20, 2005.

FOR FURTHER INFORMATION CONTACT: Edith Butler, Program Analyst, by 
telephone at (202) 619-0422; by FAX at (202) 481-1788; 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, service-disabled veteran-
owned 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 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 first coding 
system is the Office of Management and Budget North American Industry 
Classification System (NAICS). The second is the Product and Service 
Code established by the Federal Procurement Data System.
    The SBA received a request on July 15, 2004 to waive the 
Nonmanufacturer Rule for Sporting and Athletic Goods Manufacturing. In 
response, on July 30, 2004, SBA published in the Federal Register a 
notice of intent to the waiver of the Nonmanufacturer Rule for Sporting 
and Athletic Goods Manufacturing. SBA explained in the notice that it 
was soliciting comments and sources of small business manufacturers of 
this class of products. In response to this notice, comments were 
received from interested parties. SBA had determined from these sources 
that there were no small business manufacturers of this class of 
products, and therefore granted the waiver of the Nonmanufacturer Rule 
for Sporting and Athletic Goods Manufacturing, NAICS 339920.
    Recently, SBA discovered the existence of a small business 
manufacturer of this class of products. Accordingly, based on the 
available information, SBA has determined that there is a small 
business manufacturer of this class of products, and is therefore 
terminating the class waiver of the Nonmanufacturer Rule for Sporting 
and Athletic Goods Manufacturing, NAICS 339920.

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

    Dated: August 25, 2005.
Nancyellen Gentile,
Acting Associate Administrator for Government Contracting.
[FR Doc. 05-17585 Filed 9-2-05; 8:45 am]
BILLING CODE 8025-01-P